Questions & Answers
Is accrued annual leave paid if the employee is terminated during probation?
Hello,
I want to confirm: if an employee is terminated during the probation period, does the employer have to pay them their accrued annual leave, even if it's during the probation period?
Or is the employee only eligible for leave payment after the probation period?
Thanks!
Greetings,
If an employee is terminated during the probation period, they are not entitled to annual leave pay as per UAE Labour Law, since leave entitlements typically accrue after the probation period and after completing at least one year of service.
However, each case may involve specific contract terms or exceptions, so we recommend a legal consultation to assess your exact situation.
Book a consultation with us to ensure full compliance and protect your legal position.
Hello,
The law is clear that employees who have completed more than six months but less than one year of service are entitled to two days of annual leave for each month of service.
If an employee is terminated after completing more than six months, even if still technically within a (potentially extended) probation, this entitlement should apply.
The law doesn't grant employees the automatic right to paid annual leave during the probation period. Many companies' policies also reflect this. If you need further clarification, you may ask us.
Under UAE Labor Law, specifically Article 29 of the Federal Decree-Law No. 33 of 2021, employees are entitled to their accrued annual leave even if terminated during the probation period.
Employees earn annual leave on a pro-rata basis from the first day of employment, and upon termination, whether during or after the probation period, the employer must compensate the employee for any unused leave days.
The probation period does not exempt the employer from this obligation. Therefore, an employee is entitled to payment for accrued annual leave upon termination, regardless of whether they have completed the probationary period.
Dear Client,
Thank you for your inquiry regarding the entitlement to annual leave payment upon termination during the probation period.
Under UAE Labour Law, annual leave entitlement begins to accrue after an employee has completed six months of continuous service.
Employees who have completed more than six months but less than one year of service are entitled to two days of annual leave per month.
If an employee is terminated during the probation period:
- If the employee has not yet completed six months of service, there is no statutory entitlement to annual leave, and therefore, no payment for accrued leave is required.
- If the employee has completed six months or more, any accrued but unused annual leave must be paid out upon termination, even if the termination occurs during the probation period.
Please ensure that any leave payment is calculated based on the employee’s basic salary and the actual period worked.
If you require further clarification or assistance with the calculation, please let us know.
Best regards,
Hello,
According to UAE labor law, an employee who is terminated during their probation period is entitled to receive their accrued annual leave.
This is because the probation period is considered part of the employment contract, and the employee is entitled to all the benefits and entitlements mentioned in the contract, including annual leave.
However, the employer may deduct any amount of annual leave that the employee has already taken during the probation period from the total accrued annual leave.
For example, if the employee has taken 5 days of annual leave during their probation period and their total accrued annual leave is 30 days, the employer may only pay them for 25 days of annual leave.
It is important to note that the employer is not required to pay any end-of-service gratuity to an employee who is terminated during their probation period.
This is because the end-of-service gratuity is only applicable to employees who have completed at least one year of continuous service with the employer.
In summary, an employee who is terminated during their probation period is entitled to receive their accrued annual leave, minus any days of annual leave they have already taken. They are not entitled to receive any end-of-service gratuity.
