Dear TFT,
My friend is working with a company in a free zone in Dubai.
He remained on furlough for the last six months. He was getting paid his basic salary.
The company has now asked him to rejoin. Will he be penalized and will the firm deduct any cash from his full and final settlement?
Answer:
According to Article 132 of UAE labor law, “The days of absence from work without pay shall not be included in calculating the period of service.”
Therefore, unpaid leave period is not considered for gratuity period computation.
However, in your friend’s case as you mentioned that he was on paid leave by the company, therefore he is entitled to the end of service benefits for that period.
Last year, after the COVID-19 lockdown in March 2020, The UAE’s Ministry of Human Resources & Emiratisation (MOHRE) had passed a Ministerial Resolution for unpaid leave and salary reduction.
Under that, if the employer grants leave in that situation, the employee is entitled to the gratuity for that period.
