TRW & Co · Employment & Immigration
Working Time and Leave in the UAE
Annual leave in the UAE is 30 days a year for onshore employees and 20 working days in the DIFC and ADGM, with different rules on notice, carry-over and payment on exit. Working hours, overtime, sick and family leave, Ramadan hours and the summer midday break complete the picture. This page sets out the rules and how to build compliant policies.
Key pointOnshore, accrued leave is paid out on basic wage at exit and the employer cannot block use of leave accrued over more than two years, so unmanaged leave balances quietly become a cash liability.
At a glance
30 days onshore
Article 29 gives 30 days' full-pay annual leave per year of service, and two days per month between six and twelve months of service.
20 working days in DIFC/ADGM
Both financial centres provide at least 20 working days of paid annual leave; ADGM allows at least five days to be carried over.
8 hours, 48 a week
Onshore normal hours are capped at eight a day or 48 a week; overtime is limited to two hours a day at a 25% or 50% premium.
90 days' sick leave
After probation, onshore employees get up to 90 days' sick leave a year: 15 at full pay, 30 at half pay, the rest unpaid.
Ramadan and summer rules
MOHRE reduces private-sector hours by two hours a day in Ramadan and applies a midday break for outdoor work each summer.
Swipe or scroll →
What working time and annual leave in the UAE cover
Working time and annual leave in the UAE are where employment law meets daily operations. The rules decide how long people can work, when overtime is owed, how much paid time off they accrue, and what happens to unused leave when they move on. They also cover sick leave, maternity and parental leave, bereavement and study leave, public holidays, Ramadan hours and the summer midday break for outdoor work.
Most problems surface at two moments: when an employee claims years of unpaid overtime, and when a departing employee asks to be paid for a leave balance nobody tracked. Both are avoidable with clear contracts, accurate records and policies that reflect the regime the employer actually sits in.
That regime matters. Onshore employers and most free zone employers apply the federal Labour Law. Employers in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) apply their own statutes, which count leave in working days and approach working hours differently.
Working hours, overtime and rest onshore
Under Federal Decree-Law No. 33 of 2021, normal working hours for private-sector workers may not exceed eight hours a day or 48 hours a week, though the Implementing Regulation can vary this for particular sectors and excludes certain categories. Workers may not work more than five consecutive hours without breaks totalling at least one hour, and breaks do not count as working time. Commuting time generally does not count either.
Overtime
An employer may require overtime of up to two hours a day, and total hours must not exceed 144 every three weeks. Overtime is paid at the normal hourly wage, based on basic wage, plus at least 25%, rising to 50% for overtime between 10pm and 4am, except for shift workers. The government's working hours guidance summarises these rules.
Rest days and public holidays
Workers are entitled to at least one paid weekly rest day. If they work on a rest day, they receive a substitute day off or their normal wage plus at least 50%. On official public holidays set by Cabinet resolution, workers receive paid leave; if required to work, they receive a substitute day for each day worked or the day's wage plus at least 50% of basic wage.
Part-time, flexible and remote patterns
The Labour Law and its Implementing Regulation recognise work patterns beyond conventional full-time employment, including part-time, temporary, flexible and remote work. A part-time worker may work for more than one employer, but no employer can require more hours than the contract sets unless the worker agrees in writing. Where an employee works remotely, inside or outside the UAE, the employer should still set defined working hours. These choices directly affect overtime exposure and the accrual of annual leave in the UAE, which for part-time staff follows actual hours worked.
Ramadan and the midday break
During Ramadan, MOHRE reduces private-sector working hours by two hours a day, as announced in its Ramadan working hours guidance. In summer, MOHRE applies a midday break for outdoor work; in 2025 it ran from 15 June to 15 September, as set out in the MOHRE midday break announcement. Construction, logistics and facilities employers should build both into rosters and contracts.
Annual leave in the UAE under the federal Labour Law
Article 29 grants full-pay annual leave of at least 30 days for each year of service, and two days per month where service is more than six months but less than a year. On leaving, the employee is entitled to leave for the fraction of the final year. Part-time workers accrue annual leave in the UAE according to the hours actually worked, as set out in their contract and the Implementing Regulation.
