3 ways the UAE’s labour laws will impact annual leave

The UAE’s businesses sector has observed a massive shift with the implementation of the?new labour law amendment. The amendments have impacted employees and employers?alike. The changes cover a rich profusion of issues, including that pertaining to the?employees’ annual leaves.

The updated policy for annual leaves provides employees with 30-day paid annual leaves,?provided that they have worked with the firm for at least one year.

Entitlement of Annual Leaves

According to the new labour laws, employees working with the company for at least one year are entitled to 30 days of paid leave for each service year. However, if the workers have provided services to the company for more than six months but do not meet the one- year threshold, they are also entitled two annual leaves per month.

The regulations also provide a resolution to employees whose service has concluded prior to?their annual leave utilisation. In such a scenario, the employee would be rewarded leaves for?the fraction of the last year of service.

Part-time workers are also entitled to annual leaves. The leave duration for the part-time?workers depends on the actual working hours spent at work, as highlighted in the?employment contracts and in concordance with the Executive Regulations of the Labour Law.

Implementation of Annual Leaves

The new labour laws empower employees to utilise their annual leaves in the first years of?their entitlement. Both the employer and employees can collaborate to set the dates for the?annual leaves, depending on the work requirements. The employer holds the?responsibility to notify the employee for the annual leave date at least one month prior.

Additionally, employees also have the right to carry over their previous years’ annual leave?balance over to the next year, provided that the company’s contract permits them to do so.

The employers are also required to avoid prohibiting the employees from using their?collected annual leaves for more than two years. In the case the employee is terminated,?their collected leaves would be calculated on the basis of their salary.

Calculation of Annual Leaves

The annual leaves will include official holidays and other leaves, including sick leaves, if they?align with the employee’s annual leave duration. However, exceptions can be made if the?company’s contract has other provisions.

The update in the regulations came after forty years as the Federal Decree-Law No 33 of?2021 on the Regulation of Labour Relations was issued in November 2021. The new laws?were put into effect on 2nd February 2022. If you want to know more about the labour law updates, get in touch with Al Ramsay Advocates, a firm with 20 years of legal experience.