Ask: I’ve been working for my employer for about two years now they usually have now introduced that they plan to introduce a pension scheme for all workers as an alternative of the same old gratuity on the finish of employment.
The thought is that they contribute to some sort of funding and we will additionally contribute voluntarily.
They plan to begin this from January 2024, however I do not wish to take part because it appears finest for workers who will stick with them for a few years. My plan is to depart and return to my dwelling nation in mid-2024.
My employer has no thought of my plans and I need that to stay non-public. Ought to I be part of this program as an alternative of continuous as issues stand? MF, Abu Dhabi
Reply: There are a selection of main corporations on the mainland that supply a substitute for the usual tipping scheme and the Dubai Worldwide Monetary Centre, which has its personal laws, arrange Dews (DIFC Worker Office Financial savings) in 2020 as a substitute for tipping.
Watch: UAE launches new gratuity program
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Such schemes for mainland and free zone employers shouldn’t be necessary, and laws stipulates that no worker needs to be left worse off if she or he joins a financial savings scheme as a substitute for the end-of-service gratuity. Dews is necessary for DIFC workers.
It has additionally been introduced that the UAE authorities will introduce an non-obligatory financial savings plan for all non-public sector workers. There is no timetable for this but and we have no different particulars.
Beneath the outdated employment legislation there was a particular clause regarding options, which acknowledged that no worker needs to be deprived if she or he was a part of an alternate association and that this is able to be non-obligatory.
Beneath the brand new labor legislation, Federal Legislative Decree No. 33 of 2021, which got here into drive in February 2022, no point out is made of different preparations for end-of-service gratuity.
I perceive that any current scheme would proceed to be acknowledged in the identical method.
Use this device to calculate your tip allowance
Given the current announcement, the introduction of options could have been deliberate for a while.
With this in thoughts, I’d be shocked if many employers proceed to arrange an worker financial savings plan till we have now full particulars of the brand new government-backed various plan. That’s certainly not allowed.
We’re advised there will probably be various funding choices, together with one described as “risk-free” which is able to totally shield the capital invested.
Assuming MF’s employer goes forward with a brand new association, this could possibly be an choice for him to guard the quantity invested, however participation is described as non-obligatory so he ought to be capable of proceed accruing the end-of-service tip as he does now.
Q: I began working for an organization final month and my visa has been processed. After 14 days I obtained a cancellation letter and they’ll revoke my visa quickly.
My contract states that I’ve to present 14 days’ discover, however is there an issue if I do not?
I made the switch on the identical day I obtained the letter in order that the corporate can contemplate this as my final day of labor.
Once I contacted HR, I used to be advised to not respect the discover interval. I despatched an electronic mail with this info and left the workplace. Will this be an issue?
Does my new employer should pay visa prices if I be part of him inside three months? AJ, Dubai
A: AJ was given the suitable discover interval in accordance with Article 9 of the UAE Labor Regulation, which refers back to the probationary interval.
Through the probationary interval, “the employer could terminate the service of the worker throughout this era, having knowledgeable the latter in writing no less than 14 days earlier than the date fastened for the termination of service,” in accordance with Article 9.
Whether or not an worker performs work throughout this time is on the employer’s discretion.
When somebody has been with an organization for such a brief time period, it isn’t uncommon for the employer to resolve that there isn’t a level within the worker working and inform them to not come to work. Nonetheless, that’s the employer’s determination.
An individual normally stays employed till the tip of the discover interval and is paid for today. The visa have to be canceled after this time until each events agree to take action sooner. Each the employer and the worker should agree on this.
If an worker leaves employment in the course of the probationary interval, the brand new employer could also be required to supply some type of compensation underneath the brand new labor legislation, however this isn’t the case right here.
As a result of the present employer has terminated the contract, no compensation is because of the subsequent employer.
Keren Bokker is an impartial monetary advisor and senior accomplice at Holborn Property in Dubai, with greater than 30 years of expertise. Contact her at instances@holbornassets.com. Comply with her on Twitter at @FinancialUAE
The recommendation in our columns doesn’t represent authorized recommendation and is offered for info functions solely
Up to date: September 24, 2023, 5:00 AM
