Annual leave for Employees as per UAE Labour Law
There are various types of Leaves that an employee is entitled to:
- Annual Leave,
- Sick Leave,
- Maternity Leave(only for women!)
In this post I will cover Annual Leave.
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.