Ministry of Human Resources and Emiratisation has issued fresh guidance on annual leave policies, bringing clarity to how unused vacation days can be carried forward. The update comes as many employees review their time-off plans and discuss leave arrangements with employers.
Under the country’s labour framework, workers are entitled to a minimum of 30 days of fully-paid annual leave after completing one year of service. Those who have spent more than six months but less than a year with an organisation accumulate leave at a rate of two days per month. Once the one-year mark is reached, the full leave balance is typically credited, with employers scheduling time off in coordination with staff and usually providing advance notice.
The Ministry has confirmed that unused leave can be rolled over to the following year, but only if both the employer and employee agree. Legal provisions allow workers to carry forward up to half of their annual entitlement. For someone eligible for 30 days, this means a maximum of 15 days can be transferred to the next year with company approval.
The guidance is aligned with Federal Decree-Law No. 33 of 2021 and supported by Cabinet Resolution No. 1 of 2022, which together outline employee rights and employer responsibilities related to leave management.
The rules also address situations where an employee exits a company before taking their annual leave. In such cases, organisations are required to compensate workers for unused days. The payout is calculated based on the employee’s basic salary.
Additionally, employers are not permitted to prevent staff from using their accumulated leave for more than two consecutive years unless the worker requests to defer the days or opts for financial compensation instead. The clarification reinforces the importance of balancing operational needs with employee wellbeing while ensuring compliance with national labour regulations.
