Mohamed Elmasry’s recent commentary in Emirates 24|7 highlights key considerations under UAE employment law regarding compensation for unused annual leave upon termination of employment.
AS PUBLISHED IN EMIRATES 24|7
UAE annual leave rules: Can unused leave be carried forward, encashed or forfeited?
Commenting on employees’ rights in relation to accrued annual leave, Mohamed Elmasry, Senior Associate at Alsuwaidi & Company, noted that employees are entitled to compensation for unused annual leave upon resignation or termination of employment.
“Unused leave should be compensated upon resignation or termination. Employees who have not received payment for accrued leave may seek recovery directly from their employer or through the Ministry of Human Resources and Emiratisation,” Elmasry explained.
Addressing the limitation period for employment-related claims, Elmasry further clarified that unused leave entitlements may only be forfeited if they are not claimed within the statutory period prescribed by law.
Pursuant to Article 54(9) of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, as amended by Federal Decree-Law No. 9 of 2024, employment-related claims, including claims for unpaid leave entitlements, may not be heard after two years have elapsed from the date the entitlement became due.
To speak with Mohamed Elmasry please contact him at Mohamed.elmasry@alsuwaidi.ae
