Everything requires a suitable law so that that can go accordingly. Not just that, but it is important to create justice which is in need everywhere we go. Hence, by looking at the New Year and inventions, everything needs to change, and one of that is the unused-annual-leave-encashment in the new UAE law. Laws that relate to this exist, such as the November 15th, 2021, law. The new law takes place on February 2nd, 2022, and replaces the law which was there before. The newer version grants more changes because of the strict revision. Hence, it is the first important revision to the UAE’S federal employment as well as labor law in 40 years’ time.
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All of these laws imply to everyone. However, there is a group that has its own set of laws. These groups include the headquarters of the financial free zones, DIFC, and the ADGM. The scope of the new law implies everywhere the same as the old law. Hence, there are no changes, but the revision makes the newer laws more applicable considering the newest conditions. Hence, the goal of the new law is to enforce the rights of the workers and to motivate and unite everyone as one. This is the main of the Ministry of Human Resources and Emiratization (MHRE). Moreover, the law also practices ensuring companies are working within their laws.
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The provisions that relate to the unused-annual-leave-encashment in UAE
There is an option of unused annual leave encashment, which is something that the employee can take advantage of. However, to get this advantage, this is where laws come into place. The New UAW Labor Law, along with the Ministry of Human Resources and Emiratization, has set requirements. Hence, once an employee fulfills all of these requirements, they will be able to achieve this advantage. There is a question that still pops up. That is, if it is still possible for a worker to request for the unused annual leave encashment of the remaining days when the worker did not completely utilize their annual leave.
However, those who have yearly leave can have one option. That is for a paid in lieu of having a leave. This is according to the Establishment bylaws through the Executive Regulations of the Decree-Law. This Federal Decree Law of No.33 of 2021 states this. Article 29(8) of the new law also states this.
Clauses 8 and 9 of an article of the UAE Labor law for the Annual leave
It is not permissible for the employer to restrict the employee from utilizing their leave for more than two hours years when it is accumulated. Hence, the employee can always request to have a compensated place of leave. This will happen in accordance with the Establishment bylaws. The Executive Regulations of the state this is why it is authentic to do so. It does not matter how long the wait is; the worker has the right to the payment for when he leaves they did if they quits the job before the use of it. The employee has the right to leave the pay for a fraction of the year. Hence, this is during their service. This is also applicable to the basic salary.
Moreover, the employee also has the right to 30 calendar days of annual leave each year. Hence, the Article 29(1) of the UAE Labor Law. Therefore, this gives them this right because the laws at it state this. For any sort of unused annual leaves, the employee can have access to “cash in lieu.” This is done by looking at the monthly compensation through the computation process. Therefore, it bases on the employee’s monthly bases compensation. However, if the employee decides not to take in the yearly leave, then they have the ability to decide jointly on receiving the compensation within the company.
Moreover, Article 19(1) of the Cabinet Resolution No. 1 of 2022 allows an employee to carry over a maximum of half of their leaves for the following set of the year. Therefore, they can either do this or have another option to go with. They can also agree with their employer to be paid in lieu. This is based on their wages, mainly at the time of the annual leave entitlement. Hence, this subjects to Article 29(8) as well as (9). The worker is also permissible to have over half of their yearly leave given to the next year.
The main point for this is that the worker cannot work for an employer for two years in a continuous row without receiving any kind of annual leave. By looking at Article 29(8) of the UAE Employment Law, it says that the employer cannot prevent the employee from using his annual leave. This is for more than two years unless the employee wants to have it payable in lieu. The employee can also choose to carry it over.
The statement of Cabinet Resolution No. (1)
To extend this further, the MOHRE connects everything to Cabinet Resolution No. (1) of 2022. Hence, there is usefulness when it comes to this as well. It states that the worker can carry out forward for not more than half of the annual leave. This is only towards the following year. Moreover, the worker can also agree to receive a cash allowance if they will. All of this looks into account your company and the regulations. You can also profit through any action as such.
The Cabinet Resolution No. (1) Of 2022 Article (19) carries annual forward annual leaves or either receiving cash compensation. Hence, according to this law:
- When there is a termination of employment, the employee has to receive a cash allowance as well. This will be equal to the basic wage of the employee for all of the remaining time he can take off for yearly leave legally.
- The employee can also carry not over half of their annual leave to the following next year. Hence, they can agree with the employer to have a cash allowance in lieu. This will also base on the wage that the employee was earning during that time.
By looking at all of the legal restrictions as well as the newest laws, it is now seen that any employee is allowable to ask for the unused Annual Leave Encashment only if both of the parties agree to it. Moreover, it is also important to ensure that the requirements are being met by all of the laws and it is done through legal means. Furthermore, there are also different options that the employees can use. An employee can stick to having the cash in lieu attachments, and in order to do this, it will be seen by looking at the basic wages of the employee.