Sunday 29 June 2014

Leave salary payment in UAE

Posted by Zaishan at 17:49 Labour Law

As per UAE labour law companies have no authority or right to ask an employee to go on loss of pay for a definite period other than nor...

As per UAE labour law companies have no authority or right to ask an employee to go on loss of pay for a definite period other than normal annual leave without the leave salary payment. Employee doesn't need to look the status of company's financial position like whether it is good or bad. Can an employee be forced to go on loss of pay because of financial losses of a company? The answer is "No" as per the federal law regarding employment in UAE.

As per the UAE employment law employees are not responsible for the company's financial liabilities and profit or loss. They are only responsible for their duties as agreed up on by the company in their employment contracts. If they fulfill their obligations as mentioned in their employment contracts, then, it is their right to receive their remuneration.

UAE Employment Law

Article 56 of the UAE Labour law clearly mentions that: "Employees engaged on a yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once every two weeks."

Employment law in UAE states that the employees are entitled to receive 30 days leave with pay when they completed 11 months of work. It has to be noted that as per the UAE Law, even in case of liquidation of a company, employees are given priority over debtors. Keeping in view the above injunction of law, no employee can be coerced to go on loss of pay because the company cannot pay the agreed remuneration.