Abu Dhabi court orders firm to pay Dhs20,800 to employee as gratuity, compensation for his 27 years of services

The Abu Dhabi Labour Court has issued a preliminary ruling mandating a company to pay Dhs20,800 to an employee who served for over 27 years. This decision follows the employee's termination without receiving essential entitlements, including gratuity, annual leave allowance, and compensation for wrongful dismissal.

The employee initiated legal proceedings against the company, seeking payment for outstanding wages and related dues. Their claims included Dhs75,000 for gratuity, Dhs4,800 for annual leave allowance, Dhs4,800 for wrongful dismissal, and an equal amount for notice pay.

According to the employee's lawsuit, their tenure with the company began in 1998 and continued until the current year, with a monthly salary of Dhs4,800. The court emphasized that UAE law entitles employees who have completed at least one continuous year of service to end-of-service gratuity upon termination.

Calculations based on the employee's 27 years, 9 months, and 16 days of service, and considering that their gratuity did not exceed 24 months' basic salary, resulted in an entitlement of Dhs19,200 for gratuity. An additional Dhs1,600 was awarded as compensation for leave.