What Benefits Do JAFZA Employees Enjoy?

 JAFZA is one of the most well-known Free Trade Zones in the UAE. They have special customs, tax, and import laws for businesses in that region. The Free Zones also have their own set of employment laws that are not governed by the country’s labor laws. The employees are subject to rules and regulations laid down by the specific authorities that maintain the employment contracts of people working in the Free Zones.



UAE has several Free Zones across the country, with a majority in Dubai. Other Free Zones are also located in Abu Dhabi, Fujairah, Sharjah, Ajman, and so on. Each Free Zone caters to a specific business category and the Independent Free Zone Authority (FZA) is responsible for issuing operating licenses to companies for setting up their business in the zone. Some of the most notable Free Zones in the UAE are:


  • Jabel Ali Free Zone

  • Dubai Academic City

  • Dubai Healthcare City

  • Dubai Knowledge Village

  • Dubai Media City

  • Dubai Techno Park


Workers and helpers from all over the world come to the UAE to find work in these Free Zones. Helpers in JAFZA, including the employees from various departments, are entitled to certain mandatory termination benefits. Some of them are as follows:


Free Service Certificate

After the employee has been released from their service, they can request their employer for a free service certificate that includes details of the employee like period of service, work performed, rate of pay, bonuses, and character references. These certificates prove to be beneficial during applying for new jobs.


Compensation

JAFZA compensates its employees according to the decision passed by the authorities. The maximum payment amount should not exceed three times the total basic monthly allowance or wage mentioned in the employee agreement.


Gratuity

This is applicable to all workers and helpers working in JAFZA, nevertheless how low-cost a business setup they have been a part of. According to this rule, the employees whose service exceeds a year are entitled to a gratuity payment on termination. The specifics of the payment depend on the authorities, but the general amount is calculated at the rate of 21 calendar days worth of pay of the last month’s basic salary for every year of service for the first 5 years.

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