Question: I will be retiring shortly after working for my employer for 25 years. I understand from having looked at the UAE labour law that I am entitled to 30 days of pay for each year of service.
I am on a basic salary of Dh45,000 ($12,253) per month and I know that allowances are not included. By my calculations, I am owed an end-of-service gratuity of Dh1.12 million, but the company is saying that they only have to pay me Dh1.05 million. Can you clarify who is right in this case?
Can you also confirm when it has to be paid as the company wants to delay making the full payment until the end of October. NC, Dubai
Watch: UAE launches new gratuity scheme
Answer: If an employee has worked for more than one full year but fewer than five years, they are entitled to full end-of-service gratuity payment based on 21 days of basic salary for each year of work.
After five years of service, this increases to 30 days of basic salary for each year thereafter.
NC has confirmed that he started working for the company on October 3, 1998, and that his last day of service will be on September 29 of this year. He has only taken approved annual leave, so there are no unpaid days of absence to be deducted.
Use this tool to calculate your gratuity pay
It appears that NC has calculated the amount based on 30 days of salary for all of his years of service, but this only applies from the sixth year onwards.
In this case, the employer is correct.
For anyone who has worked for a company for a long time, it is worth noting that there is an upper limit for gratuity payments in the labour law.
Article 51, clause 6, states: “It is required based on the foregoing that the end-of-service benefits for the foreign worker in its entirety does not exceed two years’ wage.”
This means that the employer can cap the amount payable at an amount equivalent to two years of basic salary, although if the calculation exceeds this amount, they can choose to pay the higher amount should they wish to do so.
The new labour law, which came into effect in February last year, also specifies a time limit as to when an end-of-service gratuity should be paid.
Article 53 of the law states: “The employer shall pay to the worker, within (14) fourteen days from the end date of the contract term, his wages and all his other entitlements stipulated herein and resolutions issued for its implementation, the contract or the establishment’s by-laws.”
This makes it clear that NC's employer should not delay making the payment. If it fails to pay NC in a timely manner, he can register a case against the company with the Ministry of Human Resources and Emiratisation.
Q: I am a clerk at a company and I work long hours because we are busy and my manager says I have to get the work done. I asked about overtime pay, but was told no. Am I entitled to be paid for working for 10 hours each day? CV, Sharjah
A: The UAE's labour law is clear about the number of hours that employees are permitted to work each day and each week.
Article 17.1 of the labour law states: “The maximum normal working hours for workers shall be (8) eight hours per day or (48) forty-eight hours per week.”
While certain categories of employees can be required to work for nine hours per day, the role of clerk does not fall under this. Therefore, if CV is asked to work for more than eight hours a day, they are entitled to be paid overtime.
This is set out in Article 19 of the labour law, which states: “1. The employer may instruct the worker to work overtime over the normal working hours, provided that they do not exceed two hours per day. The worker may not be instructed to work for more than that period, except in accordance with the conditions and rules specified by the Implementing Regulation hereof. In all cases, the total working hours shall not exceed (144) one hundred and forty-four hours every (3) three weeks.
“2. If the work conditions necessitate that the worker works for more than the normal working hours, the excess period shall represent overtime, for which the worker shall receive a wage equal to the wage corresponding to the normal working hours, which is calculated according to the basic wage plus an increase of not less than (25%) twenty five per cent of that wage.”
Should the employer fail to pay overtime, the employee can register a case with the Ministry of Human Resources and Emiratisation.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
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Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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Engine: 8.0-litre, quad-turbo 16-cylinder
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VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
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Global state-owned investor ranking by size
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