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19 March 2024

Worker gratuity 'must not be compromised'

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By Staff

Workers quitting their employers must get their end-of-service allowance as an acquired right that must not be compromised by any party, the UAE’s top Islamic legislation body has said.

The Fatwa and Legislation Department at the Ministry of Justice was responding to a query by a public establishment on whether it should provide gratuity to some employees who had been appointed under an external contract.

According to the Sharjah-based daily 'Al Khaleej', the unnamed establishment modified the terms of the contract and wages for those employees at the request of the government’s Auditing Office, leading to the omission of gratuity.

“Gratuity is an acquired right for every employee…it must not be compromised even if the contract stipulates otherwise,” the Department said.

“All employees and workers are entitled for end of service allowance based on their basic monthly salary for each year of service.”

The law was clarified in the case where a government body appointed employees according to the external recruiting contracts, which stipulates that the body will pay them monthly salary that includes basic salary, housing allowance, transportation allowance and cost of living allowance apart from the end-of-service gratuity, reported 'Al Khaleej'.

However, two years later the body received notes from the Court of Audit that claimed there were differences in allowances for non-citizens. It called for abolition of the article which stipulates paying the end-of-service gratuity.

Following that the body revised the contracts of the employees and were given comprehensive salaries every month.

The decision sparked controversy, and employess began questioning the advice of Fatwa and Legislation Department at the Ministry of Justice on the payment end of service benefits and the legitimacy of deducting retroactive allowances.