Your Guide to Unpaid Leave in UAE: What You Need to Know!

Understanding Unpaid Leave in the UAE

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.

The new UAE Labour Law grants employees the right to take unpaid leave, contingent upon securing the consent of their employer. This provision expands the scope beyond specific leave categories, including bereavement, sick, sabbatical, study, and paternity leave.

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

The emphasis on employer consent underscores the importance of communication and mutual agreement. This flexibility enables a more nuanced approach to leave arrangements, tailored to the unique needs of both parties involved.

The days spent on unpaid leave do not contribute to the calculation of the worker’s service period with the employer. This exclusion has implications for gratuity entitlements.

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 important stipulation in the new UAE Labour Law is that employees failing to report to work after the end of their unpaid leave, without a valid cause, forfeit their entitlement to wages throughout the period of absence. This reinforces the significance of adherence to agreed-upon terms and communication between parties.

As the rules for working in the UAE change, it’s crucial to know about taking unpaid leave. This article breaks it down, highlighting how it gives more power to employees, affects the time you’ve worked, and influences your retirement savings. Understanding these things helps you manage work better under the new law.