An Abu Dhabi labor court has awarded Dh93,600 in end-of-service gratuity to a worker who spent more than three decades with the same company, applying the statutory cap under UAE labor law.
In a ruling issued by the Abu Dhabi Labour Court, the company was ordered to pay the amount to the employee, who had worked for 31 years and six months before his employment ended last year.
The worker filed the case, saying he had been employed on an unlimited-term contract since 1994. He earned a basic monthly salary of Dh3,900, with a total monthly pay of Dh7,800, and sought Dh97,175 in end-of-service benefits, along with legal costs.
The company submitted employment records to the court and requested that the case be resolved based on the documents on record.
In its judgment, the court recognized the length of the employee’s service and said his gratuity, based on the standard calculation, would have totaled Dh116,350.
Under UAE law, foreign full-time employees are entitled to an end-of-service gratuity calculated on basic salary: 21 days’ wages for each of the first five years of service and 30 days’ wages for each year thereafter.
However, the court noted that the law sets a maximum limit on such payments, capping gratuity at the equivalent of two years’ basic salary. In this case, that amounted to Dh93,600.
The court ordered the company to pay the capped amount immediately, without requiring a bond, and to shoulder legal fees and costs in proportion to the sum awarded.
