UAE Labour Law 2025: a Comprehensive Guide to Annual, Sick, and Maternity Leave Entitlements

The United Arab Emirates has long been a global hub for business and talent, attracting millions of expatriates seeking professional opportunities. Central to maintaining a fair and competitive work environment is the nation's robust legal framework, particularly the UAE Labour Law, officially known as Federal Decree-Law No. 33 of 2021. This law, along with its subsequent executive regulations, sets the standard for employment relationships, ensuring both employer and employee rights are protected. As we move through 2025, understanding the specific entitlements regarding leave—annual, sick, and maternity—is crucial for every professional and business operating within the UAE's private sector.

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The modern UAE Labour Law is designed to be flexible, comprehensive, and aligned with international strategic frameworks, reflecting the country's commitment to employee welfare. For employers, compliance is non-negotiable, and for employees, knowing your rights is the first step toward a balanced work life. This comprehensive guide breaks down the core provisions for the three most significant types of leave, providing clarity on eligibility, duration, and payment structure under the current legal framework. Navigating the complexities of employment legislation can be challenging, and for businesses seeking to ensure their internal policies are fully compliant, or for individuals requiring clarification on their rights, professional legal guidance is invaluable.

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Section 1: Annual Leave – The Right to Rest and Recharge

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Annual leave is perhaps the most universally anticipated entitlement, providing employees with paid time off to rest, travel, and recharge. The UAE Labour Law establishes clear rules for the accrual and deployment of this time, ensuring that employees can take a break without financial penalty.

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Eligibility and Accrual

The right to annual leave is directly tied to an employee's length of service with the company:

• After Six Months of Service: An employee who has completed at least six months but less than one year of continuous service is entitled to two days of paid leave for each month of service. This provision ensures that even newer employees have access to a reasonable amount of time off.
• After One Year of Service: Upon completing one full year of continuous service, the employee becomes entitled to a minimum of 30 calendar days of paid annual leave for each subsequent year of service.

It is important to note that the law specifies "calendar days," meaning weekends and public holidays that fall within the annual leave period are counted as part of the leave.

Payment and Calculation

Annual leave is a fully paid entitlement. The payment for the annual leave period must be the employee's basic salary plus the housing allowance, if applicable, and any other allowances that are paid regularly and consistently. The employer must pay the employee their full salary for the leave period before the employee commences their leave.

Timing and Employer Discretion

While the right to annual leave is guaranteed, the timing of the leave is generally determined by the employer, based on the requirements of the work and in agreement with the employee. The law permits the employer to:

1. Determine the start date of the annual leave.
2. Divide the leave into two or more periods, provided the employee agrees.
3. Carry forward a portion of the annual leave to the next year, if the company's internal regulations or the employment contract allows for it. However, the law also states that an employee must take their leave in the year it is due, and the employer cannot prevent the employee from taking their full entitlement.

If an employee's service is terminated before they have deployd their full annual leave entitlement, they are entitled to a cash equivalent for the balance of their accrued leave days, calculated based on their last basic salary.

The Importance of Clear Contracts

The foundation of all employee entitlements, including annual leave, rests on a well-drafted and legally sound employment contract. A clear contract minimizes ambiguity and potential disputes. For employers, ensuring that the terms of annual leave, carry-over policies, and payment calculations are explicitly detailed in the employment agreement is a critical step in compliance. Professional legal strategic deployment in reviewing and drafting these documents is highly recommended.

Section 2: Sick Leave – Protecting Health and Income

The provision for sick leave in the UAE Labour Law is structured to provide a safety net for employees facing health issues, balancing the need for recovery with the financial security of the worker. The law stipulates a maximum sick leave period and a tiered payment structure based on the duration of the illness.

The 90-Day Entitlement

An employee who falls ill is entitled to a maximum of 90 calendar days of sick leave per year, provided they have completed the probationary period. This 90-day period is not paid uniformly but is structured into three distinct payment tiers:

Sick Leave Duration: Payment Entitlement First 15 days: Full Pay Next 30 days: Half Pay Remaining 45 days: Unpaid

This tiered system ensures that employees receive full financial support during the initial, most critical phase of their illness, partial support for an extended period, and then a final, unpaid period for prolonged recovery.

