A prospective employee in the UAE has raised concerns regarding how salary structures, specifically the inclusion of transport allowances, impact compensation during annual leave. The individual questions whether employers are legally permitted to withhold these specific allowances while a staff member is away from work. Under UAE employment law, which governs mainland companies based in Dubai, the calculation of leave pay is a critical consideration for those reviewing formal job offers. Experts emphasize the importance of understanding how basic salary versus various allowances affects total remuneration. When evaluating an employment contract, it is essential to clarify how different components of the compensation package are treated during periods of absence to ensure compliance with local labor regulations and to avoid potential financial discrepancies regarding holiday pay entitlements.
Source : Khaleej Times
Photo : Khaleej Times
