Navigating Dubai Labour Law: Can You Carry Forward Unused Annual Leave?

Hi, I am new to Dubai Labour Law. I understand that, according to UAE labour law, an employee with more than 6 months but less than 1 year of service is entitled to 2 days of annual leave per month. An employee with more than 1 year of service would have 30 days of entitlement. Companies do not allow the carry forward of any annual leave to the following year; any unutilized annual leave will be automatically forfeited. The probation period is six months.

Employee Leave Entitlement Examples

A: Employee A joined on 01 Aug 2017. By law, at the end of 2017, she will earn zero annual leave (5 months).

B: Employee B joined on 01 Mar 2017. She would pass probation in Aug 2017. According to the law, she earns 2 days x 10 months (20 days of annual leave) in 2017.

Questions

1. Is it common for a company not to allow any carry forward of annual leave to the following year?

2. Which is more common: to compute annual leave based on the calendar year or the anniversary year (date of joining the employee)?

3. Can employee B start to use her 20 days of annual leave in August, or can she start consuming it earlier?

4. Employee B will have 30 days of leave in 2018. I assume employee A will also have 30 days but can only consume it in Jan 2018 after passing probation. Is this correct?

I appreciate your advice and any other hints I should keep in mind. Thank you.

1. It is not uncommon for companies in Dubai, in accordance with UAE labor law, to not allow the carry forward of any annual leave to the following year. This practice is legal and is aimed at ensuring that employees take their entitled leave within the same year to maintain a healthy work-life balance and prevent leave accumulation issues.

2. In Dubai, the calculation of annual leave entitlement is typically based on the calendar year rather than the anniversary year of the employee's joining date. This means that annual leave is usually granted and tracked from January to December each year, regardless of when the employee started working during that year.

3. Employee B, who has earned 20 days of annual leave in 2017, can generally start utilizing this leave after completing the probation period in August. However, the exact timing of when annual leave can be taken should be mutually agreed upon between the employee and the employer, taking into consideration operational requirements and the need to ensure adequate staffing levels.

4. Employee B will indeed have 30 days of annual leave entitlement in 2018, as per UAE labor law. Employee A, who joined in August 2017, will also be entitled to 30 days of annual leave in 2018 after completing the probation period. Both employees can typically start consuming their annual leave once it is accrued and subject to the company's leave approval processes.

It is advisable for employees and employers to communicate effectively regarding annual leave entitlements, usage, and any specific company policies related to leave accrual and utilization to avoid any misunderstandings or conflicts.