Under Article 29 of Federal Decree-Law No. 33 of 2021, a UAE private-sector employee gets at least 30 days' fully paid annual leave for each year of service, or 2 days a month after six months in the first year. When you leave, the employer must pay for all unused leave, whatever the amount, and for the part of the final year worked, calculated on your basic wage. It is due with your other dues within 14 days. MoHRE handles disputes.
Who this guide is for
This guide is for employees of private-sector companies in mainland UAE and non-financial free zones registered with the Ministry of Human Resources and Emiratisation (MoHRE) who want to check their leave balance or the leave figure in a final settlement. It follows Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the Labour Law) and Cabinet Resolution No. 1 of 2022.
DIFC and ADGM have their own employment laws. Domestic workers are covered by Federal Decree-Law No. 9 of 2022. For the full list of exit dues, see our visa cancellation and final settlement checklist.
How much annual leave do I get?
- After one year. At least 30 days for each year of service (Article 29(1)(a)).
- First year, after six months. Two days for each month if service is more than six months and less than one year (Article 29(1)(b)).
- Final part-year. Leave for the part of the last year worked, if service ends before the balance is used (Article 29(1)(c)).
- Part-time workers. Leave is based on actual hours worked, with a minimum of five working days a year (Resolution Article 18).
- During probation. The employer may let you take leave from your balance. If you do not pass probation, you are paid for the rest of the balance (Article 29(3)).
- Holidays inside leave. Public holidays and agreed rest days that fall within your annual leave count as part of it, unless your contract or company rules are more generous (Article 29(7)).
When can I take it, and can I carry it over?
- Use it in the year it is due. The employer can set dates according to work needs, in agreement with you, and must tell you the dates at least one month ahead (Article 29(4)).
- Carry-over needs approval. You may carry leave into the next year with the employer's approval and under company rules (Article 29(5)). Article 19(1) of Cabinet Resolution No. 1 of 2022 limits this to no more than half of the annual leave.
- No blocking for over two years. The employer may not stop you taking your leave for more than two years, unless you choose to carry it over or take cash instead (Article 29(8)).
- Cash instead of leave during employment. Resolution Article 19(1) allows you to agree cash in place of leave, paid according to the wage you receive when the leave falls due. The UAE Government portal says payment for carried-over unused days is calculated on basic salary. The two official texts use different words, so agree the basis in writing and confirm with MoHRE if it matters.
Basic or full salary?
| Situation | Pay basis | Source |
|---|---|---|
| While you are on annual leave | Full pay: the wage, which includes cash allowances | Article 29(1) and (6); "wage" defined in Article 1 |
| Cash for unused leave when you leave | Basic wage | Article 29(9) (Arabic text) and Resolution Article 19(2) |
| Part of the final year when you leave | Basic wage, in proportion to time worked | Article 29(9) (Arabic text) |
The English translation of Article 29(9) on the UAE Legislation portal leaves out the part-year sentence and the words on basic wage. The official Arabic text, which prevails, includes both. Your contract or company policy can pay more (Article 65).
Worked example
Assume a basic wage of AED 6,000 and allowances of AED 3,000, so a total wage of AED 9,000. The law does not set a daily-rate formula; this example uses a 30-day month (Article 67) as an illustration.
Taking leave. You take 10 days in March. Your pay for those days follows your full wage, so your March salary is paid as normal.
Leaving after 3 years and 4 months. You carried 12 unused days into your final year with approval. You have taken no leave since your last anniversary.
- Part-year leave: 30 days × 4 ÷ 12 = 10 days.
- Total unused: 12 + 10 = 22 days.
- Daily basic rate: AED 6,000 ÷ 30 = AED 200.
- Leave pay due: 22 × AED 200 = AED 4,400.
Using a 365-day year instead gives AED 6,000 × 12 ÷ 365 = about AED 197.26 a day, or about AED 4,339.73. Check whether your contract sets a method.
Leaving after 9 months with no leave taken. 2 days × 9 months = 18 days. At AED 200 a day that is AED 3,600.
Step by step
- Get your leave record. Ask HR for a statement of days earned, taken and carried over.
- Check carry-over approvals. Keep emails approving any carried days.
- Work out your balance. Include the part of your final year.
- Use your basic wage for exit pay. Divide carefully and show your method.
- Compare with the settlement sheet. Leave pay should appear as its own line.
- Estimate gratuity separately. The gratuity calculator and our gratuity worked examples cover this.
- Track the 14 days. Article 53 requires all dues within 14 days of the contract ending. The visa cancellation and final dues organiser helps with dates.
- Complain if unpaid. MoHRE's guidance refers to a complaint within 30 days of the breach, and free advice is on 80084.
Documents checklist
- Employment contract showing leave entitlement, basic wage and allowances
- HR leave statement or leave system screenshots
- Approved leave forms, including carry-over approvals
- Payslips for leave months
- Company leave policy or handbook
- Final settlement sheet
- Your own calculation
Common mistakes
- Accepting "use it or lose it" without checking. Article 29(9) says unused leave is paid on exit whatever its length, and waivers that break the law are void (Article 65(3)).
- Forgetting the final part-year. Leave for the months since your last anniversary is also due.
- Mixing up the pay bases. Leave taken is paid on full wage; leave paid out on exit uses basic wage.
- Staying away after leave ends. Pay is not due for days of absence after leave without a lawful reason (Article 34).
- Resigning or being dismissed while on leave without checking dates. Notice normally starts the day after you are due back (Article 35).
- Relying on the English text alone. The Arabic text prevails.
When to speak to a licensed lawyer
Leave disputes are usually resolved through MoHRE. Advice may help if the employer says years of leave were forfeited, if the sums are large, or if your case is referred to court. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
Is unused leave paid on basic or full salary when I leave?
On basic wage, under the Arabic text of Article 29(9) and Article 19(2) of Cabinet Resolution No. 1 of 2022.
Am I paid full salary while on annual leave?
Yes, annual leave is fully paid and Article 29(6) refers to the wage, which includes cash allowances.
Can my employer make me forfeit unused leave?
The law says unused leave is paid when you leave whatever its length, and your employer cannot block your leave for more than two years unless you choose to carry it or take cash.
How much leave can I carry over?
With your employer's approval, no more than half of your annual leave into the next year under Resolution Article 19(1).
Do I get leave in my first six months?
The law gives 2 days a month once service passes six months; it does not expressly cover shorter first-year service, so ask MoHRE.
Can I take annual leave during probation?
Yes, if your employer agrees, and if you do not pass probation the remaining balance is paid (Article 29(3)).
When must unused leave be paid?
With your other dues, within 14 days of the contract ending (Article 53).
Official sources
- UAE Legislation — Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (official Arabic text)
- UAE Legislation — Cabinet Resolution No. 1 of 2022 implementing the Labour Law (official Arabic text)
- UAE Government portal — Types of leave in the private sector
- MoHRE — Dear Worker: Know Your Rights
General information, not legal advice. CaseDaleel is not a law firm.