Written and edited by the Visa Advice Hub Editorial Team.
Sick leave in UAE Labour Law is set by Article 31 of Federal Decree-Law No. 33 of 2021: up to 90 days of sick leave per year, paid on a sliding scale. The first 15 days are at full pay, the next 30 days at half pay, and the remaining 45 days are unpaid. This is the sick leave UAE private-sector workers are entitled to once they have completed probation — and no employment contract can give you less. Here is the pay structure at a glance:
| Sick Leave Period | Days | Pay Rate |
|---|---|---|
| Days 1–15 | First 15 days | Full pay (100%) |
| Days 16–45 | Next 30 days | Half pay (50%) |
| Days 46–90 | Next 45 days | Unpaid (0%) |
| Total per year | 90 days | — |
On a basic salary of AED 6,000, that means AED 200 per day for days 1–15, AED 100 per day for days 16–45, and nothing from day 46 onward. Your employer cannot deduct sick days from your annual leave balance without your agreement, and cannot dismiss you for being sick while you still have sick leave remaining.
Sick Leave Under UAE Labour Law: Article 31 Explained
The full legal basis for sick leave in UAE labour law is Article 31 of Federal Decree-Law No. 33 of 2021 Regulating Labour Relations. The article has five operative parts, and each one answers a question workers ask constantly:
Article 31(1) — Notification. “The worker shall notify the employer of his sickness within a period not exceeding (3) three working days and submit a medical report on his condition, issued by the medical entity.” In practice: report your illness within 3 working days, by any traceable channel — email, HR portal, or WhatsApp to your line manager. Keep a screenshot. A worker who reports on day 5 gives the employer a legitimate reason to treat days 1–4 as unauthorised absence.
Article 31(2) — Entitlement. After the probation period, a worker who falls sick is entitled to sick leave “not exceeding (90) ninety days, whether continuous or intermittent, per year.” The 90 days do not need to be taken in one block. Three separate illnesses of 20, 30, and 40 days in the same service year add up to the same 90-day cap.
Article 31(3) — The pay ladder. The sliding scale in the table above: the first 15 days at full wage, the following 30 days at half wage, and any period thereafter without wage. “Wage” here means the full wage (basic plus allowances) unless your contract defines it otherwise — a point employers frequently get wrong by paying the half-pay period on basic salary only.
Article 31(4) — Misconduct exclusion. No wage is payable for sick leave if the illness arises directly from the worker’s own misconduct — the executive regulations cite situations such as illness resulting from the worker’s violation of safety instructions. This is a narrow exception; ordinary illness, injury, and chronic conditions are all covered.
Article 31(5) — Protection from dismissal. The employer may not terminate the worker’s service during sick leave before the worker exhausts the 90-day entitlement. If the worker cannot return to work after the 90 days are used up, the employer may then end the contract — but the worker keeps the right to full end-of-service gratuity and all other dues. A dismissal issued on day 30 of a certified sick leave is an unlawful termination, and MOHRE will treat it as such.
How Sick Leave Pay Is Calculated: Worked Example
Take a worker on a total monthly wage of AED 6,000 who is signed off for 60 continuous days:
| Segment | Days | Daily Rate | Amount |
|---|---|---|---|
| Full-pay period | 15 | AED 200 | AED 3,000 |
| Half-pay period | 30 | AED 100 | AED 3,000 |
| Unpaid period | 15 | AED 0 | AED 0 |
| Total for 60 days | 60 | — | AED 6,000 |
The daily rate is the monthly wage divided by 30. If your payslip for a sick month shows a bigger deduction than this arithmetic supports, ask HR in writing for the day-by-day breakdown — a wrong sick-pay calculation is a wage complaint MOHRE handles on the standard 800-60 track.
Sick Leave During Probation
This is the most common point of confusion about sick leave UAE-wide, because the answer is genuinely harsh:
- No paid sick leave during probation. Article 31(2) grants the 90-day paid entitlement only “after the end of the probationary period.” A worker in month 3 of a 6-month probation who falls sick has no statutory right to sick pay.
- Unpaid sick leave is possible with employer approval. During probation, the employer may approve leave without pay based on a medical report. They are not obliged to, but a certified illness that is refused any accommodation looks bad in any later MOHRE dispute.
- You can still be terminated — but with 14 days’ written notice. Probationary termination rules (Article 9) apply as normal. Being sick during probation does not trigger the Article 31(5) dismissal protection, because that protection attaches to the post-probation sick leave entitlement.
