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Q: I work for a company in Dubai and plan to resign in the near future. I still have 5 compensatory leave and 18 annual leave. My employment contract stipulates a one-month notice period. During this period, can I use supplementary or annual leave? If I cannot use the remaining annual leave, can I redeem it? Please advise.
Reply: Based on your inquiry, we assume that you are employed by a mainland company in Dubai. Therefore, it is applicable to the provisions of Federal Law No. 8 of 1980 regulating employment relations in the UAE (the “Employment Law”).
It should be noted that in the UAE, employees who intend to resign need to serve a notice period in accordance with the provisions of the employment contract. During the notice period, he or she shall work on all working days and shall not use any other holidays.
If an employee takes leave during the notice period, he or she may need to pay the employer monetary compensation. Article 119 of the “Labor Law” stipulates: “If the employer or the employee fails to serve the other party a notice of termination of the contract or shorten the notice period, one party is obliged to serve the other party. The other party shall pay the other party called “payment in lieu of notice ”, the compensation incurred by the other party for failing to give notice or shortening the above-mentioned period. The amount of compensation shall be equal to the full amount of the employee’s salary notice period or calculated in proportion to the reduction. For monthly, weekly, daily or hourly work For waged employees, the notice allowance shall be calculated based on the last wage earned. For piece-rate wages, it shall be calculated in accordance with the average daily wage as stipulated in Article 57 of these Measures.”
Therefore, in accordance with the above-mentioned legal provisions, it is recommended that you work during all working days during the notice period. However, you can apply to your employer for unused compensatory or annual leave during the notice period. If you and your employer agree on this, then you can take advantage of them.
If your employer disagrees, then you have the right to replace unused annual leave with cash. This is stipulated in Article 79 of the Employment Law: “If an employee is dismissed or resigned, after the notice period, the employee has the right to receive cash in lieu of his unused annual leave. The law stipulates. The cash for vacation is based on the employee’s vacation. Calculated on the wages received at the end of the period.”
In addition, we assume that your unused compensatory leave is to work during your weekly rest days or any public holidays. To this end, employees need to receive additional wages or compensation leave. This is in line with Article 81 of the Employment Law, which stipulates: “If an employee must work on holidays or rest days due to work needs, and he receives full or partial wages, he shall be compensated and increased by 50% of the wages, but If he is not compensated for his vacation, the employer shall pay him a basic salary equal to 150% of the working days.”
Therefore, once you quit your job and complete the required notice period, you are entitled to cash in lieu of unused annual leave or compensatory leave.
Ashish Mehta is the founder and managing partner of Ashish Mehta & Associates. He is qualified to practice in Dubai, the UK and India. For complete details of his company, please visit: www.amalawyers.com. Readers can email their questions to: news@khaleejtimes.com or to Legal View, Khaleej Times, PO Box 11243, Dubai.
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