Probation, Paid Leaves, Unpaid Leaves, and Gratuity Calculation in UAE Law

The United Arab Emirates has expatriates from all over the world. The UAE economy is booming these days as more foreign investments have come into the country. With international legal standards, the UAE government has focused on labour laws, too. International labour laws are also a part of the UAE labour laws, ensuring safety for the expatriates who belong to the working class in the UAE. Violating the labour laws in the UAE can lead to legal repercussions such as heavy penalties and imprisonment or revoking the business license.

The labour law has aspects of probation, gratuity, leaves, salaries, compensation, anti-harassment, and discrimination policies. Engaging with the labour and employment lawyers in Dubai ensures the correct legal practices in a competitive work environment. Companies and individuals can hire legal experts to review the employment contracts in terms of end-of-service benefits or get to know about the rights and obligations of the employees.

For the first three to six months, an employee’s performance is monitored by the authorities, known as the probation period. In some UAE companies, the probation is for three months, whereas some take up to six months to see how well is the employee performing. The UAE labour law has allowed six months probation period in the region. Exceeding the six months’ timeline will lead to legal complications. Probation period is not less than 3 months and not more than 6 months.

During the probation period, the employer can terminate the employee by providing them with 14 days’ written notice period. However, if the employee decides to work in another UAE company in that period, they will have to serve 30 days’ notice period. If they are planning to leave the UAE, then they can serve 14 days’ notice period. The new employer will have to compensate the employee for all the recruitment expenses that happened with the previous employer. You can further clarify our point, with our labour and employment lawyers.

There are paid leaves that every employee gets after serving at least one year in the company. The annual leaves can be taken for 30 days a year. The annual leave is paid, which means basic salary and housing allowance is paid by the employer. However, they can take two days off a month, if they have completed the probation but still have not completed a year. Accrued leaves can be claimed after the job confirmation when the probation period is reviewed. In case of termination, compensation for the leaves that are not used shall be given to the employee.

The sick leaves can be taken for 90 days a year. The first 15 days are fully paid and the next 30 days are half paid. However, the other half (45 days) of the leave is unpaid. It is important for the employee to claim sick leave three days before they want to take it. However, a medical certificate shall be provided to the employer. Engaging labour and employment lawyers in Dubai can assist employees with disputes over leaves if the employer rejects any leave without a genuine reason. Labour and Employment lawyers can also explain the eligibility and its engagement properly.

Maternity leave is given to the pregnant women. They can get 60 days of maternity leave. The calculation of maternity is simple. These women can get paid in full for 45 days during their leave, whereas, the rest 15 days are half-paid, though they are still on the leave. In case of any medical complications, the leave can be extended. However, the paternity leave is paid and granted for 5 days to the new fathers. The leave is valid in the first six months of the newly born child.

Other types of leave are granted as per the need. The bereavement leave is granted for 3 to 5 days. A study leave is granted for 10 days if the employee has to take examinations. The hajj leave in the UAE is granted for 30 days, whether paid or unpaid. It leaves the choice to the employer.

Transparency of leaves shall be maintained by the HR of the company. Any wrongful termination or mismanagement of the HR policies will lead to legal claims. The labour and employment lawyers in Dubai assist employees in getting full compensation against their employment disputes.

The consent for unpaid leave shall be written and documented well to avoid future conflicts. It is important for the employee to understand that unpaid leaves do not accrue end-of-service benefits or are credited to the service duration to calculate gratuity. The most common reasons for unpaid leave could be travel for an emergency, prolonged illness, or educational or personal reasons.

The end-of-service benefits are mathematically calculated based on the years of service and the last basic salary. From the year 2022, gratuity is calculated according to the first 5 years and then the number of days change from the 6th year. Considering this formula, the first five years’ basic salary is counted for 21 days of each month. However, from the 6th year, 30 days of basic salary is counted until the ending year of service. However, the gratuity shall not exceed more than two years’ salary. There will not be any deductions in the gratuity if the resignation is submitted to the employer. However, they shall pay the gratuity within 14 days to the employer. Without causing serious delays, the labour and employment lawyers in Dubai can intervene on behalf of the employee.

The employers must have legal compliance with the UAE labour laws. They have to maintain the records for probation periods, leave approvals, gratuity accruals, and end-of-service settlements. If they fail to keep these records, there could be legal disputes and penalties, which may destroy the employer’s reputation in the business environment. However, hiring labour and employment lawyers in Dubai could be a good option to manage all the records while they work together with the HR department.