# Vacation pay replaced with notice period pay



## pktsam2000 (Jul 7, 2013)

My employer [An American Firm in Dubai] gave me 30 days notice for termination right at the start of my annual vacation. He says he will not allow me to serve the notice period and I must go on vacation as planned. And that he will not pay salary for my notice period. His logic is that he will adjust my vacation against 'days not worked during notice period'. I am ready to work during the notice period but he is threatening to file police complaint if I enter the office premises. [I have this in writing.]

Is this legal as per UAE labour law? Can he not pay my notice period salary?

Please help. This looks very unfair and it is causing me huge financial loss.


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## Gavtek (Aug 23, 2009)

What did the Ministry of Labour say when you showed them the letter?


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## ziokendo (Jan 7, 2012)

If your labour contract is governed by UAE labour law, read article (79): depending on various circumstances and what you specifically signed at the time of employment could apply to your situation. They have an help line as well that you can call to get clarification on the law.


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## Canuck_Sens (Nov 16, 2010)

You are entitled for paid vacation after one year. If right after one year he gives you a 30 day notice which happens to coincide with your vacation I see no issues. How long have you been working for them?

Why do you want to go back ? Collect your stuff? I find the letter he gave you pretty strong and you may seek MOL advice on this, but if you are thinking that you can go back to work to pocket that month salary along with the vacation I think you cannot since you had already notified him that you are going to be on vacation and you actually are on vacation.


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## pktsam2000 (Jul 7, 2013)

*Vacation pay replaced with notice period*

Thank you all for your help. I have completed 14 months' service and I am eligible for 30 days vacation. The trouble started when the firm asked me to do sales and achieve targets [while I signed up for as a Projects Manager, managing multiple projects]. The General Manager was upset and he started this termination process, which I consider as arbitrary. I have not approached the Ministry of Labour yet.

I signed a standard UAE labour law plus a employment agreement - which states 'days not worked will be adjusted against vacation days'. My doubt is: I am ready to serve the notice period but the employer is not allowing me to work and he is compelling me to go on vacation. It is not the best thing to go on vacation, when one has received termination notice. No one would like to do that. I have already informed him that I have cancelled my vacation but it is the employer who is blocking me from serving my notice period. I understand that he must pay 'compensation in lieu of notice' in this case.

I have verified this with few PROs and none of them is aware of such technique i.e. to replace notice period with vacation.

Very strange. Most probably I will have to take the firm to the Dubai Courts, to have the Arbitrary Dismissal and the Notice Period pay verified.


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## vantage (May 10, 2012)

pktsam2000 said:


> I have not approached the Ministry of Labour yet.
> 
> .


do this now.


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## saraswat (Apr 28, 2012)

Yes, echoing the sentiments of other members, please contact the MOL as soon as possible. I would recommend going and visiting them after the call also, with all your paperwork. FYI, as far as the labor law is concerned, you are entitled to a 30 notice period upon being informed of termination, your End Of Service dues and your Leave/Vacation pay. 

If the employer does not want you to be present for the 30 days, they will still have to pay you the 30 days wages, it is not a choice, we have had cases where employees were asked to leave immediately but were still given the 30 days dues in lieu of notice period. 

You have not specified whether your labor contract is an unlimited or limited contract. In case limited, then there are certain differences, but you will still be entitled to the payments mentioned earlier. 

Sounds like your employer is just trying to hoodwink you out of your vacation pay, which is illegal ! Speak with the MOL, I am sure they will help and sort it out for you. It is entirely possible the employer will pay hard-ball with you and this will end up in litigation, but having the MOL step in on your behalf might avoid that eventuality. Good luck. 

Ministry of Labour


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## pktsam2000 (Jul 7, 2013)

*vacation pay replaced with notice period*

I will soon contact the MoL for directions. 

I agree that any employer simply pays the notice period salary plus the unused vacation pay and the ESB. This is what I have seen so far. 

FYI: Mine is an unlimited contract.

The legal fight can be long and frustrating but I understand I must go through this.

I will update the thread of any new development.


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## vantage (May 10, 2012)

it may be that some paperwork from MOL, and your Employer knowing you have consulted them will be enough, and avoid an expensive legal issue.

Same with landlords trying to put the rent up. Tell them you've been to RERA and many back down, if they are in the wrong.
They are probably just trying it on, hoping that you do not understand the law


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## pktsam2000 (Jul 7, 2013)

I want to update you all on this.

I consulted a specialist lawyer and he confirmed that the employer cannot replace notice period with my vacation. I contacted the MoL helpline [800-665] and they also confirmed alike. The lawyer also looked at the termination letter - which did not give a reason for termination- and agreed that it was an arbitrary dismissal.

