‘Should end-of-service benefits include the full notice period?’

I'd like your help in understanding the UAE Labour Law on redundancy. Several employees are being made redundant within my company. In such cases, the recruiting department issues a letter and tells employees that it's their last working day. They pay the employee one month’s wage as notice in the ultimate settlement but the gratuity and total annual leave are only calculated to the day they are made redundant.

For example, if they issue a redundancy letter on November 1, an employee’s final gratuity and twelve-monthly leave is calculated only until that date. Personally i think they should calculate gratuity and total annual leave until December 1. Would you clarify this, please? SN, Dubai

I am aware that the contract of employment specifies a notice period of one month, the minimum required beneath the Labour Law. This signifies that the employer must give one month’s notice for termination, with a valid reason, although they are able to pay the wage due for the month simultaneously and request that the employee will not return to work. Even if actual work ceases immediately, all benefits are payable for the full notice period.

In this instance, it means that not merely is the earnings payable but also all benefits for a further month (until December 1). This consists of total annual leave days and calculation of end-of-service gratuity. The visa shouldn't be cancelled before end of the notice period and the cancellation papers will include a calculation of benefits as of that date and no earlier.

Furthermore, any employees on a Dubai visa also needs to have continuous medical care insurance for an interval of 30 days after visa cancellation relative to Dubai Health Authority rules.

I have been living and working in Abu Dhabi since August 2019. I might lose my job because of Covid-19 issues. I'll probably go back to the UK as things don’t look good in my industry. My question is approximately UK tax easily return. I have already been from the UK for greater than a year now, so does which means that I don’t need to pay tax? Or do I have to stay in the UAE before end of the year to avoid paying tax? I have spoken to some friends but am confused. JS, Abu Dhabi

The UK has strict rules regarding liability for income tax and Her Majesty’s Revenue and Customs may be the government entity that oversees and manages all issues relating to UK taxation. JS will never be exempt from paying UK tax on his overseas income if he returns to the united states towards the end of 2020. A person must spend a complete tax year out from the UK to certainly be a UK non-resident to be exempted from tax on the overseas income.

A UK tax year is from April 6 to April 5, so JS would have to be UK non-resident for tax purposes until April 2021 with an exemption. Anyone who's deemed to be a UK resident is subject to UK income tax on their worldwide income.

Various criteria apply relative to the Statutory Residency Test, which came into effect in 2013 and specifies the quantity of days in a tax year that anyone can spend in the UK to retain their non-resident status. This will change between 45 and 183 days, depending on individual circumstances. Partial tax years beyond your UK, even if there exists a full tax year out, can also be taxable but that depends on many other conditions. Tax could be complicated in fact it is worth obtaining professional advice.

An individual must spend a complete tax year out of the UK to certainly be a UK non-resident to be exempted from income tax on the overseas income

Keren Bobker

My employment contract ends soon and it is not likely to be renewed. I'll leave the UAE and return home, but desire to come back when I could get more work here. I wish to keep my bank account open. I don’t have any debts. Could it be essential to have employment with a visa to possess a bank account or is it okay to keep my account since it is? DF, Dubai

It isn't mandatory to get a residency visa to get a bank-account in the UAE, nonetheless it is a requirement showing a valid visa after request. Members are also likely to give a copy of their visa after renewal. In many cases, it is part of the terms and conditions of a merchant account to become a resident. That said, many banks will permit non-residents to get a basic account with no credit facilities. This is often a simple current account or a checking account and an ATM card is often available.