Under UAE Federal Decree Law No.33 of 2021, employees are entitled to a minimum of 30 days of paid annual leave for each year of service, as outlined in Article 29(1)(a).This guarantees that all employees receive at least 30 days of leave annually.
Employees may carry forward up to 15 unused leave days to the following year, as per Article 19 of Cabinet Resolution No. 1 of 2022, which implements the decree. They can either choose to carry over half of their leave or receive a cash allowance. In cases of employment termination, any unused leave must be compensated in cash based on the employee’s basic salary.
Annual leave accumulates yearly, and if not utilized, employees can request cash compensation for the unused leave, as specified in Article 19(1). This provides a flexible alternative for employees if they are unable to take their leave, subject to agreement with the employer.
The timing and approval of annual leave are at the employer's discretion. Employers may approve leave in full blocks or intervals according to company policy, giving employees the flexibility to take 30 calendar days of leave per year, either all at once or in parts. In some cases, employers may allow leave to be taken once every two years, as per Article 29(8) of the Employment Law.
If an employee leaves the job before utilizing their leave, they are entitled to cash compensation for any unused leave days, calculated based on their basic salary. This provision, highlighted in Article 29(9), ensures employees are fairly compensated for any accrued leave at the end of their employment.
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