- Some contracts and free-zone rulebooks are more generous. DIFC and ADGM have their own employment laws, and individual contracts can grant paid sick leave from day one. Check your contract before assuming the statutory minimum applies.
If you are in probation and facing dismissal over an illness, read our guide on UAE probation period termination rights — the notice and repayment rules there apply regardless of the reason for termination.
Can Your Employer Reject a Sick Leave Certificate?
Only in narrow circumstances. UAE labour law on sick leave requires a medical report “issued by the medical entity” — in practice, a certificate from a licensed medical facility. The rules of engagement:
- A certificate from a licensed UAE facility is presumptively valid. Government hospitals, DHA/DOH/MOHAP-licensed private clinics and hospitals all qualify. Your employer cannot reject it simply because they “don’t accept sick notes from that clinic.”
- Some emirates require attestation for longer leaves. In Dubai, certificates for extended sick leave are commonly attested by the Dubai Health Authority; Abu Dhabi has an equivalent process through the Department of Health. For one or two days, attestation is rarely demanded; for weeks-long leave, get the attestation stamp — it removes the employer’s main objection.
- The employer can ask for a company-nominated re-examination. If they genuinely doubt the illness, the proportionate response is a second medical opinion, not a salary deduction. Unilateral rejection of a valid certificate followed by docking your pay is an unlawful wage deduction.
- Late notification is the one solid ground for rejection. If you did not notify the employer within 3 working days, the certificate may still document the illness, but the employer can lawfully treat the unreported days as absence. Notify first, certify second.
- What to do if a valid certificate is rejected: reply in writing quoting Article 31, attach the certificate again, and state the dates claimed. If pay is still deducted or a warning letter is issued, file a MOHRE complaint on 800-60 with the certificate, the notification screenshot, and the payslip showing the deduction. Deductions reversed at conciliation are common in exactly this fact pattern.
Sick Leave and End of Employment
Three rules connect sick leave to your final settlement:
- Resignation during sick leave is allowed — the notice period runs normally, and certified sick days during notice still follow the Article 31 pay ladder.
- Termination during sick leave before the 90 days are exhausted is unlawful under Article 31(5). If it happens, claim compensation for arbitrary dismissal alongside your normal dues.
- Unused sick leave is not encashed. Unlike annual leave, sick leave has no cash value on departure — it is insurance, not a savings account. Annual leave is different, which is why the next part of this guide matters for anyone leaving a job.
Annual Leave Encashment: The Related Entitlement on Departure
Formula: (Basic Monthly Salary ÷ 30) × Unused Leave Days. Here is what that looks like for a typical UAE worker:
| Factor | Amount |
|---|---|
| Monthly Basic Salary | AED 4,000 |
| Daily Rate (÷ 30) | AED 133.33 |
| Unused Annual Leave Days | 18 days |
| Leave Encashment Owed | AED 2,400 |
Who this guide is for
UAE private-sector workers who have resigned, been terminated, or are about to leave employment — particularly anyone whose employer has issued a final settlement that does not include payment for unused annual leave days.
Why this guide exists
Article 29 (leave) and Article 19 (final settlement) of Federal Decree-Law No. 33 of 2021 make leave encashment a non-waivable statutory right, including for resignations and partial-year cases. Despite this, many employers still leave it off the settlement sheet by default. This guide gives the formula, the document trail to keep, and the exact MOHRE escalation path when an employer refuses.
If you are resigning or leaving your job in the UAE, your employer must pay you for any annual leave days you have not used. This is called UAE annual leave encashment on resignation, and it is a legal requirement — not optional. Many workers do not know they are owed this payment, and some employers try to avoid it.
This guide explains exactly how the payment is calculated, what the law says, and what to do if your employer refuses.
Legal Basis: UAE Annual Leave Encashment Under the Labour Law
Under Federal Decree-Law No. 33 of 2021 Regulating Labour Relations, Article 19, all private sector workers in the UAE are entitled to paid annual leave. When employment ends — whether by resignation, termination, or contract expiry — any unused leave days must be converted to a cash payment as part of the final settlement.
This applies regardless of why you are leaving. Even if you resign voluntarily, you are still entitled to UAE annual leave encashment on resignation for unused days.
How Many Annual Leave Days Are You Entitled To?
Under UAE Labour Law, your annual leave entitlement depends on your length of service:
| Service Period | Leave Entitlement |
|---|---|
| 6 months to 1 year | 2 days per completed month of service |
| 1 year or more | 30 days per year |
If you worked for 1 year and 4 months but only took 10 days of leave, you are entitled to encashment for the remaining 20 days of that year, plus proportional leave for the additional 4 months.
