Annual Leave in the UAE | Rules and Regulations

Annual Leave Labour LAW UAE

As an employee working for a mainland company in the UAE, it’s essential to understand the rules and regulations surrounding annual leave. Annual leave is a statutory right for employees, and it’s crucial to know how much leave you’re entitled to, whether you must use it within the year, and what happens if you don’t use all your leave. This article will provide a comprehensive overview of how annual leave works for mainland employees in the UAE, along with answers to some frequently asked questions.


Annual Leave Entitlement in the UAE

1. Entitlement Period:

  • According to the UAE Labour Law, every employee is entitled to paid annual leave.
  • Employees who have completed one year of service are entitled to 30 calendar days of annual leave.
  • Employees who have been with the company for at least six months but less than a year are entitled to two days of leave for each month of service.

2. Accrual of Leave:

  • Annual leave accrues with every month of service, so even if you haven’t completed a full year, you are still entitled to a pro-rated amount of leave based on your months of service.

Usage of Annual Leave

1. Requirement to Use Annual Leave:

  • The UAE Labour Law does not mandate that employees must use a certain number of leave days each year. However, it is advisable to use your leave to rest and recharge.
  • Employers can stipulate in the employment contract or company policy when the leave should be taken.

2. Carry Forward or Expiry of Leave:

  • If you do not use all your leave within the year, your employer may allow you to carry forward the remaining days to the next year. This is usually subject to company policy.
  • Some companies have a “use it or lose it” policy, meaning unused leave may expire at the end of the year. However, this must be clearly stated in the employment contract or company policy.

3. Encashment of Leave:

  • If you do not take your full annual leave, you may be entitled to receive payment for the unused days. The payment is calculated based on your basic salary and must be provided in the case of end-of-service or if the employer agrees to encashment of unused leave.

How Annual Leave Works: Key Points

1. Notification and Approval:

  • You must notify your employer in advance when you wish to take annual leave, and it must be approved by your employer. Employers have the right to decide the timing of your leave based on work requirements.

2. Calculation of Leave Days:

  • Annual leave is calculated based on calendar days, which includes weekends and public holidays that fall within the leave period.

3. Leave Salary:

  • You are entitled to your full salary during your annual leave, including basic salary and any allowances that you regularly receive.

4. Emergency Leave:

  • Any leave taken without prior approval or beyond the annual leave entitlement is typically treated as unpaid leave unless otherwise agreed with your employer.

Frequently Asked Questions (FAQs)

Q1: What happens if I don’t use all my annual leave?

  • If you do not use all your annual leave, the remaining days may either be carried forward to the next year or expire, depending on your company’s policy. You may also receive payment for unused leave if the company agrees or in cases of end-of-service.

Q2: Can my employer force me to take annual leave at a certain time?

  • Yes, your employer can dictate when you should take your annual leave, especially if business needs require it. However, they usually consider employee preferences.

Q3: Is annual leave paid?

  • Yes, annual leave is paid. You will receive your full salary, including allowances, during the period of your leave.

Q4: Can I encash my unused leave?

  • You can request payment for unused leave, but this is subject to your employer’s approval. At the end of your service, any remaining unused leave must be compensated by the employer.

Q5: How is leave calculated if I resign or my contract ends?

  • If you resign or your contract ends, your unused annual leave will be calculated on a pro-rata basis, and you will receive payment for any accrued leave days.

Q6: Can my employer refuse to grant me annual leave?

  • Employers can refuse leave requests based on business needs or workload. However, they should not deny your right to take leave entirely.

Q7: Are public holidays included in my annual leave?

  • Yes, public holidays that fall within your annual leave period are counted as part of your leave, as leave is calculated based on calendar days.

Conclusion

Understanding your rights and obligations regarding annual leave is essential for ensuring that you can take time off when needed without facing any issues. The UAE Labour Law provides clear guidelines, but it’s important to review your employment contract and company policies for any specific provisions related to your leave. Whether you plan to take a long vacation or prefer to encash your leave, knowing the rules will help you make informed decisions.

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