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Gratuity Calculator Abu Dhabi Limited Contract - Ordine degli Architetti di Avellino
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If you are working in Abu Dhabi on a limited contract, it is important to understand the gratuity calculation system. Gratuity is a type of payment that is made to employees as a recognition of their service. It is usually paid at the end of the service period, which could be the end of a contract or the end of one`s employment. In this article, we will discuss how to calculate gratuity in Abu Dhabi for employees with limited contracts.

The calculation of gratuity for employees with limited contracts in Abu Dhabi is governed by the UAE Labour Law. According to the law, an employee who has completed at least one year of continuous service is entitled to gratuity payment upon termination of employment. The gratuity amount is calculated based on the employee`s basic salary, length of service, and any other allowances that are included in the contract.

The formula for calculating gratuity for employees with limited contracts is as follows:

Gratuity = (Basic Salary ÷ 30) x (Number of Years Worked) x 21

The basic salary used in the formula is the salary that is stated in the employee`s contract. This includes any other allowances that are included in the contract, such as housing, travel, or other benefits. The number of years worked is calculated from the start date until the end date of the contract.

For example, if an employee`s basic salary is AED 5,000 and they have worked for three years on a limited contract, the gratuity calculation would be as follows:

Gratuity = (5,000 ÷ 30) x 3 x 21 = AED 10,500

It is important to note that if an employee has worked less than a year, they are not entitled to any gratuity payment. Additionally, if an employee is terminated due to misconduct or any breach of contract, they may not be entitled to gratuity payment.

In conclusion, understanding the gratuity calculation system in Abu Dhabi is important for all employees working on a limited contract. It is advisable to always carefully review your employment contract and ensure that all the details are clear before signing. If you have any questions about your gratuity entitlements, it is best to consult with a legal professional.