Paid Time Off

United Arab Emirates PTO Compliance: A Guide for Employers

Paid Time Off in the United Arab Emirates is governed by Federal Decree-Law No. 33 of 2021. This legislation outlines the minimum requirements for annual leave, sick leave, and public holidays in both the private and public sectors. To ensure legal compliance and foster a respectful work environment, employers must understand and implement these standards correctly.

United Arab Emirates pto compliance

Understanding PTO Requirements in the United Arab Emirates

An overview of key leave entitlements defined by UAE labor law.

employee records icon
Statutory Vacation Days

Employees in the United Arab Emirates are entitled to 30 calendar days of paid annual leave per year after completing one year of service. During the first year, leave accrues at a rate of 2 days per month after six months of continuous employment. Leave may be taken all at once or split, with mutual agreement. Employers must pay employees their basic wage plus housing allowance during annual leave.

sick leave
Sick Leave Regulations

After completing the probation period, employees in the United Arab Emirates are entitled to up to 90 days of sick leave per year, which includes 15 days fully paid, 30 days at half pay, and 45 days unpaid. To qualify, the employee must provide a medical certificate from an authorised health facility. Sick leave cannot be taken during annual leave or used to extend it.

time off icon
Public Holidays

The United Arab Emirates grants approximately 13 public holidays per year, including Eid Al Fitr, National Day, and Arafat Day. These are fully paid days off. If employees work on a public holiday, they are entitled to an extra day off or overtime pay, in line with the law.

PTO Carryover Rules

Unused annual leave can be carried over to the next year with the employer’s approval. Upon contract termination, employees must be compensated for any unused leave, calculated based on their last drawn wage. Employers are encouraged to ensure leave is taken regularly to avoid backlogs.

UAE Paid Time Off Overview

Key Considerations For Employees And Employers

UAE labor law ensures fair time off while placing responsibility on employers to manage it correctly.

Employers

  • Grant 30 calendar days of leave per year after 1 year of service
  • Track and apply sick leave correctly based on service duration
  • Observe public holidays or offer compensation in lieu
  • Pay out unused leave on termination
  • Pro-rate leave fairly for part-time employees

Employees

  • Earn 2 days of leave per month during the first year
  • Are entitled to 30 calendar days annually after one year
  • Must present a valid medical certificate for sick leave
  • Receive holiday pay or a substitute day off when working
  • Get paid for unused leave upon resignation or termination

Paid Time Off in the United Arab Emirates is regulated by Federal Decree-Law No. 33 of 2021. This content is for general informational purposes only. For specific guidance, consult a legal or HR professional.

pto management

Best Practices for Managing PTO in the United Arab Emirates

Improve compliance and efficiency with these actionable recommendations.

    • ReDesign_Attendance
    • attendance
    • ReDesign_Attendance

    TRUSTED BY COMPANIES OF ALL SHAPES AND SIZES

    • SSL
    • MCI
    • MoMA
    • OpenStax
    • PlayPass
    • Smartsheet

    attendance tracking

    Why Compliance Matters

    Understanding and applying United Arab Emirates PTO laws is essential not only for legal compliance but also for fostering a productive, respectful workplace.

    1

    Keep a Clean Record

    Non-compliance with UAE labor law can result in fines, audits, or disputes with the Ministry of Human Resources and Emiratisation. Accurate PTO tracking ensures your business meets all legal obligations and maintains strong employer credibility.

    2

    Employee Satisfaction

    When employees know their time off is respected and fairly managed, it leads to higher satisfaction and lower turnover. Clear PTO policies and consistent implementation show your commitment to employee well-being.

    3

    Positive Workspace

    Managing PTO correctly promotes a balanced, transparent workplace culture. Employees who feel secure in using their entitled leave are more engaged, productive, and loyal. Fair leave policies reflect positively on company values and leadership.

    employee attendance

    How TrackingTime Can Help

    Learn more about how we can help you optimize your PTO policies and ensure compliance with UAE labor laws.

    Effortless Organization

    Say goodbye to messy email chains and manual tracking. With a streamlined PTO management system, you can keep all requests and records in one place, making it easy to approve time off and manage employee schedules efficiently.

    • Quick Approvals – Manage PTO requests fast.
    • Clear Records – Access all time-off data easily.
    • Team Sync – Keep schedules aligned effortlessly.

    Custom Time-Off Policies

    Every company has unique needs, and your PTO policies should reflect that. Customize your time-off rules to match your team’s structure, ensuring fairness and clarity while maintaining flexibility.

