Annual leave is a legal right in the UAE, not a favour from your employer. Article 29 of the UAE Labour Law, Federal Decree-Law No. 33 of 2021, clearly states exactly what every private sector employee is entitled and how that leave must be handled. However, many workers in the UAE are unaware of the full rules and this lack of knowledge costs them days off, money and sometimes even their legal rights. Here’s a full breakdown of the seven most important annual leave rules every private sector employee in the UAE needs to know.
Rule 1: You Have a Right to 30 Days of Paid Leave Every Year
After you have completed one full year of service with your employer you are entitled to 30 calendar days paid annual leave. This is the minimum set by law – your employer can’t offer you less than this. You receive your full wage during annual leave, which is your basic salary plus any fixed contractual allowances. This is different from the encashment rules on termination which only uses the basic salary in the calculation. It is important to know the difference because many employees accept less than what they are legally owed without realizing it. If your employer is only paying you basic salary during active leave and not your full package, then they are in breach of the law and you can make a complaint with MOHRE.
Rule 2: New employees earn 2 days of leave per month after six months.
If you have been working for over six months but have not reached a full year, you are still entitled to annual leave. For every month of service between six months and one full year, the rate is two days per month. So if you worked for eight months you get 16 days of paid leave. According to the law, employees who have not worked for six months are not entitled to annual leave. If you have recently started a new job in Ras Al Khaimah and want to know the types of companies that operate in the emirate before accepting a job offer, the complete list of Companies In Ras Al Khaimah provides a good overview of employers in various sectors.
Rule 3: Employer’s Selection of Leave Date – One Month’s Notice Required
Pursuant to Article 29(4) of the Labour Law, the employer shall be entitled to fix the date of annual leave of the employees, considering the needs of the business. They can also rotate leave among employees to ensure business continuity. But the law is very clear that the employer has to give the employee minimum one month’s notice of his approved leave date. If you want to take leave on a particular date, it is strongly advised that you inform your employer at least one month in advance so that the chances of your leave being approved are higher. The final decision is up to your employer, but giving notice early protects your right to fair consideration of your request.
Rule 4: You can take your leave in bits – but only if your employer says yes
The law in the UAE states that annual leave must be taken as one continuous period. But, with the employer’s written consent, an employee can divide their annual leave into more than one period over the year. This is often done for employees who prefer shorter breaks at different times of the year, rather than one long absence. The key word is consent – you cannot split your leave without agreement. Must be in writing and agreed to by the employer. If you are planning to travel to Dubai during one of your leave periods, make the most of your time – check out the best Restaurants in Dubai for great dining options across the city whether you are there for a weekend or a longer break.
Rule 5: Your employer can’t refuse leave for more than two consecutive years
Employers can decide when leave is to be taken, but cannot continue to delay or refuse annual leave forever. An employer cannot deny an employee annual leave for more than two years consecutively. The rule is there to prevent workers being pressured to carry on working and never taking the leave they are legally entitled to. If your employer has been repeatedly rejecting your leave applications over the years, this is a violation of the Labour Law and you can file a formal complaint with MOHRE. Any leave that has accumulated because the employer decided to postpone it still has to be taken.
Rule 6: Written Consent of Employer Required to Carry Forward Unused Leave or Cash Out Unused Leave
One of the most misunderstood rules in the UAE is the rule about what happens to unused annual leave at the end of the year. Unused leave cannot be automatically carried forward or encashed unless your employer gives his consent in writing. Carry forward and encashment require written approval of employer. If your employment is terminated – whether by resignation, dismissal or otherwise – you are entitled to be paid for any unused annual leave days calculated on the basis of your basic salary at the time of termination. This is one of the most common reasons for disputes filed with MOHRE, so knowing this well before you leave a job can save you a lot of stress and lost money. If you are in Sharjah and looking for leisure options while you plan your next career move, check out the top Shopping Malls in Sharjah for a relaxing day out with family.
Rule 7: Different Rules for Free Zone and DIFC Employees
The Federal Decree-Law No. 33 of 2021 is applicable to employees in the UAE mainland and most free zones including JAFZA, DAFZA and the Sharjah free zones. However, if you work in Dubai International Financial Centre (DIFC), your annual leave entitlement is covered by DIFC Employment Law No.4 of 2005 and gives you 20 working days of leave – not 30 calendar days. Employees in the Abu Dhabi Global Market (ADGM) are covered by the ADGM Employment Regulations 2019, which also offer 20 working days per year after one year of service. The difference between 20 working days and 30 calendar days is substantial – know what law applies to your employer when negotiating or disputing leave entitlements. If you don’t know, look at your employment contract and check what authority your company is registered under.
One of the most important things you can know as a private sector employee in the UAE is your leave rights. These seven rules will help protect you – but only if you know them. For more UAE work and life guides, visit everlist.ae.
