Questions & Answers
Calculation of the annual leave salary upon termination
Please help me with the below scenario.
I had worked with a company for three years. I was terminated on the basis of redundancy on 15th Jan 2019. They gave me one month notice period which ended on 15th Feb 2019.
I completed the notice period and now joined another company. At the end of my notice period, I have 34 leave days as balance. In my final settlement, the company is paying me these 34 days on the basis of BASIC salary only.
My argument to them is that I should be paid as per article 79 of the UAE labour law which states that my leave days shall be paid on the basis of wage.
I want your help to understand if I am eligible to receive a full salary (basic + allowances) for my 34 leave days or it is only BASIC SALARY for 34 days.
Dear Sir/ Madam,
Thank you for reaching out to me on this.
As per the interpretation of Article 78 and 79 of the UAE Labour Law by the Hon'ble Court, once the labour relationship between the parties is over, an employee is entitled to his BASIC salary only.
I would further advise that your termination on the basis of redundancy is arbitrary in terms of the labour law.
You can open a labour complaint against the employer for arbitrary dismissal for which you will be entitled to a gross salary of three months.
You can get in touch with me on 052 9495731 or email for further assistance and clarification.
Regards,
Hari Wadhwana
