New end-of-service employee schemes to be adopted in 2022

New end-of-service employee schemes to be adopted in 2022

The unified general labour regulations will enable public and private sector employers to adopt creative end-of-service schemes that increase their competitiveness in the labour market.

Starting from February 2, 2022, employees in the federal government and private sector will also be equally entitled to the same gratuity under the new unified regulations announced by the Ministry of Human Resources and Emiratisation on Monday.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said the labour regulations will present diverse gratuity options for employers beyond the conventional scheme.

“Employers can, for example, adopt a savings scheme that enables employees to invest in their gratuity from the date of joining until end of their service.”

Details of the schemes will soon be announced, the minister confirmed.

The move, he said, is part of the country’s broader goals to provide flexibility for employers in a competitive labour market that meets the aspirations of talents coming from all over the world.

“Employers will have options to opt for to distinguish themselves in the market and attract global talents and competencies, boosting the UAE’s economy on the global map.”

The additional gratuity schemes are also aimed at fitting employees working in the job models introduced in the labour law last month including temporary, flexible and part-time.

The ministry announced on Monday general regulations to unify the working systems of the public and private sectors to establish an integrated, efficient and sustainable labour market that grants the same rights to employees across the country.

Under the conventional gratuity scheme, full-time private sector and federal government employees will equally be entitled to gratuity of 21 days’ basic salary for each year of work for the first five years of employment.

Those who spend more than five years of service are entitled to gratuity of 30 days’ basic salary for each year of work after the first five years, in addition to the 21 days’ basic salary for each year for the first five years.

The law will determine gratuity for employees opting for temporary, flexible and part-time job models.

Under the law, no gratuity is paid for employees who do not complete one year of employment.

News Source: Khaleej Times

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