Requirements and Procedure

To be eligible for sick leave, the employee must:

1. Notify the employer of their illness within a maximum of three days.
2. Provide a medical report from a medical entity approved by the competent health authority, confirming the need for the leave and its expected duration.

The employer has the right to verify the medical report. If the employee fails to notify the employer or if the medical report is not provided, the employer may consider the absence as unauthorized, which could lead to disciplinary action.

Non-Entitlement and Termination

An employee is not entitled to sick leave pay in the following circumstances:

• If the illness is a direct result of the employee's misconduct.
• If the employee works for another employer during the sick leave period.
• If the employee is ill during their probationary period, in which case the employer may terminate the contract with immediate effect, provided the employee is given a written notice.

Furthermore, the employer is prohibited from terminating the employee's service due to illness before the employee has exhausted their full 90-day sick leave entitlement. If the employee is unable to return to work after the 90-day period, the employer may terminate the service, and the employee will be entitled to their end-of-service benefits.

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Section 3: Maternity Leave – Supporting New Mothers

The UAE Labour Law provides robust protection and support for female employees during and after pregnancy and childbirth. The current provisions for maternity leave are among the most progressive in the region, ensuring new mothers can focus on their health and their newborn.

Duration and Pay Structure

Female employees in the private sector are entitled to a total of 60 calendar days of maternity leave. This leave is paid according to a specific structure:

• First 45 days: Paid at full salary.
• Remaining 15 days: Paid at half salary.

Crucially, this entitlement is granted regardless of the employee's length of service. There is no minimum service period required to qualify for the 60-day paid maternity leave.

Flexibility and Additional Leave

The law provides flexibility for the timing of the leave:

• Pre-Delivery Leave: The employee may take the maternity leave up to 30 days before the expected date of delivery.
• Additional Paid Leave for Complications: If the newborn is sick or has a disability, the mother is entitled to an additional 30 days of fully paid leave after the initial 60 days. This must be supported by a medical report.
• Additional Unpaid Leave: If the child's health condition persists, the mother may request an additional 30 days of unpaid leave.

Post-Maternity Benefits

Following her return to work after maternity leave, a female employee is entitled to a daily break for nursing her child. For a period of six months from the date of delivery, the employee is entitled to one or two breaks per day for nursing, provided the total duration of these breaks does not exceed one hour. This nursing break is considered part of the working hours and is fully paid.

Navigating Compliance and Resolving Disputes

The UAE Labour Law provides a clear framework, but its application in specific, complex scenarios often requires expert interpretation. For employers, ensuring that internal policies, employment contracts, and payroll systems accurately reflect the law's provisions is a continuous requirement. Misinterpretation or non-compliance, even unintentional, can lead to significant financial penalties and legal challenges.

For employees, understanding the nuances of their entitlements is key to asserting their rights. Issues such as the calculation of leave pay, the refusal of leave requests, or disputes over termination related to sick leave can quickly escalate into complex legal matters.

In such situations, seeking the counsel of specialized legal experts is the most prudent course of action. Whether it is a matter of proactive compliance or reactive dispute resolution, professional legal support can provide the necessary clarity and representation. Should a disagreement arise regarding any of these entitlements, from the calculation of annual leave pay to the legality of a termination, expert legal intervention is often necessary to protect one's interests.

The UAE's commitment to a modern, fair, and competitive labor market is evident in its comprehensive Labour Law. By understanding and adhering to these entitlements, both employers and employees contribute to a stable and productive working environment in the Emirates.

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Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on the content of this article.

Nour Attorneys Team

Additional Resources

Explore more of our insights on related topics:

• UAE Sick Leave Law 2025: Entitlements, Pay & Employer Obligations
• UAE Maternity & Paternity Leave 2025: Rights & Employer Obligations
• The Strategic Guide to Annual Corporate Compliance And Maintenance in the UAE
• UAE New Labour Law 2022 Guide: Federal Decree-Law No. 33 Explained