Considering Cash Entitlements for Annual Air Tickets in the UAE: What Are Your Experiences?

Dear fellow HR professionals,

When I joined as HR Director earlier this year, I received a number of concerns and complaints from employees about the method of receiving their annual leave air ticket. We provide a "ticket" for employees and legal dependents residing in the country. I would like to introduce a cash entitlement for all expatriate employees in the Middle East. This would reduce the administrative burden of facilitating this process and assist in accurate costing and accrual in Finance. Please share your thoughts on the practice implemented in your company in the UAE.

Thanks and Regards,
Ashwita Dmello

The problem is determining the cost of the ticket as air ticket prices fluctuate over time. Some employees may need to purchase air tickets during the peak season, while others might do so in the off-season. How will you establish a uniform cost for cash entitlement in lieu of tickets?

Pon

Thank you for your explanations. However, in the case of Filipinos as an example, ticket prices double in peak season. Considering that they will all request to be paid at peak season rates, this makes the process not cost-effective.

Regards,
B.O

Benefits which are not defined specifically and/or mandated by law (with minimums) must be considered discretionary and the prerogative of the company. Hence, to say that employees, regardless of their nationality, will demand that they be paid the price of tickets during peak season is absurd and nonsense.

Employees (even unions) have no business making demands on amounts or types of benefits unless it has been approved, enunciated, and announced by the company. The determination of rates is largely the prerogative of top management because of their impact on the company's financial situation year on year.

A very big financial institution in KSA provides a cash allowance for the air tickets of their employees based on the lowest-priced round-trip ticket of a certain airline. It is accepted, and employees clearly know the rules. If they book and travel only during peak season (or travel via business class), that's their own lookout and cost because the allowance will not suffice for the price of round-trip economy class air tickets during the peak season. They will have to pay the price difference from their own money. Employees do that without complaints. They can also save the money if they decide to cancel their travel for that year.

However, the given amount is actually a little more than the price of a round-trip ticket (economy) if the employee can book early and/or travel during the non-peak season.

Regards,
Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services