UAE annual leave law 2026 days carry over and pay rules

UAE Annual Leave Law 2026: 30 Days, Carry-Forward, and Encashment Rules

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UAE annual leave sounds simple until payroll, public holidays, and unused days enter the conversation.

The question is rarely only, “How many days do I get?” The real question is what happens when you joined mid-year, carried leave forward, resigned before using it, or had public holidays fall during your booked leave.

This guide gives the practical version for private-sector employees and HR teams in 2026.

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Quick Answer

Under UAE annual leave law, a private-sector employee is entitled to 30 days of fully paid annual leave after completing one year of service. If the employee has completed more than six months but less than one year, the entitlement is two days for each month of service. If employment ends before the leave is used, unused leave is paid according to the rules on accrued leave.

Who Gets Annual Leave?

Annual leave applies to private-sector employees covered by the UAE Labour Law. The first threshold is six months of service. Before that point, the law does not create the same annual leave entitlement.

After six months, the employee earns two days per month until they complete one year. After one year, the entitlement becomes 30 days. Part-time employees receive annual leave according to actual working hours and contract terms.

Annual Leave Pay

Annual leave is paid leave. The pay calculation can become sensitive when an employee has allowances, variable pay, or unused leave at exit.

For unused annual leave at the end of service, the official UAE Government annual leave page states that payment is calculated on the basis of basic salary. That detail matters because many employees assume the full package will be used.

Carry Over Rules

The employee should use leave in the year it is due. The employer can set leave dates according to work needs, with agreement or rotation, and should notify the employee at least one month in advance.

Unused leave may be carried forward with employer consent and according to company rules. The employer may not prevent the employee from using accrued annual leave for more than two consecutive years unless the employee chooses carry over or cash compensation under the applicable rules.

Public Holidays During Leave

Public holidays or agreed leave days that fall during annual leave may count as part of annual leave unless the contract or company policy gives the employee a better benefit.

This is where disputes often start. Do not rely on hallway advice. Check the contract, policy, and the official rule before arguing with payroll.

What Employees Should Check

  • Your joining date.
  • Your leave balance in the HR system.
  • Whether unused leave was carried forward in writing.
  • Whether public holidays fell inside approved leave.
  • How unused leave will be paid if you resign.

What HR Should Document

HR should keep leave balances clean, confirm approvals in writing, and avoid informal promises that do not match policy. Leave disputes often happen because nobody can prove what was approved.

A clean leave record protects both sides. Memory is not a payroll system.

Related Guides

Useful Sources

Annual leave is not just a benefit. It is a record. The person with the cleaner record usually wins the leave conversation.

UAE Annual Leave Entitlements 2026

Service Period Entitlement Type
Less than 6 months Not eligible for paid leave Unpaid leave only
6 months to 1 year 2 days per month Paid at basic salary
More than 1 year 30 calendar days per year Paid at basic plus allowances
Upon termination Unused days encashed Based on last basic salary
Public holidays during leave Not counted as annual leave Substitute day granted

Frequently Asked Questions

Q: How many days of annual leave am I entitled to in the UAE?

Employees who have completed one year of service are entitled to 30 calendar days of annual leave per year under Article 29 of Federal Decree-Law No. 33 of 2021. During the first year of service, leave accrues at two and a half days per month.

Q: Can my employer cancel my annual leave in the UAE?

An employer can postpone approved annual leave for operational reasons, but cannot cancel entitlement entirely. The employee retains the right to take the leave at a mutually agreed time. Annual leave withheld without agreement must be paid out on termination.

Q: Can annual leave be carried forward in the UAE?

The law does not prohibit carry-forward by agreement between employer and employee. However, employers cannot compel employees to forfeit unused leave. If employment ends with untaken leave, the employer must pay the cash equivalent based on the employee’s daily basic salary.

Q: Does annual leave accrue during sick leave in the UAE?

Yes. Annual leave continues to accrue during periods of paid sick leave. It does not accrue during periods of unpaid leave unless the contract states otherwise.

Q: Can an employer force an employee to take annual leave?

Yes. Under Article 29 of Federal Decree-Law No. 33 of 2021, an employer can determine the timing of annual leave based on work requirements, provided reasonable notice is given to the employee. The employer cannot, however, require an employee to forfeit leave entirely.