I filed a complaint with the MoL and I had the meeting with the employer and legal advisor in 4 days of registering a complaint. [For registering a complaint, please go to the main MoL office typing center in Al Qusais; costs 35AED.] 

The employer came with a lawyer and asked if he could settle the matter amicably. We discussed and agreed a package which covered full vacation pay, notice period salary plus 1.5 months compensation pay for arbitrary dismissal and extension of visa for 1 month. The MoL adviser told me to come back if they did not make the settlement properly.

The next day, the Lawyer replied that he must reduce the settlement amount by another 20% which was not acceptable to me. He also made an elaborate legal settlement agreement which showed penalties. I did not agree with this and I have taken a new appointment with MoL with the legal adviser. Due to the involvement of the Lawyer I lost 4 days' time. 

My advice, do not accept to speak with a Lawyer prior to speaking with the MoL legal adviser. Anything, you should discuss in front of the adviser and make the agreement in front him. Otherwise, it is only a delay tactic.

I will keep you posted on the developments soon.


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## dizzyizzy (Mar 30, 2008)

Thanks for the update and good luck with everything. Is always good to hear the outcomes of cases like yours. I wish more people approached the MOL, they seem to be quite helpful.



pktsam2000 said:


> I want to update you all on this.
> 
> I consulted a specialist lawyer and he confirmed that the employer cannot replace notice period with my vacation. I contacted the MoL helpline [800-665] and they also confirmed alike. The lawyer also looked at the termination letter - which did not give a reason for termination- and agreed that it was an arbitrary dismissal.
> 
> ...


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## Canuck_Sens (Nov 16, 2010)

pktsam2000 said:


> The employer came with a lawyer and asked if he could settle the matter amicably. We discussed and agreed a package which covered full vacation pay, notice period salary plus 1.5 months compensation pay for arbitrary dismissal and extension of visa for 1 month. The MoL adviser told me to come back if they did not make the settlement properly.
> 
> The next day, the Lawyer replied that he must reduce the settlement amount by another 20% I will keep you posted on the developments soon.


Ok I am confused they offered a deal in front of MOL adviser or just you three alone. Was this in writing ? What is a proper settlement under MOL's view ? 

And I find very weird and unusual that they offered a deal to later on change it! Ghee there is a total disregard here about pretty much anything.

Just go back there to MOL and have the settlement done there. I hope your ex employer get fined it is really an abuse. Thanks for sharing now I know something new.


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## pktsam2000 (Jul 7, 2013)

No, just three of us discussed and found an agreed settlement. Then, I and my manager went to the MoL adviser [Lawyers are not allowed inside the MoL adviser's office] and informed her that we are finding a solution. Then she told me to me come back if I did not get a solution.


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## pktsam2000 (Jul 7, 2013)

UPDATE 2:

Today we discussed the issue for the first time in front of the MoL legal adviser. The adviser was not giving any opinion and simply asked what I wanted and what the employer could agree. She said if we did not agree she will send the case to the court.

I brought down my claim to 1.0 month compensation plus all pending monies. I also highlighted to the adviser that 'leave salary cannot be replaced with notice pay'. She was agreeing but she was not sure and authentic. 

I also asked for a No Objection letter which the legal adviser said it is only up to the employer and they cannot do anything. 

However, my stand is: Full settlement with a no objection letter and 1 month extension on my visa. Otherwise I am taking the case to the Court.


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## indoMLA (Feb 6, 2011)

^Good for you. Make them pay.


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## pktsam2000 (Jul 7, 2013)

Pleased to inform the forum that the issue was settled and I have signed the agreement on Thursday.

It was all my dues: Leave salary + Notice period salary + End of service benefits + 1 month compensation + No objection letter + Service certificate.

I had agreed for 1.5 months compensation earlier however dropped it down to avoid court time, lawyer fees. I could have taken them to court - and it was my decision not to waste time/energy/money on that.

Thank you for your support.


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## twowheelsgood (Feb 21, 2013)

Well done - this example should be shown to anyone getting hassle from their employer, as a good example of how the rules work in your favour if you take advantage of the system set up to protect the employee.

Great result.


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## raddragon (Aug 1, 2013)

Is anyone able to direct me to a good resource on Dubai employment legislation? Just something with the basics is all I'm after.


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## pktsam2000 (Jul 7, 2013)

UAE labour law is [in PDF] is available at this link:


http://www.mol.gov.ae/newcontrolpanel2010/Attachments/21062012/labour%20law%20no.8%20year%201980.pdf


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