What does New UAE Labour Law Say About Unpaid Leave?

The new UAE Labour Law – Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations – comes into effect in the UAE from February 2, 2022 and will regulate relations between employers and employees in the UAE’s private sector. Apart from the various types of leaves listed out in the new law on bereavement leave, sick leave, sabbatical, study leave and paternity leave employee can also avail of unpaid leave.

Can an employee take unpaid leave and how does it affect the gratuity calculation?

As per the New UAE Labour Law on unpaid leave :

The worker may, after the consent of the employer, take an unpaid leave, other than leaves referred to herein.

The unpaid leaves taken by employee shall not be counted in the period of service of the worker with the employer and within the pension system according to the relevant legislation in force.

An employee who does not report to work after the end of his leave without good cause shall not be entitled to his or her wage throughout the period of his or her absence after the end of leave.

Deena

Human Resource professional and writer.

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