Questions & Answers
Reducing salary and leave encashment upon resignation due to COVID-19
I worked in an LLC company for 1 year and 4 months. After completing one year, I haven’t taken any leave or encashment of my 30 days leave with full pay.
During the Covid-19 pandemic, my employer reduced the salary without my approval, no contract was signed. There is no COVID impact in the client's place where I am working. They did not reduce my contract with my company while the employer still reduces it for 6 months.
I have resigned now. My employer dictates the amount on the final settlement. Indirectly, his saying is if you don’t take any leave, I will pay the full amount of your leaves and if you left the company, I will pay only basic salary.
Without a sign of approval, he reduced my salary.
Kindly advise me!
Dear Questioner,
Thank You for contacting me!
Please note that your employer cannot reduce your salary without your written approval. You may challenge this before the ministry of labor.
Further, regarding your leave salary, please note that as per Article 78 of UAE labor law, "Each worker shall be entitled to his basic wage and the housing allowance, if applicable, in respect of his days of annual leave".
Your employer is legally obligated to pay you basic and housing allowance only against your leave salary, not the full salary. Releasing a full salary as a vacation salary is a general practice and not as per the legal requirements.
Hope the above explanation throws light on your current situation.
Thank you!
Regards,
Rajasree Ravivarma
