Questions & Answers
What is the policy regarding accrued annual leaves at the end of employment?
Dear Madam,
We have the case of one employee who joined the company on 12 Dec 2018. His leave eligibility is 22 working days per year.
He has not consumed any annual leave and is leaving the company on 31st May 2021 (after 2 years and 5 months+). Are we supposed to encash all the annual leave he has accrued from his joining till the end of May 2021?
Our company has a policy of transferring only 10 days from Dec of each year to the next year. Any leave above this is forfeited.
If this is the case, he will carry only 10 days from Dec 2020 to Jan 2021. Please advise what the UAE LL states about it.
Thanks.
Dear questioner,
I understand that your confusion is regarding the annual leave encashment of the employee who has resigned or been terminated.
Please read Article 79 of the UAE Labor Law,
"A worker who is dismissed or who leaves his job after the period of notice prescribed by law shall be paid for any accrued annual leave days. Such payment shall be calculated on the basis of the worker’s wage as on the date when the leave became due.'
I understand that as per your company policy, part of the leave will be forfeited and the balance will be carried forward.
However, you shall release the leave encashment for the current year in addition to the leaves that have been carried forward from last year.
Regards,
Rajasree Ravivarma
