Labor law ensures the welfare of employees in UAE

Labor laws ensure the welfare of an employee working in the UAE.

The provisions of Federal Decree-Law No. 33 of 2021 protect workers' rights.

According to Article 29 (1) (a) of the Labor Act, an employee is entitled to 30 days of annual leave every year. Article 29 (8) of the Labor Law specifies that an employer cannot employ an employee without paying their annual leave. But if the leave is unused, the employee is entitled to receive payment in lieu thereof.

The employee may mutually agree with the employer to pay in cash in lieu of the leaves to which they are entitled. This payment is calculated based on the monthly salary of the employee. An employee is also allowed to carry over half of their annual leave to the next year.

Subject to the provisions of paragraphs (8), (9), and Article 29 of the Labor Law, an employee may carry over more than half of his annual leave to the next year or agree to the employer to pay him accordingly.

An employer shall not prevent an employee from availing of annual leave earned for more than two years unless the employee wishes to carry it forward or receive a cash allowance for it, in accordance with the rules in force and implementing rules in the establishment.

By mutual agreement with the employer, an employee may be entitled to cash in lieu of unused annual leave based on the basic salary on the date the relevant annual leave is due.