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Fusion UAE Payroll - Gratuity Payments for Fixed-term Contracts Effective February 2022 (Doc ID 2847948.1)

Last updated on FEBRUARY 09, 2022

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version and later
Oracle Fusion HRMS (United Arab Emirates) - Version and later
Information in this document applies to any platform.


 Gratuity payments to private sector employees on a fixed-term contract will be processed as per the following rules:

- employee is entitled to 21 days' salary for the first 5 years and 30 days' salary for each additional year
- gratuity is paid upon termination if the employee has completed one year of service


Federal Decree-Law No. (33) of 2021 on the Regulation of Labor Relations came into effect on February 2, 2022. 
According to the Decree-Law , any full-time non-national employee in the private sector, who completed one year or more in service is eligible for an end of service gratuity based on the last basic salary,  calculated on the basis of 21 days' salary for the first five years and 30 days' salary for any period beyond that.


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