How to calculate annual leave salary

  • Published: 17:52 April 17, 2010

SUBJECT
Employment

A reader in Dubai asks: I’m working for a company in Dubai. Two years ago, I was recruited in this company as a trainee on a salary that was lower than what I am getting now. Later, towards the end of the first year, I passed the required examination and my salary was increased. As per the labour contract, I am entitled to take two months’ leave with pay every two years. After two years of continuous employment, my annual leave is now due and I applied for it. However, my employer calculated my leave salary as follows:
For the entitled annual leave in the first year of service, the employer applied the first year’s salary, and for the entitled annual leave in the second year the employer applied the revised new salary.
Asked for a clarification, the accounts department replied saying this is the labour law in the UAE. Can you give me a correct answer and an interpretation of UAE labour law on the above issue.

The Labour Law shall adopt the salary last due to the worker in the calculation of the respective annual leave (i.e. basic salary + accommodation allowance), in accordance with the provisions of the competent courts in this regard.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.