UAE Labour Law Section 8 - Annual Leave

Full text of Article 8 of the UAE Labour Law


1. What are an employee's leave entitlements?
For every year of service, an employee is entitled to an annual leave of not less than the following:

Two days leave for every month if his service is more than six months and less than a year.
30 days annually if his service exceeds one year. At the end of the service the employee is entitled to an annual leave for the fraction of the last year he spent in service.
2. Which official holidays are the employee entitled to ?

An employee is entitled to an official holiday with full wage for the following occasions:

 1  Hijri New Year's Day  one day
 2  Gregorian New Year's Day  one day
 3  Eid Al Fitr (end of Ramadan)  two days
 4  Eid Al Ada and Waqfa  three days
 5  Prophet Mohammed's Birthday  one day
 6  Isra and Al Mi'raj  one day
 7  National Day  one day
3. Are official holidays excluded from the calculation of leave?

No. The calculation of duration of annual leave shall include holidays specified by law or by agreement, or by any other day because of sickness if they fall within the leave and shall be deemed to be part thereof.

4. What would be payable to the employee during his annual leave?

An employee shall be paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month.

5. Who determines when the leave starts and for how long?

The employer has the right to determine the beginning of the annual leave, and when necessary, he has the right to divide the leave into two sections.

If however, work circumstances require keeping the employee during whole or part of his annual leave and the leave has not been carried over for the following year, then the employer shall pay him his wage in addition to a leave allowance for the day he worked equal to his basic wage.

In all cases, no employee shall be required to work during his annual leave more than once during two consecutive years. In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.

6. At which point should annual leave wages be paid?

Before taking his annual leave, the employee shall be paid his full wage, plus the wage of his leave days he deserves according to the provision of this law.

7. Is the employee entitled to payment in lieu of leave if his services are terminated?

The employee is entitled to payment of his wages for his leave if his employment is terminated, or he left his work after the period of notice determined by law. The employee will be entitled to receive wages for the annual leave that he has not taken. Payment will be calculated on the basis of the wages he received at the time when the leave was due.