Important difference: checkout completion
It is vital to distinguish between taking leave during employment and taking unused leave at termination:
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During annual leave: The employee receives the full salary (basic salary plus all regular allowances).
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Cash in lieu of termination: Collection for accrued, unused annual allowed days at the end of work is strictly calculated only on the base salary, unless the employment contract provides for more favorable conditions.
“If an employer excludes regular allowances from the monthly salary while an employee is on annual leave, the employee can raise the matter internally with HR by referring to Article 29 of Federal Decree No. 33 of 2021, or submit an official investigation to the Ministry of Human Resources and Emiratization (MHRE),” he advised.
