The UAE has reaffirmed and clarified its annual leave regulations for 2026, offering greater transparency for employees across the private sector. The updated guidance aims to ensure both employers and workers clearly understand their rights and obligations under the country’s labour framework.
Under current UAE labour law, employees who have completed one year of service are entitled to 30 calendar days of paid annual leave. Those who have worked for more than six months but less than a year are entitled to leave calculated at two days per month. Workers are also entitled to receive their full basic salary plus allowances during their approved leave period.
Authorities have reiterated that employers must grant annual leave within the same year it becomes due, unless both parties agree to carry forward a portion of it. In cases where an employee’s contract is terminated, any unused leave must be compensated financially based on the employee’s basic wage.
The clarification also addresses part-time and flexible work arrangements, confirming that leave entitlements are calculated proportionally according to actual working hours and contract terms. Additionally, public holidays that fall during an employee’s annual leave are generally not counted as part of the leave balance.
Labour experts say the renewed focus on leave policies reflects the UAE’s ongoing commitment to work-life balance and employee wellbeing. With a growing and diverse workforce, clear regulations help maintain fairness while supporting productivity across sectors.
Employees are encouraged to review their contracts and company policies to ensure alignment with the official labour provisions for 2026.