Scheduling and notice
Leave should be taken in the year it is earned. The employer fixes the dates according to work requirements and in agreement with the employee, and must give at least one month's notice of the leave dates. The employer may allow leave during probation. Official holidays falling within leave count as leave days unless the contract or the employer's rules are more favourable, as the government's annual leave guidance explains.
Carry-over and payment in lieu
Unused leave can be carried into the following year only with the employer's approval and in line with the establishment's rules. The employer cannot prevent an employee from using leave accrued for more than two years, unless the employee chooses to carry it forward or receive a cash allowance under the employer's rules. On termination, accrued unused leave is paid out, calculated on basic wage.
The practical result is that annual leave in the UAE is an accruing liability. A leave policy that forces use, sets approval rules for carry-over and reconciles balances each year protects both the employer's balance sheet and the employee's rest.
Leave during notice and on exit
Leave and termination interact in ways that often surprise managers. An employer may want an outgoing employee to use their balance during the notice period; an employee may want to be paid for it instead. The safest course is a clear policy, applied consistently, combined with the statutory notice of leave dates. Where an employee fails probation, they keep the right to be paid for any unused leave balance. All encashment forms part of the final settlement, so it must be paid within the 14-day onshore deadline alongside gratuity and other dues, as explained on our termination and end of service benefits page.
Payment for unused annual leave in the UAE onshore is calculated on basic wage, not total pay. That makes the wage split in the contract decisive, and it is one reason leave balances should be reported alongside gratuity accruals in management accounts.
Sick, family and other leave onshore
| Leave type | Entitlement | Key conditions |
|---|---|---|
| Annual leave | 30 days per year; 2 days per month between 6 and 12 months | Full pay; one month's notice of dates; cash in lieu on exit at basic wage |
| Sick leave | Up to 90 days per year: 15 days full pay, 30 days half pay, remainder unpaid | After probation; notify within 3 working days with a medical report |
| Maternity leave | 60 days: 45 days full pay, 15 days half pay | Plus up to 45 unpaid days for related illness; extra leave for a child with special needs |
| Parental leave | 5 working days | Paid; within six months of the birth |
| Bereavement leave | 5 days (spouse); 3 days (parent, child, sibling, grandchild, grandparent) | Paid; from the date of death |
| Study leave | 10 working days per year | To sit exams; at least two years' service; approved UAE institution |
During probation there is no paid sick leave, although unpaid sick leave may be granted on a medical report. Sick pay is not due where the illness results from the worker's own misconduct in cases defined by the Implementing Regulation. Article 30 also protects women from termination because of pregnancy or maternity leave and provides nursing breaks after return to work. Our article on maternity and parental leave in the UAE covers family leave in more depth.
Working time and leave in the DIFC and ADGM
DIFC
The DIFC Employment Law (DIFC Law No. 2 of 2019, as amended) gives at least 20 working days of paid annual leave per year, in addition to public holidays. Sick leave is up to 60 working days in a 12-month period, with pay stepping down over that period. Maternity leave is 65 working days, with pay depending on length of service, and paternity leave is five working days. Working time is capped at an average of 48 hours over seven days unless the employee agrees in writing to work more, with daily and weekly rest requirements. See the DIFC for current texts.
ADGM
ADGM's Employment Regulations 2024, in force from 1 April 2025, also provide at least 20 working days of annual leave. Employees can carry over at least five days into the next leave year, and employers can require leave to be taken on seven days' written notice. Sick leave is up to 60 working days in 12 months after probation, paid at full pay for the first 10 days and half pay for the next 20.
The Regulations add five working days of paid bereavement leave, keep 65 working days of maternity leave and five working days of paternity leave, and reduce daily hours for Muslim employees by 25% during Ramadan. Hours above 48 a week need written consent, and there is currently no statutory overtime pay. Check the latest texts at ADGM.
The difference between 30 calendar days onshore and 20 working days in the financial centres is smaller in practice than it looks, but it creates real friction for groups that move employees between entities. Annual leave in the UAE should therefore be defined in each contract by reference to the correct regime.
Leave and overtime claims are rarely about one week. They accumulate quietly over years, and they become visible all at once when an employee leaves.
Building a compliant working time and leave policy
- Map the regime. Identify which employees are under the federal Labour Law, a free zone's rules, the DIFC Law or the ADGM Regulations, and which work patterns apply: full-time, part-time, shift, remote or flexible.
