Ever wondered what happens to your unused annual leave when you leave your job in the UAE? Good news – if you work in the private sector, you’re entitled to be paid for leave you’ve legally built up but haven’t taken. Here’s how it works. Keep reading for all the details you need to know.
Do You Get Paid For Unused Leave?
Yes! If you work in the private sector, you’re entitled to be paid for any annual leave you’ve legally built up but haven’t used. This applies whether you resign or your employment is terminated. It even covers the leave you earned during your final months on the job.
One catch to know about: the payout is worked out using your basic salary, not your total salary. So any allowances on top won’t be counted. The amount is also calculated in proportion to the time you actually worked.
How Much Leave Are You Entitled To?
Article 29 of Federal Decree-Law No. 33 of 2021 says private-sector employees get:
- 30 days of paid annual leave for every completed year of service.
- Two days per month if you’ve worked more than six months but less than a year.
- Proportionate leave for the last part of a year you worked, if your job ends before you’ve used your leave.
Article 19(2) of Cabinet Resolution No. 1 of 2022 confirms that this payment is calculated using your basic salary.
Can You Carry Your Leave Over To Next Year?
You can, to a point. Under Article 19(1) of Cabinet Resolution No. 1 of 2022, you may:
- Carry forward up to half of your annual leave entitlement to the following year.
- Agree with your employer to get cash instead. You can receive a cash payment in place of the leave, worked out using the wage that applies when the leave becomes due.
Keep in mind that carrying leave forward or taking cash while you’re still employed depends on the legal rules and on your employer agreeing to it.
Can Your Employer Keep Saying No To Your Leave?
Not forever. Your employer can’t stop you from taking your accrued annual leave for more than two years in a row. The exception is if you choose to carry it forward or take cash compensation, as allowed by the regulations.
