Guideline For Employees - Part II: Annual, Sick, Maternity Leave And Deductions On The Salary

Guideline For Employees

Part II 

Labour & Employment Part: Annual, Sick, Maternity Leave And Deductions On The Salary

Under what circumstances can an employee’s salary be deducted, and what are the limits on these deductions? Can employees carry over unused annual leave to the next year, and what are the conditions for doing so? What happens if an employee does not return to work after their leave ends without a valid reason?

In this second part of the guideline for employees, we will address key topics related to labour relations, based on the UAE Federal Decree-Law No. 33/2021 On Regulation of Labour Relations (referred to as “UAE Labour Law” or “Employment Law”).

It is important to note that the provisions of this law, and therefore this guideline, apply only to establishments, employers, and workers within the private sector in the UAE. Employees of federal and local government entities, members of the armed forces, police, security personnel, domestic workers, and any other workers under independent jurisdictions such as Abu Dhabi Global Market (“ADGM”) or Dubai International Financial Centre (“DIFC”) are not subject to this regulation.

Rest Entitlement, Official Holidays And Annual Leave

Entitlement

Full-time employees are entitled to 30 calendar days of annual leave for each year of service. In the first year, if an employee has worked between six months and one year, they are entitled to 2 days of leave for each month worked. If employment ends before the entire leave balance is used, the leave will be pro-rated.

For part-time employees, annual leave is calculated based on actual working hours as stipulated in the employment contract.

Usage

Employees are entitled to their full salary during their annual leave period. They should use their leave within the year it is earned. Moreover, employers can determine leave dates based on work requirements, but this should be done with the agreement of the employee. In addition, employees may carry over their annual leave balance to the following year, provided they have employer approval and follow the establishment's regulations and the stipulations of the employment contract.

Furthermore, employers must notify employees of their leave dates at least one month in advance, or as stipulated in the contract. Additionally, employers cannot prevent employees from using their annual leave for more than two years unless the employee chooses to carry it over or receive cash compensation.

Finally, any public holidays that fall within the annual leave period will count as part of the annual leave unless the employment contract specifies otherwise.

Maternity Leave

Female employees are entitled to maternity leave of 60 days, distributed as follows: the first 45 days with full pay, and the subsequent 15 days with half pay.

After exhausting this maternity leave, female employees may take up to 45 additional days off without pay if they or their child suffer from an illness related to pregnancy or childbirth that prevents them from returning to work. This additional leave must be supported by a medical certificate from a recognized medical entity. Importantly, this period does not count towards the employee’s service for end-of-service gratuity or retirement contributions.

Furthermore, if childbirth occurs after at least 6 months of pregnancy, the employee is still entitled to the maternity leave described above, even if the baby is born deceased or dies shortly after birth.

In cases where a female employee gives birth to a sick or disabled child, requiring constant care as per a medical report, she is entitled to 30 days of full pay leave, starting after her initial maternity leave. She may also extend this leave for an additional 30 days without pay.

The employer must grant maternity leave whenever requested by the employee, starting from the last day of the month immediately preceding the expected delivery date, supported by a medical certificate.

Receiving maternity leave or taking the additional unpaid leave does not affect the employee’s right to other types of leave.

However, if the employee works for another employer during her authorized maternity leave, the original employer may withhold her remuneration for that period and reclaim any payments made.

Moreover, an employee’s service cannot be terminated or put at risk due to pregnancy, the use of maternity leave, or absence related to this leave.

Upon returning from maternity leave and for up to 6 months post-delivery, female employees are entitled to one or two rest periods per day to breastfeed their child, with the total duration of these breaks not exceeding one hour.

Sick Leave

If a worker contracts an illness unrelated to a work injury, they must notify their employer or representative within three working days and provide a medical report from a recognized medical entity.

During the probation period, workers are not entitled to paid sick leave. However, the employer may grant unpaid sick leave based on a medical report that justifies the need for such leave.

After completing the probation period, workers are eligible for up to 90 days of sick leave per year, which can be used continuously or intermittently. This sick leave is structured as follows:

• The first 15 days are paid at full salary.
• The next 30 days are paid at half salary.
• Any remaining sick leave beyond this period is unpaid.

Sick leave will not be paid if the illness is due to the worker's own misconduct, as outlined in the implementing regulations of the relevant law.

If a worker exhausts their sick leave and is still unable to return to work, the employer may terminate their employment. In such cases, the worker will receive all financial entitlements as stipulated by the law and its implementing regulations.

