Businessmen claim the cost of annual leave has doubled since new regulations came into force last September.
Law firm Almoayed Chambers has advised companies not to implement the changes until the law has been challenged in court.
"We have been approached by several leading companies whose salary bills run into millions and they have to pay millions extra if they implement the new law," said the company's chairman Aymen Almoayed.
"The main point of contention is the number of days of annual leave and there is argument on whether it should be 30 calendar days or 30 working days.
"We are advising our clients to ignore the ministry's circular on annual leave days because it is unlawful and are urging them to calculate the annual leave days as calendar days instead of working days."
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