UAE Annual Leave Law: Your Complete Entitlement
Every worker in the UAE is entitled to 30 calendar days of paid annual leave after completing one year of service. Your employer cannot take this away. Here is everything you need to know about your leave rights, carry-forward rules, and how encashment works.
Your Annual Leave Entitlement
First 6 Months
No annual leave entitlement during the first 6 months. You are in your accrual period.
6 Months to 1 Year
You are entitled to 2 days of leave per month (prorated). If you leave during this period, you are paid for accrued days.
After 1 Year
30 calendar days of paid annual leave per year. This is your full entitlement under Article 29 of the labour law.
Key Rules About Annual Leave
- Leave is calculated in calendar days (includes weekends within the leave period)
- Public holidays that fall during your leave do NOT count as leave days
- Your employer must pay your full salary before your leave starts
- You can split your leave into periods, subject to employer agreement
- Your employer can determine the timing of leave based on business needs
- You must take your leave within the year — your employer should not force indefinite postponement
- Fridays and rest days within your leave period count as leave days (calendar days, not working days)
Carry Forward and Encashment
If you do not use all your annual leave within the year, you have two options:
Carry Forward
Unused leave can be carried to the next year. Your employer may have a policy limiting how much can be carried over, but they cannot force you to forfeit it entirely.
Cash in Lieu (Encashment)
Your employer may agree to pay you for unused leave days. This is calculated at your gross salary rate (basic + allowances). Daily rate = gross monthly salary / 30.
Leave Encashment Calculation
Employee with AED 10,000 gross salary and 22 unused leave days:
What If Your Employer Denies Leave
Put your leave request in writing (email or official system) so there is a record
If denied repeatedly, ask for a written explanation from your employer
Your employer can schedule your leave timing but cannot deny it entirely
If leave is consistently denied, file a complaint with MoHRE
When you leave the company, all accrued leave must be paid out in your final settlement
Check Your Leave Entitlement
Upload your employment contract and we will identify your leave terms, any special provisions, and calculate your current entitlement. Some contracts offer more than the legal minimum.
Check Your ContractFrequently Asked Questions
How many annual leave days do I get in UAE?
After completing 1 year of service, you are entitled to 30 calendar days of annual leave per year. During the first year (after 6 months of service), you are entitled to 2 days per month (prorated). You do not accrue leave during probation or the first 6 months.
Can I carry forward unused annual leave in UAE?
Yes, but your employer can set a carry-forward policy. UAE law does not limit carry-forward, but many employers cap it at a certain number of days. Your employer cannot force you to forfeit unused leave — if you don't use it, you must be paid for it upon termination. Check your company policy or contract.
How is annual leave encashment calculated?
Leave encashment (pay in lieu of leave) is calculated based on your gross salary (basic + allowances), not just basic salary. The daily rate is: gross monthly salary / 30. Multiply by the number of unused leave days. This applies both when you leave the company and when your employer pays you for leave not taken.
Can my employer refuse my annual leave request?
Your employer can schedule your leave based on business needs, but they cannot indefinitely deny your leave entitlement. If you have accrued leave, your employer must allow you to take it within the year or carry it forward. Consistently denying leave is a labour law violation you can report to MoHRE.
Do public holidays count as annual leave days?
No. UAE public holidays do not count against your annual leave balance. If a public holiday falls during your annual leave, that day should not be deducted. UAE has approximately 10-14 public holidays per year, depending on the Islamic calendar.