Dubai’s Newest End-of-Service Scheme: Everything you need to know!

In case you missed it this week, there's been a significant development in the UAE's employment landscape, aimed at safeguarding the rights of workers across the country. 

This scheme, known as the end-of-service gratuity scheme, is designed to ensure financial security and peace of mind for a wide range of employees.

Inclusivity Across Sectors: This new UAE end-of-service scheme is inclusive, covering employees from various sectors, including the public sector, private sector, and dynamic free zones. It's a move towards providing financial security for a diverse workforce.

Understanding Gratuity: Gratuity is a lump-sum payment that you receive at the end of your employment, based on your final basic salary. It serves as a token of appreciation for your service and often acts as a valuable financial resource during transitions.

Greater Flexibility in Gratuity: The new UAE end-of-service scheme brings in a breath of fresh air regarding gratuity. Instead of the traditional one-size-fits-all approach, this scheme offers three distinct investment options: a risk-free investment, a risk-based investment, and a Sharia-compliant investment. This empowers you to align your choices with your financial goals and values.

Contract Type Matters: The type of employment contract you hold significantly determines your gratuity. UAE labour law recognises two primary contract types: limited-term and unlimited-term contracts, each offering its own set of benefits.

Scenarios When Gratuity Isn't Applicable: Understanding when you may not be eligible for gratuity is crucial. For instance, if you resign before completing a full year of service, you won't be entitled to any gratuity payment.

Termination Scenario: If termination occurs, the gratuity calculation is based on the duration of your service. It's important to note the specific calculations to ensure fair compensation.

Resignation Scenario: In the case of resignation, your gratuity entitlement varies based on your years of service. Knowing these details can provide clarity on what to expect.

Want to know more? Visit the MOHRE (Ministry of Human Resources and Emiratisation) portal for comprehensive information on the end-of-service gratuity. And if you've recently moved to Dubai and are seeking the perfect role, get in touch with our Baytify recruitment experts!

This comprehensive guide aims to provide clarity on the recently announced UAE's End-of-Service Gratuity Scheme, ensuring every worker understands their rights and benefits.