How to Calculate Jafza Gratuity – End of Service Rules 2024

Understanding Jafza gratuity rules is essential for employers and employees working within the Jebel Ali Free Zone Authority. Jafza is a leading business hub in the Middle East, offering a strategic location for international trade and investment. 

Jafza offers end-of-service benefits to its employees as per the UAE Labor Law, based on their length of service and final salary. Employees can get an estimate of their gratuities online at Jafza’s End of Service Calculator.

This article provides complete insights into how the online Jafza gratuity calculator works and the legal regulations for gratuity entitlements for Jafza employees. So, let’s dive into it!

If you are working in Dubai, then you may also check the UAE End of Service Calculator online.

Jafza Gratuity Rules and Eligibility Criteria

Jafza Gratuity Rules govern the end-of-service benefits provided to employees within the Jebel Ali Free Zone Authority (Jafza). These regulations, rooted in the UAE Labour Law, mandate gratuity payments to employees upon completion of their service. The Jafza gratuity payment rules ensure fairness and provide financial security to employees when they quit their service from this company or retire.

Here are the fundamental rules governing gratuity payments for employees within Jafza companies:

Gratuity Limit

There exists a maximum cap on gratuity payouts, restricted to two years’ worth of the employee’s basic salary. Even if the calculated gratuity based on the tenure of service surpasses this threshold, the employee will receive a gratuity amount equivalent to a maximum of two years’ salary. This constraint indicates that regardless of the duration of service, the gratuity payment cannot surpass this predefined limit.

Gratuity Rules on Resignation

Employees in Jafza are ineligible for gratuity payment if they resign before completing one year of service per established UAE regulations.

Gratuity on Job Termination

No gratuity entitlement is extended to employees terminated due to serious misconduct or grave violations of company rules, as stipulated in Article 44 of the Labor Law.

You can read these Key Reasons for Gratuity Denial.

Upon termination, excluding cases of dismissal or employee-initiated termination, the employer is responsible for providing airfare to the employee’s home country’s nearest international airport.

Case of Employee’s Death

In the unfortunate event of a worker’s demise, their family is entitled to receive the gratuity amount as per established protocols.

Deductions from Gratuity Amount

Employers can not deduct any outstanding debts, such as advances or loans, from the gratuity sum. By law, gratuity is recognized as a distinct entitlement. However, employers retain the option to pursue legal avenues to reclaim any outstanding debts separately; nevertheless, these cannot be directly offset from the gratuity payout.

Minimum Service Requirement

In Jebel Ali Free Zone Authority (Jafza), employees become eligible for gratuity entitlements upon completing one year of continuous service. These regulations are consistent across all contract types within the UAE. However, the criteria for qualifying for gratuity payments differ between limited and unlimited contract types in the event of termination.

• Employees under unlimited contracts are entitled to gratuity payment after completing one year of employment, irrespective of the reason for their job dismissal.
• Conversely, under limited contracts, resignation before completing one year of service renders the employee ineligible for end-of-service gratuity benefits. However, if the employer terminates the employee before the one-year benchmark, they are obligated to provide gratuity as per statutory requirements.

Employers operating within Jafza must adhere strictly to these rules to avoid legal repercussions and maintain a positive relationship with their workforce. Non-compliance can result in penalties and damage to the company’s reputation.

Therefore, employers need to stay updated on any revisions to the rules and ensure accurate calculation and timely disbursement of gratuity payments.

How to Calculate Gratuity in Jafza? How Does Online Jafza Calculator Work?

The companies registered in Jafza and other free zones adhere diligently to the gratuity laws stipulated by the Ministry of Labour (MoL) in the United Arab Emirates, guaranteeing the provision of end-of-service benefits to their employees.

To assist customers in accurately calculating their employees’ end-of-service or gratuity amount, Dubai Trade, the service division of Jafza, has introduced a user-friendly calculator. This tool enables businesses to ascertain the sum an employee is entitled to receive upon leaving employment. To effectively use the Dubai Trade calculator, the employees must know the following details:

• Type of their employment contract (limited or unlimited)
• The reason for leaving their jobs (resignation, termination, or retirement)
• The service duration (joining and job leaving date)
• Basic salary

Read Types of Employment Contracts in UAE.

Why Should I Use Online Jafza Gratuity Calculator?

The Jafza Gratuity Calculator is an innovative online resource developed by Dubai Trade. This tool simplifies the process of computing gratuity, owed to employees upon the end of their employment.

Jafza end-of-service calculator operates under Article 139 of the UAE Labour Law, ensuring careful observance of gratuity payment.

Automating the calculation procedure streamlines business operations, offering both time and resource efficiency.

The results generated through the online Jafza Freezone Gratuity Calculator are estimations that need final approval from Jafza’s Labour Affairs Section.