For a full overview of UAE labour law rights, visit our UAE Labour Law Quick Answers hub.

Frequently Asked Questions

Q: How many days of annual leave am I entitled to in the UAE?

Employees who have completed one year of service are entitled to 30 calendar days of annual leave per year under Article 29 of Federal Decree-Law No. 33 of 2021. During the first year of service, leave accrues at two and a half days per month.

Q: Can my employer cancel my annual leave in the UAE?

An employer can postpone approved annual leave for operational reasons, but cannot cancel entitlement entirely. The employee retains the right to take the leave at a mutually agreed time. Annual leave withheld without agreement must be paid out on termination.

Q: Can annual leave be carried forward in the UAE?

The law does not prohibit carry-forward by agreement between employer and employee. However, employers cannot compel employees to forfeit unused leave. If employment ends with untaken leave, the employer must pay the cash equivalent based on the employee’s daily basic salary.

Q: Does annual leave accrue during sick leave in the UAE?

Yes. Annual leave continues to accrue during periods of paid sick leave. It does not accrue during periods of unpaid leave unless the contract states otherwise.

Q: Can an employer force an employee to take annual leave?

Yes. Under Article 29 of Federal Decree-Law No. 33 of 2021, an employer can determine the timing of annual leave based on work requirements, provided reasonable notice is given to the employee. The employer cannot, however, require an employee to forfeit leave entirely.

For a full overview of UAE labour law rights, visit our UAE Labour Law Quick Answers hub.

Frequently Asked Questions

Q: How many days of annual leave am I entitled to in the UAE?

Employees who have completed one year of service are entitled to 30 calendar days of annual leave per year under Article 29 of Federal Decree-Law No. 33 of 2021. During the first year of service, leave accrues at two and a half days per month.

Q: Can my employer cancel my annual leave in the UAE?

An employer can postpone approved annual leave for operational reasons, but cannot cancel entitlement entirely. The employee retains the right to take the leave at a mutually agreed time. Annual leave withheld without agreement must be paid out on termination.

Q: Can annual leave be carried forward in the UAE?

The law does not prohibit carry-forward by agreement between employer and employee. However, employers cannot compel employees to forfeit unused leave. If employment ends with untaken leave, the employer must pay the cash equivalent based on the employee’s daily basic salary.

Q: Does annual leave accrue during sick leave in the UAE?

Yes. Annual leave continues to accrue during periods of paid sick leave. It does not accrue during periods of unpaid leave unless the contract states otherwise.

Q: Can an employer force an employee to take annual leave?

Yes. Under Article 29 of Federal Decree-Law No. 33 of 2021, an employer can determine the timing of annual leave based on work requirements, provided reasonable notice is given to the employee. The employer cannot, however, require an employee to forfeit leave entirely.

For a full overview of UAE labour law rights, visit our UAE Labour Law Quick Answers hub.

Frequently Asked Questions

Q: How many days of annual leave am I entitled to in the UAE?

Employees who have completed one year of service are entitled to 30 calendar days of annual leave per year under Article 29 of Federal Decree-Law No. 33 of 2021. During the first year, leave accrues at two and a half days per month.

Q: Can my employer cancel approved annual leave?

An employer can postpone approved annual leave for operational reasons but cannot cancel the entitlement entirely. The employee retains the right to take the leave at a mutually agreed time. Annual leave withheld without agreement must be paid out on termination.

Q: Can annual leave be carried forward in the UAE?

The law does not prohibit carry-forward by agreement. However, employers cannot compel employees to forfeit unused leave. If employment ends with untaken leave, the employer must pay the cash equivalent based on the daily basic salary.

Q: Does annual leave accrue during sick leave?

Yes. Annual leave continues to accrue during periods of paid sick leave. It does not accrue during periods of unpaid leave unless the contract states otherwise.

Q: Can an employer force an employee to take annual leave?

Yes. Under Article 29, an employer can determine the timing of annual leave based on work requirements, with reasonable notice given to the employee. The employer cannot, however, require an employee to forfeit leave entirely.

For a full overview of UAE labour law rights, visit our UAE Labour Law Quick Answers hub.

For a full list of UAE employment terms, see our UAE Hospitality Career Glossary.

For a full list of UAE employment terms, see our UAE Hospitality Career Glossary.

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