Question: I work at a mainland Dubai company and plan to take my annual leave later this year. My company offers a ‘leave salary’, but I’m unclear about what it means. Can you explain it? Is the company legally obligated to pay my full salary during my leave? Are they allowed to deduct any of my monthly allowances?
Answer: In the UAE, employees are entitled to a minimum of 30 days of paid annual leave each year, which must be compensated at their full salary.
This is as per Article 29(1)(a) of the Federal Decree Law No. 33 of 2021 on Employment Relations, stating, “Without affecting the employee’s acquired rights before this Decree-Law, the employee is entitled to full salary annual leave, not less than thirty days for each year of service.”
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Moreover, an employee should receive their salary throughout their annual leave. This is supported by Article 29(6) of the Employment Law: “The employee shall receive the salary for the period of his annual leave.”
Salary includes an employee’s basic salary and any regular allowances or benefits (cash or in-kind) outlined in the employment contract or company rules. As per Article 1 of the Employment Law,
“The basic salary, plus cash allowances and in-kind benefits allocated to the employee via the employment contract or this Decree-Law, may include: in-kind benefits or their cash equivalent if part of the salary, allowances for effort, risk, cost of living, sales percentage, or profit percentage based on what the employee markets, produces, or collects.”
Following these provisions, during your annual leave, you are entitled to your full salary, which includes both the basic salary and any regular allowances as per your employment contract.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is licensed to practice law in Dubai, the UK, and India. Full details at: www.amalawyers.com. Send questions to: news@khaleejtimes.com or Legal View, Khaleej Times, PO Box 11243, Dubai.
