Unused annual leave is one of the most common final-settlement disputes. The employee may think all unused days must be paid. The employer may say the leave expired, was used, or was included in a settlement. The correct answer depends on the contract, leave records, law, and timing.

Employees should keep their leave balance records during employment, not only after termination. Employers should maintain accurate records of leave accrual, approvals, carry-forward, and payments. A weak leave record can become a problem in a labour complaint.

When employment ends, unused leave should be reviewed as part of the final settlement. The calculation should be clear: number of days claimed, salary basis used, days already taken, days carried forward, and any amount paid. If there is a disagreement, the leave issue should be separated from gratuity, salary, notice, and other claims.

Common mistakes include signing a settlement sheet without checking leave days, relying on informal WhatsApp leave approvals, failing to keep HR records, or assuming every internal policy overrides the law.

If unused leave is part of your UAE final-settlement dispute, bring the leave report and salary records for review before signing or filing.

This article is general information only.