Employee Has Right To Ask His Cash Allowance

June 13, 2021

It is derived from the legal article by Advocate Mr Mohamamd 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 amount is 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 the time when these leaves were used to be accrued.


Labour Law Article 78

Labour Law UAE Article 78 tells us that an employee/worker will get a BASIC SALARY plus HOUSING ALLOWANCE, as annually paid leave at the time of leaves/vacation. These two parts e.g. Housing Allowance and Basic Salary should be mentioned in the contract or it 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 to 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 still he can 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 tells 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, Gratuities etc, all are 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 Law will help him to get his right back. 


Rules about Annual Leaves


It is also clearly stated by the Law that Employer can’t deprive any employee based on his 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’t be deprived of due to personal reasons. 


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 the complaint. If the reconciliation process does not work then employees can take the matter to Court. Same formula applies for the employees working inside the freezones. UAE Labour Law is not just focused around making Laws and implementing the Laws. The judicial systems, court systems, public prosecution as well as the structure of Law Firms, is 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 UAE Labour Law and UAE Judicial System will not protect the employees 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 Labor 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 be having doubts about this.