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Is it possible to encash the annual leave balance?

Hi Madam,

I have an 80-day annual leave balance in my company. I am still working in the company. As per the UAE labor law, can I encash my leave salary?

I requested my company for 60 days leave encashment. The company says that as per the UAE Law, there is no encashment. Is it true?

If encashment is available, how to calculate my leave encashment?

For my personal issues, I can't go on vacation. I can't take local leave also.

Please advise me!

Best Regards,

Hussain Lootah & Associates
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1 Aug 2021, 05:46

Dear questioner,

I assume you have accrued annual leva of 80 days. You have not mentioned since when the same has been accruing. However, as per the law, annual leave shall not be carried forward for more than two years unless the company has agreed to other terms as per the employment contract or policies of the company.

As per article 75 of UAE Labor Law, "a worker shall be entitled to an annual leave of not less than 30 days for each year of service, where the worker’s period of service is more than one year".

Further, article 78 clearly states that the worker is eligible to get basic wages and house allowance [if applicable] in respect of the days of annual leave and the worker shall not be put on work for the full part of the year more than once in two years.

If the worker was working for the whole part of the year, the employer shall pay normal wage plus an allowance in lieu of leave, for the actually worked days, calculated on the basis of his basic wage.

So in your case, if you were put on work during your eligible annual leave, you shall get normal wages and then an allowance in lieu of leave, for the actually worked days, calculated on the basis of his basic wage.

Hope my explanation is clear!

Regards,

Rajasree Ravivarma

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