Employee leave policies in Dubai: paid, unpaid leave rules
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Employee Leave Policies in Dubai: Unpaid Leave, Paid Time Off and Legal Requirements

Liubov Zinchenko The author of the article, the Broker
#Blog DDA
29 June 2961 view

Dubai remains one of the world's largest business hubs, attracting international companies and professionals from different countries. For both employers and employees, it is important to understand the specifics of local labor legislation, including the rules governing employee leave.

In the UAE, employee absences are regulated by labor law. Companies must take into account mandatory types of leave, eligibility periods, and the correct procedures for approval and documentation. A well-structured leave policy helps businesses comply with legal requirements, while employees can better understand their rights and available options.

Paid Annual Leave in Dubai

One of the main types of employee leave in the UAE is paid annual leave.

After completing one year of continuous employment, an employee becomes entitled to 30 calendar days of paid annual leave. If an employee has worked for a company for less than a year, leave entitlement is calculated proportionally based on the actual period of employment.

The employer may determine the start date of the leave based on business needs, but the employee must be notified in advance. In some cases, annual leave can be divided into several periods if both parties agree.

It is important to remember that annual leave should generally be used during the year in which the employee becomes entitled to it. Therefore, companies need to maintain accurate records of leave days and plan employee absences in advance.

Unused Leave: Carryover and Compensation

Unused annual leave requires careful attention from employers. Accumulated leave days cannot simply be ignored — companies must account for them in HR records and financial calculations.

If an employee has not used all entitled leave days, the procedure for carrying them forward or compensating them is determined according to UAE labor legislation and the company's internal policies.

For businesses in Dubai, maintaining a transparent leave tracking system is especially important. It helps prevent disputes upon termination, ensures accurate payments, and allows companies to manage team workloads effectively.

Unpaid Leave in Dubai

Unpaid leave is another option for temporary absence from work, but it differs from standard paid annual leave.

In most cases, unpaid leave is provided by mutual agreement between the employee and employer. It may be requested for personal reasons, family matters, extended travel, or other situations when an employee needs to temporarily suspend their work duties.

However, an employer is not automatically required to approve such a request. The company determines whether unpaid leave can be granted, its duration, and the conditions for approval.

To avoid misunderstandings, employers are advised to establish clear internal rules in advance: who approves such requests, what documents may be required, and how unpaid leave affects employment records and other company benefits.

Sick Leave and Special Types of Leave

In addition to annual leave, UAE legislation provides employees with other legally recognized reasons for absence.

For example, sick leave is provided with a phased payment structure:

  • the first 15 days are fully paid;
  • the next 30 days are paid at 50%;
  • the remaining period may be unpaid.

Employees may also be entitled to special types of leave related to family circumstances, including:

  • maternity leave;
  • paternity leave after the birth of a child;
  • bereavement leave in the event of the death of a close relative.

For companies, this means that a leave policy should cover not only standard annual vacations but also all legally recognized cases of employee absence.

How to Properly Arrange Leave

The process usually begins when an employee submits a leave request. After approval, the company records the absence in its HR system and prepares the necessary documentation.

For international companies operating in Dubai, it is especially important to have a clear internal process that includes:

  • a unified procedure for submitting leave requests;
  • defined notification periods;
  • rules for approving extended absences;
  • an accurate leave tracking system.

If an employee plans to take a long absence, dates should be agreed upon in advance. This allows the company to redistribute responsibilities, arrange temporary coverage, and maintain stable operations.

What Dubai Employers Should Consider

For businesses in the UAE, a leave policy is an important part of effective workforce management.

Employers must ensure that internal company rules comply with national legislation. This is especially relevant for organizations with international teams, where employees may be familiar with different labor systems and expectations.

Transparent policies help employees understand their rights while allowing companies to avoid mistakes in calculations, documentation, and resource planning.

When hiring foreign specialists, businesses should also consider the specifics of employment regulations in the UAE. A clear leave policy can become an important factor in attracting talent and building a stable corporate environment.

Leave policies in Dubai are built around a balance between employee rights and business interests. Paid annual leave, unpaid leave, sick leave, and family-related absences are regulated by legislation and require proper documentation.

For employees, understanding these rules helps them plan vacations and personal matters more effectively. For companies, it allows them to build an efficient and compliant HR system.

The specialists at DDA, an international real estate agency, help foreign investors and entrepreneurs understand the specifics of living and doing business in the UAE, including relocation, company setup, and adapting to Dubai's business environment. Understanding local regulations and requirements is an important part of successful long-term development in the country.

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