Sacked workers eligible for unused leave pay

I was hired by a company based in Ras Al Khaimah Free Trade Zone (RAK FTZ) on an unlimited employment contract. However, the employer terminated my services by issuing a 30-day notice, which I served in full until March 31.

My total service period at the company was just over three and a half years. Of the total 105 days of leave, I have availed of 61 days. The employer now says they will pay only gratuity, but will not pay for the unused leave. Under what provisions of the UAE Labour Law can the employer withhold payment for unused leave.

Pursuant to your question, it may be noted that RAK FTZ applies Federal Law No. 8 of 1980 (the 'Labour Law') to regulate employer-employee relations in the RAK FTZ. This is in accordance with Article 6.28 of Rules and Regulations of RAK Free Trade Zone, which states: "Every worker shall, within each year of service, be granted a period of annual leave of not less than 30 days a year provided the worker's service is more than six months."

The aforementioned clause is in accordance with Article 75 of the Labour Law which states:

"Every worker shall, within each year of service, be granted a period of annual leave of not less than

(a) two days a month, where the worker's period of service is more than six month but less than one year;

(b) 30 days a year, where the worker's period of service is more than one year. Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year."

Further, it may be noted that you shall be eligible for leave salary not previously availed of by you during your term of employment with your employer, provided you have documentary evidence that you have not availed such annual leave.

Article 78 of the Labour Law states, "Every worker shall be entitled to his basic wage and the housing allowance if applicable in respect of his days of annual leave where the circumstances of the work make it necessary for a worker to work during all or part of his annual leave and the days of leave on which he works are not carried forward to the following year, the employer shall pay him his remuneration, plus a leave allowance in respect of the days worked at a rate equal to his basic wage.

"It shall be unlawful in any circumstances to employ a worker during his annual leave more than once in two successive years."

(Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.)

Know the Law

Every worker shall be entitled to his basic wage and the housing allowance if applicable in respect of his days of annual leave where the circumstances of the work make it necessary for a worker to work during all or part of his annual leave and the days of leave on which he works are not carried forward to the following year, the employer shall pay him his remuneration, plus a leave allowance in respect of the days worked at a rate equal to his basic wage.