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Question: My friend is employed by a company in Dubai Free Zone. He has been on vacation for the past six months when he received a basic salary. The company calls him back now, but he doesn’t want to rejoin. Can he be punished? Can the company deduct any cash from his total and final settlement?
Reply: Based on your inquiry, we assume that your friend is employed by a free zone company that complies with the Federal Law No. 8 of 1980, the UAE Employment Relations Management Act (“Employment Law”).
The employer and the worker can mutually terminate the labor contract. This is mentioned in Article 113 of the Employment Law and Article 1(I) (2) and Article (1) of Ministerial Decree No. 765 of 2015 on the rules and conditions for termination of employment relations.
If your friend’s employer does not agree to terminate the contract during his vacation, he may have to rejoin and resign. After that, he is entitled to all end-of-service benefits.
In addition, employees are not entitled to receive remuneration during unpaid absences. This is in accordance with Article 132 of the Labor Law: “Workers who have worked continuously for more than one year are entitled to receive termination remuneration at the end of service. The number of days absent from work without pay is not included in the service life, and the remuneration is calculated as follows: –
1. Pay 21 days’ salary each year for the first five years of service.
2. Pay 30 days for each additional year.
However, the total remuneration must not exceed two years of wages. “
According to the above-mentioned laws and regulations, your friend can ask for the full remuneration during his employment, including the six-month period during which he receives his basic salary. However, your friend’s employer may disagree and may say that your friend has taken six months of unpaid leave and is not entitled to receive tips during this period.
It is recommended that your friends contact the UAE Human Resources and Emirates Ministry or legal counsel for more instructions.
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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