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Calculation basis for accumulated annual leaves upon resignation

An employee has not gone for his leave for 6 years on an unlimited contract and has resigned.

How is the leave salary calculated, on the basic salary, basic + accommodation or total salary?

And how many days salary can he claim for 60 days?

Thank you

Hani Al Jasmi Advocates and Legal Consultants
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30 Apr 2019, 06:35

Thank you for your question.

Please note that annual leaves can be paid in the event they're necessitated as per the workload, but sometimes they do lapse if not taken by the employee (depending on the company's policy).

Unlimited Contract + completion of 6 years, the employee is entitled to receive 30 days basic salary X 6 years.

As per the Article 134 of the Labor Law "The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind of housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education UAE Labour Law allowance, allowances for recreational and social facilities, and any other bonuses or allowances.

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