How is unused annual leave paid in my UAE final settlement?

Yes. Any annual leave you have accrued but not taken is paid to you in cash as part of your final settlement. This applies however your employment ends — resignation, termination by the employer, or expiry of your contract. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, you are entitled to payment for your untaken leave balance. How the amount is worked out: the leave-encashment component is generally calculated on the basic wage for those leave days. So take your daily basic wage and multiply it by the number of accrued leave days still owed to you at your departure date. The law sets out the wage definition used for end-of-service purposes, so confirm the exact basis that applies to your contract with your employer or with MOHRE. Leave pay is not the same as gratuity. Gratuity rewards your length of service; leave encashment compensates you for holiday you earned but did not use. They are separate entitlements and should appear as separate lines. A complete final settlement should cover any unpaid salary, your accrued leave payment, and your gratuity if you completed at least one year of service. Check the figure before you sign anything. You should receive a clear breakdown showing how the amount was reached. Employers sometimes miscount the leave balance, or apply the wrong wage figure to it, so check both the number of days and the rate used against your own records. If the leave payment is missing or looks wrong, ask your employer for a written explanation first. If that does not resolve it, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). You can also compare verified UAE employment lawyers on LEXAI to review your settlement before you accept it.