Table of Contents
- Conditions Relating to the Notice Period Under UAE Labour Law
- Can I Take Annual Leave During the Notice Period?
- Real Scenarios: Leave During Notice Period in UAE
- Leave Rules During Notice Period in UAE: Quick Overview
- UAE Labour Law for Annual Leave During Notice Period
- What If Notice Is Given While the Employee Is Already on Leave?
- What Happens to Unused Annual Leave in the Final Settlement?
- Job Search Leave During Notice Period in UAE: Article 43(5)
- Sick Leave During Notice Period in UAE
- Unpaid Leave During Notice Period in UAE
- Does Annual Leave Break or Interrupt the Notice Period?
- Do Public Holidays Affect the Notice Period?
- What Should You Do If Annual Leave Is Denied During the Notice Period?
- Common Issues Employees Face During the Notice Period
- When Should You Consult a Labour Lawyer in UAE?
- Frequently Asked Questions (FAQs)
- HHS Labour Lawyers in Dubai
The UAE Labour Law regulates the rights and obligations of employers and employees during a notice period. One common question is whether an employee can use accrued annual leave during the notice period in the UAE after resigning or receiving notice of termination.
Annual leave may be taken during the notice period where it is scheduled or agreed in accordance with the applicable annual-leave rules. However, an employee does not have an automatic right to use accrued annual leave simply to shorten the notice period.
If statutory annual leave remains unused when employment ends, the employee is entitled to payment for the unused leave balance according to the basic wage.
Have unused annual leave remaining at termination? Use our UAE leave salary calculator to estimate the applicable unused leave payment.
Read more about – Changes introduced in the UAE Labour Laws: All You Need to Know
Conditions Relating to the Notice Period Under UAE Labour Law
Article 43 of Federal Decree-Law No. 33 of 2021 regulates termination notice in employment relationships covered by the federal UAE Labour Law.
Key rules include:
- Either party may terminate the employment contract for a legitimate reason by providing written notice to the other party.
- The contractual notice period must be at least 30 days and not more than 90 days.
- The employment contract remains in force throughout the notice period.
- The employee is entitled to full wage during the notice period according to the last wage received.
- The employee must continue working during the notice period if requested by the employer.
- If either party fails to comply with the applicable notice period, notice-period compensation may become payable under Article 43.
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Can I Take Annual Leave During the Notice Period?
Annual leave may be taken during a notice period where it is arranged in accordance with the UAE Labour Law’s normal annual-leave rules.
Article 29 provides that annual leave should be taken in the year in which it becomes due. The employer may determine the dates according to work requirements and in agreement with the employee, while complying with the applicable notice requirements for scheduling annual leave.
Therefore, an employee who has already resigned or received termination notice may request annual leave during the notice period, but should not assume that accrued leave can automatically be used to reduce the remaining notice period.
If accrued statutory annual leave remains unused when employment ends, Article 29(9) entitles the employee to payment for those unused leave days calculated according to the employee’s basic wage.
Article 43(5) also provides a separate right where the employer terminates the contract: the worker may take one unpaid working day per week during the notice period to search for another job, provided the employer is notified at least three days in advance.
Also read – Calculation of End of Service Gratuity in UAE
Real Scenarios: Leave During Notice Period in UAE
Understanding the distinction is easier through practical scenarios:
- Scenario 1: Employee resigns with unused annual leave
The employee may request annual leave during the notice period. The leave remains subject to the applicable Article 29 scheduling rules. If the statutory balance remains unused when employment ends, payment is due based on the basic wage. - Scenario 2: Employer terminates the employee
The employee remains subject to the notice-period rules but may also qualify for the separate unpaid job-search day provided under Article 43(5). - Scenario 3: Employee takes annual leave without agreement or proper authorisation
The employee should not unilaterally stop attending work because accrued annual leave exists. Unauthorised absence may have employment consequences depending on the circumstances and applicable law. - Scenario 4: Employer and employee agree on annual leave
Annual leave may overlap with the notice period where it is properly arranged in accordance with the applicable leave rules.
