Annual leave in UAE is a statutory right for every private-sector employee. Under Federal Decree-Law No. 33 of 2021, employees are entitled to 30 calendar days of paid annual leave per year after completing 12 months of service. This guide covers every aspect of annual leave under UAE labour law — from accrual during probation to leave salary, encashment, carry-over rules, and how leave is calculated on termination. It includes a downloadable leave request form you can use with your employer.
What annual leave means under UAE law
Annual leave is a period of paid absence from work that an employee is legally entitled to take each year. It is not discretionary leave, not unpaid leave, and not a favour from the employer. It is a statutory right established under Article 29 of Federal Decree-Law No. 33 of 2021, which came into effect on 2 February 2022.
The purpose of annual leave is rest and recovery. The law treats it as a non-negotiable right — an employer cannot require an employee to waive annual leave or replace it entirely with payment while the employment relationship is ongoing. The only exception is leave encashment at the end of employment, which is governed separately.
Annual leave under UAE law is calculated in calendar days, not working days. This means weekends and any non-public-holiday rest days that fall within the leave period are counted as part of the leave balance. This is an important distinction because many employees mistakenly assume that 30 days of annual leave translates to six full weeks off work. In practice, if an employee takes 30 consecutive calendar days, the period includes weekends.
Leave entitlement: 30 days and how it accrues
The core rule is straightforward:
| Length of service | Annual leave entitlement | Legal basis |
|---|---|---|
| Less than 6 months | 2 calendar days per month (accrued) | Article 29(3) |
| 6 months to less than 1 year | 2 calendar days per month (accrued) | Article 29(3) |
| 1 year or more | 30 calendar days per year | Article 29(1) |
Leave begins accruing from the first day of employment. An employee who joins on 1 January and is still employed on 31 December has earned 30 days of annual leave for that year, regardless of whether they actually took any leave during that period.
The 30-day entitlement is a minimum. Employment contracts, collective agreements, or company policies may grant more than 30 days. They cannot grant less. Any contractual term that reduces the annual leave below 30 days is void under Article 8 of the decree-law, which states that any agreement that reduces the rights of the employee below the minimums set by the law shall be void.
Annual leave during probation
A common misconception is that employees do not earn annual leave during probation. This is incorrect. Annual leave accrues from the first day of employment, and the probation period is part of the employment relationship.
However, the employer is not obliged to approve annual leave during probation. Under Article 29(6), the employer has the right to determine the timing of annual leave based on work requirements. During probation, most employers exercise this right and do not approve leave requests unless there is an exceptional reason.
If the employment contract ends during probation — whether by the employer or the employee — the accrued but unused leave days must be paid as part of the final settlement. For example, an employee who completes three months of probation and is then terminated has accrued six days of annual leave (2 days × 3 months). Those six days must be paid at the basic salary rate.
Leave before completing one year
Employees who have not yet completed one year of continuous service are not entitled to the full 30 days. Instead, they accrue leave at the rate of two calendar days per month of service, as specified in Article 29(3).
This means:
- After 3 months of service: 6 days accrued
- After 6 months of service: 12 days accrued
- After 9 months of service: 18 days accrued
- After 11 months of service: 22 days accrued
Once the employee completes 12 months of continuous service, their entitlement resets to 30 calendar days per year from that anniversary date onwards.
It is important to note that "continuous service" means uninterrupted employment with the same employer. If the employee takes authorised leave (sick leave, maternity leave, or even unpaid leave approved by the employer), the service continuity is not broken. However, unauthorised absence — if it leads to termination — does break continuity.
Leave salary: what the employer must pay
Article 30 of Federal Decree-Law No. 33 of 2021 establishes that the employee is entitled to their full wage for the period of annual leave. The leave salary is calculated based on the basic wage the employee was earning at the time the leave is taken.
The basic wage is the salary stated in the employment contract, excluding allowances such as housing, transport, utilities, furniture, or any other supplementary payments. This is the same definition used for gratuity calculations under Article 51 of the same law.
If the employee has a fixed monthly salary with no separate allowances broken out, the entire salary is treated as the basic wage for leave salary purposes, unless the contract or company salary structure explicitly defines a basic-to-allowance split.
When leave salary must be paid
Under Article 30(2), the employer must pay the leave salary before the employee starts the annual leave. This is a mandatory timing requirement, not a guideline.
