Questions & Answers
Terminated in a freezone company. Is unused leave included in final settlement?
Dear Sir/Madam,
My employment in a UAE Freezone company is being terminated on Feb 29. I have 16 days of unused annual leave from 2023, 5 of which were carried over to 2024 according to company policy.
Since my termination is due to cost-cutting by the company, they are compensating me for the 5 days carried over and this year's leaves.
My question is: Am I entitled to the 11 days that I worked in 2023, and should those leaves be cashed and included in my final settlement?
Dear Questioner,
The worker shall be entitled to the wage of the days of leave due if he leaves work before using it, regardless of its duration, in relation to the period for which he did not receive his leave.
He shall also be entitled to the leave wage for the parts of the year in proportion to what he spent thereof, calculated according to the basic wage.
In general, cadres working in free zones in the UAE are not directly subject to the Federal Labor Law, as each free zone has its own laws and regulations that apply to employees working within its scope.
Every employee working in one of the free zones in the UAE shall have an employment contract subject to the authority or authority of the free zone concerned.
The provisions stipulated in the employment contract must be in accordance with the UAE Federal Labor Law in general, so please check the regulations of your company's authority and the terms of the contract.
