What Happens to Unused Annual Leave When an Employee Leaves a UAE Company?

When an employee leaves a UAE private-sector company, any eligible unused annual leave balance must be considered as part of the employee's final employment entitlements. Under Article 29 of UAE Federal Decree-Law No. 33 of 2021, employees are entitled to payment for accrued annual leave that they have not used when their employment ends, including the applicable proportion for part of the final year. The statutory cash compensation is calculated based on the basic wage.