Leave Rules During Notice Period in UAE: Quick Overview
| Type of Leave | Position During Notice Period | Key Condition |
|---|---|---|
| Annual Leave | Possible | Subject to the Article 29 leave-scheduling rules; not automatic |
| Sick Leave | May apply | Subject to the statutory sick-leave requirements and medical evidence |
| Unpaid Leave | Conditional | Requires employer approval under Article 33 |
| Job Search Leave | Yes, where applicable | One unpaid working day per week where the employer terminates the contract, with at least three days’ prior notice |
UAE Labour Law for Annual Leave During Notice Period
Article 29 of Federal Decree-Law No. 33 of 2021 governs annual leave.
Under Article 29:
- An employee is generally entitled to 30 days of annual leave for each year of extended service.
- The employer may determine annual-leave dates according to work requirements and in agreement with the employee.
- The employee is entitled to full wage for the annual-leave period.
- An employer may not prevent an employee from benefiting from accrued annual leave for more than two years unless the employee chooses to carry it forward or receive cash compensation in accordance with the applicable rules.
- If employment ends before accrued annual leave is used, the employee is entitled to payment for the unused statutory balance according to the basic wage.
What If Notice Is Given While the Employee Is Already on Leave?
Article 35 deals with a different situation from requesting leave after a notice period has already started.
If either the employer or employee gives termination notice while the employee is already on leave, the agreed notice period generally begins on the day following the employee’s scheduled return from leave, unless both parties agree otherwise.
This should not be confused with an employee who has already started serving a notice period and subsequently requests annual leave.
What Happens to Unused Annual Leave in the Final Settlement?
Article 29(9) provides that an employee who leaves employment before using accrued statutory annual leave is entitled to payment for the unused leave days.
For termination of employment, the unused annual-leave payment is calculated according to the employee’s basic wage.
Calculation Example
If an employee has:
- Monthly basic wage: AED 6,000
- Unused annual leave: 15 days
The estimated calculation would be:
- Daily basic wage: AED 6,000 ÷ 30 = AED 200
- Unused leave payment: AED 200 × 15 = AED 3,000
For a dedicated calculation tool and detailed explanation, see our UAE leave salary calculator and annual leave calculation guide.
Job Search Leave During Notice Period in UAE: Article 43(5)
Job-search leave is separate from annual leave.
Where the employer terminates the employment contract, Article 43(5) allows the worker to be absent for one working day without pay per week during the notice period to search for another job.
The employee:
- May choose the day of absence
- Must notify the employer at least three days in advance
- Does not use annual-leave balance for this statutory job-search day
This particular entitlement applies where termination is initiated by the employer.
Sick Leave During Notice Period in UAE
An employee who becomes genuinely ill during the notice period may remain entitled to statutory sick leave where the requirements of Article 31 of the UAE Labour Law are satisfied.
The employee must notify the employer of the illness within the applicable period and provide the required medical evidence.
After probation, statutory sick leave may extend up to 90 days per year:
- First 15 days: full pay
- Next 30 days: half pay
- Remaining period: without pay
Sick leave should not be confused with annual leave or job-search leave because each is governed by separate provisions of the Labour Law.
Unpaid Leave During Notice Period in UAE
Unpaid leave is not an automatic entitlement during the notice period.
Under Article 33 of the UAE Labour Law, an employee may take unpaid leave after obtaining the employer’s approval.
Where unpaid leave is agreed during a notice period, the parties should clearly document the arrangement and its effect, if any, on the employee’s work and termination arrangements.
Does Annual Leave Break or Interrupt the Notice Period?
The position depends on when the leave and termination notice occur.
If termination notice is given while the employee is already on leave, Article 35 generally delays the start of the notice period until the day following the scheduled return from leave, unless both parties agree otherwise.
Where the notice period has already started and annual leave is subsequently requested, Article 35 should not automatically be applied as though the employee had been on leave when notice was first given. The leave should instead be dealt with under the applicable annual-leave and notice-period rules.
Do Public Holidays Affect the Notice Period?
A public holiday occurring during a notice period does not by itself create a separate annual-leave entitlement or automatically replace the employee’s notice obligations.