    • Flexible Rules – Tailor policies to your team’s needs.
    • Clear Guidelines – Keep everyone informed.
    • Smooth Management – Set rules that work for all.

    Real-Time Transparency

    Give your employees the confidence to plan their time off without uncertainty. By providing real-time access to balances and request statuses, you create a more transparent and trusting workplace.

    • Instant Access – Check balances anytime.
    • Live Updates – Track requests in real time.
    • Boost Trust – Keep everyone informed.

    INTEGRATIONS

    Add Time Tracking to the Apps You Use Every Day

    Sync TrackingTime with the tools your team uses every day to fit their work habits. This way, they can keep track of every minute without switching between apps.

    Check out +50 integrations

    • This app is a lifesaver! With TrackingTime, I can easily set project timelines and track my team's progress. The ability to create detailed timesheets and business reports for clients is a game-changer.

      on nachonacho.com

    • TrackingTime was incredibly convenient to use; its simple design made it accessible to anyone. The features were outstanding and the reports provided invaluable insights into my own productivity.

      on capterra.com

    • TrackingTime keeps my team and projects on track. Saves us hours of headaches and facilitates working remotely. Top notch.

      on nachonacho.com

    testimonials - great reviews

    Trusted by All Kind of Clients

    We believe that our clients' success is our success, and we are committed to doing everything we can to help them achieve their goals. We're proud to assist them with their daily struggles to improve their workdays, and we appreciate their positive feedback.

    time tracking app

    Track Time, Not People

    Simplify
    Attendace Management


    Sign in with Google

    FAQ

    Frequently Asked Questions

    Get answers to all your questions about our service and plans.

    What is the minimum annual leave in the UAE?

    Employees in the UAE are entitled to 30 calendar days of paid annual leave per year after completing one year of service, and two days per month if they’ve worked between 6 and 12 months.

    Which law governs paid leave in the UAE?

    Paid leave in the UAE is regulated by Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations, which outlines leave entitlements, employee rights, and employer duties.

    Do UAE annual leave days include weekends?

    Yes. Annual leave in the UAE is calculated in calendar days, meaning weekends and public holidays are included unless otherwise agreed upon in the employment contract.

    Can unused leave be carried forward in the UAE?

    Yes. Subject to company policy, unused leave can be carried forward for up to 2 years. Otherwise, the employee is entitled to compensation if it cannot be taken due to work demands.

    Are public holidays counted within annual leave in the UAE?

    No. Official public holidays are separate from annual leave. If a holiday falls during a scheduled leave, it should not be deducted from the employee’s annual entitlement.

    Do part-time employees get annual leave in the UAE?

    Yes. Part-time employees in the UAE are entitled to annual leave on a pro-rata basis, depending on the number of hours worked and terms specified in their labor contract.

    Is leave paid in advance in the UAE?

    Yes. Employers must pay the employee’s full salary before they go on annual leave, as stipulated by UAE labor law and standard HR practices across the private sector.

    Can employees encash unused leave in the UAE?

    Yes. If an employee leaves the company with unused annual leave, the employer is legally required to compensate them for those days based on the basic salary only.

    Are employees entitled to leave during probation in the UAE?

    No. Employees do not accrue annual leave during the probation period but become eligible for two days per month of leave after completing six months of service.

    Can sick or maternity leave affect vacation accrual in the UAE?

    No. Employees continue to accrue vacation during periods of paid leave, such as maternity or sick leave, provided their employment remains active.

    Can UAE employers decide when employees take their leave?

    Yes. Employers may determine annual leave schedules based on work requirements but should notify the employee at least one month in advance, per labor law.

    Are leave policies required in UAE employment contracts?

    While not mandatory, it’s best practice for UAE employers to include detailed leave entitlements, accrual, and usage rules in contracts or company policies to avoid disputes.

    Can employers require employees to use leave during slow periods?

    Yes. Employers may ask staff to take annual leave during low-demand periods or shutdowns, but must do so in line with notice requirements and applicable contract terms.

    Are leave days tracked by calendar year in the UAE?

    No. Annual leave in the UAE is tracked based on the employee’s contract anniversary date, not the calendar year, unless otherwise specified by the employer.

    Can UAE companies offer more leave than the legal minimum?

    Yes. Employers can choose to offer more generous leave entitlements than the legal minimum as part of their HR policy, especially in competitive industries or for expat packages.