Questions & Answers
The basis for calculating accrued annual leave days upon resigning
Dear Madam/Sir,
I am employed under a JAFZA contract, and at the end of June, I'm leaving the company and the UAE. My position is a manager and I am office-based.
My employment contract is based on 5 working days per week (Friday and Saturday off). When I take my annual leave, only the weekdays are taken for my leave balance calculation (i.e. 2 weeks off costs me 10 days leave).
I still have an outstanding leave balance of 12 days over 2021. The company will pay out these days with my final salary. However, I have my doubts about the way they calculate the value of these days.
They take my monthly salary, divide this by 30 days, and multiply this by 12. But in my opinion, since I have a contract based on 5 days per week, they should take my monthly salary and divide it by 21.75 days instead of 30 days.
I would like to know what is the correct way to calculate this, and how this is described in the UAE labor law.
Thank you very much in advance.
Kind regards,
P.
Answer-
Hello,
As per the Jabel Ali Free Zone, the calculations shall be similar to the UAE Labor Code.
The calculation depends on the limited and unlimited contract. However, the calculations differ as per the years of service.
If the employee has served more than one year, he is entitled to 21 days of basic salary as gratuity pay.
Also, it depends upon whether one has resigned or terminated. The 21 days can be calculated if the employee has served less than 5 years.
Please call or e-mail us.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of Law.
