Calculation of unused leave salary upon termination

Question

Q: An employee has worked for 1.5 years. He had taken only 30 days of annual leave in these years. He has been terminated. How to calculate his unused leave salary? A: Two days a month, where the worker’s period of service is more than six months but less than one year…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for reaching out to me on this.

I would like to draw your attention to the UAE Labour Law's following provision with respect to unused leave salary:

Article 75- A worker shall, for each year of service, be entitled to an annual leave of not less than:

1. Two days a month, where the worker’s period of service is more than six months but less than one year.

2. 30 days a year, where the worker’s period of service is more than one year. Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.

You will need to give him leave salary on the basis of pro rata for the 5 months he worked. The first year salary is used up by the employee i.e. 30 days.

I trust you will find this helpful.

Regards,

Hari Wadhwana

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