Can You Cash in Your Annual Leave Air Ticket Under UAE Labor Law?

Kindly let me know if there is a possibility of annual leave air ticket encashment procedure under UAE labor law. Do let me know at [Email Removed For Privacy Reasons].

Regards, Yogita

Annual leave air ticket is related to the company policy and is not covered under UAE labor law.

Nasser is correct. It is not covered under UAE Labour Law. However, if it is specified in the individual labor contract, then the case will be different, i.e., the company has to abide by.

Regards,
Majeed

Yes, right. Ticket encashment is based on company policy. Meanwhile, most companies pay you cash along with your leave salary, while a few companies don't.

UAE Law on Annual Air Ticket

As per UAE law, an annual air ticket is not mandatory. The air ticket policy is very flexible in nature and totally depends on the HR policy of the company. It is generally a non-cash benefit and should not be encashed.

Annual Air Ticket and Leave

An annual air ticket is attached to annual leave, and the person has to take leave. However, in the case of business reasons, one can be stopped from taking leave, and in such cases, the ticket encashment policy should apply.

Policy Formulation for Ticket Encashment

The company can be flexible and formulate the policy for encashment in the following ways:

- Reimbursement basis (on the actual cost of the ticket by producing original bills); this needs to be checked with the provision made for the ticket and should not exceed the accounting provision.
- Monthly value of the ticket to be attached to the salary payout.
- Yearly lump sum payout.