UAE Labour Law: What Happens to Unused Annual Leave After Job Termination?

Last Updated on July 9, 2024 by Vadim

When it comes to terminating your employment contract in the UAE, there are several end-of-service benefits you are entitled to, including gratuity and unused annual leave pay. But did you know that you have a limited time to claim these benefits?

In this article, we will explore the UAE Labour Law and what it says about unused annual leave pay after job termination.

Entitlement to Annual Leave Pay

According to Article 29 of the UAE Labour Law, employees are entitled to an annual leave that is fully paid. This entitlement includes:

  • 30 days for each year of extended service
  • Pro-rata leaves for the last year of work, in case the service ends before availing the full annual leave balance
  • Payment for unused annual leave days upon leaving work, regardless of the number of those days, calculated based on the basic wage

Claiming Unused Annual Leave Pay

Article 19 of the implementing regulations stipulates that at the end of the service, employees should receive a cash allowance for the balance of their legally due annual leaves, calculated on their basic wage. This means that if you have not availed or been compensated for annual leave for the last part of your employment, you should receive a cash allowance for it.

One-Year Limit to Claim Entitlements

It is essential to remember that under Article 54(7), any legal claim regarding any employment rights must be made within one year from the date of entitlement. Therefore, timely action is crucial to ensure you receive your rightful benefits.

Key Takeaways:

  • Employees in the UAE are entitled to annual leave pay, including pro-rata leaves for the last year of work
  • Unused annual leave pay must be compensated upon leaving work, calculated based on the basic wage
  • Claims for employment rights, including unused annual leave pay, must be made within one year from the date of entitlement

Don’t miss out on your rightful benefits! If you have any questions or concerns about unused annual leave pay after job termination, consult with an expert or seek legal advice.

Further Reading

In our latest blog article, we cover several key topics related to employment in the UAE. For those looking to stay updated on the latest employment trends and practices, here are some essential reads:

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  7. How to Get a Job in UAE: Expert Guide for 2024
  8. Got a Job in UAE? Essential Guidelines for New Expat Workers [2024]
  9. UAE Labour Law: What to Do If Your Work Contract Differs from Offer Letter [2024 Guide]
  10. 5 Job Hunting Mistakes to Avoid in UAE [2024 Expert Guide]
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