Simplify Converting Unused Leaves into Cash For Payroll Processing
Keeping track of unused leaves can be time-consuming. Say goodbye to hassles and save time by automating leave encashment calculation and tracking, and keep your people happy.
- Fully integrated with payroll management
- Real-time leave encashment calculations
- Employee self-service access
Error-Free Leave Encashment with Connect HR
Enabling automatic and requested leave encashment with customisable frequencies and approval workflows
Smooth and Customisable Approval Flows
Create multiple approval workflows based on predefined rules, directing leave encashment requests through appropriate approval chains.
In-built automated Leave Encashment Calculator
Uses payroll data to auto-calculate and credit encashment for unused paid leaves. No underpay or overpay! Compensate accurately!
Leave Encashment Policy in the UAE [Labour Law 2025]
The new UAE labour law allows employees to receive a cash allowance for unused annual leave days. The amount is calculated based on the employee’s basic salary at the time of leave entitlement.
End of Service EntitlementUpon ending employment with the current employer, employees have the right to claim a cash allowance for unused leave days earned during their employment.
Leave Pay FractionEmployees who leave their jobs before utilising their annual leave are entitled to leave pay for the fractions of the year in proportion to their service period.
Annual Leave EntitlementEmployees who have completed one year of service are entitled to 30 days of paid annual leave every year. Employees with less than one year of service are entitled to 2 days of leave per month.
Limitations on Carry ForwardOnly 15 days of annual leave can be carried forward to the next year (subject to the employer’s approval).
Automate Your Leave Encashment Process Now
Leave encashment is an important part of payroll management. So, make sure you never go wrong with it. Rely on Connect HR to ensure accurate payouts for unused eligible leave to compensate your employees well.
Frequently asked questions.
Leave encashment is the amount received by an employee for unused paid leave provided by the current employer.
With Connect HR, you can automatically calculate the leave encashment amount for eligible employees. It cuts down time-consuming and repetitive manual calculations, saving you time.
Employees in the UAE are entitled to 30 paid leaves, and any number of unused paid annual leaves is entitled to a payout.
No. Only annual paid leaves can be encashed.
You have different questions?
Our team will answer all your questions. We ensure a quick response.
