UAE annual leave: Can you claim unused days when you resign?
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…
The annual leave policy in the UAE dictates that employees are entitled to paid leave based on their years of service. After completing six months of work, employees receive two days of paid leave per month. For each completed year of service, the entitlement increases to 30 days of paid leave. If employment ends before the employee uses their allotted leave, they are still entitled to payment for the unused days based on their basic salary.
This applies to both resignations and terminations, ensuring that employees receive compensation for legally accrued, unused annual leave. Under UAE Labour Law, private-sector employees are allowed to carry forward up to half of their annual leave entitlement into the following year. Alternatively, they can negotiate with their employer to receive a cash payment instead of take the leave.
This provision allows flexibility in managing leave balances, either by accumulating them for future use or converting them into financial compensation.
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