Dubai: Have too many unused leaves on your office system but no opportunity to go on a holiday? As per the UAE Labour Law, you can either move them forward to the next year, or even encash them, based on mutual agreement with your employer.Under the UAE Labour Law – Federal Decree Law No. 33 of 2021, employees are entitled to a set number of leaves each year, and in case some leaves remain unused, there are mechanisms in place to either receive cash compensation or move them forward to the next year. But in case too many unused leaves are accumulated overtime, there is also a possibility that they may be forfeited.Here is a breakdown of what the UAE Labour Law says and key provisions you should keep in mind.Annual leave entitlementAccording to Article 29 of the UAE Labour Law, private sector employees are entitled to:30 days of paid annual leave after completing one year of service.Two days of leave per month if they have completed more than six months but less than one year of service.Leave entitlement for any fraction of the final year worked if employment ends before completing a full year.Part-time employees are also entitled to annual leave in proportion to the actual working hours stipulated in their employment contracts.Do I have to use my leave every year?As a general rule, yes. The Ministry of Human Resources and Emiratisation (MOHRE) states that employees should use their annual leave in the year in which it becomes due. The dates of your leave, however, have to be approved by your employer based on work-related requirements.Can I carry forward unused leave?Under the Labour Law's implementing regulations, an employee may, with the employer's agreement and in line with company policy, carry forward unused annual leave to the following year.According to Article 19 of Cabinet Resolution No. 1 of 2022, an employee may carry forward up to 50 per cent of the annual leave to the following year or agree with the employer to receive a cash allowance instead.Can I encash unused leaves when I’m still in the same job?Yes, as per the same Article 19 of Cabinet Resolution No. 1 of 2022, but it is subject to agreement with the employer.According to the Article, a worker “may agree with the employer to receive a cash allowance thereof, according to the wage he receives at the time of his entitlement to the leave.”Two-year rule for unused annual leavesWhile employers are given the right to approve annual leaves, they cannot deny a worker for using his or her unused leaves for longer than two years, as per Article 29(8) of the UAE Labour Law. The Article also states that in such cases, if the employee voluntarily agrees to it, the leaves may be carried forward or encashed.When do my leaves get forfeited?According to Mohamed Elmasry, Associate at Al Suwaidi and company, employees should receive a cash compensation for any unused leaves if the employee resigns or his contract has been terminated by the employer. If you have not been compensated for any unused leaves, it is important to claim them either directly wit your employer, or by filing a complaint through MOHRE.“Unused can be forfeited only if not claimed after two years have passed from the date of termination or resignation as per Article 54(9) of Federal Decree-Law No. 33 of 2021 on Regulation of Employment Relationships, as amended by Federal Decree-Law No. 9 of 2024,” Elmasry said.
