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Is the notice period calculated based on total salary or basic salary?

Dear Lawyers,

Please advise!

Is the notice period calculated based on total salary or basic salary?

Is unused annual leave (after termination) calculated based on total salary or basic salary?

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Ibrahim Al Banna Advocates & Legal Consultants
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21 Nov 2024, 15:39

Thank you for reaching out regarding your query about the notice period and unused annual leave.

To address your question:

- Notice Period:

In the UAE, the notice period is typically calculated based on the total salary, which includes both the basic salary and allowances, as per the employment contract and UAE Labour Law.

- Unused Annual Leave After Termination:

Any unused annual leave is also calculated based on the total salary, including allowances, and should be compensated accordingly at the time of settlement.

Each case may vary depending on the specific terms of the employment contract and the circumstances of termination. I’d be happy to provide more detailed advice and assist you further with this matter.

Please feel free to reach out to me via WhatsApp or phone to discuss your situation in more detail.

Best regards,

Suhail Rana

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Mohamed Bakheet Advocates & Legal Consultants
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21 Nov 2024, 17:02

In the UAE, both the notice period and the unused annual leave allowance are calculated on the basis of the gross salary, which includes the basic salary and all allowances due.

1. Notice period:

When an employment contract is terminated, whether by the employee or the employer, the party terminating the contract is required to give a notice period to the other party.

During this period, the employee continues to perform his duties and receives his full salary, i.e. the gross salary.

2. Unused annual leave allowance:

If an employee’s service ends and he has a balance of unused annual leave, he is entitled to a cash allowance for these leaves. This allowance is calculated based on the employee’s gross salary, including the basic salary and allowances.

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London Center for Legal Consultancy Office
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22 Nov 2024, 05:12

Welcome,

Notice period and unused annual leave after termination are generally calculated based on the total salary (including allowances), not just the basic salary.

However, this can vary depending on the employment contract and company policy. For more specific guidance, you can book a virtual or in-office consultation to discuss your case in detail.

We are honored to provide you with specialized legal support for your case.

If you have any further inquiries regarding your matter, we would be happy to assist you via phone, WhatsApp, or email.

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Alawi Aljaberi Advocates & Legal Consultants
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22 Nov 2024, 06:23

Dear Questioner,

According to UAE labor law, the notice period and unused annual leave should be calculated based on the employee's total salary, which includes basic salary and any other allowances or benefits.

This is to ensure that the employee receives their full entitlements during their notice period and upon termination.

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Hend Humaid Alnuaimi Advocates & Legal Consultants
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22 Nov 2024, 07:30

The notice period is generally calculated based on total salary, which includes all components of compensation.

Similarly, unused annual leave payments are typically calculated using the total salary rather than just the basic salary.

This approach ensures that employees receive fair compensation reflective of their overall earnings during both their notice period and upon termination regarding unused leave.

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Abdulhamid Yousuf Albulooshi Advocates & Legal Consultants
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22 Nov 2024, 08:45

Greeting,

According to UAE labor law, the notice period and unused annual leave should be calculated based on the employee's total salary, which includes basic salary and any other allowances or benefits.

This is to ensure that the employee receives their full entitlements during their notice period and for any unused annual leave.

Best Regards,

22 Nov 2024, 08:46

We always look forward to serving you, and we are happy to stay in touch with you.

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Rashid Khalil Obaid Advocates and Legal Consultancy
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22 Nov 2024, 11:09

The notice period in the UAE is typically calculated based on the total salary, which includes basic salary, housing allowance, and other fixed allowances.

Unused annual leave is usually calculated based on the basic salary upon termination. However, the specific terms of your employment contract may dictate whether the calculation is based on basic salary or total salary.

22 Nov 2024, 11:09

If you need further clarification, you may ask us.

Laila Hamza Al Mulla Advocates and Legal Consultants
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22 Nov 2024, 15:18

The notice period salary is based on total salary, while unused annual leave is calculated based on basic salary.

If you need further clarification, kindly share your WhatsApp number.

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