Case Study - Pdf Download - Labour Laws - CiteHR
Results Certified Executive Coach & Training
Hr Specialist - Policy,compehsation &
Manas Reddy
Talent Manager
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Please provide request exact information as per Labour Law (Dubai) on this below case of a friend of mine.

Employee joins on 6th |une 2007 ( 3 months probation period)

Basic : AED. 4000/-
HRA: AED 2000/-
Transportation: AED. 1000-

6th June 2008 is completes 1 year of Service. He doesn’t want to take a 30 days vacation, hence he wants to continue his work and get paid for those 30 days as well.

His management as these inputs;

  • He has to take 30 days leave. Management cannot pay him 13 months salary for 12 months work Unless management wants his services such as 15 days only vacation etc
  • He is not entitled for Leave salary as it is only 1st year. From second year he is entitled for leave salary.
After working for 12 months doesn’t this guy deserve a One Months pay as leave salary irrespective of the vacation he takes or doesn’t.

Please suggest

Dear Sajid,
I am working in gulf at present as HR specialst. According to UAE labour laws after completing 12 months from date of joining employees are eligible for annual vacation of minimum number of days approved under labour laws.
Your rest of questions are twist or tails.

Dear Sawant
Thank you so much for addressing my query. But the important part in this question which i want to know is the "leave salary". You have answered for Annual vacation. could you please higlight your views (Laws) for leave salary.
Sajid Rasheed

Dear Sajjad,
There is nothing called as Leave salary apart from annual vacation or any other form of leaves either vacation leave of ordinary paid leave from your accumulated account calculated on your working proportionate to your service period.
If you are asking for leave salary payment in advance before proceeding on leave is very much pracitced in gulf region. All employer pays all dues with leave salary dues before proceeding to country of origin.
Whether your employer is paying additional leave as leave salary over and above approved by labour laws is subject of research then.
Leave salary means "the salary for the paid leave applied" . If you have any other interpretation of leave salary then I am sorry I really don't know what else constitute "leave salary"

Article 78
Each worker shall be entitled to his basic wage and the housing allowance, if applicable, in respect of his days of annual leave. Where it was imperative for the work interest to put a worker on duty during all or part of his annual leave, and if the leave days on which he worked were not carried forward to the following year, the employer shall pay him his normal wage plus an allowance in lieu of leave, for the actually worked days, calculated on the basis of his basic wage.
In no case shall a worker be made to work during his annual leave more than once in two successive years.

Hi Savant,

This extract from shops and establishments act may help you,


15. Annual leave with wages.—1[(1) Every employee in an establishment shall be entitled to leave with wages and shall be allowed to avail such leave for the number of days calculated at the rate of,-
(i) one day for every twenty days work performed by him, in case of an adult;

(3) Every employee shall also be entitled during the first twelve months of continuous service and during every subsequent twelve months of such service in any establishment to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him or for any other reasonable cause.

16. Wages during leave period.—(1) For the leave allowed to him under section 15, an employee shall be paid at the rate equal to the daily average of his total full-time earnings for the days on which he worked during the month immediately preceding his leave, exclusive of any overtime wages and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through

Based on the above although the number of leaves organization is legally liable to provide is 12 annual leaves + 12 sick leaves, employees cannot claim pay for sick leaves if no leaves are taken an employee can only claim pay for 12 days of annual leave.

Please find the attached pdf file for your refrence.

do revert back for any info.


Attached Files
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File Type: pdf Shops and Establishments act.pdf (374.2 KB, 4683 views)

Dear Manas,
Thanks for your contribution, Mr Sajid Rasheed is asking me about leave salary practices in UAE inthe arabian gulf region. THis shope and establishment Act theory will not apply to them because these are expatriate employees working under specific contract with some employer in Gulf Region.

Hi Sawant, I missed the part which says it was for Dubai,thanks for bringing it to my notice, i will read the posts a little more thoroughly from now, Regards, B.K.Manas
Hi can anybody provide me the salary slip structure and component for IT employee in UAE.. hope to get your reply soon.. if one can attach sample salary slip of any would be great. Thank you.
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