Question: I work in a Dubai-based firm. I have several pending paid leaves. Can you explain the process of 'encashing' these leaves? How is it calculated and is there an upper limit? Also, can you please tell me what is the maximum number of leaves that I can avail of in one go?
Response: Pursuant to your queries, it is assumed that you are employed in a mainland firm based in Dubai. Therefore, the provisions of Federal Decree Law No. 33 of 2021 On the Regulation of Employment Relations (the 'Employment Law') and those of Cabinet Resolution No.1 of 2022 Concerning the Executive Regulations of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations (the 'Cabinet Resolution No. 1 of 2022') are applicable.
In the UAE, an employee is entitled to 30 calendar days of annual leaves in a year. This is in accordance with Article 29(1)(a) of the Employment Law.
An employee may be entitled to 'cash in lieu' for unused annual leaves. The calculation of this is based on the basic monthly salary of the employee. If the employee does not intend to avail of the annual leave, he or she may mutually agree with the employer for payment of cash instead. This is in accordance with Article 19(1) of the Cabinet Resolution No. 1 of 2022, which states: "Subject to the provisions of paragraphs (8) and (9), Article 29 of the Employment Law, an employee may carry over not more than half of his...
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