What are an employee’s annual leave entitlements?
For every year of service, an employee is entitled to annual leave of not less than the following:
1. Two days leave for every month if his service is more than six months and less than one year.
2. A minimum of thirty days annually, if his service exceeds one year. At the end of his service the employee is entitled to annual leave for the fraction of the last year he spent in service.
Annual leave is usually calculated on the basis of a calendar month rather than by working days. If an employee however fails to report back to work after the expiry of his leave period, his remuneration will automatically be forfeited for the days he is absent.
What would be payable to the employee during his annual leave?
An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month exclusive of any bonuses received.
Who determines when the annual leave commences and its duration?
The employer has the right to determine when an employee is allowed to take his annual leave and whether (if required) he is entitled to divide the leave into two parts.
If however, work circumstances require keeping the employee at work during the whole or part of his annual leave and the leave has not been carried over for the following year, the employer should pay the employee his wage in addition to a leave allowance for the days he worked equal to his basic wage.
In all cases, no employee should be required to work during his annual leave more than once during two consecutive years.
In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.
When should annual leave wages be paid?
The employee should be paid his full wage before taking his annual leave, plus the wage of the leave days he has accrued.
Is the employee entitled to payment in lieu of leave if his services are terminated?
The employee is entitled to payment of his wages for the annual leave period not taken if his employment is terminated, or he resigns after serving the period of notice determined by law. Such payment is calculated on the basic wage received at the time the leave was due including any housing or accommodation allowance where applicable. Some employers also include transportation allowance in the calculation, although this is discretionary rather than compulsory.
Nevertheless, according to judgments delivered on the matter, an employee may only claim remuneration for the annual leave not taken for the last two years of employment at the rate of the wages paid during that time. Any leave days not taken prior to that period are therefore time barred and the employee is precluded from claiming remuneration against them (providing the employer relies on this time bar provision in the event of a claim).
I have been working in a company in the food industry for four years. I am eligible for my annual leave now. Last week, I applied for the leave, but my application was rejected by the office, saying that there are not enough staff at the moment. I would like to know if my company has the right to deny my annual leave.
Annual leave cannot be denied for two yearsAccording to Article 78 of the federal labour law, if the work requires your stay in the country and prevents you from taking your leave, and if your leave is not carried forward to the next year, the employer has to pay you remuneration plus a leave allowance for the days you worked at a rate equal to your basic wages. Furthermore, this exception is not allowed more than once in two successive years.
Article 75 of the UAE Labour Law governs the annual leave of an employee. An employee is not entitled to an annual leave if his employment period is less than six months. However, if his employment period is more than six months but less than a year, he shall be entitled to an annual leave of not less than two days for each month.
However, if the employment period is more than a year, he is entitled to 30 days annual leave. Therefore, the duration of annual leave shall not be decreased as the right to annual leave is granted by the law. Article 75 states:
“The employee must be granted an annual leave during each year of service which may not be less than:
1. Two days per month with respect to any employee with more than six months and less than one year of service.
2. Thirty days per annum with respect to any employee whose period of service exceeds one year. In the event of termination of an employee’s service, he shall be entitled to an annual leave depending on the number of months completed in the last year of service.”
The employer has the right to specify the beginning of the annual leave and he can divide the leave into two parts, when necessary, in order to ensure smooth operation of the organisation/company. Article 76 states: “The employer, at his discretion, may determine the date for the commencement of annual leave and, when necessary, he may decide to divide the leave in two parts at the most, except in cases of juveniles, where vacation may not be divided in parts.”
In such an event, the leave may be forwarded to the next year, but it may not be suspended for more than two years and the employee will be entitled to sixty days annual leave in the next year if not paid in cash in lieu of the leave for his working days. Article 78 states: “The employee shall receive his basic pay in addition to housing allowance, if any, for the annual leave days. However, if the exigencies of work necessitate that the employee works during his annual leave in whole or in part, and the period of leave during which he has worked has not been carried forward to the next year, the employer ought to pay him his wage in addition to cash in lieu of the leave for his working days based on his basic pay.
“It shall be unlawful in any circumstances to employ a worker during his annual leave more than once in two successive years.”
I work as a school nurse here. Our employer said that during vacation, we will not receive any salary and that is for July and August. They will also not shoulder our accommodation charges. I am very worried because that is not what we agreed on or was written in the employment contract. They made us sign a waiver that we will have our two-month vacation without pay. Please advise.
Salary must not be deducted during vacation
As a general principle of law, a binding contract cannot be changed unilaterally. Article 267 of the UAE Civil Code states: “A binding contract cannot be changed unilaterally except with mutual consent of the parties or by an order of the court or by law”. Therefore, your employer does not have any legal right to deduct your salary or shoulder your accommodation charges if it is provided in your employment contract. Since you have signed the amended waiver, thus, it is binding upon you unless you prove that you have been forced to sign this waiver (KT).
NOTE: Hamriyah Free Zone, Sharjah, matters pertaining to employment is governed by the provisions of Federal Law No. 8 of 1980, relating to Regulation of Labour Relations (the “Labour Law”).
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