Salary, leave and deductions

Unused annual-leave balance disputes in UAE final settlement

A leave dispute is usually a records problem before it becomes a formula problem. Establish the correct number of unused days, then apply the correct wage basis.

Reviewed: 26 July 2026Educational guidance, not legal advice

Request the full leave ledger

Ask for opening balance, accrual, leave taken, adjustments, carry-forward and closing balance. A screenshot showing only the final number may hide manual changes.

Check the last partial year

Federal law provides proportional leave for parts of the last year. Confirm whether HR accrued leave through the last working day and how probation-period leave was treated.

Separate leave entitlement from encashment rate

The number of days and the amount per day are two different questions. Federal unused leave at termination is based on basic wage; ADGM uses its own vacation-payment method.

Preserve approval records

Keep approved leave requests, cancellations, HR portal exports and emails. These records can resolve claims that leave was taken or forfeited.

Questions to ask HR or payroll

  1. Can you provide the leave ledger through my last working day?
  2. How was partial-year leave accrued?
  3. Which leave requests were deducted?
  4. Was any balance carried forward or paid earlier?
  5. Which wage basis is used for encashment?

Frequently asked questions

Do I lose unused leave when I resign?

Federal guidance provides payment for accrued unused leave when employment ends, subject to the applicable facts and framework.

Is unused leave paid on total salary?

Under the federal framework, unused leave at termination is calculated using basic wage. ADGM differs.

What if the HR portal is disabled after termination?

Download or request the leave record before access ends and preserve prior approvals.

Official sources used

Rules can change and facts can be disputed. Review the source that applies to your jurisdiction and current circumstances.

UAE GovernmentAnnual leave in the private sectorMinistry of Human Resources and Emiratisation (MOHRE)Federal Decree-Law No. 33 of 2021 and amendmentsADGM Employment Affairs OfficeEmployment Regulations 2024 FAQs