Guide About Annual Leave as per UAE Labour Law

Annual leave is a widely discussed topic by employees and employers in UAE companies. In this case, it is due to the doubts that arise for employers and employees about the calculation of the amounts and other rights. Likewise in the UAE, labor legislation establishes certain rules and rights for vacations per year and their payment.

In this article, you will be able to know what are the rights and provisions set out by the labor law in the UAE. In the same way, you will learn how to calculate vacation and leave days correctly.

What are the leave entitlements of an employee According to UAE Labour Law?

Under the UAE labour law about annual leave, employees will be entitled to receive vacation leave. This paid license is as follows:

• ·      You will receive a license for 30 days upon completing 1 year of service
• ·      The employee will receive 2 days of vacation for each month if he or she has 6 months of service
• ·      If your employee ends their employment contract without using their paid vacation time each year, they will receive vacation pay for the last years of service.
• ·      Likewise, part-time workers will obtain vacations based on work hours. This will be in terms of the Executive Regulations of the Labor Law.

Regulations for the use of annual licenses

• ·      Workers must make use of their annual leave to which they are entitled by law. Also, you as an employer can agree with your employee on vacation dates based on the needs of the company. In addition, the employer will have the obligation to notify the employee of the start date of their vacation, one month before it begins.
• ·      The employee may change the vacation balance from that year to the next year by requesting your consent as the employer. In this case, your worker will obtain the right to receive payment for the days they worked during their vacation time per year. This payment had to do with the base salary of the employee.
• ·      Likewise, you will not be able to postpone the use of the vacation of your employee that has been accrued for 2 years. Additionally, if the contract ends and you have accrued vacation, you must calculate it based on the basic salary only.
• ·      In this calculation of the duration of the annual vacation leave, you must include the holidays indicated by agreement or by law. In the same way, it will be for any leave requested due to illness and they are within the vacation period unless the regulations or employment contract indicate otherwise.

Annual Leave for Employees in UAE

In Emirati labor law there are other licenses adapted to specific circumstances that may affect the availability or productivity of your employee. Next, you can see the specialized licenses to which your workers have rights:

Sabbatical leave

• ·      The so-called sabbatical break is a free period that must be paid, just like annual leave in UAE. However, Emirati employees are the only ones who will have the right to be granted these vacations by you. Furthermore, although sabbatical leave is considered a characteristic of academies, in labor law it has another purpose.
• ·      Like the said leave, a sabbatical break is paid time off. Nevertheless, only Emirati workers are entitled to this leave. While sabbatical leave is commonly tied to academia, it serves a different purpose here. Thus, we fear that the purpose of sabbatical leave under Federal law is for the national service of Emirati employees.
• ·      Likewise, the service lasts between 11 months and 3 years and is mandatory for male workers while it is optional for female workers. Similarly, employees must present the certificates issued by the authorities so that they can receive the license.

Study leave

• ·      The study license will be for workers in any business sector, who are pursuing university degrees. Equally, it is a way to ensure a better future through the studies and development of your employees. Additionally, studies are a means available to employees from the United Arab Emirates who require it.
• ·      Regarding the law, article 32 of Federal Decree No. 33 establishes that its workers with 2 years of service will obtain 10 working days per year. In this way, they will be able to attend the exams at the corresponding educational institution.

Compassionate Leave

• ·      Apart from the annual leave UAE, there is also this leave, which is for people who lose a direct or indirect family member. In this case, the labor legislation of the UAE says that its employees may have time off to make cremation or burial arrangements for the deceased.
• ·      In article 32 of the Decree of federal law, your workers may receive leave for compassion or bereavement. Likewise, if the deceased is the spouse of the worker, they will receive 5 days, for children, siblings, grandfather, and father it will be 3 days. In both cases, the leave will begin at the time of the death of the family member.

Hajj and Umrah leave

• ·      Hajj and Umrah leave is for workers completing the pilgrimage or Muslims. In the same way, they make this pilgrimage at least once in the entire visa. Furthermore, Islamic authorities believe that the pilgrimage to Mecca is an important event and a good reason not to work in the Emirates.
• ·      Also, your Muslim or Islamic religion employee, being in the private sector, may take a total of up to 30 days for the Hajj. In contrast, this leave is unpaid and you can obtain it only once during your time of service to the company.
• ·      Additionally, although the Hajj license is legal, the Umrha does not have such support. In this case, employees who plan Umrah will request vacation without compensation or reduction of vacation time per year.

