Q: Is leave salary calculation based on basic salary or full salary at the time of resignation or termination?

Q: I have been working for 1 year & 8 months on an unlimited contract basis. I have been made terminated from service (due to low business). I have used only 21 days of leave so far from the 1st year & could not use the rest as the management did not approve the same. When the annual leave is availed, the company pays the employees the basic + allowances in full as per normal salary. But the company policy is silent when it comes to payment of unused leave in the circumstance of termination. They have advised that only basic wage will be paid for unused leave & only for the 2nd year (as the company has no carryover policy). Could you kindly advise what is the correct method of calculation? As per the UAE labour law, in some cases it is mentioned that you can encash up to 2 years leave calculated on basis of basic salary + allowances are to be paid for the unused leave in case of termination. Kind regards, M.

Q: Dear Sir, I am working in a Hospital as a Registered Nurse from 11.05.2014. My first two labour contracts were unlimited labour contract and after finishing the second contract term, the hospital management renewed the labour contract with a new limited labour contract. I have resigned from the hospital now and I am in the 2 months notice period as per contract. I like to know about the calculation of my gratuity amount. As per the hospital management, they calculate the gratuity as 14 days x 4 years (for the completed unlimited contract period). Whereas I have completed total 5 years and 4 months period in total with the hospital (4 years with unlimited contract and 1 year and 2 months with limited contract). Kindly confirm this gratuity calculation is correct as per the UAE labour law. Also, the hospital management asked me to pay a two-months full salary as a penalty since I am resigning without completing the limited contract. I am awaiting your valued reply.

Q: Hi All, I have decided to resign from my employment and take up a job with a new employer. The offer letter has been signed and I have been given my start day for the 8th of June. I have two questions. My employer has told me that my unused 10 days of annual leave will be calculated on my basic salary of 10,000 AED. However, my total allowances including my basic salary are 18000. 5,053 for housing, 2,000 for transportation and mobile phone, and 842 for others. So how should my employer be calculating my unused annual leave, on basic or total? Also, I have a loan and credit card with no missed payments. Will my accounts be blocked after my visa is canceled and waiting for my new visa to come through?

Three new ministerial decrees containing a new set of rules for the labour market were issued by the UAE Ministry of Labour last year and came into force on the 1st of January this year. The decrees are expected to alter the contractual relationship between employers and workers in the UAE.

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).