- Set hours and overtime rules. Define normal hours, breaks, Ramadan hours, approval for overtime and which senior or supervisory roles fall outside the hours rules.
- Record time. Use reliable timekeeping, especially for shift, site and field staff. Records are the employer's best defence to overtime claims.
- Define leave entitlements. State annual, sick, family and special leave in the contract and policy, including how leave is requested and how notice of dates is given.
- Manage balances. Reconcile leave annually, apply carry-over approvals consistently and encourage use before balances become a liability.
- Align payroll. Ensure leave pay, overtime and encashment on exit use the correct wage base and flow through the payroll and Wages Protection System processes.
- Review annually. Check MOHRE announcements on Ramadan hours, public holidays and the midday break, and refresh DIFC and ADGM policies when their laws change.
Records and documents to keep
- Employment contracts and the employer's work rules or employment policies, including leave and overtime policies.
- Time records, rosters and overtime approvals.
- Leave requests, approvals, notices of leave dates and annual balance statements.
- Medical certificates for sick and maternity leave, and documents supporting bereavement or study leave.
- Written consents to additional hours in the DIFC and ADGM.
- Payroll records showing leave pay, overtime and encashment on exit.
Onshore employers must keep a worker's file for at least two years after the end of service; financial centre rules impose their own retention requirements.
Risks and common mistakes
Assuming managers are not entitled to overtime
Job titles do not decide overtime eligibility. The Implementing Regulation excludes certain senior and supervisory roles from the working-hours provisions, but an employee called a manager who has no real authority over others may still be covered. Review roles against the actual exclusion criteria, record hours for anyone who might be covered, and if overtime is included in a fixed salary, say so clearly and check that the pay still meets the statutory minimum for the hours worked.
Letting leave balances accumulate
Large leave balances become a cash liability on exit, and the Law prevents employers from blocking use of leave accrued over more than two years unless the employee chooses otherwise. Employers that rely on informal carry-over without written approval may find they cannot enforce forfeiture. Send annual balance statements, approve carry-over in writing, schedule leave with the required one month's notice and keep the policy consistent with the regime: onshore, DIFC or ADGM.
Counting leave in the wrong units
Onshore annual leave is expressed in days, while the DIFC and ADGM count working days. Group policies drafted for one regime and applied to another can grant too little leave, which is a breach, or far too much, which is a cost. When moving an employee between entities, convert balances expressly and record the employee's agreement. Similar care is needed for sick leave, which is counted differently and paid on different steps in each regime.
Ignoring Ramadan and midday break rules
Ramadan hours and the summer midday break are announced each year and are actively inspected for outdoor work. Failing to adjust rosters can lead to fines and reputational harm, and treating normal Ramadan hours as overtime without agreement can trigger claims. Build both into the annual operations calendar, communicate them in languages the workforce understands and keep proof of compliance on site.
Mishandling sick leave during probation
Onshore, there is no paid sick leave during probation, but employers sometimes terminate an employee who falls ill without considering discrimination or disability risks. In ADGM, employees on probation are entitled to sick leave but not sick pay. Treat illness during probation carefully: obtain medical evidence, consider reasonable adjustments and document any decision to end probation on performance grounds that are separate from the illness.
Cross-border angle
International groups often run global leave policies from London, Singapore, Mumbai or Dhaka. Those policies may be generous in some respects and non-compliant in others: a UK-style 25 working days plus public holidays may exceed UAE onshore minimums in some years and fall short in others when the UAE public holiday calendar shifts with the lunar calendar. Saudi Arabia and other GCC states also have their own leave and working time rules, so a Gulf-wide policy needs country-specific schedules.
Remote and hybrid arrangements raise further questions. The UAE regime expects the employer to set working hours for remote workers, and an employee working from another country may acquire local rights there. Coordinate leave and hours policies with cross-border workforce planning so that secondees and remote staff are treated consistently.
How TRW & Co helps
We advise employers on working time and annual leave in the UAE across onshore, DIFC and ADGM regimes. Where representation before UAE onshore courts or the DIFC/ADGM Courts is required, we work alongside locally licensed advocates and registered practitioners.
Policy drafting
We draft leave, hours, overtime and remote work policies tailored to each regime, including Ramadan hours and outdoor-work rules.
Contract alignment
We review employment contracts so that hours, leave and pay terms match the governing law and the actual pattern of work.
