Annual leave is one of the essential employment rights guaranteed on the global level by International treaties and conventions, such as the Labour Organization’s Holidays with Pay Convention (Revised), 1970, and on the federal level, by the UAE Federal law No 33/2021 On the Regulation of Labour Relations (the Labour Law), which is supplemented by the Cabinet Decision No. 1/2022 On the Implementing Regulation of Federal Decree-Law No. 33/2021 Regarding the Regulation of Employment Relationships (the Regulation). The Labour Law provides for each worker employed in the State to be granted an annual leave with full pay of not less than: a- thirty (30) calendar days for each year of continuing service (State holidays included if they fall within the days of annual leave taken); b- two (2) days each month if the service period is between 6 months and 1 year. c- days for fractions of the last year an employee spent at work, in case his service ends before using the annual leave balance. No enforceable entitlement to take paid leave arises under the Labour Law until an employee has passed the probation period. However, an employer may grant leave days during the probation period from the balance of the employee’s annual entitlement, while the remainder of accrued but not taken leave shall be compensated in case the probation is not passed.
Dubai Lawyers can provide expert advice on matters related to employee’s annual leave entitlements under the Labour Law and the Regulation. If you have questions or concerns, it’s advisable to consult with a qualified Dubai Lawyer or a reputable Dubai Law Firm to ensure you are aware of your rights and responsibilities.
Carrying Forward Annual Leave
By default, an employee shall use their leave in the year the entitlement arises. An employer, in turn, has the right to determine the dates of such leave as it may be required for uninterrupted workflow, while complete deprivation of annual leaves for more than two years is expressly prohibited. Exclusion may be made when an employee wishes to carry forward a portion of their leave or obtain a cash payment for it per the Regulations or employment policies in force (which policies in no case can diminish rights guaranteed to an employee under the Labour Law and Regulation).
Carrying forward part of the annual leave may be dictated by the company’s operating necessities when full leave could not be availed regardless of an employee’s intention, or when an employee so requests and agrees on this with the employer. The key words here are “part of the leave” since the Labour Regulation prescribes that no more than half of the annual leave can be delayed till the next year. In other words, a minimum of fifteen (15) days of yearly entitlement should still be taken in the same year of entitlement, and another maximum of fifteen (15) days may be carried forward to the following 12 months or paid to the employee in cash. It makes the total of next year’s leave potentially extendable for up to 45 calendar days.
DIFC & ADGM
Slightly different rules apply for carrying forward annual leave in financial free zones such as DIFC or ADGM, but the difference is important. Specifically, the DIFC Employment Law No.2 of 2019 and the ADGM both provide for an employee’s entitlement to carry forward up to five (5) business days of accrued but untaken leave into the next year, after which the unused leave entitlement shall expire. The rest days should be utilized in the same year when they accrue.
Lawyers in Dubai can provide guidance on the specific rules and regulations related to carrying forward annual leave in the emirate of Dubai.
Court’s Protection
It is important to note that employment disputes governed by the Labour Law have a limited time frame of only one (1) year from the date the right to be protected arose. This applies to both denied leave days and the employer’s obligation to pay in lieu of the untaken days. Therefore, a court cannot enforce any right to compensation for accrued but unused leave if one year has passed since it should have been taken. This is in line with the legal prohibition of carrying forward annual leave for a maximum of one year. Failure to initiate a legal case within this time frame may result in the complete loss of the employee’s right to compensation.
For further guidance and information on the application of the discussed law, please get in touch with the Al Dhaheri International Advocates & Legal Consultants using the contact details listed on our website. Our team is committed to promptly and effectively addressing any inquiries you may have on the application of the concerned law.
Written by Senior Legal Counsel – Ms. Alona Sadovets
