Leave policy in the UAE

The United Arab Emirates (UAE) is one of the fastest-growing countries and business destinations in the world. The country attracts global talent with its safe cities, tax-efficient income structure, and thriving industries. This makes the country a hotspot for global employers to hire in the UAE. 

However, hiring in the UAE comes with clear legal responsibilities. As an employer, you must follow the leave entitlement in the UAE as outlined by UAE Federal Decree-Law No. 33 of 2021. These requirements apply to all businesses operating in the UAE, whether locally established entities or international companies hiring in the region.

Read on to learn more about leave policy in the UAE and how workforce management solutions can help engage and pay talent with compliance support.

Vacational/annual leaves in the UAE

Employees are entitled to 30 days of annual leave per year. 

• Employees must complete at least six months of service before becoming eligible for annual leave in the UAE. 
• If their service period is more than six months but less than one year, leave accrues at two days per month.
• Annual leave is intended to be used in the year it accrues. If employees are unable to utilize their full entitlement, it may be carried forward to the following year, and any remaining balance can be paid out in accordance with the employment agreement or company policy.

Public holidays in the UAE

The UAE employers are obligated to provide 13 public holidays to the employees. The actual dates usually vary depending on the calendar the government provides. 

The following are the public holidays in the UAE:

Holiday

• New Year’s Day
• Eid Al Fitr (4 days)
• Arafah Day & Eid Al Adha (4 days)
• Islamic New Year
• Prophet Mohammed’s Birthday
• Commemoration day
• National Day

The Islamic holidays are based on moon sightings, so the dates may vary slightly every year.

Sick leaves in the UAE

Employees are eligible for up to 90 days of sick leave per year after probation. Here’s how it is structured:

• First 15 days: Full pay
• Next 30 days: Half pay
• Remaining 45 days: No pay

Maternity leave in the UAE

Female employees are entitled to 60 days of maternity leave: 

Paternity leave in the UAE

Employees are entitled to 5 working days of paid paternity leave, which can be taken within the first 6 months after the child’s birth.

Other leaves in the UAE

Here are some additional leave entitlements under UAE labor regulations.

Compassionate/Bereavement leave 

In the UAE, private sector employees are entitled to paid bereavement (compassionate)     leave in the event of the death of a family member, as guaranteed by law.

• 5 days – in the event of the death of a spouse.
• 3 days – in the event of the death of a parent, child, sibling, grandchild, or grandparent.

Explore Payoneer Workforce Management in the UAE

Leave policies in the UAE are not as complicated as they appear; it’s really just a matter of knowing the rules and finding what works best for the business. 

And for businesses that need a little bit of help, an Employer of Record like Payoneer Workforce Management helps streamline the process.

As your Employer of Record in the UAE, we support employment through locally aligned contracts, payroll management, benefits administration, and timesheets. 

Book a demo now!

FAQs

1) When does an employee qualify for annual leave in the UAE?

Employees are eligible for 30 calendar days of annual leave after serving one year. If the employee has served more than six months but less than one year, he or she is eligible for two days of leave per month of service.

2) Can annual leave be carried forward in the UAE?

Yes, an employee can carry forward their annual leave to the next year if the employer agrees to it. Sometimes, employees are also paid for their annual leave if the company policy allows it.

3) Is sick leave paid in the UAE?

Yes, employees are entitled to 90 days of sick leave per year after serving the probation period. The first 15 days are paid in full, the next 30 days at half pay, and the remaining 45 days are unpaid.

4) How many days of maternity leave are granted in the UAE?

Female employees are entitled to 60 days of maternity leave. The first 45 days are paid in full, and the remaining 15 days are paid at half salary. There is no minimum service requirement to qualify.