Overtime audits
We test role classifications, timekeeping and pay practice to identify overtime exposure before it becomes a claim.
Leave liability reviews
We reconcile leave balances, advise on carry-over and encashment, and help finance teams account for accrued leave alongside gratuity.
Group harmonisation
We adapt global HR policies for UAE entities and align them with GCC, UK, Indian, Bangladeshi and Singapore practice.
Disputes
We defend overtime and leave claims at MOHRE and in the courts through our employment disputes practice.
To review your policies, contact our Dubai team, or explore our practice areas. For a short primer, read our articles on annual leave under UAE labour law and working hours and overtime.
Checklist for decision-makers
- Confirm the governing regime for every employing entity.
- Define normal hours, breaks, overtime approval and excluded roles.
- Keep reliable time records for all staff who may be entitled to overtime.
- State annual leave in the UAE in the correct units for each regime, with clear notice and carry-over rules.
- Reconcile leave balances annually and report the liability.
- Track sick, maternity, parental, bereavement and study leave with supporting documents.
- Diarise Ramadan hours, public holidays and the summer midday break.
- Pay leave encashment on exit on the correct wage base and within the final settlement deadline.
Frequently asked questions
01How many days of annual leave do employees get in the UAE?
Onshore and in most free zones, employees receive at least 30 days of full-pay annual leave for each year of service, and two days per month if they have served more than six months but less than a year. In the DIFC and ADGM, the minimum is 20 working days a year, in addition to public holidays. Contracts can be more generous but not less, and part-time employees accrue leave in proportion to the hours they work.
02Can unused annual leave be carried over?
Onshore, carry-over requires the employer's approval and must follow the establishment's rules, and the employer cannot prevent an employee from using leave accrued for more than two years unless the employee chooses to carry it forward or take cash under the employer's rules. In ADGM, employees can carry over at least five days into the next leave year. DIFC rules are set out in the DIFC Employment Law and the employer's policy.
03Is unused leave paid when an employee leaves?
Yes. Onshore, an employee leaving is paid for accrued unused leave and for the fraction of the final year, calculated on basic wage. The payment forms part of the final dues that must be paid within 14 days of the end of the contract. In the DIFC and ADGM, accrued unused leave is also paid out on termination, and the financial centres' payment deadlines and late payment penalties apply.
04Do public holidays count as annual leave?
Onshore, official holidays and sick leave falling within an annual leave period count as part of the leave, unless the contract or the employer's rules are more favourable to the employee. Public holidays outside leave are separate paid days off. In the DIFC and ADGM, annual leave entitlements are expressed in working days and are additional to public holidays. Employers should state the treatment clearly in the leave policy.
05Can an employer decide when employees take annual leave?
Onshore, the employer fixes leave dates according to work requirements and in agreement with the employee, and must give at least one month's notice of the dates. In ADGM, employers can require employees to take leave on seven days' written notice. Shutdown periods and peak-season blackouts are common and lawful if the policy is clear and applied consistently, and the statutory minimum entitlement is still granted.
06How is overtime paid in the UAE?
Onshore, overtime is paid at the normal hourly wage, based on basic wage, plus at least 25%, rising to 50% for work between 10pm and 4am, except for shift workers. Overtime is capped at two hours a day and total hours at 144 every three weeks. Rest day work earns a substitute day or a 50% premium. The DIFC and ADGM regimes do not set statutory overtime pay; hours above 48 a week require written consent.
07What leave do new fathers get?
Onshore, either parent of a newborn is entitled to five working days of paid parental leave, to be taken continuously or intermittently within six months of the birth. In the DIFC and ADGM, paternity leave is five working days, subject to qualifying conditions. Employers may offer more generous family leave by contract or policy, and many international groups do.
Sources and official materials
- Federal Decree-Law No. 33 of 2021 (consolidated, MOHRE) — Working hours, overtime and leave provisions
- Annual leave (UAE Government portal) — Entitlement, notice, carry-over and encashment
- Working hours and overtime (UAE Government portal) — Hours, breaks, overtime and rest day work
- MOHRE: Ramadan working hours — Two-hour reduction for the private sector
- MOHRE: midday break 2025 — Summer outdoor work break dates and timings
- Dubai International Financial Centre — DIFC Employment Law
- Abu Dhabi Global Market — ADGM Employment Regulations 2024
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
