The United Arab Emirates has a comprehensive labour law that clearly defines employee rights regarding leave entitlements. Whether you're an expat or local employee, understanding your leave rights is crucial for proper work-life balance and financial planning.
Types of Leave Under UAE Labour Law
UAE labour law recognizes several types of leave:
- Annual Leave: Paid vacation days accrued based on service duration
- Sick Leave: Paid time off for health reasons with medical proof
- Maternity Leave: Special leave for pregnant employees
- Bereavement Leave: Time off following death of close family
- Study Leave: For employees pursuing approved education
- Hajj Leave: For Muslim employees to perform pilgrimage
Calculating Annual Leave Entitlement
Annual leave calculation depends on your length of service:
| Service Duration | Leave Entitlement | Example Calculation |
|---|---|---|
| Less than 1 year | 2 days per month | 6 months = 12 days |
| 1-5 years | 30 days per year | 3 years = 90 days total |
| More than 5 years | 30 days per year | Same but with higher salary base |
According to MOHRE, leave salary is calculated based on your most recent wage, including basic salary and any fixed allowances specified in your contract.
Leave Salary Calculation Formula
The standard formula for leave salary calculation is:
(Basic Salary + Housing Allowance) ÷ 30 × Number of Leave Days
Example: An employee with AED 10,000 basic salary and AED 2,000 housing allowance taking 10 days leave:
(10,000 + 2,000) ÷ 30 × 10 = AED 4,000
Special Cases in Leave Calculation
1. Resignation Before Completing 1 Year
If you resign before completing one year, you're entitled to leave proportional to your service period at 2 days per month. However, you can only take this leave after completing 6 months of service.
2. Termination by Employer
In case of termination, the employer must pay for all accrued leave days regardless of service duration. This payment is part of the final settlement.
3. Part-Time Employees
Part-time employees accrue leave on a pro-rata basis according to their working hours compared to full-time employment.
Comparing UAE Leave Policies to Other Countries
| Country | Minimum Annual Leave | Notes |
|---|---|---|
| UAE | 30 days | After 1 year service |
| USA | 0 days | No federal mandate |
| UK | 28 days | Including public holidays |
| Germany | 20 days | Plus public holidays |
Common Mistakes in Leave Calculation
Many employees and even HR professionals make these common errors:
- Incorrect salary base: Using gross salary instead of basic + housing
- Wrong divisor: Using 26 or 31 days instead of 30
- Ignoring contract type: Some free zones have different rules
- Miscalculating partial years: Not prorating properly for short service
For accurate calculations, always refer to your employment contract and cross-check with the official MOHRE guidelines.
Tips for Maximizing Your Leave Benefits
- Plan ahead: Schedule leave early to ensure approval
- Combine with holidays: Use public holidays to extend leave
- Document everything: Keep records of all leave applications
- Understand encashment: Know when you can convert leave to cash
- Check contract specifics: Some companies offer more than legal minimum
Recent Changes in UAE Leave Laws
The new UAE labour law (Federal Decree-Law No. 33 of 2021) introduced several changes:
- Paternity leave of 5 days for private sector employees
- Study leave of 10 days per year for approved courses
- Clearer rules on leave encashment and carry-over
For more details on calculating other employment benefits, check our gratuity calculator and overtime guide.
Legal Recourse for Leave Disputes
If your employer denies legitimate leave or miscalculates leave salary:
- First attempt to resolve internally with HR
- Refer to your employment contract and UAE labour law
- File a complaint with MOHRE (Ministry of Human Resources and Emiratisation)
- Seek legal counsel if necessary
Remember that proper documentation is crucial in any dispute. Keep copies of all leave applications, approvals, and salary slips.
Future Trends in UAE Leave Policies
The UAE is continuously improving its labour laws to attract global talent. Future developments may include:
- Increased paternity leave benefits
- More flexible leave arrangements
- Digital management of leave applications
- Standardized leave calculations across free zones
Stay updated with the latest labour law changes by regularly checking the MOHRE website.
