Last Updated on September 1, 2024 by Vadim
Understanding your rights and entitlements regarding annual leave is crucial for every employee working in the United Arab Emirates. This guide breaks down the key aspects of annual leave regulations in the UAE, ensuring you’re well-informed about your entitlements and the rules governing leave usage.
Key Points:
- Annual leave entitlement
- Carrying forward unused leave
- Cash compensation for unused leave
- Employer discretion in leave approval
- Special cases for leave accumulation
- Leave payment upon employment termination
Annual Leave Entitlement
The cornerstone of UAE’s annual leave policy is outlined in Article 29(1)(a) of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations:
“Without prejudice to the rights accruing to the employee prior to the entry into force of this Decree-Law, the employee shall be entitled to a paid annual leave of not less than 30 (thirty) days a year for each year of service.”
This means that for every completed year of service, you are entitled to a minimum of 30 days of paid annual leave.
Carrying Forward Unused Leave
While it’s advisable to use your annual leave within the year it’s accrued, the law does provide some flexibility. According to Article 19 of Cabinet Resolution No. 1 of 2022:
- Employees may carry forward up to half of their annual leave (15 days) to the following year.
- Alternatively, employees can agree with their employer to receive cash compensation for unused leave.
Cash Compensation for Unused Leave
If you haven’t used your annual leave, you have options:
- You can request to receive cash compensation instead of taking the leave.
- This compensation is calculated based on your basic salary at the time you became entitled to the leave.
- The decision to provide cash compensation is subject to agreement between you and your employer.
Employer Discretion in Leave Approval
While you’re entitled to annual leave, the timing and duration of your leave are subject to your employer’s approval:
- Employers can decide whether you can take all 30 days at once or split them into different intervals.
- This flexibility allows companies to manage staffing needs while still ensuring employees get their entitled leave.
Special Cases for Leave Accumulation
In some situations, employers may allow employees to accumulate leave over a longer period:
- As per Article 29(8) of the Employment Law, an employer may permit an employee to take their annual leave once every two years.
- This provision can be beneficial for employees planning extended trips or those working on long-term projects.
Leave Payment Upon Employment Termination
If your employment ends before you’ve used all your accrued leave, you’re still entitled to compensation. Article 29(9) of the Employment Law states:
“An employee shall be entitled to be paid for his days of leave if he leaves the work before the use thereof, irrespective of the length thereof, for the period for which he did not use his leave. The employee shall be entitled to the leave pay for the fractions of the year in proportion to the period of service, and the same is calculated on the basis of the basic wage.”
This ensures that you don’t lose out on your earned leave benefits even if you change jobs or your employment is terminated.
Practical Implications for Employees
- Plan Your Leave: Given the option to carry forward only 15 days, it’s wise to plan your annual leave strategically throughout the year.
- Communicate with HR: Stay in touch with your HR department about your leave balance and any company-specific policies.
- Consider Cash Compensation: If you’re unable to take all your leave, discuss the possibility of cash compensation with your employer.
- Keep Records: Maintain your own records of leave taken and leave balance to ensure accuracy.
- Understand Your Contract: Some employment contracts may offer more generous leave terms than the legal minimum. Always refer to your specific contract.
Conclusion: Balancing Work and Rest
The UAE’s annual leave regulations aim to strike a balance between employee well-being and business needs. By understanding these rules, you can better plan your year, ensure you’re getting the rest you’re entitled to, and make informed decisions about your leave usage.
Remember, while these are the general rules, specific industries or free zones may have additional regulations. Always consult with your HR department or a legal professional for advice tailored to your specific situation.
Taking your entitled leave is not just a right; it’s an important aspect of maintaining work-life balance and ensuring long-term productivity. Make the most of your annual leave entitlement to recharge, spend time with loved ones, and return to work refreshed and motivated.
Vadim Kouznetsov is a distinguished entrepreneur and the visionary founder and CEO of JobXDubai.com, the UAE’s rapidly expanding job board. Renowned for his expertise in bridging the gap between job seekers and employment opportunities, Vadim has become a leading authority in the recruitment and job market of Dubai.
His innovative approach to matching candidates with their ideal roles has propelled JobXDubai.com to the forefront of the industry, making a significant impact on the region’s employment landscape.
Through his work, Vadim Kouznetsov has demonstrated a profound commitment to enhancing the job search experience, solidifying his status as a pivotal figure in the field of recruitment.