04 Apr UAE Annual Leave Entitlement 2025: Complete Guide to Employee Leave Rights and Employer Obligations
UAE Annual Leave Overview
Annual leave is a fundamental employment right in the United Arab Emirates, protected under Federal Decree-Law No. 33 of 2021. Every employee working in the UAE private sector is entitled to paid annual leave, and employers must comply with specific regulations regarding leave accrual, scheduling, and compensation. This guide provides a comprehensive overview of annual leave entitlements, types of leave, and employer obligations for 2025.
Annual Leave Entitlement by Length of Service
The amount of annual leave an employee is entitled to depends on their length of continuous service with the employer. The UAE labour law establishes minimum leave entitlements that employers must provide.
| Length of Service | Annual Leave Entitlement | Leave Accrual Rate |
|---|---|---|
| Less than 6 months | 2 days per month worked | Accrues monthly from start date |
| 6 months to 1 year | 2 days per month (prorated) | Approximately 24 days per year |
| 1 year or more | 30 calendar days per year | 2.5 days per month |
Types of Leave Under UAE Labour Law
Beyond annual leave, the UAE labour law provides for several other categories of leave that employers must be aware of when managing their workforce.
Sick Leave
- Entitlement: Up to 90 days per year after completing the probation period
- Payment Structure: First 15 days at full pay, next 30 days at half pay, remaining 45 days unpaid
- Medical Certificate: Required from a licensed medical practitioner
- Chronic Conditions: Employees with ongoing conditions may negotiate extended arrangements
Maternity Leave
- Duration: 60 calendar days total (45 days at full pay, 15 days at half pay)
- Additional Leave: Up to 45 days unpaid if complications arise or the child has a disability
- Nursing Breaks: Two daily breaks of 30 minutes each for 6 months after delivery
- Protection: Employers cannot terminate a female employee during maternity leave
Paternity Leave
- Duration: 5 working days
- Payment: Full pay during paternity leave
- Timing: Must be taken within 6 months of the child’s birth
- Flexibility: Can be taken consecutively or intermittently
Bereavement Leave
- Spouse: 5 working days at full pay
- Parent, Child, Sibling, Grandparent, Grandchild: 3 working days at full pay
Study Leave
- Entitlement: 10 working days per year for employees enrolled in UAE-accredited institutions
- Eligibility: Minimum 2 years of service with the employer
- Payment: Fully paid study leave
Public Holidays in the UAE 2025
In addition to annual leave, employees are entitled to paid public holidays. The UAE observes several national and religious holidays throughout the year.
| Holiday | Expected Date 2025 | Duration |
|---|---|---|
| New Year’s Day | January 1 | 1 day |
| Eid Al Fitr | March/April (varies) | 3-4 days |
| Arafat Day | June (varies) | 1 day |
| Eid Al Adha | June (varies) | 3 days |
| Islamic New Year | June/July (varies) | 1 day |
| Prophet’s Birthday | September (varies) | 1 day |
| Commemoration Day | November 30 | 1 day |
| UAE National Day | December 2-3 | 2 days |
Leave Salary and Compensation
Employees are entitled to their full basic salary plus regular allowances during annual leave. The calculation of leave salary follows specific rules under UAE labour law.
- Basic Salary: Full basic salary must be paid during annual leave
- Housing Allowance: Included in leave salary calculations
- Regular Allowances: Any fixed, regular allowances are included
- Overtime: Not included in leave salary calculations
- Advance Payment: Employees can request leave salary payment before the leave period begins
Carrying Forward and Encashing Leave
The UAE labour law provides guidelines on what happens to unused annual leave days and when leave can be converted to monetary compensation.
- Carry Forward: Employers and employees can agree to carry forward unused leave to the following year
- Employer Obligation: Employers cannot force employees to forgo their annual leave entitlement
- Encashment on Termination: Unused leave days must be compensated at the employee’s basic salary rate upon termination
- Calculation: Leave encashment is based on the last basic salary drawn, divided by 30 and multiplied by the number of unused leave days
Employer Best Practices for Leave Management
- Leave Policy: Establish a clear, written leave policy aligned with UAE labour law
- Tracking System: Implement a digital leave management system for accurate tracking
- Advance Planning: Encourage employees to plan leave in advance to manage workload
- WPS Compliance: Ensure leave salary is processed through the Wages Protection System
- Documentation: Maintain records of all leave requests, approvals, and balances
- Equal Treatment: Apply leave policies consistently across all employees
Frequently Asked Questions
Can an employer refuse an employee’s leave request?
Employers can schedule annual leave based on business requirements, but they cannot deny an employee’s right to take their annual leave entitlement within the year. Leave scheduling should be mutually agreed upon.
Are weekends counted as annual leave days?
Annual leave is calculated in calendar days, so weekends falling within the leave period are counted. However, public holidays falling during annual leave are not counted and extend the leave period accordingly.
What happens to unused leave when an employee resigns?
Upon resignation or termination, the employer must compensate the employee for any accrued but unused annual leave days. This compensation is calculated at the employee’s basic salary rate and forms part of the final settlement.
Can employees take unpaid leave?
Unpaid leave is not a statutory entitlement under UAE labour law. However, employers and employees can mutually agree to unpaid leave arrangements. During unpaid leave, the employment contract remains active.
How is leave calculated for part-time employees?
Part-time employees are entitled to annual leave on a proportional basis, calculated according to the actual working hours specified in their employment contract compared to full-time hours.