Annual Leave in UAE | As per UAE Labour Law

Annual Leave Labour LAW

Annual leave in UAE is a crucial aspect of employment, ensuring that employees can take time off work to rest and recharge. The UAE Labour Law, specifically Federal Decree-Law No. 33 of 2021, outlines the provisions for annual leave for employees working in the United Arab Emirates. Understanding these provisions is essential for both employers and employees to ensure compliance and maintain a healthy work-life balance.

Annual Leave Labour LAW
Annual Leave Labour LAW

Entitlement to Annual Leave

According to Article 29 of Federal Decree-Law No. 33 of 2021, employees are entitled to annual leave based on their length of service. The law states:

  • Employees are entitled to two days of leave for each month if they have completed six months of service but not one year.
  • Employees are entitled to 30 days of leave for each year if they have completed one year of service.

Calculation of Leave

The calculation of annual leave includes weekends and public holidays. However, if a public holiday coincides with the annual leave, the employee is entitled to an extra day of leave to compensate for the public holiday.

Accumulation and Carryover of Leave

Annual leave can be accumulated and carried over to the next year with the employer’s consent. However, employees are encouraged to utilize their leave within the same year to ensure they benefit from regular rest periods.

Payment During Annual Leave

Employees are entitled to their full wages during the annual leave period. Article 29 also specifies that if an employee’s service is terminated before they have used their annual leave, they are entitled to receive payment for the accrued leave days.

Timing of Leave

Employers have the right to determine the date of the annual leave, taking into consideration the work requirements and giving the employee at least one month’s notice. This provision ensures that the business operations are not disrupted while also allowing employees to plan their leave in advance.

Prohibition of Working During Leave

Employees are prohibited from working for another employer during their annual leave. If an employee is found working for another employer during their leave, the original employer has the right to terminate the employee without notice and deprive them of their wages for the leave period.

FAQs on Annual Leave in the UAE

Q1: Can annual leave be split into shorter periods?

Yes, annual leave can be split into shorter periods, but this must be agreed upon by both the employer and the employee.

Q2: What happens if an employee falls sick during their annual leave?

If an employee falls sick during their annual leave, the sick leave will not be counted as part of the annual leave, provided that a medical certificate is presented.

Q3: Can an employer refuse a request for annual leave?

An employer can refuse a request for annual leave based on business requirements but must provide a valid reason and ensure the employee takes their leave at a later date.

Q4: Is it possible to encash annual leave instead of taking time off?

While the law allows for payment in lieu of annual leave upon termination of employment, it encourages employees to take their leave. Employers and employees can mutually agree on encashment in other circumstances.

Q5: What should be done if an employer does not provide annual leave?

If an employer does not provide annual leave as stipulated by the law, the employee can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).

Conclusion

Understanding the provisions of annual leave as outlined in Federal Decree-Law No. 33 of 2021 is essential for maintaining a balanced and healthy work environment. Both employers and employees should ensure compliance with these regulations to promote employee well-being and productivity. Taking annual leave is not just a right but a necessary part of a sustainable work-life balance.

By adhering to these guidelines, businesses can foster a more motivated and efficient workforce, ultimately benefiting the entire organization.

You can check this also: How to Calculate Gratuity in the UAE: Your Complete Guide

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