![[UAE] Employer to pay compensation for employee’s 13 years unused annual leave](http://gpa.net/cdn/shop/articles/bigstock-Uae-Currency----Dirhams-Clo-8680342_97e328c3-d0db-4c17-9974-2752ea100201_1200x.jpg?v=1753322751)
In Abu Dhabi, the Court of Cassation has ordered an employer to compensate a former employee for 13 years of unused annual leave, Khaleej Times reports.
The employee worked at the company from 2009 until his contract was terminated in June 2022. After leaving the organisation, the employee claimed he had never taken his entitled annual leave during his tenure and sought financial compensation.
The employer failed to provide any documentation proving otherwise, according to Habib Al Mulla and Partners. As a result, the court awarded the employee Dh59,290 in compensation.
A lower court had initially ruled in favour of the employee, but it reportedly limited the compensation to a maximum of two years' worth of unused leave. The Court of Cassation overturned this decision and granted full compensation for the entire period.
Dr Habib Al Mulla - founder of Habib Al Mulla and Partners - said in a Twitter statement that this ruling sets a significant precedent in labour disputes related to unused leave in the UAE.
The statement said that the ruling will have significant implications for employers concerning the management and recording of leave entitlements, the potential financial obligations arising from unpaid leave and practical steps for employers to review and update leave policies.
The Cassation Court announced the verdict in December 2024.
Navandeep Matta - Senior Associate at Kochhar & Co. Inc. Legal Consultants, Dubai Branch - said the decision was a landmark in UAE employment law.
He told Khaleej Times, “This ruling has sent shockwaves through the employment sector, as the court awarded compensation for 13 years of unused leave. It marks a turning point in how accrued leave is interpreted under UAE labour law.”
Source: Khaleej Times
(Quotes via original reporting)
In Abu Dhabi, the Court of Cassation has ordered an employer to compensate a former employee for 13 years of unused annual leave, Khaleej Times reports.
The employee worked at the company from 2009 until his contract was terminated in June 2022. After leaving the organisation, the employee claimed he had never taken his entitled annual leave during his tenure and sought financial compensation.
The employer failed to provide any documentation proving otherwise, according to Habib Al Mulla and Partners. As a result, the court awarded the employee Dh59,290 in compensation.
A lower court had initially ruled in favour of the employee, but it reportedly limited the compensation to a maximum of two years' worth of unused leave. The Court of Cassation overturned this decision and granted full compensation for the entire period.
Dr Habib Al Mulla - founder of Habib Al Mulla and Partners - said in a Twitter statement that this ruling sets a significant precedent in labour disputes related to unused leave in the UAE.
The statement said that the ruling will have significant implications for employers concerning the management and recording of leave entitlements, the potential financial obligations arising from unpaid leave and practical steps for employers to review and update leave policies.
The Cassation Court announced the verdict in December 2024.
Navandeep Matta - Senior Associate at Kochhar & Co. Inc. Legal Consultants, Dubai Branch - said the decision was a landmark in UAE employment law.
He told Khaleej Times, “This ruling has sent shockwaves through the employment sector, as the court awarded compensation for 13 years of unused leave. It marks a turning point in how accrued leave is interpreted under UAE labour law.”
Source: Khaleej Times
(Quotes via original reporting)
