Understanding the Annual Leaves : UAE LABOUR LAWS

Annual leave is a fundamental right for employees, ensuring they have adequate time to rest, recharge, and attend to personal matters. In the United Arab Emirates (UAE), the provisions for annual leave are clearly outlined in the UAE Labour Law (Federal Decree-Law No. 33 of 2021), which governs employment relationships in the private sector. Understanding these regulations is essential for both employers and employees to ensure compliance and foster a healthy work environment.

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Entitlement to Annual Leave

Under UAE Labour Law, employees are entitled to annual leave based on their length of service. The key provisions are as follows:

1. For Employees with Less Than One Year of Service:

• Employees who have completed six months of continuous service are entitled to two days of leave for each month worked.
• If an employee leaves the company before completing six months, they are not entitled to annual leave.

2. For Employees with More Than One Year of Service:

·       Employees are entitled to 30 calendar days of paid annual leave for each year of service.

·       This entitlement applies to both full-time and part-time employees.

Calculation of Annual Leave

Annual leave is calculated based on calendar days  30 calendar days ( equal to 22 work days). This means that weekends (Friday and Saturday) and public holidays falling within the leave period are included in the 30-day entitlement if followed by the calendar days. However, if a public holiday coincides with annual leave, it is not counted as part of the leave days, and the employee is entitled to an additional day off.

Scheduling Annual Leave

The timing of annual leave is typically determined by mutual agreement between the employer and the employee. However, the employer has the final say in scheduling leave, provided they give the employee reasonable notice. Employers are encouraged to consider the employee’s preferences and personal circumstances when approving leave requests.

If an employee does not use their annual leave within the year, they may carry it forward to the next year, subject to the employer’s approval. However, the Labour Law stipulates that employees must use their annual leave within a maximum of two years from the date it accrues.

Payment During Annual Leave

Employees are entitled to their full salary during annual leave, including basic pay and any allowances specified in their employment contract. The salary must be paid before the employee begins their leave, ensuring they have financial security during their time off.

Encashment of Annual Leave

If an employee’s employment is terminated, they are entitled to payment for any unused annual leave days. The calculation is based on the employee’s basic salary .

This provision ensures that employees are fairly compensated for leave they were unable to take during their employment.

Public Holidays and Annual Leave

•       Public holidays Public holidays coinciding with weekends are not compensated with additional days off.

•       Public holidays falling within annual leave are counted as the Annual Leave period.

 

Sick Leave and Annual Leave

Sick leave and annual leave are distinct entitlements under UAE Labour Law. If an employee falls ill during their annual leave, Annual Leaves can not be converted in the sick leave. However, the employee may request to convert the sick days into sick leave, provided they submit a medical certificate from a recognized healthcare provider. This ensures that employees do not lose their annual leave due to unforeseen illnesses.

Employer Responsibilities

Employers are legally obligated to comply with the provisions of the UAE Labour Law regarding annual leave. Failure to grant annual leave or pay employees for unused leave can result in penalties, including fines and legal action. Employers should maintain accurate records of employees’ leave balances and ensure that leave policies are clearly communicated in employment contracts and company handbooks.

Employee Responsibilities

Employees are encouraged to plan their annual leave in advance and communicate their preferences to their employer. They should also ensure that their work responsibilities are managed before taking leave to minimize disruptions to the business. Employees must provide reasonable notice when requesting leave, as specified in their employment contract or company policy.

Conclusion

Annual leave is a vital aspect of employment in the UAE, promoting work-life balance and employee well-being. By understanding the provisions of the UAE Labour Law, both employers and employees can ensure that annual leave is managed fairly and effectively. Employers should prioritize compliance with the law, while employees should take advantage of their entitlements to rest and recharge. A clear understanding of annual leave regulations fosters a positive work environment and contributes to the overall success of the organization.

For specific cases or disputes related to annual leave, it is advisable to consult the Ministry of Human Resources and Emiratisation (MOHRE) or seek legal advice to ensure compliance with the latest regulations.