UAE Annual Leave Rights & Entitlements: Complete 2026 Guide
How many days off are you legally entitled to? When can your employer deny your leave request? What happens to unused leave when you resign? Everything you need to know about annual leave in the UAE.
How Many Days Annual Leave Are You Entitled To?
Under UAE Federal Decree-Law No. 33 of 2021, every employee in the UAE private sector is entitled to paid annual leave. The entitlement is based on your length of service:
This means that in your first year of employment, you accrue approximately 2 days of leave per month worked. Once you pass the one-year mark, you are entitled to the full 30-day annual leave allowance for each subsequent year.
It is important to note that "days" here refers to calendar days, not working days. So a 30-day leave entitlement means 30 consecutive calendar days — not 30 working days (which would amount to 6 weeks).
How is Annual Leave Pay Calculated?
Annual leave pay is calculated based on your basic salary plus housing allowance — unlike gratuity which uses basic salary only. This is an important distinction that many employees are unaware of.
(Basic Salary + Housing Allowance) ÷ 30 × Number of Leave Days
Some employers include additional allowances in the leave pay calculation, which is permitted. However, performance bonuses, commissions, and variable pay elements are generally not included.
Can Your Employer Deny or Postpone Your Leave?
Yes — but within limits. Your employer has the right to schedule annual leave in a way that suits the operational needs of the business. They can ask you to postpone leave if the timing would cause significant disruption, but they cannot deny it indefinitely.
Key rules around leave scheduling:
- Your employer must ensure you take at least two consecutive weeks of leave within any leave year.
- You must be informed of your scheduled leave dates with reasonable advance notice.
- If your employer repeatedly postpones your leave, you can file a complaint with MOHRE.
- You cannot be forced to work during approved and granted leave.
You should also be aware that if your employer asks you to return from leave early for work reasons, they are legally required to compensate you for the interrupted leave days — either by adding them back to your balance or paying them out in cash.
Unused Leave: Carry Forward and Cash Encashment
What happens if you do not use all your annual leave in a given year?
By default, UAE law requires employers to ensure that employees take their full leave entitlement. However, if leave is not taken, the practice in many companies is to carry it forward to the next year — though this should be agreed in your employment contract or company policy.
When you leave the company — whether by resignation, termination, or contract expiry — you are entitled to receive cash payment for all accrued but unused annual leave. This is calculated at your basic salary rate (and sometimes basic + housing, depending on the company policy) per day of untaken leave.
Leave During Notice Period
A common question when resigning is whether you can use your accrued annual leave during the notice period. The answer depends on your employer's agreement. You cannot unilaterally declare that your leave will count as your notice period — both parties must agree.
If your employer agrees to let you take leave during the notice period, your notice period obligation continues in parallel with the leave — meaning you are still technically serving the notice. If they do not agree, you must serve the full notice period and then receive payment for unused leave in your final settlement.
Sick Leave Entitlements
Sick leave is separate from annual leave and has its own rules. Under UAE law, after completing the probation period, employees are entitled to:
| Period of Sick Leave | Pay Entitlement |
|---|---|
| First 15 days | Full Pay |
| Next 30 days | Half Pay |
| Subsequent days (up to 45 more) | No Pay |
Sick leave must be supported by a medical certificate from a licensed UAE healthcare provider. An employer cannot terminate an employee who is on approved sick leave within the first 45 days (paid and unpaid combined per year).
After 90 consecutive days of sick leave (the 15 paid + 30 half-paid + 45 unpaid), an employer may legally terminate the contract, but the employee remains entitled to full gratuity and other end-of-service benefits.
Real Situations We Have Seen
Frequently Asked Questions
Can my employer refuse my annual leave request?
Your employer can schedule when you take leave based on business needs, but cannot deny you leave entirely or let it expire without payout. If your leave request is denied, it must be rescheduled — not cancelled.
Are public holidays counted as part of annual leave?
No. Public holidays are separate from annual leave. If a public holiday falls during your approved leave period, that day does not count against your annual leave balance.
What happens to unused leave if I am terminated?
All accrued but unused annual leave must be paid out in cash as part of your final settlement, regardless of the reason for termination.
Other Types of Paid Leave
Beyond annual leave and sick leave, UAE law provides for several other types of paid leave:
Maternity Leave
60 days total — 45 days fully paid and 15 days half-paid. Maternity leave can begin up to 30 days before the expected delivery date. Employees cannot be dismissed during maternity leave.
Paternity Leave
5 days of fully paid paternity leave must be taken within 6 months of the child's birth.
Bereavement Leave
3 days for the death of a parent, spouse, child, or sibling. 5 days in the case of the death of a spouse for Muslim employees observing mourning.
Study Leave
10 days per year for employees who have served at least 2 years and are enrolled in an accredited UAE educational institution.
Hajj Leave
Up to 30 days unpaid leave once during employment to perform the Hajj pilgrimage. This leave does not affect gratuity calculation.
Leaving Soon? Calculate Your Gratuity
Don't forget that unused leave is paid out with your final settlement. Check your gratuity too.
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