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  • 15-Dec-2022

    Accumulated Annual Leave in UAE

    ACCUMULATED ANNUAL LEAVE IN THE UAE

    WHAT IS ACCUMULATED ANNUAL LEAVE  IN UAE?

    The leaves taken during the whole year are annual leave. If an employee has worked for six months, they are eligible for yearly leave. The annual leave policy is outlined in Article 29 of the new UAE labor law as follows:

    During each year of service, the employee is entitled to an annual leave that cannot be less than:

    • Two days each month in the case of any employee with more than six months but less than one year of service.
    • In the case of any employee whose tenure in service is more than a year, 30 days annually.

    Every year of employment entitles personnel in the UAE to a 30-day yearly leave.

     

    HOW IS ANNUAL LEAVE REGULATED?

    Accumulated annual leave is unused time off from the preceding year or years. Any leaves that haven't been used up yet are referred to as accumulated leaves.

    Additionally, in accordance with article 78, your basic salary and any applicable HR allowance determine the amount of yearly leave you can take while working.

    The yearly leave wage will not include any additional compensation that employees get in addition to their salary.

     

    WHAT DISTINGUISHES ACCRUED LEAVE FROM ANNUAL LEAVE?

    It's not the same thing to accumulate something as accrue something. An employee gains "accrual" annual leave because of the benefit of working for a company that is covered under the Basic Conditions of Employment Act.

    An employee who works for the company for fewer than 24 hours per month is not protected by the fundamental terms of employment and is not entitled to annual leave.

    Accrued annual leave refers to the annual leave that has been accumulated while working in the current year.

    According to the law governing cumulative leave, an employee is allowed to use leave that has accrued during the annual leave cycle on consecutive days.

    Over a 12-month span of 17 days, or at a rate of 1,25 days a month, accumulated leave accrues.

    An employee may apply to the employer for approval of the entire 15 working day leave, or 21 consecutive days, that the employee has accrued for that leave cycle.

     

    HOW DOES ANNUAL LEAVE ACCUMULATE?

    Even if an employee is in a probationary phase, annual leave accrues from the first day of employment.

    Over the course of the year, the leave builds up gradually. Any unused annual leave carries over from one year to the next.

    When an employee is on paid leave, such as paid annual leave, paid sick leave, paid career leave, paid community service leave, such as jury duty, and paid long service leave, annual leave accumulates.

    When an employee is on unpaid yearly leave, unpaid sick and caregiver days, unpaid family and domestic violence leave. Unpaid parental leave and annual leave do not accumulate.

     

    ENCASHMENT OF ACCUMULATED LEAVE

    Annual leave cashed out under some awards and registered agreements. Employees who do not have a contract or an award with their company may decide to cash their annual leave at any time.

    Nevertheless, regardless of whether an employee is award and agreement-free, the following is true:

    • The worker must hold onto at least 4 weeks of annual leave.
    • There must be a documented contract between the employee and the employer on each occasion. The payment for the cash-out leave must be at least as much as the employee would have been paid if they had taken the leave.

    Annual leave does not accumulate for a period of annual leave that has been cashed out.

    The amount of annual leave an employee may cash out or the time period during which it may be cashed out also be restricted by an award or registered agreement.

    It is against the law for an employer to compel (or attempt to force) a worker into agreeing to cash out annual leave.

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