Miscellaneous Leaves

Workers are entitled to various types of paid leave under the following conditions:

• Bereavement Leave: Five days for the death of a spouse; or three days for the death of a parent, child, sibling, grandchild, or grandparent. This leave starts from the date of death.
• Parental Leave: Five working days to care for a newborn child. This leave can be taken continuously or intermittently within six months from the child's birth, and is available to either the father or mother.
• Study Leave: Ten working days per year for workers attending approved educational institutions to sit for exams. Additionally, Workers must have been with the employer for at least two years to qualify.
• Sabbatical Leave: National workers are entitled to sabbatical leave to perform national military and reserve service with pay, in line with national legislation.

Unpaid Leave

Workers may request unpaid leave, provided they obtain approval from their employer. This type of leave is not counted toward the worker’s service period with the employer or their participation in the retirement scheme, according to current legislation.

Cases Of Deduction From The Workers Salary

Deductions from a worker’s salary are permitted under specific conditions. These include repaying loans granted to the worker, with the worker’s written consent and without interest, and recovering any excess payments made to the worker, with deductions capped at 20% of the salary. Other allowable deductions include contributions to retirement pensions and insurance, provident fund contributions, and agreed-upon premiums for social projects or benefits, provided the worker has given written consent.

Penalties for worker violations can also be deducted, but these are limited to 5% of the salary. Judicial debts, such as those ordered by a court, may be deducted up to 25% of the salary, with alimony debts allowed to exceed this limit. For multiple debts, payments will be prioritized according to legal ranks. Additionally, deductions can cover damage caused by the worker to the employer’s property, but these deductions cannot exceed the equivalent of 5 days’ wages per month, and any excess requires court approval.

Overall, total deductions from a worker’s salary cannot exceed 50% of their total remuneration. This rule ensures that the worker retains a fair portion of their salary while allowing necessary deductions for legitimate reasons.

Final Words

This guideline has outlined the key provisions of UAE labour law related to employee entitlements, including annual, sick, and maternity leave, as well as salary deductions.

It is important to note that the UAE labour law provides a comprehensive framework to protect the rights of employees and ensure fair labour practices. By understanding the provisions outlined in this guideline, both employees and employers can work together to create a harmonious and productive work environment.

However, it is essential to remember that labour law is a complex area and specific situations may require legal advice. Employees are encouraged to consult with a legal professional for any questions or concerns related to their employment rights.

FAQS

Can employers temporarily suspend you from work withhold pay?

Employers have the authority to temporarily suspend a worker for up to 30 days to conduct a disciplinary investigation if needed. During this period, the worker will receive only half of their remuneration. If the investigation results in no violation or simply a warning, the worker will be paid the suspended remuneration for the investigation period.

Additionally, if a worker is accused of serious crimes such as assault or crimes against honour, they may be suspended until a final judicial decision is made. During this time, their remuneration will be withheld. Should the worker be acquitted or if the case is dismissed due to lack of evidence, they are entitled to resume work with full payment for the suspended period.

For foreign workers, leaving work for an illegal reason before the end of the contract term will result in a one-year ban on obtaining a new work permit within the state. No other employer can hire them during this period if aware of the situation. The Ministry may grant exceptions for certain job categories or skill levels, and employers are required to notify the Ministry of any work suspension incidents as per the established regulations.

Can an employee choose their vacation period?

Employees typically do not have complete freedom to choose their vacation period. Instead, they are required to use their leave within the year it is earned. Employers have the authority to set the dates for vacation based on the needs of the workplace and in coordination with the employee. To ensure smooth operations, employers may schedule leave dates to avoid disruptions. They must inform employees of their assigned leave dates with at least one month's notice.

However, employees may be able to carry over their unused annual leave to the following year, provided they receive the employer’s approval and comply with the establishment's regulations.

What are the consequences of absence after leave ends?

If a worker fails to return to work immediately after their leave ends, and does so without a valid reason, they will forfeit their remuneration for the period of absence following the end of their leave.

Will Weekend Days Be Considered Unpaid Leave During the Probation Period?

If an employee takes sick leave during the probation period and it is classified as unpaid, whether weekend days (like Sunday) are included as unpaid leave depends on what is specified in the employment contract. Generally, weekends are included in the unpaid leave period, so if the leave spans from Wednesday to Wednesday, the weekend days would also be considered unpaid, unless the contract states otherwise.

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