UAE: How to Understand Gratuity Rights for Part-Time Workers

DUBAI : Part-time employees in the UAE may be eligible for end-of-service gratuity, according to the updated UAE Labour Law (Federal Decree Law No. 33 of 2021).

This law clarifies that part-time workers are not excluded from receiving gratuity, although the calculation differs from that of full-time employees.

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To qualify for gratuity, part-time workers must have completed at least one continuous year of service with their employer. If their employment duration is less than one year, they are not entitled to this benefit.

The calculation of gratuity for part-time employees is based on the number of hours worked compared to a full-time employee in the same organization.

Specifically, the formula requires determining the total hours worked by the part-time employee over a year, dividing that by the annual hours of a full-time employee, and then applying that percentage to the full-time gratuity amount.

For example, if a part-time worker logs 1,000 hours annually and a full-time employee works 2,000 hours, the part-time worker would be entitled to 50% of the full-time gratuity.

This approach ensures fair compensation for part-time workers in the UAE, reflecting their service duration. Employees are encouraged to review their contracts and consult with HR to understand their entitlements clearly.

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