Fixed-wage employees are entitled for gratuity

Public departments must provide gratuity to all employees including those who are hired on a fixed-wage basis which does not include end of service benefits, according to the UAE’s top Islamic legislation body.

The Fatwa and Legislation Department at the Ministry of Justice was responding to a letter from a federal government department asking whether it should give gratuity to some employees hired on fixed-wage basis at the end of their service.

The Department said those employees are entitled for end of service gratuity although their job contracts do not include such benefits, adding that providing end of service allowances is stipulated in the country’s federal law.

“Any agreement that deprives an employee from the end of service benefits is invalid as it violates the law,” the Department said.

“Those employees in question are federal civil servants since they work for a federal department and get their salaries from the federal budget…this means they are governed by the 2008 federal law number 11 concerning human resources in the federal government…this law ensures end of service to all civil servants including those employees.”
 

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