An employee has completed 18 months of continuous service and wants to check their accrued annual leave entitlement under current UAE labour law.
The Walkthrough
- Check the standard annual leave entitlement
UAE labour law sets a standard number of annual leave days per completed year of service — this is the baseline before adjusting for partial years. - Calculate the pro-rata portion for the extra 6 months
Beyond the first full year, the additional 6 months accrue leave on a pro-rata basis, roughly half of the standard annual entitlement for that partial year. - Add both periods together
The full first year's entitlement plus the pro-rated 6-month portion gives the total accrued leave as of the 18-month mark. - Subtract any leave already taken
If some leave has already been used during this period, subtract it from the accrued total to see the current remaining balance. - Check how this affects an end-of-service payout
If this employee's contract ends at the 18-month mark, remaining unused leave would typically be encashed based on basic daily salary — worth checking alongside gratuity.
The Takeaway
Annual leave doesn't just accrue in whole-year blocks — the pro-rata calculation for partial years beyond a full 12 months is where most employees lose track of their actual balance, especially when leave has been taken at different points throughout their tenure.
Try It With Your Own Numbers
This example used specific figures to make the process concrete, but the same steps apply whatever your actual numbers are. Run the UAE Labour Law Calculator with your own details — free, in under a minute, no sign-up required.
Frequently Asked Questions
Does annual leave accrue during a probation period?
Accrual rules during probation can differ from post-probation employment — check your specific contract and current labour law guidance for this period.
Can unused annual leave be carried over indefinitely?
Carry-over rules and limits vary — check current labour law guidance and your specific contract for any restrictions on how much leave can roll over.
Is annual leave paid at basic salary or full salary?
Leave encashment, particularly at end of service, is typically calculated on basic salary — check the specific calculation basis that applies to your situation.
Does part-time employment accrue leave differently?
Part-time and full-time employment may have different accrual structures — check the specific terms that apply to your employment type.
What happens to unused leave if I'm terminated versus resigning?
Since the 2021 reform, unused leave encashment calculations are generally consistent regardless of whether employment ends by resignation or termination, subject to standard rules.