United Arab Emirates: New End-of-Service Savings Scheme Implemented for Select Private Sector Employees
December 6, 2023
Effective immediately, a new end-of-service savings scheme, the “Voluntary Alternative End-of-Service Benefits Scheme,” is now available to employees selected by their private sector employers operating in both the mainland and in select free zones overseen by federal employment regulations. The scheme offers an investment pathway for eligible employees seeking to gain returns on their monthly end-of-service gratuity earnings, which were previously paid out in a lump sum at the end of their employment. Employees currently working in the public sector are also eligible to voluntarily opt into this new scheme. Employers may voluntarily choose to register with the new scheme, while ensuring their employees’ accrued entitlements from the previous end-of-service gratuity scheme are preserved, by submitting an application to the Ministry of Human Resources and Emiratization. Upon the Ministry’s approval, the employer must enter into a contractual agreement with an approved investment fund licensed by the Securities and Commodities Authority, which will assign the company a “Fund Manager” to oversee the respective investments. Employers must then select, subject to their own discretion, the employees who they would like to allow to participate in the new scheme. Employers who fail to pay the basic contribution fee on time will face penalties. This new scheme with monthly contributions gives employees an additional layer of security since previously lump sum payments made at the end of an employee’s employment could be at risk if the company went bankrupt or fell into other financial difficulties.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Media mentions
O diretor Gustavo Kanashiro compartilha como os cidadãos luso-brasileiros poderiam potencialmente solicitar o visto E-2 dos EUA para investidores.
Fragomen news
The AILA NJ Chapter presents Director & Pro Bono Counsel Barbara Camacho with the Pro Bono Champion Award.
Podcast
Members of Fragomen's Education Practice discuss the UK's digitisation of the immigration system and its impact on the UK education sector.
Blog post
Senior Manager Alfred Chong and Senior Business Immigration Consultant Jonathan Ying discuss the steady rise of Japan's tourism sector, applications for permanent residency and the overall appeal of Japan as a place to live.
Awards
Fragomen and TBB received the “Partnership with an International Charity” award at the 9th Annual Better Society Awards.
Media mentions
Partner Louise Haycock shares how the UK’s salary threshold is impacting businesses.
Media mentions
Nomadic Director Kim Conway discusses technology’s impact on the business travel landscape at the 2024 GBTA Canada Conference.
Media mentions
In an interview, Partner David Grunblatt shares his thoughts on the challenges impacting the future of immigration law.
Video
Partner Charles Johanes discusses key tips on managing workforce ratios and other localisation requirements across the APAC region.
Blog post
Associate Anastasija Vasiljeva discusses the digitalisation of the UK immigration system, how these changes are designed to enhance efficiency and security and how student sponsors and visa nationals must stay informed and compliant.
Video
Senior Immigration Consultant Elisabeth Kamm discusses changes to the Schengen Area that travelers should be aware of and how they can ensure they are prepared to meet immigration requirements.
Blog post
Senior Manager Deirdre Murray discusses the possibility of the Irish Government granting the spouses and partners of Intra-Company Transfer employment permits an automatic right to work in Ireland.
Media mentions
O diretor Gustavo Kanashiro compartilha como os cidadãos luso-brasileiros poderiam potencialmente solicitar o visto E-2 dos EUA para investidores.
Fragomen news
The AILA NJ Chapter presents Director & Pro Bono Counsel Barbara Camacho with the Pro Bono Champion Award.
Podcast
Members of Fragomen's Education Practice discuss the UK's digitisation of the immigration system and its impact on the UK education sector.
Blog post
Senior Manager Alfred Chong and Senior Business Immigration Consultant Jonathan Ying discuss the steady rise of Japan's tourism sector, applications for permanent residency and the overall appeal of Japan as a place to live.
Awards
Fragomen and TBB received the “Partnership with an International Charity” award at the 9th Annual Better Society Awards.
Media mentions
Partner Louise Haycock shares how the UK’s salary threshold is impacting businesses.
Media mentions
Nomadic Director Kim Conway discusses technology’s impact on the business travel landscape at the 2024 GBTA Canada Conference.
Media mentions
In an interview, Partner David Grunblatt shares his thoughts on the challenges impacting the future of immigration law.
Video
Partner Charles Johanes discusses key tips on managing workforce ratios and other localisation requirements across the APAC region.
Blog post
Associate Anastasija Vasiljeva discusses the digitalisation of the UK immigration system, how these changes are designed to enhance efficiency and security and how student sponsors and visa nationals must stay informed and compliant.
Video
Senior Immigration Consultant Elisabeth Kamm discusses changes to the Schengen Area that travelers should be aware of and how they can ensure they are prepared to meet immigration requirements.
Blog post
Senior Manager Deirdre Murray discusses the possibility of the Irish Government granting the spouses and partners of Intra-Company Transfer employment permits an automatic right to work in Ireland.