What is the basis for calculating annual leave salary upon resignation?

Dear Questioner,

Please note 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."

Further, the wage is defined as, "any consideration, in cash or in kind, given to a worker, in return for his service under an employment contract, whether on yearly, monthly, weekly, daily, hourly, piecemeal, output or commission basis.

The wage shall include the cost of living allowance. It shall also include any grant given to a worker as a reward for his honesty or efficiency provided such amounts are stipulated in the employment contract or in the firm’s internal regulations or are being so customarily granted that the firm workers regard them as part of their wage and not as donations."

In the light of the above legal provisions, at the time of leaving the leave salary is calculated on the basis of the last received wages.

Regards,

Rajasree Ravivarma