Employees are nevertheless entitled to the public-holiday rights provided by Article 28 of the UAE Labour Law. If work conditions require an employee to work on an official holiday, the statutory compensation rules for public-holiday work apply.
What Should You Do If Annual Leave Is Denied During the Notice Period?
If an annual-leave request cannot be accommodated during the notice period, the employee should first confirm the reason with the employer and verify the accrued leave balance.
Employees should:
- Submit leave requests and important communications in writing
- Keep records of accrued and used annual leave
- Review the final settlement calculation
- Confirm that unused statutory annual leave is compensated according to the applicable basic-wage rule when employment ends
- Raise a complaint with MOHRE where applicable if statutory employment entitlements remain unpaid
Common Issues Employees Face During the Notice Period
Common disputes include:
- Disagreement over whether annual leave can be taken before the termination date
- Unused annual leave not included correctly in the final settlement
- Incorrect calculation of unused leave salary
- Disagreement over the employee’s remaining notice obligations
- Salary deductions or absence records that the employee disputes
When Should You Consult a Labour Lawyer in UAE?
Legal advice may be useful where:
- The employer refuses to pay statutory unused annual leave
- There is a dispute over leave taken during the notice period
- The final settlement appears to have been calculated incorrectly
- There is disagreement over the notice-period end date
- The parties disagree about salary deductions or other employment entitlements
For assistance, you may speak with our labour lawyers in Dubai.
Frequently Asked Questions (FAQs)
Can I take annual leave during my notice period in UAE?
Annual leave may be taken during the notice period where it is arranged in accordance with the normal Article 29 leave-scheduling rules. An employee should not assume that accrued annual leave can automatically be used to shorten the notice period.
Can an employer refuse annual leave during the notice period?
Annual-leave dates are governed by Article 29, which allows the employer to schedule leave according to work requirements and in agreement with the employee. If statutory annual leave remains unused when employment ends, the employee is entitled to payment according to the basic wage.
What happens to unused annual leave when I resign?
If employment ends before accrued statutory annual leave is used, Article 29(9) entitles the employee to payment for the unused leave days calculated according to the basic wage.
Does an employee have to work during the notice period?
Yes. The employment contract remains in force during the notice period, and Article 43 requires the employee to continue working if requested by the employer, unless another lawful arrangement applies.
Can I resign while I am already on annual leave?
Yes, but Article 35 provides that where termination notice is given while the employee is already on leave, the notice period generally starts on the day following the employee’s scheduled return, unless both parties agree otherwise.
Is job-search leave allowed during the notice period?
Yes, where the employer terminates the contract. Article 43(5) allows the worker one unpaid working day per week to search for another job, provided the employer is notified at least three days in advance.
Is job-search leave paid or unpaid?
The job-search day provided under Article 43(5) is unpaid.
Can I take sick leave during the notice period?
Statutory sick leave may apply where the requirements of Article 31 are satisfied, including the applicable notification and medical-evidence requirements.
Can I take unpaid leave during the notice period?
Unpaid leave is not automatic. Article 33 allows unpaid leave where the employer approves it.
How is unused annual leave calculated in the final settlement?
Unused statutory annual leave payable when employment ends is calculated according to the employee’s basic wage.
Does unused annual leave replace end-of-service gratuity?
No. Payment for unused annual leave and end-of-service gratuity are separate employment entitlements and should be calculated separately where each is due.
What can I do if my employer does not pay my unused annual leave?
You may first request a written breakdown of the final settlement and raise the issue with the employer. Where the matter remains unresolved and MOHRE has jurisdiction, a labour complaint may be submitted to MOHRE or legal advice may be sought.
Need Labour Law Help?
Dubai's Expert Advice at Your Fingertips.
HHS Labour Lawyers in Dubai
Disputes involving annual leave, notice periods and final settlements can depend on the employee’s contract, leave records, reason for termination and the circumstances of the case.
HHS labour lawyers in Dubai assist employers and employees with UAE Labour Law matters, including annual-leave disputes, notice-period issues, salary claims and final-settlement calculations.
Contact us if you require legal advice or representation concerning a UAE employment matter.
