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Employees who have completed at least one year of continuous service with their employer are eligible for gratuity. This applies to both limited and unlimited contracts. However, certain conditions, such as termination due to misconduct, may affect eligibility. 

For employees with less than five years of service, gratuity is calculated as 21 days of basic salary for each year of service.
The formula is:
Gratuity = (21 days' basic salary × number of years of service) / 30
This calculation is based on the employee's last drawn basic salary, excluding allowances. 

For employees who have completed more than five years of service, the calculation is as follows:
First five years: 21 days of basic salary for each year.
Each additional year beyond five years: 30 days of basic salary for each year.
The total gratuity should not exceed two years' worth of the employee's basic salary.

No, gratuity is calculated solely based on the employee's basic salary. Allowances such as housing, transportation, and other benefits are excluded from the calculation. 

Under the updated UAE labor laws, the distinction between limited and unlimited contracts has been streamlined. Employees who resign after completing at least one year of service are entitled to gratuity. The calculation is based on the length of service, with 21 days of basic salary per year for the first five years and 30 days for each subsequent year.

If an employee is terminated for reasons outlined in Article 120 of the UAE Labor Law, such as misconduct, they may forfeit their right to gratuity. It's essential for both employers and employees to understand the grounds for termination that can affect gratuity entitlement. 

Yes, the total gratuity amount should not exceed the equivalent of two years' basic salary. This cap ensures that gratuity payments remain within reasonable limits. 

Gratuity for part-time employees is calculated similarly to full-time employees, based on their basic salary and length of service. However, the specifics can vary, and it's advisable to consult the UAE Labor Law or a legal expert for detailed guidance. 

Yes, the UAE has updated its labor laws to provide equal gratuity benefits to all expatriate workers, eliminating distinctions between limited and unlimited contracts. Employees are now entitled to 21 days of basic salary for each year of service for the first five years and 30 days for each subsequent year, regardless of contract type

Employees who have completed at least one year of continuous service with their employer are eligible for gratuity. This applies to both limited and unlimited contracts. However, certain conditions, such as termination due to misconduct, may affect eligibility. 

Yes, employers may deduct any legitimate amounts owed by the employee from the gratuity pay. This includes any loans or advances that the employee has not repaid. 

Periods of unpaid leave are not counted towards the total service period for gratuity calculations. Only periods of paid employment are considered when determining the length of service. 

Employers are obligated to settle all end-of-service entitlements, including gratuity, within 14 days from the termination date of employment. Timely payment ensures compliance with labor laws and maintains good employer-employee relations.

Yes, several online gratuity calculators are available to assist both employers and employees in estimating end-of-service benefits. These tools require inputs like basic salary, length of service, and contract type to provide an estimate. However, for precise calculations, especially in complex situations, consulting a legal expert is recommended.