End of Service
HR directors and managers of multinational companies in the UAE recognise employment laws that are substantially different from those in the UK and other countries.
One of these is the End of Service Benefit (EOSB). This is a severance payment and mandatorily paid if the employee has worked for you for 12 months or more.
At TWS Legal Consultants, we have been advising and representing UAE businesses on EOSB calculations and disputes for over ten years. Our multi-lingual employment lawyers will advise on the payment, ensuring you comply with the correct procedures, and your best interests are protected.
Our lawyers are registered with the UK Solicitors Regulation Authority (SRA) and the Dubai Legal Affairs Department.
How is the EOSB calculated in the UAE?
After one year, all employees, including expatriates, are entitled to an EOSB if their employment is terminated or they resign. It is calculated based on a daily pro-rata amount of the salary.
A worker is owed 21 days of his or her salary for the first five years of employment. After five years of employment, it is 30 days.
Are there any other payments I have to make to an employee if they resign or their employment is terminated?
You will need to pay the standard statutory dismissal payments, which are as follows:
- 30 days’ notice pay (provided the probationary period is completed)
- all accrued annual leave and any overtime payments
- if the employee is returning to their home country, the cost of a repatriation flight
- any other termination payments feature in the employment contract
How can we help?
If an employee has been working for a company for several years, the ESOB owed to them can be considerable. Ten years of experience working with companies in the region has shown us that many are taken by surprise when they discover the amount they have to pay in gratuity.
Our employment lawyers will take the time to explain the EOSB system to you and ensure you are fully compliant with the requirements. We have relationships with finance professionals who can help you calculate payments. By instructing us, you can be confident that you have a partner on your side who will guarantee you have a full understanding of all employment regulations in the UAE.
To book a consultation with one of our employment lawyers, please contact us:
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