HR & Labour10 Aug 2026 · 6 min read · explainer

UAE Annual Leave and Public Holidays

Apply UAE annual leave and public holiday rules correctly, including accrual, pay, carry-forward, notice, overlap, holiday work, and final payout.

A full-time UAE private-sector worker is entitled under Article 29 to at least 30 days of annual leave with full wage for each year of service. If service is more than six months but less than one year, the entitlement is two days for each month. Article 28 separately gives full-paid leave on official public holidays determined by Cabinet resolution.

These are different ledgers. Keep annual leave, weekly rest, public holidays, and unpaid leave separate in HR and payroll. The core sources are Articles 28 and 29 of the current consolidated Federal Decree-Law No. 33 of 2021 and Articles 18 and 19 of the Executive Regulation.

Annual leave entitlement

Article 29 provides:

30 days for each completed year of service;
two days per month when service exceeds six months but is less than one year; and
a proportional entitlement for the part of the final year worked if employment ends before the leave is used.

A part-time worker receives annual leave according to actual contracted working hours. Article 18 of the Executive Regulation sets the proportional formula and a minimum of five working days a year for part-time annual leave. Do not apply the full-time 30-day figure unchanged to every work pattern.

Annual leave during probation

There is no automatic rule that every worker must take paid annual leave during probation. Article 29(3) allows the employer to agree to grant leave from the worker's annual-leave balance during probation. If the worker does not pass probation, the worker keeps the right to compensation for the remaining balance.

Keep this separate from sick leave, which has its own Article 31 rules. A manager approving time away should state whether it is annual leave, unpaid leave, or another statutory leave.

Who schedules the leave

The worker should take annual leave in the year it becomes due. Under Article 29(4), the employer may set dates according to work requirements, in agreement with the worker, or rotate leave among workers to keep the business operating. The employer must notify the worker of the specified leave date at least one month in advance.

A reliable process collects requests, records the agreement, and issues a written approval. Avoid retroactively turning an absence into annual leave simply to repair an attendance record.

Full wage during leave, basic wage at exit

Article 29(6) gives the worker the wage for the annual-leave period. Under Article 1, wage includes basic wage plus applicable allowances and benefits that form the agreed wage. This is different from the cash equivalent for unused statutory leave when service ends, which Article 29(9) and Article 19 of the Executive Regulation calculate using basic salary.

Payroll should therefore maintain two clear inputs:

the worker's wage for paid annual leave taken during employment; and
the worker's basic wage for statutory unused-leave payout at termination.

Use the UAE salary calculator to sense-check the package split, then reconcile it to the operative contract.

Carrying leave forward or paying cash

Article 29 allows carry-forward with employer approval and the establishment's rules. Article 19 of the Executive Regulation says the worker may carry forward no more than half of the annual leave to the following year, or agree with the employer to receive its cash equivalent based on the wage earned when the leave became due.

The employer may not prevent a worker from using accrued annual leave for more than two years unless the worker chooses carry-forward or cash treatment in line with the rules. A leave policy should specify the approval window, the carry-forward cap, and how old balances are dealt with without removing statutory rights.

When a public holiday falls during annual leave

Article 29(7) says holidays established by law or agreement that fall within the annual-leave period count as part of that annual leave, unless the employment contract or company rules give the worker a more favourable benefit.

This often surprises teams using a foreign HR template that automatically adds public holidays back. The UAE statutory default is the opposite, but an employer can promise a better rule. Make the policy and leave-system setting agree.

Public holiday entitlement

Article 28 gives full-paid leave on official public holidays declared by Cabinet resolution. Dates can depend on the official UAE announcement, particularly for lunar-calendar holidays. Use the UAE public holidays 2026 tool for planning, then confirm operational dates against the official announcement before publishing a roster.

If work requires a worker to work on an official holiday, the employer must provide either:

another rest day for each holiday worked; or
the wage for that day at the normal-day rate plus an increase of at least 50% of the basic wage for that day.

The UAE Government's official leaves guidance confirms this Article 28 treatment. Record which compensation route was applied.

Annual leave in final settlement

When employment ends, calculate statutory leave earned through the last day, subtract leave already used, and pay the eligible unused balance using basic wage. Article 29(9) applies even if the unused period is short and also covers the proportional part of the final year. The amount belongs on its own line, separate from salary, notice allowance, and gratuity.

Article 53 requires all end-of-contract entitlements within 14 days from the contract end date. Follow the termination and final settlement checklist and check gratuity separately with the UAE gratuity calculator.

Employer leave checklist

Confirm the worker's work pattern and service date.
Keep annual leave, public holidays, weekly rest, and unpaid leave in separate ledgers.
Issue leave dates at least one month ahead when the employer schedules them.
Apply full wage to annual leave taken during employment.
Configure the public-holiday overlap rule to match Article 29 or a more favourable policy.
Document carry-forward or cash agreements and respect the Executive Regulation cap.
At exit, calculate unused statutory leave on basic wage and include it in the 14-day settlement.

Continue the UAE labour law hub

Primary legal sources

Important note

Shabang is a UAE business and marketing partner, not a law firm. This guide is general information, not legal advice. Confirm special free-zone rules, disputed balances, and any policy that differs from the statutory default with MOHRE, the relevant authority, or qualified UAE legal counsel.