How is leave salary calculated?

Calculation must be based on the employee's current salary

  • Posted by Bassam Za'Za', Legal and Court Correspondent
  • Published: 13:36 March 25, 2013

A reader asks: I’m working in a company in Dubai. Two years ago, I was recruited in this company as an engineer with a basic salary of Dh8,000 only. Three months ago my basic salary was increased to Dh10,000. Am I entitled to take two months leave with pay every two years as agreed with the company? After two years of continuous employment, my annual leave is now due and I applied for my annual leave. However, my company calculated my leave salary as below: For the entitled annual leaves in the first year of service the company applied the first year basic salary, and for the entitled annual leaves in the second year the employer applied the current basic salary. I have submitted my objection in writing to my company and told them that it is against the labour law but my company replied saying this is as per the labour law in the UAE and my manager said they got the same reply from the labour ministry. My question is: Please let me know if this is correct as per the Labour Law.

I would like to clarify to you that Labour Law shall adopt the salary last due to the employee in the calculation of the respective annual leave in accordance with the provisions of the competent courts in this regard.