Important: Your employment contract may give you more than 30 days of annual leave. If so, the higher number applies. The Labour Law sets the minimum — not the maximum.
How to Calculate UAE Annual Leave Encashment on Resignation
The Formula
Leave Encashment = (Basic Monthly Salary ÷ 30) × Unused Leave Days
This is based on your basic salary only. Housing allowance, transport allowance, and bonuses are not included in this calculation.
Worked Example
| Factor | Amount |
|---|---|
| Monthly Basic Salary | AED 4,000 |
| Daily Rate (÷ 30) | AED 133.33 |
| Unused Annual Leave Days | 18 days |
| Leave Encashment Owed | AED 2,400 |
If You Worked Less Than a Full Year
For partial years, calculate your proportional leave first. If you worked 9 months and your yearly entitlement is 30 days:
- Accrued leave = 30 × (9 ÷ 12) = 22.5 days
- If you took 5 days, unused = 17.5 days
- Encashment = (Basic Salary ÷ 30) × 17.5
What Counts as “Basic Salary” for Leave Encashment?
Only the fixed monthly amount in your employment contract — your basic wage. Check your contract for the line that says “basic salary” or “basic wage.” Do not include:
- Housing or accommodation allowance
- Transportation or petrol allowance
- Food allowance
- Annual bonuses
- Overtime pay
If your employer argues they do not have to pay encashment because you resigned without notice, that argument is not valid under UAE law. Unused leave is owed regardless of how employment ends, as long as you completed the minimum service period.
Documents to Build the Leave-Encashment Claim
| Document | Why You Need It | Where to Get It |
|---|---|---|
| Signed employment contract | Confirms basic salary used in the formula and any contractual leave bonus | Your file, HR portal, or MOHRE contract record |
| Last 6 salary slips | Shows basic salary separately from allowances | WPS app / HR portal / bank app |
| Leave application records and approvals | Counts days actually taken versus days accrued | Your email, HR system screenshots, WhatsApp confirmations |
| Resignation letter or termination notice (with date) | Anchors the start of the 14-day final-settlement clock | Your records and HR copy |
| Final settlement sheet from the employer (if issued) | Shows what they intend to pay and any missing items | HR — request before you sign anything |
| Emirates ID + passport copies | Required for the MOHRE complaint filing | Always with you |
| Bank statement (last 30 days) | Confirms the agreed amount was or was not transferred | Your bank app |
When Must Your Employer Pay Leave Encashment?
UAE law requires your employer to pay all final settlement — including leave encashment — within 14 days of the end of employment. If they delay without reason beyond 14 days, you can file a complaint with MOHRE.
Your leave encashment will be part of your total final settlement package, which also includes:
- End of service gratuity (if eligible — see our guide on UAE end of service gratuity)
- Any unpaid salary for the last working month
- Any overtime payments owed
- Notice period payment (if applicable)
What If Your Employer Refuses to Pay Leave Encashment?
- Request in writing — Send a WhatsApp or email asking for your final settlement breakdown, specifically mentioning unused annual leave days. Keep the message.
- File a MOHRE complaint — Call 800-60 or file online at mohre.gov.ae. Select “Wage Complaint” or “Final Settlement Dispute.” This service is free.
- Provide evidence — Submit your employment contract, payslips showing your basic salary, and any leave records. If you do not have these documents, MOHRE will request them from the employer.
- Attend mediation — MOHRE will schedule a session. If your employer does not attend, the case is referred to the court and you are very likely to win.
For additional protection if you are also owed your regular salary, read our guide on UAE unpaid salary claims — the MOHRE process is the same.
What Usually Happens Next
- You confirm the unused leave figure in writing to HR before your last working day — WhatsApp or email is enough.
- HR includes the leave encashment in the final settlement sheet, calculated on basic salary as Article 29 requires.
- The total final settlement (salary + leave encashment + gratuity + notice pay) is transferred within 14 days of the last working day.
- If the figure is short, you reply to HR in writing within 7 days quoting the formula. Most employers correct it after a written challenge.
- If they still refuse, file a MOHRE complaint on 800-60. The conciliation session is usually scheduled within 2 weeks.
- MOHRE issues a binding decision for claims under AED 50,000 and refers larger or contested cases to the labour court.
Can Your Employer Force You to Take Remaining Leave Before You Resign?
Yes, in some cases. UAE Labour Law allows employers to schedule when employees take annual leave with advance notice. If your employer asks you to use your remaining leave during your notice period, that is allowed under Article 19. However, they cannot simply “cancel” your unused leave — if it is not taken, it must be paid as encashment.
