Annual Leave as per UAE Labour Law

Annual leave for Employees as per UAE Labour Law

There are various types of Leaves that an employee is entitled to:

  1. Annual Leave,
  2. Sick Leave,
  3. Maternity Leave(only for women!)

In this post I will cover Annual Leave.

annual-leave-laws

Annual leave is a basic right of every employee guaranteed by the UAE Labour Law. Full-time employees working in the UAE are entitled to leave and holidays as per laws in the country, which broadly include annual or recreation leave, sick and maternity leave.

Mandatory leaves in UAE: As per Section- 2 Article (74), every employee is entitled to an official leave with full pay on the following occasion:

  • Hijri New Year’s Day - one day
  • Gregorian New Year’s Day-  one day
  • Eid Al Fitr (end of Ramadan)-  two days
  • Eid Al Ada and Waqfa - three days
  • Prophet Mohammed’s Birthday-  one day
  • Isra and Al Mi’raj-  one day
  • National Day - one day

As per Article (75)- Each employee is entitled for annual leave after completing each year of service as mentioned below:

  • 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.

As per the Article (76)- The employer may at his discretion determine the date for commencement of annual leaves and, when necessary, he may decide to divide the leave in two parts at the most, except in cases of juveniles where vacation may not be divided in parts.

As per the Article (77)- 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.

As per the Article (78)- 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.

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

As per the Article (79)- An employee is entitled to receive cash in lieu of annual leaves not availed by him, if he was dismissed or if he left the service , after the period of notice stipulated by law. Cash in lieu is calculated on the basis of pay received by the employee at the time of maturity of such leave.

In other words, the employee is entitled to payment for the annual leave period not taken if the employment is terminated either by way of resignation or termination. Such payment is calculated on the basis of the basic wage received at the time the leave was due.

Accrued leave pay is based on only basic pay it doesn’t includes housing, transport or other allowances.

As per the Article (80)- Annual leave shall be paid to the employee 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.

An employee cannot work for another company during the annual leave, if you do so an employer has the right to terminate your service without notice and withdraw him of the leave pay due to him

Every employee must report to work upon completion of annual leave. Upon failure to report to duty, the employer has the right to withdraw of his pay for the period of absence commencing from the day following to the date on which the leave has expired.

Except under Article 120 of the Act, The UAE Labour Law does not allow an employer to dismiss or issue termination warnings to employees when they are on annual leave.

Annual Air Ticket en cashing procedure:

Air ticket policy is very flexible in nature. It is a benefit in kind not in cash so it shouldn’t be encashed. Annual Air ticket procedure is related to company policy and practice and it is not covered under UAE Labour Law.

48 Responses to “Annual Leave as per UAE Labour Law”

  1. Mohammed

    Aug 04. 2014

    Dear Sir,

    Good morning.
    I want to know according to UAE law, what shall I get paid before my annual leave as per my information below.

    Basic salary: AED10,000 per month.
    Rent and other allowance: AED5,000 per month
    Total monthly salary: AED15,000 per month.

    I have completed 12month works and entitled for annual vacation on September-2014.

    What would be my leave salary that is in September what would be the payment according to UAE law?

    Look forward for your comments and favorable reply.

    Best regards
    Mohammed.
    Dubai – UAE.

    Reply to this comment
    • sunil

      Aug 20. 2014

      Your annual leave salary would be AED 15,000/- plus ticket entitlement if any specified in your internal agreement or as per the company policy.

      Reply to this comment
  2. richard

    Jul 30. 2014

    How to calculate air ticket entitlement what is the computaion to accrued balance?

    Reply to this comment
    • Deepak Machado

      Aug 01. 2014

      if you are entitled for ticket then company should compute on prorate basis

      Reply to this comment
  3. saan

    Jul 23. 2014

    i was working last 8 month in our current company and last week am resigned from the company. am entitled for the leave salary.
    Somebody was saying that if it less than 1 year, am not entitled leave salary?

    Reply to this comment
  4. DESERT_SHARK

    Jul 17. 2014

    I am dealing with a number of employees that intentionally accumulated large number of unused vacation/holidays. Can the company force them to use these holidays. In other words force them to go on long vacations in order to use these holidays.

    Also is encashment up to the discretion of the company? I am referring to those cases where someone wants to encash their vacation days and not when they are terminated and are left with unused vacation in which case they are entitled to cash them at the full rate.

    Regards

    Reply to this comment
  5. ANVAR

    Jun 25. 2014

    I want to know, how to calculate over time for labours, as per the UAE labour law. Incase he is working in friday, or in case he is working in public holidays and normal days… please explain the calculation for this…

    Reply to this comment
  6. Carla

    Jun 25. 2014

    hi, does the law says that annual leave calculation of 30 days include fridays and saturdays? we work 5 days a week, if i file for 30 days leave, do i count the friday and saturdays that fall on that 30 consecutive days?

