Understanding Annual Leave in the UAE: Entitlements, Carry Forward, and Payment Options

In the UAE, employees working for mainland companies are entitled to 30 days of annual leave for each completed year of service. This entitlement is stipulated under Article 29(1)(a) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which ensures that employees are granted a minimum of 30 days of paid leave per year.

Regarding the carry forward of unused leave, employees are allowed to carry forward up to 15 days of their annual leave to the following year. This provision is outlined in Article 19 of Cabinet Resolution No. 1 of 2022, which implements the Federal Decree Law No. 33 of 2021. According to this regulation, an employee may either carry forward half of their annual leave or agree with their employer to receive a cash allowance based on the salary at the time the leave entitlement arises.

If an employee's service ends, they are entitled to a cash payment for any unused annual leave, calculated based on their basic salary. This is consistent with the provisions of Article 29(9) of the Employment Law, which states that employees are entitled to payment for unused leave upon leaving their job, regardless of the duration of employment, with the amount calculated proportionally based on the basic wage.

The approval and scheduling of annual leave are subject to the employer's discretion, allowing the employer to decide whether an employee can take all 30 days of leave at once or split it into intervals, depending on the company's HR policies. In some cases, employers may allow employees to take their annual leave once every two years instead of annually, as per Article 29(8) of the Employment Law.

Additionally, if an employee has not used their annual leave, they may request and agree with their employer to receive cash compensation instead, a process that must be mutually agreed upon between the employer and the employee.

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