# Annual leave payment upon resignation



## Berliner (Jul 18, 2013)

Hi. I have currently resigned from my job. As such I have around 23 days of vacation that my employer will have to pay me for, along with the gratuity. 

My question is whether the pending vacation is calculated on the basic salary, or on basic + housing? HR has informed me that it is calculated only on basic salary, but I would like to know for sure.

Would be great if you anybody could put some light on this subject.

Thanks.


----------



## saraswat (Apr 28, 2012)

Per the labor law leave salary is calculated as basic+housing allowance. That is clear cut, no ambiguity there. One thing though, are you in company provided accommodation ? Usually employers that provide employees their housing don't include housing allowance on the salary breakdown (it is seen to be taken care of by the provision of housing). If you do receive a housing allowance per the labor contract you have with your employer then yes, you are entitled to basic+housing.

Also, I would speak with the MOL: Ministry of Labour
Or the relevant freezone authority in case of freezone employment.


----------



## Berliner (Jul 18, 2013)

Well according to HR if I had not resigned and taken my leave in cash (i.e. not gone on leave) then the vacation would've been paid for housing + basic. But since I have resigned and they have to pay for my pending vacation, they are saying that it will be calculated according to basic salary only. 

Not living in company accommodation


----------



## saraswat (Apr 28, 2012)

What they are saying is absurd ! Calculation of accrued leave salary is to be done by basic+housing, nothing changes that. The fact that you resigned etc has no bearing on the amount you have accrued. They are probably trying to implement internal policy. Speak with the MOL and then go back to them and tell them you spoke with the MOL, they'll fix their b.s ...


----------



## Berliner (Jul 18, 2013)

Well, called MoL and was told that since I am resigning, the pending vacation days (25 days in all) will be paid based on my basic salary only. Damn it!


----------

