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05 December 2023

End-of-service benefits for expats in UAE federal institutions based on contracts

By Staff

Expatriates working in federal departments are not entitled to return tickets upon end of service unless it is mentioned in the employment contract, according to the Federal Authority for Government Human Resources (FAHR).

Non-Emirati employees are also not eligible for shipping cost if their contracts are cancelled, reported Al Khaleej.

FAHR was responding to an inquiry of an expat female staff of one of the federal ministries. She said that she was appointed according to the contract category ‘A’, and added that her contract does not show if her end-of-service package includes air tickets and freight charges.

FAHR said that employees who have not completed one continuous year with any ministry are not entitled to end-of-service gratuity. However, they are entitled to avail leave allowances that are not used until their last day in service.

FAHR explained how end-of-service gratuity is calculated for non-Emirati employees: They are entitled for one-month basic salary for each year of service for the first five years; then one-and-a-half-month of basic salary of the next five years of services; followed by two months of basic salary for each year of service thereafter.

Meanwhile, FAHR said that staff working in departments that have not adopted the FAHR regulation, will have to follow their in-house end-of-service rules. Only once the departments adopt FAHR regulations are the benefits calculated thus.

As for Emirati employees, FAHR said, that end-of-service benefits are calculated in accordance with the provisions of the law of pensions and social insurance. Also, their gratuity is calculated on the basis of the last basic salary drawn.

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