End of service benefits for part-time workers UAE labor law

Discover how the payment is calculated as per the UAE Employment Law

When I first moved to Dubai and got employed on a part-time basis, I was just as unsure as many others about whether I’d ever qualify for end-of-service gratuity. Many people think this benefit is only awarded to full-time employees when their service with a company ends. But the truth is, under UAE Labour Law, that’s not the case.

Thanks to Federal Decree No. 33 of 2021, part-time employees are not excluded from receiving gratuity—even though the calculation, eligibility, and criteria may differ from those for full-time workers. The law makes it clear that there’s a fair system for everyone. These specifics were later clarified in Cabinet Resolution No. 1 of 2022, which outlines how gratuity is calculated for non-full-time workers, including those in job-sharing contracts. So, if you’re working in the UAE on a part-time basis, it’s good to know that the system is structured to protect your rights and reward your contribution—no matter the hours you put in.

Read More:How to Write Application for Gratuity

Are part-time employees eligible for gratuity?

As per Clause 2 of Article 30 in Cabinet Resolution No. 1 of 2022, a part-time worker is entitled to receive gratuity only if they have completed at least one continuous year of service with their employer. This condition ensures that only those who have maintained consistent employment are rewarded appropriately.

If your employment duration is less than one year, then you are not eligible for end-of-service benefits under the current legal provisions.

How is gratuity calculated for part-time work?

The gratuity amount for part-time workers is calculated in proportion to the number of hours they work, compared to a full-time employee in the same organisation. The law provides a specific formula for this, clearly outlined in Clause 1 of Article 30.

Here’s how it works.

1. You first determine the total number of hours the part-time employee has worked over the course of one year, as per their employment contract.
2. Then, you divide that figure by the number of hours a full-time employee works in a year under a standard full-time contract.
3. After that, you multiply the result by 100 to get the percentage equivalent.
4. Now, you apply this percentage to the gratuity amount that would be paid to a full-time employee, to calculate the part-time worker’s end-of-service entitlement.

For example, if a part-time worker completes 1,000 hours per year and a full-time employee works 2,000 hours annually, the gratuity for the part-time worker would be 50% of the full-time entitlement.

Gratuity is not applicable to employees on temporary contracts if their total employment period is less than one year. This approach helps ensure that part-time workers in the UAE are compensated fairly for their service, in proportion to the time they have worked.

If you’re employed under a part-time or flexible work arrangement, it’s advisable to check your contract and consult with your HR department to better understand your entitlements.