Annual Leave in UAE (Complete Guide) 2025

The United Arab Emirates (UAE) is home to a diverse workforce with employees from all over the world. If you’re working in the UAE, understanding your rights regarding annual leave is crucial. In this guide, we’ll break down everything you need to know about annual leave in the UAE for 2025.

Whether you’re an employee or employer, this article will help you navigate annual leave laws effectively.

What Is Annual Leave?

Annual leave refers to the number of days employees are entitled to take off work with pay each year. It’s a legal right granted under UAE Labor Law. Employees can use this time for rest, personal matters, or vacations.

                             

UAE Labor Law on Annual Leave

The UAE Labor Law is very clear about annual leave entitlements. Below are the key rules you need to know:

How Is Annual Leave Calculated?

Annual leave is calculated based on the length of service. Let’s take a closer look at the breakdown:

1. First 6 Months
   Employees in their probation period (first 6 months of employment) are not entitled to annual leave.
2. 6 Months to 1 Year
   Employees earn 2 days of paid leave for every month worked.
   Example Calculation
   If you’ve worked 8 months:
   2 days/month×8 months=16 days2 \, \text{days/month} \times 8 \, \text{months} = 16 \, \text{days}2days/month×8months=16days
3. After 1 Year
   Once you complete a year, you’re entitled to 30 calendar days of annual leave.

Paid vs. Unpaid Leave

Paid Leave:

• Employees receive their full salary during annual leave.

Unpaid Leave:

• If employees use more days than they’re entitled to, any extra leave will be unpaid.

Public Holidays and Annual Leave

Public holidays don’t count towards your annual leave. For example, if a public holiday like Eid al-Fitr falls during your annual leave, those days will not be deducted from your leave balance.

Can Annual Leave Be Carried Over?

Yes, annual leave can be carried over. However, there are conditions:

1. Employers may allow unused leave to be carried forward to the next year.
2. It’s best to discuss this in advance with your employer.

Year	Unused Leave Days	Carryover Days Allowed
2024	5	5
2025	10	7

Encashment of Annual Leave

Employees have the right to encash unused leave if:

1. They resign before using all their leave.
2. The employer agrees to pay for unused days instead of granting time off.

Annual Leave in Practice

Here’s how annual leave works in real-world scenarios:

Scenario 1: New Employee
Ali started working in January 2025. He completed 8 months by August 2025. He’s entitled to:

2 days/month×8 months=16 days2 \, \text{days/month} \times 8 \, \text{months} = 16 \, \text{days}2days/month×8months=16days

Scenario 2: Experienced Employee
Maria completed 3 years with her employer. She’s entitled to 30 calendar days of leave each year.

Leave Policy Trends for 2025

With remote and hybrid work gaining popularity, employers are adopting flexible leave policies:

1. Split Leave: Allowing employees to take annual leave in portions (e.g., two 15-day blocks).
2. Advance Leave: Employees can request leave in advance, to be deducted from future entitlements.

Policy Type	Advantages	Considerations
Split Leave	Offers flexibility to employees	May require more planning for employers
Advance Leave	Useful for employees with urgent needs	Can lead to leave balance deficits

Tips for Employees

1. Plan Early
   Discuss your leave plans with your employer early to avoid scheduling conflicts.
2. Track Your Leave
   Use apps or HR systems to track your leave balance.
3. Understand the Rules
   Always check your company’s leave policy for specific rules.

Tips for Employers

1. Clear Policies
   Have a written leave policy to avoid disputes.
2. Use HR Tools
   Implement software to manage leave requests efficiently.
3. Encourage Rest
   Encourage employees to take their annual leave. It improves productivity.

Common Misunderstandings About Annual Leave

1. Public Holidays Are Included
   False. Public holidays don’t count as part of annual leave.
2. Leave Can Be Taken Anytime
   Not necessarily. Employers may need to approve leave dates.
3. Unused Leave Always Rolls Over
   Not always. Some companies have strict rules about unused leave.

Annual Leave Table Summary

Here’s a summary of how annual leave works in the UAE:

Legal Updates for 2025

In 2025, no major changes are expected in UAE’s annual leave laws. However, staying updated is essential. Always check for announcements from the Ministry of Human Resources and Emiratisation (MOHRE).

