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 requiring a company to pay Dhs20,800 to an employee who had been with them for more than 27 years. This decision comes after the employee was terminated without receiving due entitlements such as gratuity, annual leave allowance, and compensation for wrongful dismissal.

The employee had taken legal action against the company, seeking payment of his outstanding wages and related expenses.

His claims included gratuity of Dhs75,000, an annual leave allowance of Dhs4,800, compensation for wrongful dismissal of Dhs4,800, and compensation for notice pay of the same amount.

In his lawsuit, the employee stated that he began working for the company in 1998 and continued until the current year, with a monthly salary of Dhs4,800.

The court has clarified that under the law, an employee who has worked for one continuous year with an employer is eligible for an end-of-service gratuity when their employment ends. This gratuity is calculated based on specific legal criteria and conditions. Given that the employee was employed by the company for 27 years, 9 months, and 16 days, and their gratuity does not exceed 24 months' basic salary, they are entitled to receive a gratuity of Dhs19,200, along with an additional Dhs1,600 as compensation for leave.