Domestic staff not covered by UAE Labour Law regarding end of service gratuity

Has the UAE passed the law covering gratuity payments for domestic staff? I have a maid and driver whose contracts I will be cancelling in December due to our relocation. ME, Dubai While the main UAE Labour Law, as introduced in 1980, provides for an end of service gratuity for employees, this does not apply […]

Has the UAE passed the law covering gratuity payments for domestic staff? I have a maid and driver whose contracts I will be cancelling in December due to our relocation. ME, Dubai

While the main UAE Labour Law, as introduced in 1980, provides for an end of service gratuity for employees, this does not apply to domestic staff, as well as a few other categories of employees.

The Federal National Council has discussed this topic on sev­eral occasions, but there is yet to be any formal announcement or change to the law in this regard. The unified maid contracts that were introduced across much of the GCC at the end of 2014 made no mention of gratuities.

Despite there being no legal requirements for sponsors to pay any end of service gratuity, many do so voluntarily, particularly if someone has been employed for a significant amount of time.

I work in a salon and have been here for just over six months. My pay is not good and the hours are long, so I would like to move to an­other salon in the same emirate. If I give proper notice when resigning, am I free to start another job straight away? What issues might I face? Can they stop me from working somewhere else? SK, RAK

I understand that SK is on an unlimited employment contract. For anyone on an unlimited contract there should not be a ban if they leave after having completed a full six months of work and have given proper written not­ice of at least 30 days.

There is no reason why she should be prevented from working in another salon as any rules about working for a competitor under a non-competition agreement would not be enforceable for this type of position.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

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Source: Business

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