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No Gratuity for Domestic Workers in the UAE?

No Gratuity for Domestic Workers in the UAE?

Lawgical with Ludmila Yamalova

16 May 2023

Tim Elliott
Welcome to Lawgical, the UAE’s first, and still the only, regular legal podcast. My name’s Tim Elliott. Lawgical comes to you from the Dubai-based legal firm, Yamalova & Plewka. And as always, here is the Managing Partner, Ludmila Yamalova. Nice to see you.

Ludmila Yamalova
Good to be here with you, Tim.

Tim Elliott
Today it’s end-of-service benefits for domestic workers in the United Arab Emirates, Ludmila, and before we get to the nitty-gritty of the subject, just define the term “domestic worker.” How is it defined under the law?

Ludmila Yamalova
Domestic workers, in general terms, are defined as those employees who work in the house providing services to the family or individuals.

It’s less about the specific definition of the term and more about examples of who are considered domestic workers. They can include nannies, chauffeurs or drivers, chefs, gardeners, cleaners, maids, teachers, personal trainers, and nurses.

Ultimately, the defining parameter is that these are individuals who usually work and, in most cases, live in the house, providing services that cater to the domestic and personal needs of a family.

Tim Elliott
Okay. We’ve talked about domestic workers’ rights a number of times on Lawgical, but this is new—almost breaking as it were. There is no mention of end-of-service benefits in the new law, Federal Decree 9 of 2022 on domestic workers, which came into effect at the end of last year. This was something you remarked on at the time. If I remember rightly, you said it was a point to revisit in another podcast. So, here we are.

Ludmila Yamalova
Yes, here we are. Just to set the stage on why we are discussing end-of-service benefits for domestic workers: in the UAE, there has historically been a concept of end-of-service gratuity or entitlements for employees, primarily for those in the private and public sectors.

This gratuity is the UAE’s version of a severance plan or a type of pension for expatriate employees—not for UAE nationals. It provides compensation as a reward for their service and is referred to as EOS (end of service) or gratuity.

Traditionally, this benefit applied to employees in the private sector and public sector, with public sector employees typically enjoying better or more generous benefits. Private sector employees have been entitled to end-of-service gratuity, calculated as 21 days of basic salary for each year of service.

For a long time, however, domestic workers were excluded from such benefits. There wasn’t even a specific employment law covering domestic workers until 2017. Before that, employment laws excluded domestic workers, leaving them without a clear framework of rights or entitlements.

In 2017, Federal Law 10 of 2017 was introduced to govern domestic workers. Among other things, it granted domestic workers entitlement to end-of-service benefits, calculated as 14 days of basic salary for every year of service. Unlike private sector employees, domestic workers were entitled to receive this gratuity every two years, regardless of whether they continued their employment.

This was groundbreaking, but it wasn’t widely known or practiced. Through this podcast and other discussions, awareness grew, and domestic workers began claiming these benefits. Courts upheld their entitlement to gratuity in disputes.

Tim Elliott
But then, in December 2022, Federal Decree 9 of 2022 came into effect, replacing the previous law. What changed with this new law?

Ludmila Yamalova
The new law canceled the 2017 law, effectively erasing the provisions related to end-of-service gratuity. While the 2022 law introduced many improvements in structure and clarity for domestic workers’ rights, it left gratuity entitlements undefined.

Article 22 of the 2022 law states that end-of-service benefits will be addressed in a future Cabinet Resolution. However, when Cabinet Resolution 106 of 2023 was issued in January, it made no mention of gratuity or end-of-service entitlements for domestic workers.

Tim Elliott
So, if it’s not referenced, does that mean domestic workers no longer have a legal right to gratuity?

Ludmila Yamalova
Exactly. Without a legal provision or authority, there’s no basis for domestic workers to claim gratuity. The previous law that defined their entitlement has been canceled, and the new law does not provide a replacement framework.

Claims for gratuity must be supported by either a contract or a valid law. Since the 2017 law has been repealed, domestic workers have no legal ground to demand gratuity unless a new regulation is issued in the future.

Tim Elliott
And courts, as you’ve mentioned, have not been granting gratuity claims for domestic workers under the new law?

Ludmila Yamalova
Correct. We’ve reviewed court judgments since the new law came into effect, and there’s no mention of gratuity being awarded to domestic workers. Judges can only apply existing laws, and if gratuity is not supported by the law, they cannot extrapolate or assume its applicability.

Tim Elliott
What about domestic workers employed under a different visa? For example, a corporate visa instead of a domestic worker visa?

Ludmila Yamalova
That’s a great clarification. This law applies specifically to “legal” domestic workers employed under a domestic worker visa and governed by contracts issued through authorities like Tadbeer.

If someone works as a domestic worker but holds a corporate visa or spousal visa, they are technically outside the scope of the domestic worker law. They would instead be governed by the UAE’s general employment law, which does provide for end-of-service gratuity.

Tim Elliott
Even though their visa doesn’t explicitly state their actual job?

Ludmila Yamalova
Yes. Courts focus on the employment relationship rather than visa technicalities. However, immigration authorities may penalize such arrangements, as working without the correct visa is a violation of immigration laws.

Tim Elliott
What about holidays under the new law? Are domestic workers entitled to paid leave?

Ludmila Yamalova
Yes, the new law mirrors the provisions of the 2017 law in this regard. Domestic workers are entitled to 30 days of paid leave annually. Employers are required to allow domestic workers to take their holidays, at least every two years, or compensate them for unused leave.

Tim Elliott
One last question: What if a domestic worker resigned before this law came into effect but is still working until the end of their contract?

Ludmila Yamalova
If their employment ends after the new law came into effect, any claims must be based on the current law. The 2017 law is no longer valid, so gratuity claims would not be supported under the new framework.

Tim Elliott
That’s another episode of Lawgical. This time, end-of-service benefits for domestic workers in the UAE—or the lack thereof under the new law.

As always, thanks for listening or watching, or both. Thanks to our legal expert, the Managing Partner here at Yamalova & Plewka, Ludmila Yamalova. Thank you.

Ludmila Yamalova
Thank you, Tim.

Tim Elliott
Find us at LYLAW on social media—Facebook, Instagram, TikTok, LinkedIn, and YouTube. You can find all our podcasts at lylawyers.com. If you’d like your legal question answered in an episode of Lawgical or want to talk to a qualified UAE legal professional, click Contact at lylawyers.com.

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