UAE annual leave: Can you claim unused days when you resign?
Here is what UAE Labour Law says about annual leave entitlement when employment ends
Dubai: Resigning or leaving your job in the UAE? Your final settlement may include payment for annual leave you have earned but not taken.
Under UAE Labour Law, private-sector employees are entitled to payment for legally accrued, unused annual leave, including leave earned during their final months of employment. However, the payout is based on basic salary, not total salary.
So, what happens to your unused leave when you resign or are terminated, and can you carry forward remaining days? Here is what UAE Labour Law says.
How much annual leave are UAE employees entitled to?
Under Article 29 of Federal Decree-Law No. 33 of 2021, private-sector employees are entitled to:
30 days of paid annual leave for each completed year of service.
Two days per month if they have completed more than six months but less than one year of service.
Proportionate annual leave for the final part of a year worked, if their employment ends before they use their leave entitlement.
Article 19(2) of Cabinet Resolution No. 1 of 2022 specifies that this payment is calculated according to the employee's basic salary.
Can you receive payment for unused leave if you resign?
Yes, employees are entitled to payment for legally accrued annual leave they have not taken when their employment ends, whether through resignation or termination.
This includes leave accrued during the final, incomplete year of employment. The payment is calculated proportionately according to the period worked and the employee's basic salary.
Can you carry forward unused annual leave in the UAE?
Under Article 19(1) of Cabinet Resolution No. 1 of 2022, employees may:
Carry forward up to half of their annual leave entitlement to the following year.
Agree with their employer to receive a cash payment instead, calculated according to the wage applicable when the leave becomes due.
Carrying forward leave or receiving payment during employment is subject to the relevant legal provisions and agreement with the employer.
Employers also cannot prevent employees from taking their accrued annual leave for more than two consecutive years, unless the employee chooses to carry it forward or receive cash compensation in accordance with the applicable regulations.
