Khaleej Times, Sunday, May 28, 2023 | Thul-Qidah 8, 1444
UAE: How will end-of-service benefits, gratuity be calculated if I take up part-time job?
Emirates:
Question: I am thinking of taking up part-time work. Can you explain
how end-of-service benefits and gratuity calculations work if I work for two
employers?
Answer: Pursuant to your query, it is assumed that you intend to take up
part-time work with employers based in the mainland of UAE. Therefore, the
provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment
Relations and Cabinet Resolution No. 1 of 2022 on the Implementation of Federal
Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations are
applicable.
In the UAE, an employee may work on a part-time basis model of employment. This
is in accordance with Article 6 (1) (f) of the Cabinet Resolution No. 1 of 2022,
which states "Subject to the provisions of Article (6) of the Decree- Law, the
types of work permits shall be determined as follows:
Part-time work permit: This type of permit allows establishments registered with
the Ministry to employ an employee under a part-time contract where his working
hours or working days are less than his full-time counterparts. The employee may
work for more than one employer after obtaining a permit to do so from the
Ministry."
Moreover, a part-time employee is entitled to gratuity if he or she has
completed more than one year of service with his or her employer. The
calculation for gratuity is based on the number of hours of employment by a
part-time employee divided by the number of hours of a full-time employee in a
similar role with the same employer multiplied by 100. This is under Article 30
of the Cabinet Resolution No.1 of 2022, which states, “Subject to the provisions
of Article 52 of the Decree Law, the end of service benefits due to employee
working in a part-time or job-sharing types and not on a full-time basis shall
be calculated pursuant to the following mechanism:
1. The number of working hours set out in the employment contract per year
divided by the number of working hours in the full-time contract per year
multiplied by 100 (one hundred) equal to the percentage on which the
end-of-service benefit should be calculated, then this percentage should be
multiplied by the value of the end of service benefit due for the full-time
employment contract."
2. The end-of-service benefit shall not apply in the case of part-time
employment if its duration is less than one year.”
The calculation of gratuity for part-time employees is also based on a basic
salary of 21 days for employees who have completed less than 5 years of
continuous service with an employer and 30 days of basic salary as gratuity for
subsequent years upon completion of 5 years as mentioned in Article 51 of the
Employment Law.
Along with gratuity, a part-time employee is also eligible for cash in lieu of
the annual leave not availed by him or her during the employment period with an
employer. This is in accordance with Article 19(2) of the Cabinet Resolution No
1 of 2022, which states "If an employee's service ends, he shall be paid a cash
allowance for the balance of his legally due annual leave, according to the
basic salary."
Article 29(9) of the Employment Law states “An employee shall be entitled to be
paid for his days of leave if he leaves work before the use thereof,
irrespective of the length thereof, for the period for which he did not use his
leave. The employee shall be entitled to the leave pay for the fractions of the
year in proportion to the period of service, and the same is calculated on the
basis of the basic salary."
Based on the aforementioned provisions of law along with gratuity, cash in lieu
for annual leave not availed by you, you may be entitled to unpaid salary,
one-way repatriation costs and any other entitlements as per the HR policy of
your employer, if any.