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Employees must now take Annual Leave or be re-Reimbursed instead


United Arab Emirates : 22 April 2010

The Ministry of labour stated at a recent conference that employees should not be required to work for more than two years without using up their annual leave entitlements. He also said that the employer may defer the annual leave for the first of the two years but they must then also pay their employee in lieu for the time they should have had off. In essence if they are to work their annual holidays they must be paid extra for this which must be the amount equivalent to an extra weeks pay for each week’s holidays. Alternatively the holidays can be carried forward to year two in which case the employee will then be entitled to twice the period of paid annual leave for the second consecutive year.

It was also stated that an employee must be paid his basic pay excluding his housing allowance but including any other allowances he would normally be entitled to in the average working month with the exception of bonus payments. It was also noted that if an employee leaves during the course of the year or his employment is terminated he is still entitled to be paid for the amount of holidays he has accrued until his date of departure. This would not be the case if an employee leaves unannounced without serving his appropriate period of notice that the employer has already set out as the minimum period of notice required. The amount to be paid is calculated by taking the employees wage rate at the time of departure and adding any housing accommodation payments due to that amount. If the employee leaves six months into the working year for example he will have accrued half of his full annual leave entitlements for that year and should be paid for this accordingly.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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