UAE Labour Law: Do I get paid for accrued annual leave?

This is how end-of-service benefits calculated if you have pending leaves

Last updated: August 13, 2020 | 16:54

2 MIN READ

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How end-of-service benefits are calculated according to the UAE Labour Law.

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If you have accrued leaves over your work tenure, how do you get paid for them in your final settlement?

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A Gulf News reader asked how he would get paid for over 20 annual leaves not taken, when he resigns.

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The employer is calculating the leaves based on basic pay only.

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The reader works in a free zone in Dubai.

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Do the accrued leaves get paid based on basic pay, or do they include the housing allowance as well?

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Merline Dsouza, junior associate at Al Suwaidi & Company explained how the law is applied to the calculations.

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Article 79 of the UAE labour law stipulates how accrued annual leaves are paid for in the final settlement.

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According to the law, it is based on the basic wage mentioned in the employment contract.

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Dubai Cassation Court in Labour case. bo. 198/2017 also specifies the ruling.

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Additional allowances are not included in the calculations.

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This applies to private sector companies, and not to government sector entities, which may have specific regulations that govern them.

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