End of service benefits for workers in the private sector (2023)

End of service benefits under full time contracts

  • UAE nationals

End of service benefits for Emiratis working in the private sector will be in accordance with the legislation regulating the pensions and social securities in the UAE.

As per Article 51 of the UAE Labour Law, end of service benefits for foreign workers working in the private sector will be as follows:

(Video) How to calculate your end of service benefits, for workers in private sector Kuwaiti Law

  • The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service.
  • The end of service gratuity is calculated on basis of last wage which the worker was entitled to, namely the basic salary. Hence, it will not include allowances such as housing, conveyance, utilities, furniture etc.
  • If the worker owes any money to the employer, the employer may deduct the amount from the worker's gratuity.
  • All end of service entitlements must be paid within 14 days from the contract’s end date.

Calculations for gratuity pay

A worker who has spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service and the gratuity shall be calculated as follows:

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  • If a worker has served for less than 1 year, he is not entitled to any gratuity pay.
  • If a worker has served for more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days' salary for each year of work.
  • If a worker has served more than 5 years, he is entitled to full gratuity of 30 days' salary for each year of work following the first five years.

In all cases, the total gratuity shall not exceed the wage of two years.

Under other types of employment

As per Article 30 of the Cabinet Resolution No. 1 of 2022on the Implementation of the Regulation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Labour Relations, the end of service benefits for workers in part time contracts or other types of work arrangements are calculated pursuant to the following:

The number of working hours in the employment contract per year divided by the number of working hours in the full time contract per year multiplied by 100 equal to the percentage on which the end of service benefit should be calculated. Then this percentage should be multiplied by the value of the end of service benefit due for the full time contract.

(Video) Cases in which workers are deprived from their end of service benefits according to Kuwait labor law

End of service benefits for workers in the private sector (1)

Find more provisions about the entitlements of the workers in Article 51, 52 and 53 of theFederal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector,the ‘UAE Labour Law’.

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Useful links from Ministry of Human Resources and Emiratisation:

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What happens when my 12 weeks of FMLA is exhausted? ›

When employees exhaust twelve weeks of FMLA leave and still cannot return to work due to their own medical impairment, the employer may have an obligation under the ADA to grant additional unpaid leave as a reasonable accommodation, in some situations.

What are the four major types of employee benefits answers? ›

4 Major Types Of Employee Benefits
  • Health Insurance.
  • Life Insurance.
  • Short-Term and Long-Term Disability.
  • Retirement Plans.
Nov 30, 2020

What are examples of fringe benefits commonly provided by private sector employers to full time employees? ›

Common types of voluntary fringe benefits
  • Paid time off. Some employers may offer paid vacations and holidays. ...
  • Employee stock options. ...
  • Retirement planning services. ...
  • Disability insurance and life insurance. ...
  • Tuition assistance. ...
  • Gym memberships.
Aug 30, 2022

Can you terminate an employee after FMLA is exhausted? ›

A: No, FMLA leave provides employees with job protection and protection against behavior that can be seen as “penalizing” someone for taking leave. For example, an employer cannot demote, fire, or harass an employee when they return from FMLA leave.

How do you explain the rolling 12-month period for FMLA? ›

Under the ''rolling'' 12-month period, each time an employee takes FMLA leave, the remaining leave entitlement would be the balance of the 12 weeks which has not been used during the immediately preceding 12 months.

What are the three most sought after employee benefits? ›

Fitness perks.

After all, there are baseline employee benefits that most industry experts say are needed to attract talent competitively: healthcare, paid time off, and possibly a retirement savings option.

What are the top 3 most sought after employee benefits? ›

Most Desirable Benefits According to Employees

If you want your benefits package to remain competitive, you'll want to offer health insurance, some disability and life insurance, and probably a retirement plan, such as a 401(k).

What are the three 3 most important benefits an employer can give to an employee and why? ›

Health insurance, flexible hours, and vacation time. In today's hiring market, a generous benefits package is essential for attracting and retaining top talent.

What are 3 important fringe benefits? ›

Some of the most common examples of fringe benefits are health insurance, workers' compensation, retirement plans, and family and medical leave. Less common fringe benefits might include paid vacation, meal subsidization, commuter benefits, and more.

What are 5 examples of fringe benefits? ›

These benefits may include the following:
  • Paid time off (PTO)
  • Health care coverage.
  • Corporate gym memberships.
  • Employee gym memberships.
  • Free meals.
  • Discounts on products or services.
  • A company car allowance.
  • Tuition reimbursement.

What are 8 examples of fringe benefits? ›

These include health insurance, life insurance, tuition assistance, childcare reimbursement, cafeteria subsidies, below-market loans, employee discounts, employee stock options, and personal use of a company-owned vehicle.