Understanding Accrual of Annual Leave

Annual leave in the UAE is accrued over time based on how long an employee has been with their company. This means you don’t automatically receive the full entitlement when you start a job; instead, it builds up gradually.

Accrual Example

Let’s look at an example:

• Sarah started her job on January 1, 2025.
• By June 30, 2025, she has completed 6 months of employment.
• Sarah earns 2 days of leave per month during this period.

Here’s her accrual:

Month	Accrued Leave (Days)	Cumulative Total
January	2	2
February	2	4
March	2	6
April	2	8
May	2	10
June	2	12

By June, Sarah has accrued 12 days of annual leave.

Using Annual Leave

When it comes to using annual leave, there are some rules and best practices employees should know:

Balancing Workload During Leave

One common concern for both employers and employees is managing workloads while someone is on leave. Here are some tips:

For Employees

1. Plan Ahead
   Wrap up pending tasks before you go on leave.
2. Delegate Tasks
   If possible, delegate your responsibilities to colleagues.
3. Communicate Clearly
   Inform your team about your leave dates and availability (if any).

For Employers

1. Cross-Training
   Train team members to handle additional responsibilities.
2. Temporary Staffing
   Hire temporary staff if necessary to cover for key employees on leave.
3. Encourage Planning
   Ask employees to plan their leave around major deadlines.

Leave Encashment

Encashment of unused annual leave is a key feature of UAE labor law. Here’s a more detailed look at how it works:

How Is Encashment Calculated?

Unused leave is converted into monetary compensation based on the employee’s daily wage. The formula is:

Daily Wage=Monthly Salary30\text{Daily Wage} = \frac{\text{Monthly Salary}}{30}Daily Wage=30Monthly Salary​

Let’s take an example:

• Ali earns a monthly salary of AED 9,000.
• His daily wage is: 9,00030=AED300\frac{9,000}{30} = AED 300309,000​=AED300

If Ali has 5 days of unused leave, his encashment will be:

5 days×300 AED=1,500 AED5 \, \text{days} \times 300 \, \text{AED} = 1,500 \, \text{AED}5days×300AED=1,500AED

Monthly Salary (AED)	Unused Days	Encashment (AED)
9,000	5	1,500
12,000	10	4,000
15,000	15	7,500

Special Cases for Annual Leave

Maternity and Annual Leave

Maternity leave is separate from annual leave. However, some employees may combine the two. For instance, after completing maternity leave, an employee might use their annual leave for extended time off.

Leave During Probation

While employees in probation aren’t entitled to annual leave, some companies may allow unpaid leave in emergencies. Always check with your HR department.

Resignation and Leave Balance

If an employee resigns, any unused leave must be encashed. Employers are legally obligated to pay for accrued but unused leave.

Annual Leave and Remote Work

With remote work becoming more common, the concept of annual leave is evolving. Employees working from home might feel they don’t need time off, but annual leave is still crucial for maintaining work-life balance.

Tips for Remote Workers:

Leave Policies Across Different Sectors

Different industries in the UAE may have unique leave practices based on operational needs.

Tips for Managing Leave Requests

Managing annual leave requests can be tricky, especially in large organizations. Here are some tips for employers:

Future of Leave Policies in the UAE

As work culture continues to evolve, annual leave policies may adapt to new trends. Some changes we might see in the future include:

1. Unlimited Leave Policies
   Some companies are experimenting with unlimited leave to boost employee satisfaction.
2. Mental Health Leave
   Employers may introduce specific leave days for mental health.
3. Flexibility in Leave Usage
   More companies may allow employees to use leave in smaller increments, such as hours instead of full days.

Quick Reference Guide

Here’s a quick reference guide for UAE annual leave in 2025:

Final Thoughts

Understanding annual leave rules helps employees and employers create a better work environment. Whether you’re planning a vacation or managing a team, following UAE labor laws ensures fairness for everyone. If you’re unsure about your rights or responsibilities, consult with your HR department or legal experts. Taking time off is essential for work-life balance. Make sure to use your leave wisely in 2025!

FAQs About Annual Leave in UAE 2025