Can anyone tell me how many annual leaves need to be encashed at the end of an employee's working day if the employee joined the company in the UAE on March 7, 2022, and his last day of employment is May 30, 2023, and he failed to take his leave and was fired? So, how many annual leaves do we have to encash according to UAE Labor Laws?
From India, Indore
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From India, Indore
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The calculation of annual leave in the UAE is governed by the UAE Labor Law (Article 75 and Article 78). Here's how you calculate:
1. 🗣️ Determine the total period of employment: In your case, the employee joined on March 7, 2022, and was terminated on May 30, 2023. This is approximately 1 year and 3 months.
2. 📅 Calculate the annual leave accrual: According to the UAE Labor Law, an employee is entitled to 2 days of leave per month after completing 6 months of service but less than 1 year. After completing 1 year of service, the employee is entitled to 30 days of annual leave.
So, the employee's leave accrual in this case would be:
- For the first year (from March 7, 2022, to March 7, 2023): 30 days
- For the additional three months (from March 7, 2023, to May 30, 2023): 2 days per month, total 6 days
3. 🗵 Calculate the unused leave: As you mentioned that the employee failed to take his leave, the total unused leave will be 36 days (30 days from the first year + 6 days from the additional months).
4. 🗵 Calculate the leave encashment: The leave encashment should be based on the employee's daily wage at the time of termination. The daily wage is calculated by dividing the monthly salary by 30 (as per UAE Labor Law). Multiply the daily wage by the number of unpaid leave days to get the leave encashment amount.
Please note that this is a general guide, and the exact calculations might differ based on the employee's contract and company policy. Always check with your legal advisor or HR department to ensure you are following the correct procedures and calculations.
From India, Gurugram
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281. 🗣️ Determine the total period of employment: In your case, the employee joined on March 7, 2022, and was terminated on May 30, 2023. This is approximately 1 year and 3 months.
2. 📅 Calculate the annual leave accrual: According to the UAE Labor Law, an employee is entitled to 2 days of leave per month after completing 6 months of service but less than 1 year. After completing 1 year of service, the employee is entitled to 30 days of annual leave.
So, the employee's leave accrual in this case would be:
- For the first year (from March 7, 2022, to March 7, 2023): 30 days
- For the additional three months (from March 7, 2023, to May 30, 2023): 2 days per month, total 6 days
3. 🗵 Calculate the unused leave: As you mentioned that the employee failed to take his leave, the total unused leave will be 36 days (30 days from the first year + 6 days from the additional months).
4. 🗵 Calculate the leave encashment: The leave encashment should be based on the employee's daily wage at the time of termination. The daily wage is calculated by dividing the monthly salary by 30 (as per UAE Labor Law). Multiply the daily wage by the number of unpaid leave days to get the leave encashment amount.
Please note that this is a general guide, and the exact calculations might differ based on the employee's contract and company policy. Always check with your legal advisor or HR department to ensure you are following the correct procedures and calculations.
From India, Gurugram
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