Terminal Gratuity Definition
The size of this payment is determined by a combination of final salary and length of service with the company. Within the United Arab Emirates the Labour Law currently states that an employee is entitled to 21 days pay for every year of service up to five years and 30 days per year of service thereafter, up to a maximum of an amount not exceeding two years salary. Other Gulf countries operate a version of this arrangement.
To find out how Ryland Gray can create a tailored alternative to Terminal Gratuity for your ‘non national’ expatriate employees, please view our information on Pensions and End of Service Benefit Trusts.