Leave Management Aligned with UAE Federal Decree-Law

The UAE's leave framework under Federal Decree-Law No. 33 of 2021 is notable for its clarity on entitlements but requires careful implementation in the area of salary calculations. The law explicitly ties leave salary to the "basic wage," which is defined as the wage stated in the employment contract excluding any allowances (housing, transport, furniture, etc.). This distinction is critical because UAE salary structures typically split total compensation into basic (often 50–60% of gross) and allowances.

Annual leave entitlement follows a clear progression. During the first six months, employees have no statutory annual leave entitlement. From 6 months to 1 year, they accrue 2 days per month. After completing one year, the entitlement jumps to 30 calendar days per year. When an employee's contract ends, any unused annual leave must be paid out based on the basic wage at the time of termination — making accurate leave balance tracking financially significant.

The sick leave structure is one of the more sophisticated in the region. After probation (which cannot exceed 6 months), employees are entitled to 90 days of sick leave per year, structured in three tiers: the first 15 days at full pay, the next 30 days at half pay, and any remaining period (up to 45 days) without pay. Critically, sick leave during probation is unpaid, and the employer may terminate the contract if the employee is absent for more than 6 consecutive days during probation. A medical certificate from a UAE-licensed facility is mandatory.

Maternity leave provisions were significantly enhanced by the 2021 law. The 60-day entitlement (45 days full pay, 15 days half pay) can begin up to 30 days before the expected delivery date. If the employee experiences pregnancy-related illness after the maternity period, she is entitled to additional unpaid leave of up to 45 days, supported by a medical certificate. The post-return nursing breaks (two 30-minute breaks per day for 6 months) must be tracked separately and are counted as paid working time.

Hajj leave represents a uniquely regional provision. Muslim employees who have not previously performed Hajj may take up to 30 days of unpaid leave for the pilgrimage, and this can only be availed once during the entire tenure with an employer. The system must track whether an employee has previously availed Hajj leave, even across contract renewals with the same employer, to prevent duplicate entitlements.