New UAE labour law: How to calculate gratuity, annual leaves for part-time jobs

The Executive Regulations, which detail the law’s provisions to facilitate its implementation, explained the gratuity and annual leaves schemes for employees working in part-time, temporary and shared jobs.

The new law allows employees to combine more than one job model, which means full-time employees can still opt for part-time or flexible jobs without their main employer’s permission.

Mohamed Gamal Tawfik, legal consultant at MG Law, said the labour law safeguards the rights of part-time employees and legalises taking up other jobs while working full-time.

He noted that working part-time was often the subject of lawsuits, as employers would fail to pay dues to employees.

“Previously, full-time employees could face jail and deportation for obtaining part-time jobs or taking on projects from other employers. Now, employees can work for more than one employer legally and under contracts that preserve their rights,” said Tawfik.

Full-time employees sponsored by a company can now obtain a permit for temporary or part-time jobs with other employers. The diversity of employment contracts enables employees to select the type of job that best fits their needs, while safeguarding their rights in a dynamic, competitive and flexible workplace.

In setting gratuity and leaves for part-time employees, the law strengthens professional stability and boosts work relationships with employers.

Tawfik said: “In the past, employees would end their relations with an employer after finishing a certain project, because there was no incentive to stay. The legal dues for other job models would encourage part-time or temporary employees to stay longer with their employers, while helping companies benefit from diversity of skills an employee can offer.”

The law also provides employees with the flexibility to change their contracts from one job model to another as long as an agreement is set with the employer and the dues from the first contract are met.

How to calculate gratuity of employees in part-time, flexible, temporary or shared jobs:

- Divide the number of working hours per year as stated in the contract by the number of working hours of the full-time job per year.

- Multiply the amount by 100.

- Gratuity of the part-time job will be the resulting percentage from the gratuity of the full-time job.

For example: You work full-time for company A: 2,112 hours a year, and part-time for company B: 792 hours a year.

792/2,112=0.375

0.375x100= 37.5

Gratuity of your part-time job will be 37.5 per cent of your gratuity from the full-time job.

How to calculate annual leave for part-time employees:

Part-time employees are entitled to leaves based on their working hours.

- Convert the working hours into full working days.

- Divide it by the number of working days per year.

Multiply it by the number of entitled days off stated in the contract (a minimum of five working days a year).

What should contracts include?

Contracts need to state the employee's job or profession, joining date, place of work, rest days, working hours, probation (if any), the duration of contract, the wage - including benefits and allowances - annual leave, notice period, and procedures for contract termination.

Other information to be included are the name and address of the employer, the worker’s name, nationality, date of birth and qualifications.

Any other data determined by the ministry must also be included in the contract.

Workers and employers are allowed to introduce new clauses to the approved contract forms in accordance with the UAE labour law.