Gratuity only after working for a year: SC

The Federal Supreme Court Wednesday rejected a lawsuit of a man seeking his end of service benefits from his former employer, while ordering the company to pay Dh306,000 in profits and leave allowance due to him as stipulated by the contract signed by both parties.

The plaintiff had claimed in his lawsuit 1.12 million in compensation from his former employer which included his profits and end of service gratuity.

However, the court observed that since the plaintiff ended his service with the company within 10 months after signing the contract he is not entitled to the gratuity according to the labour law of the UAE.

The court said in its judgment that an employer should work at least for a year to be entitled for end of service benefits.

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