    Reply to this comment
    • Deepak Machado

      Jul 01. 2014

      Depends on company policy
      Some company follows calender days and some follows working days

      Reply to this comment
  7. Yana

    Jun 11. 2014

    Dear Deepak,

    KINDLY ANSWER as per Law if its possible, as i should prof to my boss:

    If my LEAVE Salary was delayed for 2 years and my salary in 2011 less that now .
    Which leave salary i should receive – 2011 or present one ?????

    Reply to this comment
  8. abu

    Jun 02. 2014

    hi as per uae labour law how many days vacation we have in one year ? vacation is calculated in 11 months or 12 months ?

    Reply to this comment
  9. Danish

    May 29. 2014

    What IF company do not pay me my pending salaries before departure /travel time? they say that they will pay when you come back as usual, late salaries. Always 2 months delayed salaries since year 2008. what should I do?

    Reply to this comment
  10. maria

    May 20. 2014

    If my boss offered me 1500 AED for the ticket on my annual leave but the cheapest ticket is 2000 AED do I have the right to ask or demand from my boss to pay the balance? because he based the airfare to his home country not my home country which the airfare is very expensive.

    Reply to this comment
  11. Maria

    May 20. 2014

    If my boss offered me 1500 AED for the ticket on my annual leave but the cheapest ticket is 2000 AED do I have the right to ask or demand from my boss to pay the balance? because he based the airfare to his home country not my home country which the airfare is very expensive.

    Reply to this comment
  12. anjanette

    May 14. 2014

    what would be the calculation for the annual leave? is it salary + the basic salary in the contract?

    Reply to this comment
  13. marie

    May 02. 2014

    I need to take my annual leave on this May 9, 2014. I bought already a ticket for my first fight after four years. But my Boss change her mind she never allow me to take my passport for OEC registration….this is my problem, days is coming how can I take a leave. She never refund my expenses to. If I agree to take my vacation she never my annual leave salary also…pls I need help!

    Reply to this comment
  14. Rafat

    Apr 30. 2014

    Hi,

    You mentioned “Accrued leave pay is based on only basic pay it doesn’t includes housing, transport or other allowances”.

    I came across this from some lawyers “Note the difference between the calculation of payment of an employee’s encashed leave versus an employee’s accrued but unused annual leave at the end of their service. Whilst encashed leave is paid at a rate of basic salary, accrued but unused annual leave at the end of service is paid at a rate of full salary. This is because in the first situation, the employee has chosen not to take their annual leave and instead encashed it, whereas in the latter the employee no longer has the opportunity to take their accrued annual leave (at the end of their service). The employee’s inability to take accrued leave is why payment is at full salary.”

    Please explain further.

    The link for your reference is http://www.hadefpartners.com/News/pageid/120-137/default.aspx?Mediaid=299

    -Rafat

    Reply to this comment
  15. asim

    Apr 28. 2014

    I have to go my home country after a one year completion in the company. I sent an email to Manager five weeks ago. But my company boss said that i have to inform boss before 6 weeks. I also have an emergency in home country and I did not visited country since i joined company. What action should be taken in that situation. Should i complain to DMCC? My company is freezone company in JLT

    Reply to this comment
    • Deepak M

      May 02. 2014

      I don’t think you can complain. You need to follow the company policies

      Reply to this comment
  16. melanie

    Apr 26. 2014

    Dear Mr. Deepak,

    I have joined our company September 2013. And now I will pass to my boss my annual leave request letter on August. My fiance and I decided to go home in our own country to get married on October. Are there any possibilities that my boss will not allow me?, even though I have a reason to go home. And as for my work I am a secretary and a receptionist I know my position will be vacate if I will go vacation.

    Reply to this comment
    • Deepak M

      Apr 29. 2014

      if you are entitled for anual leave i dont think your boss will reject your application. explain your situation and try to convince him

      Reply to this comment
  17. doodz

    Apr 23. 2014

    can anyone give me a formula for calculation of annual benefits ….for example 2 yrs have already work then i consume 20 days vacation…can the vacation used deducted from vacation leave? what is the formula of computation..pleas help

    Reply to this comment
    • Deepak M

      Apr 29. 2014

      yes whatever utilised leaves will be deducted from your leave entitlement.

      Reply to this comment
  18. Darshana

    Apr 23. 2014

    I m on Husbands Visa and i worked in a co for 7 months without Labour Card, Am i entitled for Leave Salary? What will be my calculation? I was withdrawing Salary of 5000 per month. Pl reply thru mail.