What are the 5 types of employee benefits? ›

The most common benefits are medical, disability, and life insurance; retirement benefits; paid time off; and fringe benefits.

What is the most common employee benefit? ›

The most common type of employee benefit is health insurance. Corporations, small businesses and even non-profit organizations offer health insurance for their employees. The health insurance provider, the details of the policy and the amount of coverage are usually decided upon by the company.

What are employee benefits claims examples? ›

Life, accident, dental, vision, mental, and other health benefits. Pension, profit-sharing, and stock ownership. Additional benefits such as tuition assistance, vacation plans, maternity leave, and retirement plans.

What is the longest you can take FMLA? ›

The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.

What happens when you run out of PTO and get sick? ›

If you do grant PTO, and an employee uses all of their PTO, you are not required to pay for any additional time taken off for sickness, health-related issues, or any other reason.

What should employers do when workers exhausted FMLA leave? ›

Communicating with the employee about his or her leave status is important, Devitt said. Significantly, the employer must notify the employee when FMLA ends. "This creates an opportunity to discuss next steps and often leads to a discussion about the employee's expected work status," she said.

Is an employee entitled to more than 12 weeks of FMLA leave if he or she has multiple qualifying reasons? ›


An employee is entitled to up to 12 workweeks of FMLA leave for most qualifying reasons or up to 26 workweeks of FMLA leave for military caregiver leave. The employee's actual workweek is the basis for determining the employee's FMLA leave entitlement.

Can you take FMLA twice in one year for different reasons? ›

As long as you have qualifying medical conditions and are otherwise eligible, you can take FMLA leave twice a year for two different conditions as long as the total amount of leave is less than 12 weeks.

How many hours is 12 weeks of FMLA? ›

FMLA provides up to 12 weeks of leave. A week is determined by the number of hours you normally work. Leave taken as full weeks: An employee who works 35 hours per week is entitled to 12 weeks of leave, which would total 420 hours (35 x 12), not 480 (40 x 12) hours.

What is a good employee benefits package? ›

Company holidays, personal days, sick leave, and other time off from work. Retirement and pension plan contributions. Tuition assistance or reimbursement for employees and/or their families. Discounts on company products and services; housing.

What industry has best employee benefits? ›

Typical incomes in a field are one good indicator: high-paying fields like finance and insurance or professional, scientific, and technical services both have among the highest rates of access to benefits. But other industries like utilities and manufacturing also rank highly for benefits.

What are 3 benefits besides salary that comes in a compensation package? ›

Compensation packages can include benefits such as vacation time, paid holidays, sick time, health insurance, dental or vision insurance, life insurance, stock ownership plans, pension plans and many other options. These forms of compensation are valued in different ways by both the employer and employee.

What are high value discretionary benefits to employees? ›

The typical list of discretionary benefits includes sick leave, health insurance, maternity leave, pension plans, vacation leave, prescription drug insurance, and life insurance. However, there are other types of discretionary benefits that many employers use to benefit both the employee and the company.

What are six examples of fringe benefits? ›

16 examples of fringe benefits
  • Employee stock options. ...
  • Transportation assistance. ...
  • Free or discounted meals. ...
  • Free gym membership. ...
  • Tuition reduction or assistance. ...
  • Life, dental, or vision insurance. ...
  • Childcare reimbursement. ...
  • Company-owned vehicle.
Nov 6, 2022

What are the benefits of bonuses? ›

For the employee, the main benefits of bonuses/cash incentives over consolidated salary increases are:
  • Greater control over their level of remuneration.
  • Higher payments are potentially possible.
  • The bonus can be received in one go.

Is PTO a fringe benefit? ›

Fringe benefits are allowances and services provided by employers to their employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave (vacation, family-related, sick or military), employee insurance, pensions, and unemployment benefit plans.

What are employee benefits defined as overall? ›

Employee benefits are any kind of tangible or intangible compensation given to employees apart from base wages or base salaries. This employee benefits definition points to examples of job benefits such as insurance (including medical, dental, life), stock options and cell phone plans.

What is an example of a fringe benefit made to full time employees? ›

A fringe benefit is a form of pay for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work.

What are three examples of excluded fringe benefits? ›

Nontaxable fringe benefits
  • Accident and health benefits.
  • Achievement awards.
  • Adoption assistance (only exempt from federal income tax)
  • Athletic facilities.
  • De minimis (minimal) benefits.
  • Dependent care assistance.
  • Educational assistance program.
  • Employee discounts.
Dec 15, 2021

How does fringe pay work? ›

Fringe benefits explained

The IRS classifies any non-wage form of employee compensation as a fringe benefit. For example, giving an employee a business vehicle for work purposes would be a fringe benefit. Contract workers could also receive fringe benefits if they perform services for your business.

