Labor Rights: Unused Annual Leave can be Encashed
“Where a worker is dismissed or leaves his job after the period of notice, he shall be entitled to remuneration in respect of any days of annual leave not taken.”
In an article of Ashish Mehta on Khaleej Times, it is said that an employees is entitled to the salary for all unutilized annual leave along with the end-of-service benefits. It is pursuant to one’s resignation from current employment in accordance with Article 79 of the Federal Law No. 8 of 1980 regarding Labour Relations (Labour Law).
This law states, “Where a worker is dismissed or leaves his job after the period of notice prescribed by law, he shall be entitled to remuneration in respect of any days of annual leave not taken. Such remuneration shall be calculated on the basis of the remuneration that he earned on the date on which the leave became due.”
If one is resigning from his employment, he will be entitled to the leave salary calculated on the basis of the last remuneration drawn in accordance with Article 1 of the Labour Law which defines “Remuneration” as “All payments made to the worker on a yearly, monthly, weekly, daily, hourly, piece work, or production or commission basis, in return for the work he performs under the contract of employment, whether such payments are made in cash or in kind. Remuneration shall include the cost of living allowance.
It shall also include any grant given to the worker as a reward for his honesty or efficiency if such amounts are provided for in the contract of employment or in the internal regulations of the establishment or have been granted by custom or common practice to such an extent that the workers of the establishment regard them as part of their remuneration and not as donations.”
It should also be noted that the Ministry of Labour does not impose a ban on an employee if the employee has completed one year of continuous employment with his current employer.
This is in accordance with Article 117(1) of the Federal Law No. 8 of 1980 regarding Labour Relations (Labour Law) which states, “Both the employer and the worker may terminate a contract of employment of unlimited duration for a valid reason at any time following its conclusion by giving the other party notice in writing at least 30 days before the termination.”
Employees have to remember that employment commences from the date one started work and noton the date his residence visa was affixed on his passport.