Key takeaways
- Private sector employees in the UAE are entitled to 30 days of fully paid annual leave for each year of service under Article 29 of Federal Decree-Law No. 33 of 2021 (as of October 2026).
- A UAE employee with more than six months and less than one year of service earns 2 days of annual leave for each month worked; the same article gives no stated entitlement below six months.
- Unused annual leave can move into the next year only with the employer's approval, and an employer cannot block accrued leave for more than two years unless the employee chooses to carry it forward or take a cash allowance.
- An employee who resigns or is terminated before using their leave is paid for the unused days, and the full final settlement is due within 14 days of the end of the contract.
- DIFC and ADGM have their own employment laws with a 20 working day annual leave minimum, so a company with staff in those zones cannot apply the federal 30 day rule to everyone.
How many days of annual leave are UAE employees entitled to?
Employees in the UAE private sector get at least 30 days of paid annual leave for each year of service. The right comes from Article 29(1) of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, in force since 2 February 2022.
30 days: minimum fully paid annual leave per year of service for UAE private sector employees. Source: Federal Decree-Law No. 33 of 2021, Article 29(1); u.ae annual leave page, checked 24 October 2026.
The law says "thirty days" and doesn't say working days, so read the figure as the statutory minimum and check your employment contract for how days are counted. Part-time employees get leave in proportion to the hours they actually work, as set in their contract and the Implementing Regulations. Employers can offer more than 30 days; they can't offer less.
How does annual leave accrue in the first year of service?
Annual leave accrues at 2 days a month once service passes six months, and rises to the full 30 days at one year. Article 29(1) sets three cases, shown below as of October 2026.
| Length of service | Annual leave entitlement | Source |
|---|---|---|
| Under 6 months | No entitlement stated in Article 29(1); check the contract | Federal Decree-Law No. 33 of 2021 |
| More than 6 months, less than 1 year | 2 days for each month of service | Article 29(1)(b) |
| One full year or more | 30 days for each year of service | Article 29(1)(a) |
| Service ends part-way through a year | Leave for the part of the last year worked | Article 29(1)(c) |
Say a Sharjah trading company hires someone on 1 January and that person has worked nine months by 30 September. Under the 2-days-a-month rule that employee has earned 18 days (this is an illustration, not a real case).
Can unused annual leave be carried over or paid out?
Unused leave can be carried into the following year only with the employer's approval, under the company's own rules. Leave is meant to be used in the year it is earned, and the employer must give at least one month's notice of the leave dates (Article 29(4)).
Three rules cover what happens to balances:
- Two-year limit: under Article 29(8), an employer can't stop an employee using earned leave for more than two years, unless the employee opts to carry it forward or take a cash allowance under the regulations.
- On exit: an employee who leaves before using their leave is paid for the unused days, including leave earned in the part-year. Per u.ae, the pay is at basic salary.
- Timing: all wages and entitlements are due within 14 days of the end of the contract (Article 53).
If you'd rather not track these dates by hand, the free UAE compliance calendar is a calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Do the same annual leave rules apply in free zones, DIFC and ADGM?
Not always. The federal law covers private sector establishments and workers across the UAE, but DIFC and ADGM run their own employment regimes with different leave rules. Other free zones: confirm with your zone authority which regime applies to your staff.
| Regime | Annual leave minimum | Carry-over | Pay on exit |
|---|---|---|---|
| Federal law (Decree-Law No. 33 of 2021) | 30 days per year of service | With employer approval | Unused leave paid |
| DIFC (Employment Law, DIFC Law No. 2 of 2019) | 20 working days per leave year, after 90 days of employment | Up to 12 months; at least 5 days can be carried | Accrued untaken leave paid on Daily Wage basis |
| ADGM (Employment Regulations 2024) | 20 working days per leave year | Up to 12 months; at least 5 days can be carried | Payment in lieu of accrued leave, on daily wage |
Accurate as of 24 October 2026. In DIFC, public holidays aren't counted against the 20 days (Article 27(4)); in ADGM, national holidays are excluded from the count. DIFC pays out accrued leave within 14 days of the termination date (Article 19(1)(c)).
How do public holidays, notice and scheduling affect annual leave?
Public holidays that fall inside an annual leave period count as part of that leave, unless the contract or company policy is more favourable to the employee. Employers set leave dates around work needs, in agreement with the employee, and can rotate leave across staff to keep the business running.
So a 30 day block over Eid doesn't earn extra days under the federal rule; the holiday days come out of the same balance unless your policy says otherwise.
What most guides don't tell you
- The balance is a cost you owe. Unused days convert to cash at final settlement, so a long-serving employee with a large untaken balance becomes a lump sum at exit. Recording the leave liability monthly keeps that figure visible before it lands on a resignation date.
- Two years is a ceiling on blocking, not a licence to ignore leave. The employer can't prevent leave use beyond two years, which in practice means rolling balances need a decision: a plan to take the leave, a written carry-forward, or a cash allowance.
- Mixed entities, mixed rules. A group with a mainland company and a DIFC or ADGM entity runs two entitlements side by side: 30 days under federal law and 20 working days under the zone law. Moving an employee between entities changes the contract basis, so agree in writing how the existing balance is treated.
- Settlement clock. The 14 day payment window in Article 53 runs from the end of the contract, not from the last working day, so notice-period leave and final pay should be calculated before the contract end date.
Which deadlines apply to your company?
Leave rules sit alongside renewals, filings and visa dates that each run on their own clock. The free UAE compliance calendar lists those deadlines for your company, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
What are the rules for working hours and overtime in the UAE?
Private sector workers work 8 hours a day or 48 hours a week, and hours are reduced by 2 hours a day in Ramadan (Article 17, as of October 2026). Overtime is capped at two extra hours a day and paid at normal pay plus 25%, rising to 50% between 10 pm and 4 am; shift workers are excluded from that premium rule.
What is the process to change an employee's job title on their visa?
The establishment's authorised signatory applies to MOHRE to modify the work permit or employment contract, through the MOHRE website, app, Tawseel or a service centre. MOHRE lists a federal fee of AED 50 and a 2 working day completion time (as of October 2026), and the new occupation must be consistent with the establishment's activity.
How do I handle an absconding employee case?
MOHRE runs an online service for employers to file an absence from work complaint. Check the service page for the current conditions and timeframes before filing, and keep attendance records and written attempts to contact the employee.
About Qawi
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships (UAE Legislation portal)
- u.ae: Annual leave in the private sector
- u.ae: Working hours and overtime
- MOHRE: Modification of Work Permits / Employment Contracts
- MOHRE: Filing a Labour Complaint, Absence From Work
- DIFC Employment Law, DIFC Law No. 2 of 2019 (consolidated, July 2025)
- ADGM Employment Affairs Office: Guidance on Employment Regulations 2024
Last checked: 24 October 2026
This is general information, not tax or legal advice for your specific situation.