Maternity leave

• ·      Just as the death of a family member affects the physical and mental well-being of an employee, birth is also an important event. In this case, it is mainly women who face ailments, hormonal imbalances, and postpartum depression. Therefore, labor laws considering these aspects grant these benefits.
• ·      Likewise, the leave is 60 days according to the law and the employee will be paid full salary for the first 45 days. Then, for the next 15 days, the employee will receive half a salary. Additionally, if the employee suffers from any complications during childbirth, she will receive 45 additional unpaid days.
• ·      In the same way, you as an employer may grant paid leave for 30 days if the child is sick or disabled. Additionally, you may grant an additional 30-day unpaid extension if necessary. On the other hand, breastfeeding workers will have the right to receive daily breaks for 6 months to breastfeed the baby.

Parental leave

• ·      The United Arab Emirates was the first Arab country to introduce parental leave for workers. In this case, through Article 32 of Federal Decree-Law No. 33, companies must grant a license to the parents of a newborn. This consists of 5 days with full pay, which must be taken within 6 months from the date of birth.

Official National Holidays

As well as UAE labour law annual leave, the law also grants public holidays off. UAE labor law states this in Article 28, which determines the holidays designated by the cabinet. These days are those that we will mention below:

• ·      Eid Al Fitr
• ·      Arafah Day
• ·      New Year
• ·      Eid Al Adha
• ·      Hijri New Year
• ·      Birthday of the Prophet Muhammad
• ·      Memorial Day
• ·      National Day

Furthermore, the law establishes that if the worker must work on any of these days, the company must compensate them for it. Therefore, the company must either grant a day off or pay at least 150% of the regular salary.

Sick leave

The law also determines sick leave of up to 90 days annually (Federal Decree Law No. 33 - article 31). The license consists of the following:

• ·      For the first 15 days, the employee will receive full salary.
• ·      For the next 30 days, the employee will receive half the regular salary.
• ·      Finally, for the subsequent 45 days, the employee will not receive any payment.

However, the employee must inform the company within three business days from the onset of the illness. Additionally, you must provide a medical certificate that legitimizes the illness to receive the payment corresponding to this leave.

General rules on annual leave in the UAE

The UAE labour law about annual leave sets out several specific rules for its application. The rules are those that we will describe below:

• ·      Vacation duration. Workers with at least 1 year of service are entitled to 30 days of vacation. However, employees with at least six months of service with the company receive 2 days of vacation for each month of work. Likewise, if your contract with the company is terminated, you must receive compensation for the fraction of the last year of service.
• ·      Notification. Employers must inform the employee about their vacation at least 1 month before the vacation start date.
• ·      Flexibility. If you wish, and the employer agrees, you may transfer your annual leave days not used the following year. Correspondingly, If you accumulate your full vacation over 2 years, you can request payment instead of time off.

How annual leave salary is calculated?

Employers need to know how to calculate annual leave in UAE to comply with labor legislation. In this case, the payment consists of the regular salary of the employee, as well as housing allowance and other elements established in the employment contract.

Additionally, if an employee did not take part or all of his or her vacation, the employer must pay the corresponding amount.

Nonetheless, it is only possible if I do not carry over those untaken vacations, or part of them, to the following year.

Formula to calculate vacations

The formula for calculating vacation pay takes into account the basic salary and the days of leave. Yet, it is not a complicated formula, you can see it here:

• ·      Leave salary = (Basic Salary ÷ 30 days) x number of days
• Also, if you know the daily salary, the formula would be as follows:
• ·      Leave salary = Daily salary x number of days

Who determines the duration for the annual leave?

Although you can do the annual leave application, it is the employer who determines when to grant it. Likewise, the company can divide vacation time into two periods in agreement with its employees. In addition, the employer must inform its employees of this decision one month in advance.

What happens with the wages and payments during the annual leave?

Employees must receive payment for their annual leave UAE before the start of the leave. In addition, the full salary plus compensation for vacation days is taken into account in the calculations. Likewise, if the employee takes another leave beyond the permitted days, that time is unpaid.

On the other hand, if the employer does not pay the leave correctly, the worker can file a complaint with the authorities. Additionally, the employer cannot dismiss an employee who is on vacation leave. Therefore, if an employee receives a dismissal letter or notice, the authorities will consider it invalid.

Thus, the employee can file a complaint with the Ministry of Human Resources and Emiratization (MoHRE). However, if the worker does not report to work within 7 days from the end of the vacation, the employer may dismiss him or her.

Final thoughts

Both employees and employers in the UAE should be fully aware of the laws on annual leave. In the first case, they must be aware of their rights but also their duties, and in the second, they must comply with these laws. This allows for creating an appropriate work environment, not only concerning this type of license but also the others.

Thus, you now know all the details about legal vacations, which include up to 30 days under the established conditions. If you have any legal queries regarding the various laws in the UAE, please do not hesitate to contact us.