HOW TO COLLECT END-OF-SERVICE BENEFITS (EOSB) AFTER LEAVING THE UAE

02 July 2024

Josleen Deeb

Leaving a job in the UAE and returning home can be a bittersweet experience.  While you're excited for your next chapter, there's also the important matter of securing your rightful End-of-Service Benefits (EoSB). EoSB is a specified monetary payment paid by the organization to the employee upon employment termination. It is also referred to as severance pay or gratuity pay.

Dubai: These benefits provide financial security during your transition and are a crucial aspect of UAE labor law.  This guide will equip you with the knowledge and steps to navigate the process of collecting your EoSB after leaving the UAE, ensuring a smooth and successful resolution.

Common Concerns and Legal Provisions:

One of the most common concerns for employees enters about leaving the UAE without closing their salary account and before receiving the full and final settlement. They worry about the legality and whether their account might be frozen after their residency visa is canceled.

As a reply, ALKETBI says that in the UAE, employers are required to pay end-of-service benefits within 14 days of the employee's last working day, as stipulated by Article 53 of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations.

Eligibility:

·       You are generally entitled to EoSB if you have completed one (1) year of continuous service with your employer under a limited. Exceptions might exist for specific termination reasons outlined in the employee’s employment contract or the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations .

Steps to Take:

Gather Documents:

·       Employment Contract

·       Latest Salary Certificate (pay slip)

·       Emirates ID copy (if applicable)

·       Proof of visa cancellation (if applicable)

·       Any other relevant documents (if) mentioned in your contract regarding EoSB

Contact Your Employer:

·       Inform your employer in writing (email or registered mail) of your intention to claim your EoSB.

·       Clearly state your last working day and your preferred method of receiving the EoSB (bank transfer or cheque).

·       Request a written confirmation of the EoSB amount you are entitled to receive based on your salary and years of service.

Negotiate (if Necessary):

·       If you disagree with the calculated EoSB amount, attempt to negotiate with your employer. Refer to your employment contract and the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations for the calculation formula.

Ministry of Human Resources and Emiratization (MoHRE):

·       If your employer refuses to pay or delays payment unreasonably (usually within 14 days of your last working day), you can file a complaint with the MoHRE.

·       You can initiate the complaint process online through the MoHRE website (https://www.mohre.gov.ae/) or by visiting their service centers.

·       Bring all your documents and any communication with your employer regarding the EoSB dispute.

Additional Considerations:

·       Leaving the Country: While it's ideal to settle your EoSB before leaving the UAE, it's not always possible. In such cases, clearly communicate your bank details (IBAN) to your employer for electronic transfer. Ensure you have a reliable contact person in the UAE who can follow up on your behalf if needed.

·       Bank Account Closure: If you plan to close your UAE bank account after leaving the country, inform your employer beforehand and discuss alternative payment methods if electronic transfer is not possible.

Key Points:

• End-of-Service Payment: Employers must pay all due salaries and entitlements within 14 days post-contract expiry.
• Bank Account Status: Leaving the UAE post-residency visa cancellation typically does not lead to automatic freezing of salary accounts. However, it's recommended to close all UAE bank accounts if you do not intend to return.

Account Closure:

• Procedure: According to Article 9(b) of the UAE Central Bank Regulation No. 29/2011, banks must close accounts without penalties if requested after one year from the account opening date. The closure and certification must be completed within seven days of the request.
• Dormant Accounts: Accounts with no activity for three years may be marked as dormant per UAE Central Bank Circular No. 1/2020. This status applies if there are no transactions or communications from the account holder.

Recommended Steps:

1. Follow-Up: Contact your previous employer to ensure timely payment of end-of-service benefits into your UAE bank account.
2. Withdrawal and Closure: Once the benefits are credited, withdraw the funds, close the account, and obtain a closure certificate from the bank.

Applicable Laws:

• Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations
• UAE Central Bank Circular No. 1/2020 on Dormant Accounts
• UAE Central Bank Regulation No. 29/2011 on Bank Loans & Services to Individual Customers

For further assistance, consult with legal experts or relevant authorities.

In Conclusion

By following these steps and understanding your employee rights under UAE labor law, you can successfully claim your EoSB even after leaving the UAE. Remember, gathering the necessary documents, initiating clear communication with your employer, and knowing when to involve the Ministry of Human Resources and Emiratization (MoHRE) are key to a positive outcome. With proper planning and this guide as your reference, you can confidently secure your EoSB and move forward with your next chapter.

ALKETBI TOUCH:

ALKETBI team is highly skilled and frequently provides legal assistance specializing in sustaining employers and employees. For further insights and updates on employment law reforms, visit our website and social media platforms as it provides valuable resources and guidance for understanding the complex landscape of employment law in the region and beyond. If you request further guidance or you have concerns and queries, Let us know!