Encashment of accumulated Leave pay

Last activity 03 August 2021 by lina Swart

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lina SwartMember02 August 2021 20:46:09

I would like to find out if a company can force you to cash in accumulated leave to form part of your salary?
I have a one year contract with recruiting agency starting 1 Sept to 30 June. The university (client of recruiter) decided to finish curriculum on 15 May. Recruiting company told us to encash our accumulated holiday days to pay us a full salary for May. Then we should cash in rest to pay our salaries for June. Is this legal?

XTangBahrain/UAE/Saudi Arabia Expert03 August 2021 06:55:04

11764

No. This is not legal.

They have to pay you for the contract irrespective of when the curriculum finishes. The leave is on top of that. Also be aware that the labor law does NOT allow for encashment nor lapse of leave balances - encashment is possible if mutually agreed between employer and employee. I have written in detail about leave encashment mechanics in the past - search.

lina SwartMember03 August 2021 11:24:51

Thank you very much.🌴

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