If you are considering resigning from your job in the United Arab Emirates (UAE), you may be wondering about payment and financial obligations. This article will provide an overview of whether or not you need to pay anything when you resign in UAE.
End of Service Gratuity
One of the main financial considerations when resigning in UAE is the end of service gratuity. The UAE Labor Law mandates that an employee who has completed at least one year of service is entitled to receive an end of service gratuity payment. This payment is based on the employee’s length of service and last drawn salary.
The end of service gratuity is calculated as follows:
- 21 days of basic salary for each year of service for the first five years
- 30 days of basic salary for each additional year of service after the first five years
It is important to note that the end of service gratuity payment is only applicable if the employee resigns from their job voluntarily and not in cases of termination or dismissal.
Annual Leave Settlement
When resigning in UAE, employees are also entitled to receive a settlement for any accrued but unused annual leave. The calculation for the annual leave settlement is based on the employee’s daily wage and the number of days of unused leave.
The daily wage for the annual leave settlement is calculated as follows:
- Monthly salary divided by 30 (days)
Notice Period
Employees in UAE are typically required to provide notice to their employer before resigning. The notice period varies depending on the terms stated in the employment contract or as per the UAE Labor Law.
During the notice period, the employee is expected to fulfill their duties and responsibilities until their resignation takes effect. Failure to comply with the notice period can result in penalties or financial liabilities.
Financial Obligations
Aside from the end of service gratuity, annual leave settlement, and notice period, employees generally do not have additional financial obligations when resigning in UAE. However, it is recommended to review your employment contract and any other agreements you may have signed to ensure there are no specific payment clauses or obligations.
Seeking Legal Advice
If you have any concerns or questions regarding the financial implications of resigning in UAE, it is advisable to seek legal advice from a professional who specializes in employment law. They can provide guidance based on your specific situation and ensure that your rights are protected.
When resigning from your job in UAE, you may be entitled to receive an end of service gratuity, settlement for unused annual leave, and you should adhere to the notice period stated in your employment contract or as per the UAE Labor Law. It is essential to familiarize yourself with your rights and responsibilities to ensure a smooth transition and avoid any unforeseen financial obligations.