The UAE has strong employment laws to protect the welfare of workers. You should keep yourself updated on the latest labor regulations, especially the one on annual leaves in the UAE.
What is the UAE annual leave benefit?
According to Federal Decree Law No. 33 of 2021 on the Regulations of Labor Relations in the Private Sector, employees are entitled to annual leaves as part of their employment contract, provided they have completed at least six months of employment.
After their sixth month of service, employees are given two days of paid leave per month if they have not yet completed one year. On the other hand, workers are entitled to a fully paid annual leave of 30 days if they have completed one year of employment.
Can part-time employees go on an annual leave?
Part-time employees are granted an annual leave based on the actual working hours they spent at work, as detailed in their employment contract.
Can an employee take an annual leave during the probationary period?
Employees on probationary period are not entitled to annual leaves in the UAE but may take time off if the company agrees. Please note that, according to labor laws in the Emirates, a probationary period may not extend beyond six months.
General rules on annual leaves in the UAE
While every company has its own set of guidelines for annual leaves, these are the rules mandated by the government:
- Employees must use their annual leave during the period that was allocated to them. The employer may set the dates according to the company’s work requirements and in agreement with the employee. The employer has to then notify the employee at least one month before the date of the mandated leave.
- The employee will be compensated with another rest day or be paid their regular pay plus 50 percent of their basic wage if they work during their annual leave.
- The employer may not prevent employees from using their accrued annual leave for more than two years. Upon termination, any accrued leaves will be paid and based only on the basic salary, that is, not including allowances.
- The calculation of the annual leave duration will include official holidays specified by the law, including any that might be allowed by the company’s regulations.
Read: UAE continues to strengthen domestic labor rights
Unused leaves as per UAE annual leave law 2023
An employee may carry forward any annual leave balance to the following year upon agreement with his or her employer. If an employee wishes to convert any accrued annual leave, he or she may do so in agreement with the company, in accordance with UAE labor regulations.
According to Article 19(1) of Cabinet Resolution No. 1 of 2022, an employee may carry over half of his or her annual leave to the following year or agree with the employer to be paid in lieu of it based on his or her wage at the time of annual leave entitlement, subject to the provisions of Article 29(8) and (9).
It is also worth keeping in mind that an employee cannot work for an employer for two years in a row without taking annual leave.
Taking annual leaves
UAE labor laws stipulate that ALL employees in the emirates should be given annual leaves, in accordance with regulations mentioned previously, regardless of position or title. If you have any questions about your company’s rules on annual leaves, you should contact your human resources department or administrative personnel.
How annual leave salary is calculated?
After completing one year in the company, an employee’s annual leave salary in the UAE is calculated based on the last salary drawn from the employer. If there are no used leaves, workers will receive the equivalent of 30 days’ salary during their annual leave. This should include basic pay as well as transportation and accommodation allowances. The annual leave salary should be paid before the employee goes on vacation.
Who determines the date of the annual leave?
The employer normally sets the dates for the annual leave, based on the needs and requirements of the workplace. However, the employee may file a request for a different date, which needs to be agreed upon by the employer.
Can an employer terminate an employee who is on annual leave?
An employee on an annual leave cannot be terminated by his or her employer, except in very rare circumstances such as during a pandemic. There were unfortunate incidents of this nature that were reported to have happened all over the world. Under normal situations, however, termination is not permissible.
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