Paid time off

Paid time off in the United Arab Emirates entitles eligible employees to a minimum of 30 calendar days of annual leave per year. This entitlement applies to workers employed under the UAE Labour Law and covers vacation time that must be compensated at the employee's regular wage rate. The leave is intended to provide rest and recuperation and is a statutory right rather than a discretionary benefit.

The rule is governed by the UAE Labour Law, specifically Federal Law No. 8 of 1980 (as amended), which establishes minimum employment standards across the private sector. The law distinguishes between different categories of workers and may provide enhanced entitlements in certain circumstances, such as for employees in hazardous conditions or those with extended service.

Employers must grant the full 30 days within the calendar year or the leave year as defined in the employment contract. Unused leave cannot be forfeited; any accrued but untaken days must be carried forward or compensated in cash upon termination of employment. The leave year typically runs from January to December, though employers may establish an alternative leave year if documented in the employment contract.

Payroll and HR teams must track leave accrual and usage meticulously to ensure compliance. When an employee takes leave, payroll must process compensation at the standard daily rate. Upon separation, any outstanding leave balance must be settled as a cash payment. Employers should maintain clear leave policies aligned with the Labour Law and communicate entitlements transparently to avoid disputes and ensure statutory compliance.