In the UAE, employees are entitled to 30 calendar days of paid annual leave per year under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). Employees with less than one year of service are entitled to two days of leave per month worked. The law applies to all employees in the private sector.

Statutory entitlement

30 calendar days of paid annual leave per year. 2 days per month for employees with less than one year of service.

Eligibility

All employees in the private sector are entitled to annual leave. Full entitlement (30 days) applies after one year of continuous service.

Employer obligations

  • Grant 30 calendar days of paid annual leave per year.
  • Pay the employee's basic wage during annual leave.
  • Pro-rate annual leave for employees with less than one year of service.
  • Pay for unused annual leave on termination of employment.
  • Not require the employee to work during annual leave.
  • Maintain records of annual leave taken by each employee.

Employee rights

  • Right to 30 calendar days of annual leave after one year of service.
  • Right to be paid at the basic wage during annual leave.
  • Right to paid leave payout on termination.
  • Right to choose the timing of annual leave (subject to operational requirements).

Common pitfalls

  • Not pro-rating leave for new employees — the law provides 2 days per month for employees with less than one year of service.
  • Not paying for unused leave on termination — this is a statutory requirement.
  • Confusing basic wage with total compensation — annual leave pay is based on the basic wage, not total remuneration.

How annual leave accrues

After one year of continuous service, the employee is entitled to 30 calendar days of paid annual leave. For employees with less than one year of service, leave is pro-rated at 2 days per month worked.

Annual leave pay

Annual leave pay is based on the employee's basic wage. This does not include allowances, bonuses, or other supplements.

Leave scheduling

Employers determine when employees take their annual leave, but must consider the employee's preferences. Leave can be split into two periods if agreed.

Frequently asked questions

Can annual leave be carried forward?

Unused annual leave can be carried forward to the next year by mutual agreement between the employer and employee.

Are public holidays included in annual leave?

No. UAE public holidays are separate from annual leave and do not count against the entitlement.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.