All You Need to Know About Annual Leave in the UAE: Entitlements, Carry-Forward Rules & More

In certain circumstances, an employer may permit an employee to accumulate and take their annual leave once every two years.

Question: I work for a mainland company and need clarification on annual leave regulations. Are there requirements for using a certain number of leave days each year? If unused, do they expire or convert to payment?

Answer: Under Federal Decree Law No. 33 of 2021, employees are entitled to 30 days of paid annual leave for each completed year of service. This provision, specified in Article 29(1)(a), ensures employees receive a minimum of 30 days annually.

Employees may carry forward up to 15 days of unused leave to the following year. As per Article 19 of Cabinet Resolution No. 1 of 2022, which implements the Decree Law, employees can either carry forward half of their leave or opt for a cash allowance. Upon termination of employment, any unused leave must be compensated in cash based on the basic salary.

Annual leave accrues with each year of service. If an employee has not utilized their leave, they can request a cash compensation as specified in Article 19(1). This payment can be agreed upon with the employer, providing an alternative if leave is not taken.

The scheduling of annual leave is at the employer's discretion. Employers have the flexibility to approve leave either as a single block or in intervals based on company policies. Generally, employees are entitled to 30 calendar days per year, which can be taken all at once or in parts. In some situations, employers may permit leave to be taken once every two years, according to Article 29(8) of the Employment Law.

If an employee leaves their job before taking their leave, they are entitled to a cash payment for the unused leave days, calculated on their basic salary. This provision, detailed in Article 29(9), ensures employees receive compensation for any accrued leave not utilized before employment ends.

News Source: Khaleej Times