HRA During Leave Without Pay

Post new topic

Member since 10 January 2019

coolonworldMember10 January 2019 05:18:39

Dear,

Need clarrification on House Rent Allowance deduction during leave without pay. Is it valid to deduct the HRA and transport allowance when on leave without pay? Does labour law support this deduction....

CoolonWord

XTang Bahrain/UAE/Saudi Arabia Expert

Member since 22 April 2014

XTangBahrain/UAE/Saudi Arabia Expert10 January 2019 06:55:00

11787

Interesting question.

Simple answer: Yes, the employer can withhold the entire wage including allowances during unpaid leave.

More complicated answer: The labor law is silent on this. While it specifies unpaid leave i.e. it can be taken as per certain circumstances; it doesn't give explicit guidance on what is to be paid and not paid. This means that a company's internal policies (duly approved by MOL) cater to this. Most companies do NOT pay anything during unpaid leave.

I know of cases filed by people using labor law. They used a minor distinction in the wording i.e. salary vs. wage. The labor law says unpaid leave without salary. So they said that salary is basic salary and wages include allowances so that means we should get the allowances. They lost the argument.

coolonworld Member

Member since 10 January 2019

coolonworldMember10 January 2019 08:36:35

Thanks for prompt reply ....

Articles to help you in your expat project in Bahrain

Getting married in Bahrain
Bahrain allows anyone who resides in the country to get married, irrespective of nationality or religion. The ...
Driving in Bahrain
Expats love the freedom and convenience of driving, and many choose to purchase or rent their own car. But, ...
Opening a bank account in Bahrain
Opening a local bank account is essential for receiving your salary. The Wage Protection System (WPS) is designed ...
Relocating with your pets to Bahrain
One of the decisions to make when relocating to a foreign country is what to do about pets. For many expats, there ...
Starting a business in Bahrain
According to the World Bank Group report for 2019, Bahrain lies 3rd out of 20 nations, for ease of doing business ...
Studying in Bahrain
The universities and colleges in Bahrain are too numerous to mention. The majority are Bahrain institutions, but ...
Education and childcare in Bahrain
Both public and private schools are available in Bahrain, but most expats tend to enrol their children in private ...
Healthcare in Bahrain
Bahrain has world-class medical facilities, health professionals, and easy access to medical treatments. Public ...