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period of two years. My boss is going back to his home country and is closing the company. I plan to leave too but I need to know what I am due in payment before I go. Does he pay for my flight home? The firm is in Dubai but our visas are all from Ras Al Khaimah. CS, Dubai

CS is on a fixed-term contract, so if the employer makes her redundant before the end of the term, compensation is payable, Article 115 of UAE Labour Law states: “Should the employment contract be of a determined term, and the employer rescind the same … he shall be bound to compensate the worker for the damage incurred thereto, provided that the compensation amount does not exceed in any case the total wage due for the period of three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.’ CS is entitled to a payment equivalent to three months of salary.

In addition, she must be paid in full for the time worked until her final day of service. Payment should also be made in respect of any days of annual leave accrued up but not taken and leave accrued during a notice period.

An end of service gratuity is payable in this case and should be calculated as 21 days per year of service, calculated pro-rata for partial years, and based on the basic salary. This is based on days of service but any days of absence without pay need not be included in the calculation.

As CS is not responsible for the ending of her employment this clause of Article 131 of UAE Labour Law applies: “The employer shall, upon the termination of the contract, bear the expenses of repatriation of the worker to the location from which he is hired, or to any other location agreed upon between the parties.” Had she been talking up new employment in the UAE, this responsibility would pass to her new employer. UAE Labour Law applies across all emirates with there only being a few changes in certain free zones.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets. com. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for