Annual Leave Law In UAE

Blog Title

The term "annual leave" describes the set amount of paid time off from work that employees receive each year; the amount of time off is usually accumulated dependent on the length of the employee's employment. This time off is meant for vacations, personal time, and other non-work-related pursuits.

Here are some key points to better understand about the annual leaves in UAE:

Annual Leave Provisions under UAE Labor Law (2024):

The UAE Labor Law, also known as Federal Law No. 8 of 1980, will continue to control annual leave restrictions in the UAE as of 2024. Over time, this law has been modified according to modern labor standards and practices. The essential information about annual leave as outlined by UAE labor legislation is provided below:

1. Title

Duration: After one year of continuous employment with the same company, employees are entitled to thirty calendar days of annual leave per year.

Eligibility: After fulfilling the one-year service requirement, all employees, including those on indefinite and fixed-term contracts, are eligible for this benefit.

2. Accrual Rate:

For every month of service, 2.5 days of annual leave are accrued. For workers who haven't finished their entire year, leave is often computed pro rata.

3. Timing and Scheduling:

Determination: The employer usually decides when to grant yearly leave, taking into account both the employee's request and the business's operational requirements.

Advance Notice: Employees are usually required to provide notice of their intention to take leave, and the advance notice period is often specified in the company’s leave policy.

4. Carry Forward and Encashment:

Carrying Forward: If yearly leave is not utilized, it can usually be carried over to the next year. However, the length of time that leave can be carried over before it has to be used or lost may vary depending on business policy.

Encashment: Upon resignation or termination, employees are entitled to recompense for any unused annual leave. This payment is computed at the same rate as the employee's normal pay and has to be based on their most recent salary draw.

5. Leave During Probation:

Probationary phase: During their probationary phase, employees are typically not eligible for yearly leave. This might change, though, if the company has laxer policies.

6. Public Holidays:

Extra Entitlement: The UAE government designates public holidays that are distinct from the yearly leave benefits. Public holidays do not require employees to use their yearly leave days.

7. Legal Reference:

Federal Law No. 8 of 1980 (Labor Law), Article 79:

• "Every worker shall be entitled to an annual leave with full pay of not less than thirty days after the completion of one year’s service with the employer.”

What are the types of annual leaves?

The UAE offers its workers the following types of yearly leaves:

1. Sabbatical Leave

A sabbatical leave is the same as annual leave but only Emirati workers are eligible for this kind of leave. Also known as academia.

This leave is provided to national workers for national service. The national service lasts between 11 months and 3 years and it is mandatory for males but optional for females.

2. Sick Leave

Employees are entitled to sick leave in accordance with a specified schedule, which is typically paid for up to 90 days, according to ARTRICLE 31 OF (Labor Law). Half of the wage is paid for the next thirty days, after which the remaining days are unpaid. The first fifteen days are paid in full.

3. Maternity Leave

According to Article 30 of the UAE Labour Law Female employees are entitled to 45 days of maternity leave, which covers the time before and after childbirth.The entire cost of this leave is covered.

4. Paternity Leave

When a child is born, male parents are entitled to this leave.

According to Article 32 of the Federal Decree-Law No. 33 Five full days of paid leave will be provided as parental leave.

5. Hajj Leave

One of the five pillars of Islam is pilgrimage, which every Muslim is expected to perform at least once in their lives.

Workers who have completed at least two years of employment are entitled to a special leave for Hajj, which is often up to 30 days. Unless covered by special corporate policies, this is frequently unpaid.

6. Study Leave

Every employee wants to progress in their job. Employees in the UAE have access to the same.

According to Article 32 of UAE Labour Law employees who are in service for two or more years are eligible for ten days of study leave to sit in their examination recognized by educational institutes in UAE.

7. Bereavement Leave

Article 32 of the Federal Decree Law grants five five-day leave in the event of the death of a spouse and three days on the death of grandparents or siblings.

8. Official National Holidays

Article 28 states that national holidays such Eid Al Fitr, Arafah Day, New Year's Day, Eid Al Adha, Hijri New Year, Prophet Mohammed's birthday, Commemoration Day, and National Day are paid time off for UAE employees.

Employees must be paid 150% of their base pay if their employer wishes them to labor on national holidays.