In practice, many employers process leave salary as part of the regular payroll cycle rather than as an advance payment before the leave starts. While this is common, it technically does not comply with the strict wording of the law. Employees who need the leave salary before travelling are within their rights to request early payment.
If the employer fails to pay leave salary on time, the employee can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The complaint process is the same as for any unpaid wage — it begins with an attempt at amicable settlement through MOHRE before escalation to the labour court.
Carry-over of unused leave
The 2021 decree-law does not explicitly mandate or prohibit carry-over of unused annual leave from one year to the next. Article 29(6) gives the employer the right to determine the timing of annual leave and to divide it into periods, provided the employee takes at least one continuous period of not less than the number of days prescribed by the implementing regulations.
In practice, company policy determines carry-over rules. Common approaches include:
- Full carry-over: All unused days roll into the next year. Risk: employees accumulate large balances.
- Capped carry-over: A maximum number of days (often 5-10) may be carried forward; the rest must be used or are forfeited per policy.
- Use-it-or-lose-it: Unused leave lapses at the end of the calendar year.
One critical rule: the employer cannot force an employee to forfeit accrued leave that the employee was not given the opportunity to take. If the employer denied leave requests throughout the year due to business needs, the employer cannot then claim the leave has lapsed. MOHRE has consistently upheld this principle in disputes.
On termination, all accrued unused leave — regardless of company carry-over policy — must be paid out. Carry-over caps apply only during ongoing employment, not at end of service.
Leave encashment
Leave encashment is the conversion of unused annual leave days into a cash payment. There are two distinct contexts:
Encashment during employment
UAE labour law does not require employers to offer leave encashment while the employment contract is active. Whether an employee can "sell back" unused leave days depends entirely on the employer's internal policy or the terms of the employment contract.
Some companies allow encashment of days above a certain threshold (e.g., days beyond 20). Others prohibit it entirely and require employees to take all accrued leave. Neither approach violates the law, provided the employee is given the opportunity to take their minimum statutory leave.
Encashment on termination
Article 29(8) of the decree-law is clear: when the employment contract ends — whether by resignation, termination, expiry, or mutual agreement — the employer must pay the employee for any accrued but unused annual leave days. The calculation is based on the basic wage at the time of termination.
Annual leave calculator: how to compute your entitlement
Calculating annual leave entitlement is straightforward. The employee is entitled to their full basic salary for the leave period. The law established this under Article 30 of Federal Decree-Law No. 33 of 2021, which came into effect on 2 February 2022.
Step 1: Determine your daily wage
Daily basic wage = Monthly basic salary ÷ 30
Step 2: Count accrued leave days
- Service ≥ 1 year: 30 calendar days per year
- Service < 1 year: 2 calendar days per month served
Step 3: Subtract leave already taken
Remaining leave = Accrued days − Days already taken in the current leave year
Step 4: Calculate leave salary
Leave salary = Remaining leave days × Daily basic wage
| Item | Value |
|---|---|
| Monthly basic salary | AED 12,000 |
| Daily basic wage (12,000 ÷ 30) | AED 400 |
| Service completed | 3 years, 2 months |
| Annual leave accrued (current year, pro-rata 2 months) | 5 days |
| Carry-over from previous year | 8 days |
| Total unused leave | 13 days |
| Leave encashment (13 × 400) | AED 5,200 |
This amount is paid as part of the final settlement, alongside gratuity and any unpaid wages.
Public holidays during annual leave
If a gazetted public holiday falls within an employee's annual leave period, that day is not counted as part of the annual leave balance. This is established under Article 28 of the decree-law, which provides for paid public holidays separately from annual leave.
For example, if an employee takes annual leave from 1 December to 5 December (5 calendar days) and UAE National Day (2-3 December) falls within that period, only 3 days are deducted from the annual leave balance. The 2 public holiday days are paid separately.
The UAE Cabinet announces the official public holiday calendar each year. Employers may grant additional paid holidays beyond the official list, but the gazetted holidays are the legal minimum.
Sick leave during annual leave
If an employee falls ill during annual leave and obtains a medical certificate from a licensed medical facility, the sick days can be treated as sick leave rather than annual leave. This converts those days back into the annual leave balance, provided:
- The employee notifies the employer promptly
- A medical certificate from a UAE-licensed facility is provided
- The illness is genuine and verifiable
Sick leave entitlement is governed by Article 31 of the decree-law: 90 days total per year, of which the first 15 days are at full pay, the next 30 days at half pay, and the remaining 45 days are unpaid. Sick leave during annual leave draws from this same sick-leave entitlement.
