UAE Annual Leave and Public Holidays: Complete Employer Guide
Comprehensive guide to UAE annual leave entitlements, public holidays, leave calculation methods, and carry forward rules under Federal Decree-Law No. 33 of 2021.
Quick Summary: Comprehensive guide to UAE annual leave entitlements, public holidays, leave calculation methods, and carry forward rules under Federal Decree-Law No. 33 of 2021.
Annual leave is a statutory entitlement for all employees in the UAE under Federal Decree-Law No. 33 of 2021. Employers must understand leave entitlements, calculation methods, and public holiday requirements to maintain compliance.
This guide covers everything UAE employers need to know about annual leave, public holidays, and proper leave management according to MOHRE regulations.
| Aspect | Details |
|---|---|
| Legal Basis | Articles 29-30, Federal Decree-Law No. 33/2021 |
| Minimum Leave | 30 calendar days after 1 year service |
| Public Holidays | Approximately 14 days per year |
| Calculation Method | Calendar days (includes weekends) |
| Unused Leave Payment | Basic salary rate on termination |
Annual Leave Entitlement
Under UAE Labor Law, annual leave entitlement is based on length of service:
| Service Period | Leave Entitlement |
|---|---|
| Less than 6 months | No statutory entitlement |
| 6 months to 1 year | 2 days per month worked |
| 1 year or more | 30 calendar days per year |
Key Points
- Leave is calculated in calendar days (includes weekends within leave period)
- Full-time employees only (part-time varies by contract)
- Entitlement accrues from start of employment
- Cannot be reduced below statutory minimum by contract
First Year Accrual
| Months Completed | Accrued Leave |
|---|---|
| 6 months | 12 days |
| 8 months | 16 days |
| 10 months | 20 days |
| 12 months | 30 days (full entitlement) |
Leave Calculation Methods
Method 1: Calendar Days (UAE Mainland Standard)
When leave is calculated in calendar days:
- Weekends falling within leave period count as leave days
- If you take 10 days off including a weekend, you use 10 leave days
Example: Employee takes leave Monday to Friday (next week)
- Calendar days: 12 days (including 2 weekends)
- Leave balance deduction: 12 days
Method 2: Working Days (Free Zones)
DIFC and ADGM calculate leave in working days:
- Only actual work days count
- Weekends and holidays excluded from count
Example: Same leave period in DIFC
- Working days: 10 days
- Leave balance deduction: 10 days
Holiday During Leave
Calendar day calculation (mainland): Public holidays during approved leave may count as part of leave days (check company policy).
Working day calculation (free zones): Public holidays excluded, effectively extends your time off.
UAE Public Holidays
UAE employees are entitled to paid public holidays. Islamic holidays are based on the lunar calendar and confirmed by moon sighting.
| Holiday | Expected Date | Days |
|---|---|---|
| New Year's Day | January 1 | 1 |
| Eid Al Fitr | ~March/April* | 3-4 |
| Arafah Day | ~June* | 1 |
| Eid Al Adha | ~June* | 3-4 |
| Islamic New Year | ~June/July* | 1 |
| Prophet's Birthday | ~September* | 1 |
| Commemoration Day | December 1 | 1 |
| National Day | December 2-3 | 2 |
*Islamic holidays confirmed by moon sighting. Dates are approximate.
Total: Approximately 14 public holiday days per year.
Working on Public Holidays
Employees required to work on public holidays receive:
- Option 1: Alternative rest day + regular wage
- Option 2: Regular wage + 50% of basic salary as overtime
Leave Carry Forward Rules
Under the 2021 Labour Law amendments, employees cannot automatically carry forward unused annual leave to the next year.
Options for Unused Leave
- Carry forward: Only with employer's written consent
- Cash payment: Payment in lieu at basic salary rate (requires employer agreement)
- Use or lose: Company may require leave to be taken within the year
Best Practice for Employers
- Establish clear leave carry forward policy
- Track leave balances throughout the year
- Encourage employees to use leave
- Document all carry forward approvals in writing
Important: Plan and schedule leave throughout the year. Request carry forward in writing if needed and understand your company policy on unused leave.
Leave During Notice Period
Taking Leave During Notice
- Annual leave can be taken during notice period if agreed by both parties
- Employer cannot force employee to take leave during notice
- Employee cannot unilaterally take leave to avoid working notice
Payment for Unused Leave on Termination
Upon termination, unused annual leave is paid out at basic salary rate only (excludes allowances).
Calculation:
Leave payment = (Basic salary / 30) x Unused leave daysExample:
- Basic salary: AED 10,000
- Unused leave: 15 days
- Leave payment: (10,000 / 30) x 15 = AED 5,000
Part-Time Employee Leave
Pro-Rata Calculation
Part-time employees receive annual leave proportional to:
- Contracted working hours
- Specified in employment contract
Example: Employee works 4 days/week (80% of full-time)
Annual leave = 30 days x 0.80 = 24 daysKey Considerations
- Leave entitlement should be specified in contract
- Pro-rata calculation based on contracted hours
- Public holidays treated same as full-time employees
Free Zone Variations
DIFC Leave Entitlement
| Service Period | Leave Entitlement |
|---|---|
| Less than 90 days | Pro-rata |
| 90 days or more | Minimum 20 working days per year |
ADGM Leave Entitlement
Similar to DIFC, minimum 20 working days for full-time employees.
Other Free Zones
- Generally follow UAE federal law (30 calendar days)
- Some may offer additional benefits
- Check specific free zone regulations
Frequently Asked Questions
Automate Leave Management
NeuralHR tracks leave balances, calculates entitlements, and ensures compliance automatically.
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NeuralHR Team
VerifiedUAE HR Compliance Experts
Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.
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