Annual leave is an important employment benefit in the UAE, giving employees time to rest and recharge. Both employers and employees should understand the rules around leave entitlement to ensure compliance with UAE Labour Law.
Eligibility:
All employees are eligible for annual leave once they start working, but usage depends on probation and length of service:
▪️During probation: Employees may not usually take leave unless the employer agrees. Probation periods are typically up to six months.
▪️After probation: Employees become entitled to leave based on their length of service:
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Less than one year of service: Employees accrue two days of leave per month worked.
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One year or more of service: Employees are entitled to 30 calendar days or 22 working days of annual leave per year.
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Calculating Annual Leave:
Leave is calculated based on calendar days but is typically taken as working days. Annual leave pay is based on the employee’s basic salary.
Scheduling Leave:
Employees should request leave in advance, and employers can approve or schedule leave depending on business needs. Clear communication helps avoid operational disruptions.
Carry Forward, Excess Leave, and Encashment:
Unused leave may be carried forward to the next year if mutually agreed, but employers make the decision on this. If an employee takes more leave than they are entitled to and leaves the company, the excess days will be deducted from their end-of-service gratuity or pay. Upon termination of employment, employees are entitled to payment for unused leave.
What Abou Unpaid Leave in the UAE?
While the UAE Labour Law does not grant an automatic right to unpaid leave, it can be granted at the employer’s discretion. Here are the key points:
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Employer Approval Required: Employees cannot take unpaid leave without the employer’s consent. Employers can set rules regarding duration, notice, and frequency.
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No Impact on Entitlement Accrual: Generally, unpaid leave does not count toward annual leave accrual or other benefits like end-of-service gratuity.
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Duration: Unpaid leave can vary in length, from a few days to several months, depending on the employer’s policy and mutual agreement.
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Impact on Salary and Benefits: During unpaid leave, employees do not receive a salary and certain benefits may be paused, depending on company policy.
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Documentation: Employers may require a written request detailing the reason and duration of unpaid leave.
Tip: Employees should always have unpaid leave approved in writing to avoid misunderstandings or disputes about salary, benefits, or gratuity.
Conclusion:
Understanding annual leave entitlements in the UAE ensures employees can enjoy their right to rest while employers stay compliant with the law. Planning leave around working days, probation rules, and entitlement limits protects both employees and employers.