Situation:
The employee with the basic salary of AED 10,000 works full time for more than a year in a company and has 10 unused leave days.
What actions are required?
1. Understand leave entitlement: the employee is entitled to 30 calendar days of paid annual leave after completing 1 year of service.
2. Determine if leave was used: check if the employee has taken their statutory annual leave.
3. If not, the worker may carry forward his annual leave balance of days thereof to the following year.
4. The employer may not prevent the worker from benefiting from his annual leave accrued for more than 2 years, unless the worker wishes to carry it forward or receive a cash allowance for it.
5. If the leave is to be paid in cash, it's calculated based on basic salary only (Number of unused leave days × Daily Basic Salary)
Example: Basic salary = AED 10,000; 10 unused leave days
Daily Basic Salary Calculation: Basic Monthly Salary ÷ 30
Daily salary = AED 10,000 ÷ 30 = AED 333.33
Cash allowance for 10 unused days = 10 × 333.33 = AED 3,333.30
Basis: