Questions & Answers
Questions & Answers
9 available 9 • View allLeave pay calculation under the UAE employment contract
95
Q: Dear Madam.
My JAFZA Employment Contract is an unlimited free zone contract.
My services have been arbitrarily terminated on 09 Dec. 2018, and after having served the 90 days paid notice period, my tenure ended on 08 March 2019.
I am now in the process of finalizing my end of service benefits, and there is a clarification required in regards to the basis of computation of the benefits. Queries are as under.
Leave pay due to termination:
I have 25 days unutilized leave which I intend to encash. What is the basis of computing the value of this leave pay?
Would it be on the basis of:
a.) gross monthly salary (which includes the latest basic salary + housing allowance + transport allowances)
b.) or on the basis of latest basic salary + housing allowance
c.) or on the basis of just the latest basic salary?
Could you please clarify and provide me with the correct latest updated UAE Labor Law article ref. # 79 for the correct interpretation of the basis of calculation for the above leave pay.

May 20, 2019
99460
Calculation basis for accumulated annual leaves upon resignation
14
Q: 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

Apr 30, 2019
29807
Calculation of the leave salary entitlements post termination
3
Q: I have been working for 1 year & 8 months on an unlimited contract basis. I have been made terminated from service (due to low business).
I have used only 21 days of leave so far from the 1st year & could not use the rest as the management did not approve the same.
When the annual leave is availed, the company pays the employees the basic + allowances in full as per normal salary. But the company policy is silent when it comes to payment of unused leave in the circumstance of termination.
They have advised that only basic wage will be paid for unused leave & only for the 2nd year (as the company has no carryover policy). Could you kindly advise what is the correct method of calculation?
As per the UAE labour law, in some cases it is mentioned that you can encash up to 2 years leave calculated on basis of basic salary + allowances are to be paid for the unused leave in case of termination.
Kind regards,
M.

Jul 8, 2019
4072
How to guarantee my right in accrued leave days or payment 
1
Q: Dear Sir,
My contract is a fulltime employee for a company in the UAE, and my leave entitlement state 10 weeks work and 2 weeks off.
However, due to the COVID-19, I have been unable to take that leave and have accrued two months leave or 61 days with four flight tickets.
My question is, can my company legally cancel those accrued days at the start of the new year or would they have to pay me for those days?

Jun 4, 2020
565
Labour rights of the employee after finishing limited term contract
1
Q: I have been working on a limited contract with a company for 4 years. I kept on renewing the same contract every 2 years (2016 to 2018 and 2018 to 2020).
Two years ago, in Dec 2018, I renewed the same contract. This year, in Dec 2020 (my visa expired on 28 Dec 2020) so I completed my visa and I’m not renewing my visa.
I resigned from my job and I am serving my notice period for one month. Will I get my gratuity?

Jan 12, 2021
447
Legal steps to claim gratuity from the company after two years contract
0
Q: My company has refused to pay me 2 years of gratuity. I am refusing to cancel my visa until the gratuity is paid.
I was a consultant for 2 years, and though there is nothing explicit about gratuity payment in my contract, it is the labour law that it must be paid as I am on the company's visa and was a full-time employee, though my actual title was 'consultant'.
A lawyer has already charged me AED 2000 to write an email and no result. Would like to go forward with the legal complaint.

Jan 7, 2021
438
Leave salary when working the whole year without vacation
2
Q: Mam,
I want to know in a limited contract if an employee will not go for leave after one year due to staff shortage in the company or any other issue like Covid, so when the visa expires after 2 years, will the employee get leave salary along with gratuity?

May 7, 2021
385
Does the salary increase apply to pending leave salary from previous year?
2
Q: Dear Sir,
I have a question about leave salary.
I have completed 2 successful years in a company in Abu Dhabi, my salary was 5000 (Including Basic & Housing Allowance) in the first year and I got 1000 as an increment in the second year.
So when I completed my 2nd year my salary is 6000. Now I need to request my two months' Leave Salary.
Kindly advise me how much I am able to receive, 11000 or 12000.

Oct 12, 2021
427
Non-renewal of limited contract and possibility to use the annual leave for the notice period
0
Q: I am on a 2-year limited contract. I informed the company early that I will not be renewing my contract once it finishes.
Now, they are refraining to allow me to take my plotted leave. They said they are not allowing their employees to take leave during the notice period. Is this legal?
I cannot see any notice period in my contract. It only says to refer to the annex if I will terminate my contract early. Annex says just to pay 45 days of salary.
Does this mean there is no notice period for my contract?
Thanks.

Mar 18, 2022
592
Legal blog
1 available 1 • View allAn Overview of the New UAE Labor Law and Recent Amendments of 2024 233
The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.
Sep 10, 2024
90587
Laws & Regulations
3 available 3 • View allFederal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.
Apr 20, 1980
103615
Ministerial Decree No. (765) of 2015 On Rules and Conditions for the Termination of Employment Relations 8
This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.
Sep 27, 2015
12406
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations 34
The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).
Sep 20, 2021
26446

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I want to open an online shop. Do I need a license to open an Etsy shop? 0
I currently live in Sharjah and have a UAE residence visa but I am not a UAE or GCC national. I want to open an online shop (Etsy or Shopify) to sell handmade items, such as crocheted goods, bookmarks, greeting cards, etc.
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How can we locate a person with an ongoing legal case? 0
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View allThe consequences of staying in the UAE after the end of the grace period 0
I am in my grace period after my residence visa cancellation. Is overstaying after the grace period illegal?
If I stay paying fine till my new visa gets finalized, how will it affect me? Will I face any ban?
Please advise!
Thanks!
Dec 26, 2022
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Can the tenant avoid paying early exit penalty for rent after losing job? 0
We have an existing tenancy contract in Sharjah, but due to unfortunate circumstances of this pandemic, my wife and I lost our jobs.
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Oct 21, 2020
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Travelling to GCC countries while have an unpaid loan in the UAE 0
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Can I have your Whatsapp number? I have an urgent question, please.
Jan 13, 2020
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Getting a new employment visa while a cheque bounce case is being processed 0
Hi All,
I have an existing criminal "cheque bounce" case under my name for dishonoring loan payments. I'm also a victim of unpaid salaries and gratuity from the previous employer.
However, I have reached a stalemate in negotiating with the bank as they are not interested in accepting the money I could offer in the interim despite having a clear understanding of my predicament.
Finally, I have an offer from a company after all these months and I'm anticipating to accept this offer but I'm yet to resolve the criminal case!
Since the bank is not willing to negotiate, I've planned to pay the criminal case removal fee or fine to the Dubai Police. I know that the bank would immediately proceed with a civil case should that happen.
My question is how long does it take to file a civil case? And can they initiate a travel ban without appeal while filing the civil case in court?
Will it affect my capacity to get a new employment visa stamped and work in the UAE while the civil case is active?
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Obtaining a part-time job while being employed on a full-time basis 0
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Jan 2, 2020
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