Special Cases: Annual Leave During Notice Period
If you resign with a notice period, the days you work during notice are counted normally. If your employer asks you to take your remaining annual leave during the notice period (instead of working), that is legal. The notice period is then considered fulfilled through the leave days. You would not receive additional encashment for those days.
If your employer cancels your notice period and tells you to leave immediately, you are entitled to notice period pay plus the full leave encashment.
Common Mistakes to Avoid
- Allowing ‘unused leave is forfeited’ clauses to stand — Such clauses are unenforceable under Article 29. Quote the article in writing and they almost always concede.
- Using total salary instead of basic for the formula — The legal minimum is basic-salary-based. Higher contractual rates apply only if the contract clearly says so.
- Forgetting partial-year accrual after 6 months of service — Two days per completed month between 6 and 12 months are payable on departure.
- Signing the visa cancellation form before the final settlement is in the bank — Once cancelled, leverage drops sharply and MOHRE cases take longer.
- Treating informal cash payment for leave days as final — Without a stamped or signed acknowledgment, the employer can later claim it never happened.
- Waiting past 30 days to file a MOHRE complaint — Memory degrades, witnesses move on, and conciliation strength weakens. Within 30 days is the strongest position.
Frequently Asked Questions
How many sick leave days do I get under UAE labour law?
Up to 90 days per year of service under Article 31 of Federal Decree-Law No. 33 of 2021, continuous or intermittent: 15 days at full pay, 30 days at half pay, and 45 days unpaid. The entitlement starts after you complete your probation period.
Is sick leave in the UAE paid on basic salary or full salary?
Article 31 refers to the wage, which by default means the full wage including allowances unless your contract defines the sick-pay basis differently. If your employer paid the half-pay period on basic salary alone, check the wage definition in your contract before accepting the figure.
Can my employer fire me while I am on sick leave in the UAE?
Not before you exhaust the 90-day sick leave entitlement — Article 31(5) blocks termination during certified sick leave. Once the 90 days are used and you still cannot return to work, the employer may end the contract, but you keep your gratuity and all final settlement dues.
Do I need a medical certificate for one day of sick leave in the UAE?
Strictly, yes — the law requires a medical report and notification within 3 working days for any sick leave. Many employers waive certificates for a single day as internal policy, but if a dispute is possible, get the certificate. It costs one clinic visit and closes off the “unauthorised absence” argument entirely.
Do I get annual leave encashment if I resign before completing one year?
Yes, if you completed more than 6 months. You are entitled to 2 days per completed month of service. If you worked 9 months and took no leave, you receive encashment for 18 days at your basic daily rate.
My employer says they do not pay encashment for resignations. Is this legal?
No. Under Federal Decree-Law No. 33 of 2021, Article 19, unused annual leave must be paid on departure regardless of the reason for leaving. This cannot be waived by contract. File a complaint with MOHRE at 800-60 if your employer refuses.
My contract says I lose unused leave if I do not take it. Is this valid?
No. UAE Labour Law does not allow contract clauses that remove the right to leave encashment. Any clause that tries to forfeit your unused leave is legally unenforceable. Your right to payment is protected by law, not subject to employer policy.
I took extra leave last year — can my employer deduct this from my encashment?
Yes. If you took more days than you accrued (“advance leave”), your employer can deduct the excess from your final settlement. Check your leave balance records before your last day to understand how many days you have remaining.
How many leave days do I get in my first year?
In the first 6 months, you are not entitled to annual leave. From 6 months to 12 months, you earn 2 days per completed month. From 12 months onwards, you are entitled to 30 days per year.
My employer paid my leave salary at total salary, not basic. Is that right?
The UAE Labour Law minimum is based on basic salary. However, if your contract says leave is calculated on your full salary (basic + allowances), the higher amount applies. Review your contract — but you cannot receive less than the basic salary calculation.
Official Sources Used in This Guide
- Federal Decree-Law No. 33 of 2021 — Article 31 (Sick Leave), Article 19 (Final Settlement) and Article 29 (Annual Leave)
- UAE Government Portal — Sick Leave Entitlements in the Private Sector
- MOHRE — Ministry of Human Resources and Emiratisation (mohre.gov.ae)
- MOHRE — File a Wage / Final-Settlement Complaint
- UAE Government Portal — Annual Leave Entitlements
- WPS — Wage Protection System (Central Bank UAE)
Related Articles
This article is for general information only and is not legal advice. Rules can change. Always confirm with MOHRE or a qualified legal professional.