Description

Definition
The Gratuity Calculation in Full Final settlement – Limited /Unlimited / Free zones policy defines Gratuity as an End of Service Benefit (EoSB) is a monetary compensation which is given to employee/s upon leaving the organization and/or if employee/s is/are   terminated by the organization.  To summarize the definition of Gratuity – “It is a monetary compensation given at the end of the service period to the employee by the employer.” 

Scope and Applicability
The Scope of Gratuity Calculation in Full Final settlement – Limited /Unlimited / Free zones policy is to explain the mechanism of Gratuity calculation for employee/s under the Limited /Unlimited / Free zones. The policy also explains the requisite steps of calculation for payment of Gratuity As per the NEW UAE LABOR LAW, if any challenges are observed in Gratuity Calculations for employee/s’ under unlimited contracts yet to be converted to Limited Contracts as per the NEW UAE LABOR LAW. 
The Gratuity Calculation in Full Final settlement – Limited /Unlimited / Free zones policy also defines the eligibility of employee/s who is/are entitled for Gratuity payments during the tenure of the organization
The Policy is applicable to employee/s working with the organization under Limited contracts and also to employee/s who is/are yet to be converted from Unlimited contracts to Full time Limited contracts. 

Objective
The Objective of the Gratuity Calculation in Full Final settlement – Limited /Unlimited / Free zones policy, is to be establish and communicate the parameters for payment of Gratuity to employee/s in the arrangement of Limited contracts, Unlimited and Free zones. 
As per the New UAE Labor Law all the Unlimited Contracts with employee/s shall be converted to the Limited Contracts with the duration of not less than and not more than 3 years. 
The Gratuity Calculation in Full Final settlement – Limited /Unlimited / Free zones policy shall serve as a ready reference point for employee/s and employer at the time of Full & Final Settlement.