The new labour law – Federal Decree-Law No. 33 of 2021 on the regulation of labour relations – has updated the regulations for the private sector in the UAE on the computation of Annual Leave.
The new UAE Labour Law – Federal Decree-Law No. 33 of 2021 – has come into effect from February 2, 2022, replacing the current Federal Law No. 8 of 1980 and its amendments
As per the Article 29 of the New Labour Law on Annual Leave:
- Without prejudice to the worker’s acquired rights for the period preceding the date of enforcement of the provisions of this Decree-Law, the worker shall be entitled to an annual leave with full wage, of not less than: a. Thirty days for each year of extended service; b. Two days for each month if his service term is more than six months and less than a year; c. A leave for parts of the last year he spent at work if his service is ended before using his annual leave balance.
- The part-time worker shall be entitled to an annual leave according to the actual working hours the worker spends working for the employer and its period shall be defined in the employment contract, in accordance with what is stipulated in the Implementing Regulation hereof.
- The employer may agree to grant the worker a leave from his annual leave balance during the probationary period, while the worker shall reserve his right to be compensated for the remainder of his annual leave balance in case he does not pass the probationary period.
- The worker shall obtain his leave in its entitlement year and the employer may specify the dates of these leaves according to work requirements and in agreement with the worker, or grant them alternately among the establishment’s workers, in order to secure its work progress. e employer shall notify the worker of the specified date for his leave within a sufficient time of not less than a month.
- The worker may, with the approval of his employer and in accordance with the applicable regulations at the establishment, carry forward his annual leave balance or days thereof to the following year.
- The worker shall be entitled to the wage for the period of his annual leave.
- The holidays prescribed by law or by agreement are included in the calculation of the annual leave period if they fall within the annual leave of the worker and they form a part thereof, unless the employment contract or the regulations in force at the establishment provide for anything that is more useful for the worker.
- The employer may not prevent the worker from benefiting from his annual leave accrued for more than two years, unless the worker wishes to carry it forward or receive a cash allowance for it, in accordance with the regulations in force at the establishment and the Implementing Regulation hereof.
- The worker shall be entitled to a wage for the accrued leave days if he quits the work before using them, regardless of the leave duration, with respect to the period for which he did not obtain his leave. He shall also be entitled to receive leave wage for parts of the year in proportion to the period he spent in work and it shall be calculated according to the basic wage.
- The Implementing Regulation hereof defines the rules and conditions for regulating leaves and their compensation.
What is Free Zone and Free Zone Visa in UAE? A free zone is a special economic zone where companies can operate and receive considerable tax and free exemptions. Free zone companies are treated as...
Only one Corporate Tax return will need to be filed per financial period. No provisional or advance Corporate Tax filings will be required. The deadline to submit the return will be stated in the...