The Authorization Letter For 13th Month Pay serves as a formal documentation tool for companies operating in the United Arab Emirates that offer this additional compensation benefit to their employees. While 13th month pay is not mandatory under UAE labor law, many organizations, especially those with international operations or those following Asian business practices, provide this benefit. The document typically includes detailed information about the payment calculation, timing, and method of disbursement, ensuring compliance with UAE Federal Decree-Law No. 33 of 2021 and the UAE Wage Protection System. This authorization letter is particularly important for audit purposes, internal record-keeping, and maintaining transparency in employee compensation practices.
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1. Letter Header: Company letterhead, date, reference number, and addressing details
2. Subject Line: Clear indication that this is an Authorization Letter for 13th Month Pay
3. Employee Information: Full name, employee ID, position, and department of the employee
4. Authorization Statement: Clear and explicit statement authorizing the payment of 13th month pay
5. Payment Details: Amount, calculation method, and timing of the 13th month pay
6. Bank Details: Recipient's bank account information for transfer
7. Validity Period: Timeframe for which the authorization is valid
8. Signatures: Space for authorized signatory and employee acknowledgment
1. Previous Payment History: Include when there's relevant history of past 13th month payments that needs to be referenced
2. Company Policy Reference: Include when specific company policies regarding 13th month pay need to be cited
3. Conditions and Terms: Include when there are specific conditions attached to the payment
4. Witness Section: Include when local practice or company policy requires witness signatures
5. Authentication: Include when document needs to be notarized or authenticated by specific authorities
1. Calculation Method: Detailed breakdown of how the 13th month pay amount was calculated
2. Supporting Documents: List of required supporting documents such as ID copies or employment contract references
3. Payment Schedule: If payment is to be made in installments, detailed schedule of payment dates and amounts
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Retail
Construction
Healthcare
Information Technology
Education
Hospitality
Professional Services
Real Estate
Energy
Telecommunications
Transportation and Logistics
Media and Entertainment
Relevant Teams
Human Resources
Finance
Payroll
Legal
Compliance
Administration
Operations
Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Finance Manager
Payroll Manager
HR Manager
Compensation and Benefits Manager
Financial Controller
HR Operations Manager
Legal Counsel
Compliance Officer
Department Head
Line Manager
HR Administrator
Payroll Officer
Finance Officer
Administrative Officer
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