UAE annual leave rules explained: When can you carry days forward?

The Ministry of Human Resources and Emiratisation has clarified the conditions under which employees may carry forward annual leave, stating that unused leave may be transferred to the following year with the employer’s approval, in line with regulations.

In such cases, payment for carried-over leave is calculated on the basis of the employee’s basic salary, the ministry said, stressing that employers may not prevent workers from taking their annual leave for more than two consecutive years, unless the employee chooses to carry it forward or receive a cash allowance in lieu, in accordance with executive regulations.

Under article 29 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, employees are entitled to no fewer than 30 days of fully paid annual leave for each year of service, after completing six months with the employer. Workers with service exceeding six months but less than one year are entitled to two days’ leave per month worked.

If an employee’s service ends before using accrued leave, they are entitled to payment for unused days, as well as leave for the proportion of the final year worked. All such payments are calculated based on the basic salary.

The ministry added that part-time employees are entitled to annual leave in proportion to their actual working hours, as specified in their employment contracts and the executive regulations.

As a general rule, annual leave should be taken within the year it falls due. Employers may determine leave dates in line with operational requirements, in agreement with the employee or on a rotational basis, provided the worker is notified at least one month in advance.

The law also states that public holidays or other legally mandated leave falling during annual leave are counted as part of the leave period, unless the employment contract or company regulations provide more favourable terms for the employee.