Can Employers in UAE Deduct from Employees’ Leave Salary?

  • Date: 07-Sep-2020
  • Source: Al Bawaba
  • Sector:Economy
  • Country:UAE
  • Who else needs to know?

Can Employers in UAE Deduct from Employees’ Leave Salary?

Question-I requested my company to remit my annual leave salary for this year instead of taking a vacation. However, they gave me only 80 per cent of the leave salary. When I asked the HR manager about it, she told me that I had agreed to a temporary salary cut due to Covid-19 impact and that leave salary was part of the temporary contract I had signed. Is annual leave salary affected by the temporary salary reduction?

Answer: 

Pursuant to your queries, we assume that you are employed in a mainland company based in the UAE. Therefore, the provisions of Federal Law No. (8) of 1980 Regulating Employment Relations in the UAE (the 'Employment Law') and the provisions of Ministerial Resolution No. (279) of 2020 Concerning the Employment Stability in Establishments of