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How to calculate End of Service as per UAE Labor Law? If you resign? If you were terminated? Is there any difference if you are less than5 years in the company than more than5 years in getting your end of service?
Resign : If the service is less than 5 years it is third (1/3) of the last basic salary x by 21 days/ 30 days x by the number of service years.
Terminated : Full last basic salary for the first 5 years full last basic salary x 21 / 30 days x by the number of service years, and the remaining years will be full basic x number of service years
If the service period is more than 5 years, the first 5years will be full basic salary x 21/30 days x number of years and remaining years will be full basic x number of service years
The EOS benefits are basically calculated on the current basic salary. The EOS is applicable if the employee has completed full one year of service. In case if he works less then a year there is no EOS benefits paid.
The EOS is calculated for both limited and unlimited contract:
Unlimited Contract:
The EOS is based on 21 days of basic salary for the first 5 years and and addition years will be 30 days of the basic salary. If the employee works less the 3 years the EOS is paid 1/3 of the EOS calculated @of 21 days (which comes to 7 days) If teh employee works more then 3 years and less then 5 years the EOS is paid 2/3 of the EOS calculated @of 21 days (which comes to 14 days and if teh employee completes 5 years he will be paid 21 days of the basic salary.
Limited Contract:
The EOS is based on 21 days of basic salary if the employee works from 1-5 years and 30 Days basic salary if teh employee completes more then 5 years.
End of service are calculated different ways:
1. If less than 5 years and you resign it is 1/3 of Basic Salary x 21 days/ 30 days x no. of years
2. If more than 5 years, 1st 5years Full Basic Salary x 21/30 days x no. of years plus remaining years will be full basic x no. of years
3. If terminated Full Basic salary 1st 5 years = Full Basic Salary x 21/30 days x no. of year plus remaining years will be Full Basic x no. of years