    Reply to this comment
  19. Bev'z

    Mar 31. 2014

    Mr. Deepak.. please help me with my annual leave computation…

    Reply to this comment
  20. Bev'z

    Mar 31. 2014

    Hello Sir,

    Good afternoon,

    May I know the exact computation of Annual Leave? For example my basic wage is 1,000 plus 750 in home allowances and 750 for transportation… total of 2,500.. under UAE labour law “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.” Is it means that I will received a total of 2,500 as my annual leave payment? Please help me with this…..

    Reply to this comment
    • Bev'z

      Mar 31. 2014

      The normal working month that I received is 2,500… plus 500 cash on hand in my boss. My total salary is 3000 but he include only 2500 in contract and he informed to me 500 will be given to me cash…
      I dont know how much I will be receiving for my annual leave.

      Please Mr. Deepak please help me.. by boss is telling me that I will receive only 1,000 because its my basic page in my contract.. but what is the meaning of this “plus housing allowance and any other allowances which you receives in the normal working month”…..

      Please there’s anyone who can answer me,, I need your help please.

      Please I need your reply…

      Reply to this comment
    • Deepak M

      Apr 01. 2014

      You need to get same salary (what you recieive in other months) during your vacation leave

      Reply to this comment
      • Bev'z

        Apr 01. 2014

        Thanks Mr. Deepak.. but sir according to my boss as per to company policy you will received only basic pay which is 1000 only.. What will I do sir? and what should I tell to him (like proof or any evidence) that would convince him to give the correct annual leave payment) Do you have any legal documents sir so that I will show that to him. Im new in company and all employees they encounter the same.. not full salary…, I want him to be oblige what is due to us.., Any legal article, law that can help us sir…, My plan is I will show to him the article 78 in UAE labor law.. is this correct….

        Reply to this comment
      • Bev'z

        Apr 01. 2014

        Can you recommend any person who can help us with this sir.. person we can contact sir…, because of course I want to received that full and I’m sure he will insist on this.. and he will even threaten us… Like before…, his always like this…,

        Reply to this comment
  21. SUMESH

    Mar 31. 2014

    USUALLY ALL THE EMPLOYEES IN OUR COMPANY TAKE LEAVE FOR A PERIOD OF 3-5 MONTHS YEARLY. THEN HOW IS THE ANNUAL LEAVE AND PAY CALCULATED?

    Reply to this comment
  22. Shefeer

    Mar 26. 2014

    I work 1 year and 10 days in a company. As per as per my appointment letter, company should pay my annual leave two way plane ticket at the time of my annual leave in every year. But I didn’t go vacation and now I terminated from the company. Is I am eligible to get my two way air ticket cost plus one way ticket which is for termination going to home country. Total 3 way ticket costs ?

    Reply to this comment
    • Deepak M

      Mar 30. 2014

      it depends on company policy. However you are entitled for one way air ticket as per law. It will be depend on company to pay you the cost of return ticket. However since you are terminated you are entitled for one way air ticket to your home country

      Reply to this comment
  23. Bronwyn

    Mar 25. 2014

    I work under Tecom and my contract states a probation period of 6 months. I was terminated after 5 months. Is my company liable to pay me for my accrued leave over the 5 months I was there?

    Reply to this comment
  24. Kriengsak S.

    Mar 15. 2014

    Dear Sirs,

    Please help me clarify for yearly annual leave.

    1 I worked complete 1st year, I already received 30 days annual leave.
    2 If 2nd year, I worked only 8 month. After that Company finished job, How many day the company will calculate for my annual leave benefit ?

    Reply to this comment
    • Deepak M

      Mar 17. 2014

      You will be entitled for the leave as per your agreement and company policy

      Reply to this comment
  25. Josephine

    Feb 16. 2014

    I have the same question, if the salary changes, for example I within 1 year I have promotions and increment from 3000 salary becomes 3,800. Where I will base my vacation salary? Thanks hoping for a response.

    Reply to this comment
    • Deepak M

      Feb 17. 2014

      In my opinion it will be on present salary.

      Reply to this comment
    • Vincent

      Apr 15. 2014

      @Josephine on Feb 16,2014 on your last drawn salary always. Just as Gratuity payable.

      #ThankYou. #StayEasy

      Reply to this comment
  26. kawoon

    Jan 08. 2014

    From which salary should they base the leave salary? For example: I did not go for vacation for the last 3 years and my salary changes. Should they calculate it base on your salary on every year or they have to calculate it on your latest salary?

    Reply to this comment

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