Air ticket and travel allowance
Many employees assume that their employer is legally obliged to provide an annual return air ticket to their home country. This is incorrect. Federal Decree-Law No. 33 of 2021 does not contain any provision requiring the employer to pay for air travel.
Whether an employee receives an air ticket depends on:
- The terms of the employment contract or offer letter
- The employer's internal policy
- The free zone regulations, if applicable (some free zones include travel provisions in their standard contracts)
If the employment contract explicitly includes an air ticket benefit, the employer is contractually bound to honour it. If it does not, the employee has no legal basis to demand one. Some employers provide a fixed travel allowance instead of booking actual flights — this is equally valid.
On termination, Article 13(2) of the decree-law requires the employer to bear the cost of repatriating the employee to their home country or to a mutually agreed destination, unless the employee has transferred to a new employer. This repatriation obligation is separate from any annual air ticket benefit and is a one-time obligation at end of service.
Annual leave on termination or resignation
When the employment contract ends — for any reason — the employer must pay the employee for all accrued unused annual leave. This is a mandatory component of the final settlement under Article 29(8).
The calculation covers:
- Leave accrued in the current leave year (pro-rated for partial years)
- Any leave carried over from previous years that was not taken or encashed
The payment is based on the basic wage at the date of termination. The employer must include this in the final settlement, which must be paid within 14 days of the last working day, as required by Article 53.
Can the employer force the employee to take leave during the notice period?
Yes. During the notice period, the employer may direct the employee to use remaining annual leave. If the employee's unused leave exceeds the notice period, the excess must be paid as leave encashment. The employer cannot reduce the notice period compensation by forcing the employee to take more leave than they have accrued.
Employer obligations and penalties
Under the decree-law and its implementing regulations, employers must:
- Maintain a leave register: Record leave balances, approvals, and dates for each employee.
- Pay leave salary before leave begins: As required by Article 30(2).
- Not prevent employees from taking leave: If the employer repeatedly denies leave requests without reasonable justification, the employee can file a complaint with MOHRE.
- Pay unused leave on termination: All accrued leave must be settled in the final payment.
Employers who fail to comply with annual leave provisions may face administrative fines from MOHRE and may be ordered to pay compensation through the labour court. Repeated violations can affect the employer's classification in the MOHRE Wage Protection System, which can restrict the company's ability to issue new work permits.
Annual leave request form
Below is a professional annual leave application form that you can download, fill in, and submit to your employer — either as a printed hardcopy or as an email attachment. The form includes all fields typically required by UAE employers.
What the form includes:
- Employee name, ID, and department
- Date of application
- Leave type (annual, carry-over, other)
- Leave dates (from and to) and total number of days
- Contact details during leave
- Handover and delegation details
- Employee signature and date
- Manager approval section
- HR processing section
Download Leave Request Form (PDF)
A4 size, single-page printable. Fill in by hand or use any PDF editor.
Frequently asked questions
How many annual leave days does UAE labour law give?
30 calendar days per year after completing one year of continuous service. Before completing one year, the entitlement is 2 calendar days per month. This is set by Article 29 of Federal Decree-Law No. 33 of 2021.
Do I get annual leave during probation in UAE?
Yes. Leave accrues from day one, including probation. However, the employer may decline leave requests during probation. If the contract ends during probation, accrued unused leave must be paid out.
Can I encash unused annual leave in UAE?
During employment, this depends on company policy — the law does not mandate it. On termination, Article 29(8) requires the employer to pay for all unused leave at the basic salary rate.
When must the employer pay annual leave salary?
Before the employee starts the leave, as per Article 30(2) of the decree-law.
Is air ticket part of annual leave entitlement in UAE?
No. Air ticket or travel allowance is not a legal requirement under UAE labour law. It is a contractual benefit at the employer's discretion. Check your offer letter and employment contract.
Can I carry over unused annual leave to the next year?
The law does not prohibit carry-over, but the employer can set carry-over limits through company policy. The employer cannot force employees to forfeit leave they were not given the opportunity to take. On termination, all unused leave — regardless of any carry-over cap — must be paid.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It references Federal Decree-Law No. 33 of 2021 and Cabinet Decision No. 1 of 2022 as at the date of publication. For matters specific to free zones (DIFC, ADGM, JAFZA, etc.), consult the applicable free-zone employment regulations. Always verify with official MOHRE sources or a qualified legal advisor.