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Tue 18 Sep 2018 11:49 AM

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Video: Is it time to overhaul the UAE's end-of-service payments?

As workplace reforms sweep across the UAE, people stay in their roles for longer, and a new five-year visa for expat retirees aged over 55 years is set to be implemented, the big question is whether now is the time to overhaul the end-of-service benefit policy?

Wealth management experts in the UAE certainly think so. But considering they represent the other alternative – market-based private savings plans – they perhaps would say all that and more.

But it’s undeniably the case that the severance pay set aside for every UAE worker – calculated on a sliding scale depending on the number of years worked and the means of your departure – has several issues that, in light of other reforms now being introduced to the local labour market, perhaps ought to be addressed.

In this edition of Inside AB, Jeremy Lawrence and Eddie Taylor discuss the pros and cons of the current system and look at the new market-based alternatives that could soon find favour among longtime UAE employees looking to provide for their retirement.

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(Source: Arabianbusiness.com YouTube channel)