Can I cash out my unused annual leave instead of taking it before resigning?

Question

I have 47 days of accrued leave. I want to give notice and be paid out rather than take the leave during notice. HR says the leave must be taken physically during notice. Is there a legal obligation either way under the new Labour Law?

Priya Iyer · Accepted Answer

Under Article 29 of Federal Decree-Law 33 of 2021, accrued unused leave must be paid in cash at the end of service if not taken. The employer cannot force you to consume the leave during notice — that is at the employer's option, not yours. Your settlement should include the leave balance calculated on basic salary plus housing allowance per the Cabinet Resolution. Demand it in writing as part of the EOSB statement.

Can I cash out my unused annual leave instead of taking it before resigning?

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