Your annual leave terms in employment contracts decide how many paid days off you get each year, when you can take them, and what happens to any days you don’t use. In the UAE, these terms are not left entirely to the employer: Federal Decree-Law No. 33 of 2021, the UAE Labour Law, sets minimum entitlements that every private-sector contract must respect. Knowing how those minimums work helps you read the leave clause in your contract with confidence instead of guessing.
This guide walks through what the law guarantees, what employers are allowed to add, and which contract clauses actually matter for your time off.
Quick Answer
Under UAE labour law, private-sector employees get 30 days of fully paid annual leave for each year of service after completing one year. If you have worked more than six months but less than a year, you get two days per month. Leave payout on resignation or termination is calculated on your basic salary only. Your employer sets the leave dates with at least one month’s notice, and cannot keep you working continuously for more than two years without granting leave.
Annual Leave Terms in Employment Contracts: The Legal Minimum
Every UAE private-sector employment contract sits on top of the Labour Law’s leave entitlements. An employer can offer more generous leave, but cannot offer less. The core rules from Article 29 of the law are:
- One year of service completed: 30 days of paid annual leave per year.
- Six to twelve months of service: two days of paid leave for each month worked.
- Less than six months: no statutory leave entitlement yet, though some employers allow leave during probation by agreement.
- End of employment: if you leave before using your balance, you get pro-rata leave for the final part of the year.
These minimums apply to mainland private-sector jobs. Some free zones, such as DIFC and ADGM, have their own employment rules, so always check which law your contract names. For a refresher on how contracts are structured in general, see our guide to UAE employment contract types. You can also read MOHRE’s official guide to working hours, wages and leaves, which summarises these rules.
How Your Leave Accrues
The table below shows the statutory minimum accrual:
| Length of service | Minimum leave |
|---|---|
| Less than 6 months | No statutory entitlement (employer may grant leave voluntarily) |
| 6 months to 1 year | 2 days for every month worked |
| 1 year and above | 30 days per year |
| Partial final year | Pro-rata share of the 30 days |
| Part-time employees | Pro-rated by actual working hours, with a minimum of 5 days per year |
A note on counting: the 30 days are calendar days, not working days. Public holidays that fall inside your leave period are generally counted as part of your annual leave unless your contract or company policy says otherwise, so it pays to check that clause before booking flights.
Clauses You Should Check in Your Contract
1. When you can take leave
The employer has the right to set leave dates based on work requirements, but must notify you at least one month in advance. Many companies publish an annual leave calendar or require requests through an HR portal. If your contract is silent on scheduling, the one-month notice rule still protects you from surprise “mandatory leave” assignments.
2. Carry-over rules
You cannot simply stack leave indefinitely. The law allows employees to carry forward up to half of their annual entitlement to the next year, or to agree with the employer on a cash payment in place of the carried days. Whatever your company allows beyond that should be written into the contract or staff handbook.
3. Payout on basic salary only
When leave is paid out — whether at termination or as an agreed cash payment — the calculation uses your basic salary, not your total package. This is a point worth understanding alongside your salary terms in employment contracts, since the basic vs. allowance split in your offer letter directly affects the value of unused leave days.
4. Working elsewhere during leave
Employees may not work for another employer during their annual leave. If your contract includes this restriction, taking a side job while on holiday can be treated as misconduct.
5. The two-year cap
An employer cannot keep you working for more than two continuous years without granting your accrued leave. This rule prevents leave balances from being parked indefinitely.
6. Leave during probation
The law allows employers to let staff use part of their annual leave during probation by agreement. If you take leave and then fail probation, you still keep the right to financial compensation for unused leave days.
Annual Leave vs. Public Holidays
These are separate entitlements. Public holidays are paid days off fixed by the UAE government each year, and working on one entitles you to either a replacement day off or the day’s wage plus at least 50% of your basic wage on top. Annual leave, by contrast, is your personal entitlement of 30 days. Some contracts clarify that a public holiday landing inside your annual leave extends it; many count it as part of the leave. Read the clause and plan around the public holiday calendar.
What Happens to Unused Leave When You Leave the Job
On resignation or termination, any leave you have legally accrued but not taken must be paid out, calculated on your basic salary and pro-rated for the final year. This payout sits alongside your end-of-service gratuity, which is a separate payment based on your years of service. Before signing your full and final settlement, add up both figures so you are not owed one and short-changed on the other.
If you are joining a new employer, remember that leave entitlement resets: your new contract starts a fresh accrual clock, and your first six months there carry no statutory leave.
Before You Sign: Quick Checklist
- Does the contract state at least the statutory minimum (30 days after one year, 2 days per month between 6–12 months)?
- Are your basic salary and allowances split clearly, since leave payouts use basic salary only?
- What does it say about carry-over and cash-in-lieu of unused days?
- How are public holidays treated when they fall inside your leave?
- Which law governs your contract — UAE Labour Law or a free zone’s rules?
Your work visa status also matters here: leave is tied to your employment, and long absences beyond your leave balance can affect your residency if you are outside the UAE for extended periods. Check the visa rules before planning a long trip.
Frequently Asked Questions (FAQs)
How many annual leave days am I entitled to in the UAE?
After one year of service, 30 paid days per year. Between six months and one year, two days per month. Before six months, there is no statutory entitlement, though employers can grant leave voluntarily.
Can my employer refuse my annual leave request?
The employer can set leave dates based on business needs and must give you at least one month’s notice. They cannot, however, block you from using accrued leave for more than two years.
Is annual leave paid on basic salary or full salary?
Leave taken is paid with full salary as normal. Cash payments in place of unused leave — including the final payout when you leave — are calculated on basic salary only.
Can I carry forward unused annual leave to the next year?
You may carry forward up to half of your annual entitlement to the following year, or agree with your employer to take a cash payment instead of the carried days. Check your company’s policy for anything beyond that.
Do public holidays count as part of my annual leave?
Usually yes, unless your contract or company policy states otherwise. Holidays inside your leave period are normally counted within the 30 days, so confirm the wording before booking travel.
What if I haven’t completed a year and I resign?
You are entitled to pro-rata leave for the final part of your service, paid on your basic salary, as long as you completed more than six months.
The Bottom Line
Annual leave in the UAE is a statutory right, not a favour: 30 paid days after a year of service, two days per month between six and twelve months, payout on basic salary for anything unused. Read the leave clause in your contract with these minimums in mind, confirm the carry-over and public holiday rules in writing, and keep track of your balance through the year. For the rest of the clauses worth reviewing before you sign, see the employment contract terms every employee should check and the breakdown of working hours in employment contracts.
Last Updated: 8 October 2026
About the author: Zaviyar Sultan is a UAE-focused writer at Paxi, covering driving, visas, banking, insurance and everyday UAE life. His guides are researched from official UAE government and regulator sources and updated regularly.
Paxi is an independent informational website, not affiliated with the UAE government or any agency mentioned; content is general information only, not legal, immigration or financial advice; verify critical details with official sources before acting.