The UAE’s labour laws serve as the bedrock for governing employment relationships and safeguarding the rights of workers and employers. With a commitment to continuous improvement, recent updates have brought significant changes to the UAE Labour Law, including provisions allowing for leave during the notice period. This Provision acknowledges the practical needs of terminated employees seeking new job opportunities while adhering to specified guidelines. Additionally, the law addresses the entitlement of employees to their accrued annual leave and outlines the calculation of corresponding leave wages. Understanding these amendments is crucial for ensuring compliance and fostering a fair and equitable working environment for all parties involved in the UAE’s labour market.

If you have recently submitted your resignation or been informed of the termination of your employment contract, you may wonder what will happen to any accrued annual leave days. In such situations, you might be curious whether you can utilize your annual leave during the notice period or if you are entitled to receive cash compensation instead.

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

When considering the conditions of a notice period as outlined in the UAE’s Labour Law, it is essential to review the relevant provisions. The law provides guidance on the requirements that must be met for a notice period to be considered valid. By examining the specific provisions, we can better understand the conditions that should be adhered to for a notice period to be legally recognized. Under Article 43 of Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations:

• The employer and the employee have the right to terminate an employment contract for a valid reason, with written notification given to the other party.
• The employee is required to fulfil their duties during the notice period, as specified in the contract.
• The duration of the notice period should be at least 30 days or exceed 90 days.
• During the notice period, the employee is entitled to receive their full remuneration based on their last salary.
• If the employer requests, the employee must continue working throughout the notice period. The law emphasizes the importance of adhering to these provisions concerning termination and notice periods.

Leave During the Notice Period

The UAE’s Labour Law does not explicitly state an employee’s entitlement to utilize their pending annual leave during the notice period. Additionally, according to the regulations specified in Article 43(1), employees should fulfil their work responsibilities on all working days throughout the notice period.

Employees can request their employer to utilize unused annual leave during the notice period. If the employer and the employee reach a mutual agreement on this matter, the employee can then take their unused annual leave.

In the event of a failure to reach an agreement with the employer concerning the utilization of accrued annual leave during the notice period, employees have the right to receive monetary compensation for those unused leaves following the regulations stipulated in the Labor Law.

The law does not explicitly address the utilization of annual leave during this time, highlighting the importance of considering the general provisions and guidelines related to notice periods in the UAE.

Article 43.5 of the UAE labour law stipulates that if an employer terminates an employment contract, the worker can take one day off without pay per week during the notice period to search for another job. The worker can choose the day of absence if they notify the employer at least three days before. It’s important to note that the employer must comply with this law and allow the worker to take the specified day off.

Furthermore, if the employee has accumulated annual leave but has not taken it, the employer must include payment for that leave as part of their final settlement.

Also read – Calculation of End of Service Gratuity in UAE

Legal Provision Relating to unused annual Leave under UAE Labour Law

The worker shall be entitled to a wage for the accrued leave days if he quits the work before using them, regardless of the leave duration, concerning the period for which he did not obtain his leave.

Under Article 29(9) of UAE New Labour Law

In accordance with Article 29 of the labor law, the employer cannot prevent employees from utilizing their accumulated annual leave beyond a period of two years, unless the employee chooses to carry it forward or receive a monetary compensation for it, following the applicable regulations at the establishment and the Implementing Regulation.

If an employee resigns before utilizing their accrued annual leave, they are entitled to receive a salary for the days of leave that they did not use, regardless of the duration of the leave, covering the period for which they were unable to take their leave.

HHS Lawyers in Dubai – Top Labour Lawyers in UAE

HHS Lawyers in Dubai are your trusted legal partners regarding matters related to employment and labour laws, including annual leave entitlements. Our experienced team of labour lawyers understands the intricacies of Federal Decree-Law No. (33) of 2021 and can provide valuable guidance and representation. Regarding unused annual leave during the notice period, our labour lawyers can assist you in negotiating with your employer, ensuring your rights are protected and helping you reach a mutually agreeable solution. With our in-depth knowledge of the legal landscape and a client-centered approach, our labour Lawyers in Dubai are dedicated to advocating for your best interests.

Contact us today to benefit from our expertise and experience in resolving employment-related matters efficiently and effectively.