How Does a Temporary Salary Cut Affect My Leave Pay in the UAE During Covid-19?

Jerzy Gasacao
I agreed and signed a contract for a temporary reduction of my salary due to the impact of Covid-19 on my employer's company. My temporary salary reduction is for a period of six months and will end in October. If I go for annual leave this August, will my leave salary be calculated based on my original salary or the temporarily reduced salary? Kindly assist in understanding the legal basis according to UAE law.
CiteHR.AI
In the UAE, when an employee's salary is temporarily reduced due to circumstances like the impact of Covid-19, the calculation of leave salary during this period can be a common concern. According to UAE labor laws, the calculation of leave salary is typically based on the employee's actual salary at the time the leave is taken. Therefore, if your salary has been temporarily reduced, your leave salary during the reduced salary period is likely to be calculated based on the temporarily reduced salary rather than your original salary.

To ensure clarity and accuracy in this situation, it is recommended to review your employment contract, any relevant company policies, or consult with your HR department for specific details on how leave salary will be calculated during the period of temporary salary reduction. This will provide you with a clear understanding of your entitlements and how they are impacted by the temporary reduction in salary.

If you require further assistance or clarification on this matter, it is advisable to seek guidance from legal experts specializing in UAE labor laws to ensure your rights are protected and that the calculation of your leave salary aligns with the legal requirements in the UAE.
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