READ: UAE law about annual leave for private sector employees

Following Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, employees are entitled to annual leave if they have completed six months of service.

For entitlement, employees should be fully paid in an annual leave of 30 days if they completed one year of service and two days per month if they have completed six months of service, but not one year. But also note that if the employee’s benefit is ended before he uses his annual leave balance, he will get leave for a fraction of the last year of service.

The rules regarding using annual leaves:

  1. Private employees should use their leaves in the year of entitlement. But the employer may set the leave dates depending on the work requirements. The company should notify employees of the leave date at least one month in advance.
  1. An employee may carry over unused annual leave balances to the following year with the consent of the employer and following the company’s rules. As a result, the employee will be paid for the days they worked during their annual leave. The payment is calculated based on the employee’s basic salary.
  1. For more than two years, the employer may not prohibit the employee from utilizing his collected annual leave. On termination of employment, any accrued leaves will be computed based on the basic wage.
  1. The computation of the duration of annual leave shall include official holidays established by law or by agreement, as well as any other sick leave that falls within the annual leave period, unless the employment contract or the company’s policies provide otherwise.

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