The Ministry of Human Resources and Emiratisation (MoHRE) has issued updated guidance on annual leave policies, providing clarity on how unused vacation days may be carried forward. The announcement comes as employees across the UAE review leave balances and plan time off in coordination with their employers.
Annual Leave Entitlement
Under the UAE’s labour framework, employees are entitled to a minimum of 30 calendar days of fully paid annual leave after completing one year of continuous service.
For employees who have completed more than six months but less than one year, leave accrues at the rate of two days per month. Upon completing one full year, the annual leave balance is typically credited in full. Employers are responsible for scheduling leave in consultation with employees and generally provide advance notice to ensure business continuity.
Carry-Forward of Unused Leave
MoHRE has confirmed that unused annual leave may be carried forward to the following year, subject to mutual agreement between the employer and employee.
In line with the law, workers may carry forward up to half of their annual entitlement. For example, an employee eligible for 30 days of leave can transfer a maximum of 15 unused days into the next year, provided the employer approves the arrangement.
The clarification aligns with the provisions of Federal Decree-Law No. 33 of 2021 and is supported by Cabinet Resolution No. 1 of 2022, which together define employee rights and employer responsibilities concerning leave management.
Compensation for Unused Leave
The rules also address situations in which an employee leaves the organisation before availing their full annual leave. In such cases, employers are required to compensate the employee for any unused leave days. The payout must be calculated based on the worker’s basic salary, as specified in the applicable legal provisions.
Limits on Leave Deferral
Employers are not permitted to prevent employees from taking their accumulated leave for more than two consecutive years, unless the employee requests to defer the leave or agrees to receive financial compensation instead. This measure is intended to ensure that workers are able to take adequate rest while maintaining compliance with national labour standards.
Balancing Compliance and Wellbeing
The updated guidance reinforces the importance of structured leave planning and clear communication between employers and employees. By setting defined limits on leave carry-forward and outlining compensation rules, the Ministry aims to balance operational requirements with employee wellbeing, while ensuring adherence to the UAE’s labour regulations.
The clarification is expected to help organisations review internal leave policies and align them with statutory requirements, reducing ambiguity around leave accumulation and rollover practices.
Get it on Play Store