What is a qualified working condition fringe benefit? ›

What is the working condition fringe benefit? The working condition benefit is a type of fringe benefit employers offer employees. Working condition benefits include property and services employers provide to employees so they can perform their jobs.

How do you calculate fringe benefits? ›

How to Calculate The Rate. The good news is that calculating the fringe benefit rate is very easy to do. All you need to do is add the total cost of the benefits and payroll taxes the employee receives. Next, divide that number by the wages or salary the employee earns in a year.

What benefits do employees want most 2023? ›

Employer-covered health care is the most important benefit to employees in 2023, according to a new poll from Forbes Advisor. Offerings of life insurance, pension and retirement plans, mandatory paid time off and mental health assistance rounded out employees' top preferred benefits, respectively.

What is an example of an employee compensation and benefits package? ›

There are many different perks and benefits that companies offer, but here are the most common items included in compensation packages: Salary/hourly wage, bonuses, and/or commissions. Retirement savings plan. Medical, dental, vision, life, and disability insurance.

What is an example of a benefit package? ›

Employee Benefits Package Examples

401K plan with employer matching. Medical, dental and vision insurance with a range of coverage/co-pay options for employees. $100/month gym or fitness reimbursement. 10 days paid time off annually.

What are examples of benefits in compensation? ›

Sample compensation and benefits package
  • Salary details.
  • Health insurance offerings (medical, dental, vision)
  • Life insurance.
  • Parental leave.
  • Stock options.
  • Retirement plans.
  • Vacation and sick time.
  • Overtime pay.

What is an example of a benefit plan? ›

For example, a defined benefit plan might provide an employee with a benefit of $50 per year of service. For example, an employee who has worked for the company for 20 years would receive a benefit of $1,000 per month upon retirement.

What may an employer that violates the FMLA be required to provide damages to? ›

An employer that violates the FMLA can be required to provide the following remedies: 1. Damages to COMPENSATE the employee for the lost wages and benefits denied compensation, and actual monetary losses (such as the cost of providing for care of a family member).

What does it mean when leave is exhausted? ›

Exhaustion of Leave a. An employee who is absent from duty because of sickness or administratively approved emergency leave, and who has exhausted all leave entitlement and is still unable to return to duty, may use vacation, comp time or other available paid leave until it has been exhausted. Sample 1.

Can FMLA exceed 480 hours? ›

FMLA provides up to 12 weeks of leave. A week is determined by the number of hours you normally work. Leave taken as full weeks: An employee who works 35 hours per week is entitled to 12 weeks of leave, which would total 420 hours (35 x 12), not 480 (40 x 12) hours.

How many days is 480 hours for FMLA? ›

For example, 12 weeks of FMLA for an employee who works five-day workweeks equals 60 days. If an employee normally works 40 hours per week with occasional exceptions, that's 480 hours of FMLA leave.

How long can you take a leave of absence from work? ›

An FMLA leave allows employees to take up to 12 weeks off in a 12-month period. If their absence is not protected by the Family and Medical Leave Act (FMLA), then it's considered a non-FMLA medical leave.

What is a good excuse for FMLA? ›

You may take FMLA leave to care for your spouse, child or parent who has a serious health condition, or when you are unable to work because of your own serious health condition. 4) pregnancy (including prenatal medical appointments, incapacity due to morning sickness, and medically required bed rest).

Can you check work email while on FMLA? ›

What to Do with Email When the Employee Is on FMLA Leave. When an employee goes out on continuous (not intermittent) leave under the Family and Medical Leave Act (or analogous state law), the employer must decide whether to turn off the employee's email access during the leave.

Can I take FMLA multiple times? ›

A: Yes. An employee is allowed 12 weeks of FMLA protected leave in a 12 month time period. An employee could be covered for multiple claims as long as the total FMLA coverage does not exceed 12 weeks in a 12 month period and the employee has worked 1250 hours in the preceding 12 months of the request.

What are the rules around FMLA? ›

In order to be eligible to take leave under the FMLA, an employee must (1) work for a covered employer, (2) work 1,250 hours during the 12 months prior to the start of leave, (3) work at a location where 50 or more employees work at that location or within 75 miles of it, and (4) have worked for the employer for 12 ...

Can you have both intermittent and continuous FMLA? ›

The FMLA entitles eligible employees to both “intermittent” leave and, when medically necessary, “continuous” leave.

What is an example of intermittent leave? ›

Intermittent Leave means leave taken in separate periods of time due to a single Qualifying Reason, rather than for one continuous period of time. Examples of Intermittent Leave include leave taken on an occasional basis for medical appointments or leave taken several days at a time spread over a period of months.


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