Providing Termination Benefits Mandatory for Jafza Employers
JEBEL ALI: People working in Jebel Ali Free Zone Authority (Jafza) firms are entitled to mandatory termination benefits as per the laws of the free zone, a local media report has pointed out.
If the dismissal is deemed to be arbitrary, the employee shall be entitled to compensation in addition to severance payments due that are governed by the employment contracts in Jafza, reported Emirates 24/7.
The amount of compensation that will be payable to a terminated employee shall be decided by the deemed authority here and will not exceed three times the total of the basic monthly wage and allowances as specified in the employment agreement, the report quoted Rule 11.8.7 of Jafza employment law.
An employee whose service exceeds one year shall be entitled to a gratuity payment on termination of service at the rate of 21 calendar days pay of the last month’s basic salary (or more if the employment agreement so specifies) for each year of service for the first 5 years.
For each additional year, the amount reportedly increases to 30 calendar days of the last month’s basic salary, provided that the maximum payment does not exceed two years’ basic salary.
After the first year, payment will be pro-rata for the period served. The regulation clarifies that gratuity shall be calculated at the basic pay rate as defined in the employment agreement, said the Dubai-based news portal.
When an employee’s services are terminated, airfare to the international airport nearest to the employee’s home should be offered. This is applicable at the expiry of the employment agreement or when the employment agreement is terminated by the client prior to its expiry.
If an employee’s annual contract is automatically renewed in accordance with the employment agreement, the employee is reportedly entitled to airfare either in the event of submitting a resignation or on dismissal, whenever this occurs.
However, if the employee has already availed the ticket for the completed contract period, s/he will not be entitled to an additional airfare for the same period.
If the terminated employee wishes for some kind of record, he can request a service certificate, which is to be provided free of charge. The certificate will have details of the employee such as period of service, work performed while employed, final rate of pay and bonus, if any, and a character reference. These things can come in handy while applying for a new job elsewhere, reported Emirates 24/7.
(Source: FilipinoTimes.ae)