Employee Has Right To Ask His Cash Allowance

It is derived from the legal article by Advocate Mr Mohammad Ebrahim Al Shaiba from Gulf  News that the employee has the right to ask his employer for a cash allowance, but only for the last two years. More than two years is not allowed. The criteria to calculate such an amount are that such amounts or payments will be calculated, as per UAE Labour Law, only on the basis of the wages which are paid to an employee/worker at the time when these leaves were used to be accrued. Let’s explore more.

Cash Allowance for Annual Leave

We all know about this UAE Labour Law rule that annual leave is not only a right but also an obligation on the employer. According to the Federal Decree, UAE Labour Law, every employee is entitled to annual leave if he has completed one year of service. However, every worker can also take a cash allowance. The law provides a provision for a cash allowance to the employees working in the UAE, in exchange for unused leave days. If any employee has any dispute regarding this, or they want any further clarification, then Labour and employment law experts at Ask The Law – Al Shaiba Advocates and Legal Consultants are always available to provide legal assistance. These provisions ensure that employees receive fair treatment.

Labour Law Article 78

Labour Law UAE Article 78 tells us that an employee/worker will get a BASIC SALARY plus HOUSING ALLOWANCE, as annual paid leave at the time of leave/vacation. These two parts, e.g. Housing Allowance and Basic Salary, should be mentioned in the contract, or they could be mentioned in the Employment Contract. If the situation is like this, that employee has to work on his annual leave, and the annual leave can not be taken next year or further as per some policy or role, then he deserves to be paid by the employer. Even if he does not take the leave, then he can still get/ or should collect his annual leave salary. One important thing also needs to be understood, as per Labour Law Article 76, that the employer is given the right by Law to determine the commencement date of annual leave. He can also split it into two parts, if required. 

Labour Law Article 79 

Labour Law UAE Article 79 states that an employee/worker is entitled to get the total accrued annual leaves if the employee is terminated or resigns, but after completing a notice period as per the Labour Contract. This payment should be calculated based on the wage which was paid to him at the time of leave. It saves the employee from loss. UAE Labour Law protects the rights of the employee. Salaries, Accrued Salaries, Unpaid Salaries, Gratuity, etc, are all allowed for an employee to receive. If he is not paid on time or later, he has a right to take action against the employer, and the  Law will help him to get his rights back. 

• If further assistance or practical help is required, then hire professional but trusted Emirati Dubai-based lawyers. There are several Dubai-based law firms. Fix meetings with them, consult 4-5 at least, then hire the best one. 

Rules about Annual Leaves 

It is also clearly stated by the Law that an Employer can’t deprive any employee based on their personal interest, choice, need, requirements or discrimination. As stated above, Annual Leaves can be split into two parts due to the need of the time, emergency or any special project available at that time. But any employee or more than one employee can be deprived of it due to personal reasons. Let’s explore more about Cash Allowance for Unused Leave in the UAE. 

Rights of Employees in case of Injustice or Discrimination

There are the same rights which are available to others. Employees can contact the Labour Ministry and lodge a complaint. If the reconciliation process does not work, then employees can take the matter to Court. The same formula applies to the employees working inside the free zones. UAE Labour Law is not just focused on making Laws and implementing the Laws. The judicial systems, court systems, public prosecution, as well as the structure of Law Firms, are also splendid and impressive. These Law Firms in Dubai, UAE, provide the best Labour and Employment Lawyers and Legal Consultants.  

If employees have doubts that the UAE Labour Law and the UAE Judicial System will not protect them, then they are absolutely wrong. There is nothing like that. Employees working in the UAE are fully protected. It is one of the reasons that Labour Law Contracts are prepared and registered in the Labour Ministry. It is one of the reasons that salaries are paid through WPS, a modern and safe salary transfer system. One should not have doubts about this. 

How Cash Allowance is calculated

The revised and new calculation is based on the last received basic salary with housing allowance only, if applicable. If a basic salary is 10000 AED and housing is 5000 AED, then annual leave salary or cash allowance becomes 15000 AED. If it is not paid, then our experts can be contacted. MOHRE also provides invaluable information. Labour and Employment Lawyers can certainly help here.

Rights and Obligations: Employee and Employer

As per the UAE Labour Law, an employee cannot claim more than two years of annual leave as cash allowance, unless there is a special agreement or consensus between the employer and employee. This rule stopped the previous indefinite accumulation system. Now, accumulated leaves more than two years old will not be carried forward.