Under UAE Labour Law, an employee may take unpaid leave with the employer’s approval. General unpaid leave under Article 33 is not an automatic employee entitlement, and the approved period is excluded from the employee’s service term for purposes covered by the law.
Unpaid leave means the employee does not receive wages for the approved period, and the period generally does not count toward the service period used to calculate end-of-service benefits. Certain unpaid periods arise under specific statutory leave provisions, such as extended maternity-related leave and the unpaid portion of sick leave.
Unpaid Leave Under UAE Labour Law
Unpaid leave in the UAE allows an employee to take time away from work without receiving their normal salary for that period. For general unpaid leave, Article 33 of Federal Decree-Law No. 33 of 2021 provides that a worker may take unpaid leave after obtaining the employer’s approval.
This is different from statutory paid leave, where the law establishes a specific entitlement once the relevant conditions are met. General unpaid leave under Article 33 is subject to employer approval and is intended to cover circumstances that are not already addressed by the other statutory leave provisions.
The UAE Labour Law applies to private-sector employment relationships covered by Federal Decree-Law No. 33 of 2021. Different employment regimes can apply in areas such as the DIFC and ADGM, while domestic workers are governed by separate legislation.
General Unpaid Leave Requires Employer Approval
An employee cannot generally take Article 33 unpaid leave unilaterally; the law requires the employer’s approval before the leave is taken.
The law does not establish a fixed number of days for general unpaid leave under Article 33. Instead, the leave is subject to the employer’s approval and the arrangement between the parties.
For employees, this means that submitting a leave request does not by itself create an entitlement to be absent. The employee should wait for approval and keep evidence of the approved dates.
For employers, unpaid leave should be properly recorded, including the approved period and the corresponding payroll treatment. Clear documentation can help prevent later disagreements about whether an absence was authorised.
Approved Unpaid Leave vs Unauthorised Absence
These should not be treated as the same situation.
| Situation | Legal position |
|---|---|
| Approved unpaid leave | Employee is authorised to remain away from work without pay for the approved period |
| Unapproved absence | Employee has not received the required approval and may face consequences under applicable labour rules |
| Absence after approved leave ends | Employee should return to work unless there is a legitimate reason or further approved leave |
| Statutory unpaid leave | Governed by the specific provisions and conditions applicable to that type of leave |
Article 34 provides that a worker who does not return directly to work after leave, without a legitimate reason, is not entitled to wages for the period of absence after the leave ends.
Salary and Payroll Treatment During Unpaid Leave
An employee does not receive their normal wage for the period covered by approved unpaid leave. The unpaid days therefore reduce the amount payable for the relevant payroll period.
The exact payroll calculation can depend on the employer’s payroll system, the employee’s wage structure, and the number of unpaid days.
For example, if an employee is approved for five days of unpaid leave, the employer should reflect those five days as unpaid absence in the relevant payroll records rather than treating them as paid annual leave or another type of paid leave.
Employers should also distinguish between:
- Basic salary
- Fixed allowances
- Variable compensation
- Attendance-related payments
- Bonuses or commissions
- Other contractual benefits
The treatment of benefits during unpaid leave may depend on the employment contract, company policy, and the nature of the benefit. Therefore, employers should avoid assuming that every allowance or benefit must automatically be treated in the same way as salary.
Effect of Unpaid Leave on End-of-Service Benefits
General unpaid leave under Article 33 is excluded from the worker’s service term, which means the period does not contribute to the service period used for end-of-service benefit calculations.
This distinction matters when an employee has taken a substantial amount of unpaid leave during their employment.
For example, an employee may have been employed for five calendar years but taken several months of approved general unpaid leave. The unpaid period is not simply treated as ordinary active service when determining the relevant service period under Article 33.
Example of the Service-Term Impact
Suppose an employee has:
| Employment period | Duration |
|---|---|
| Total period with employer | 5 years |
| Approved general unpaid leave | 3 months |
| Period excluded under Article 33 | 3 months |
| Remaining service period | 4 years 9 months |
The actual calculation of end-of-service benefits should consider the applicable gratuity rules, the employee’s status, and any other periods that the law specifically excludes.
This is particularly important when an employee is approaching a service milestone that affects the gratuity calculation.
Statutory Unpaid Periods Under UAE Labour Law
General unpaid leave under Article 33 is not the only situation in which an employee may be absent without pay. Certain other provisions of the Labour Law specifically provide for unpaid periods.
| Type of unpaid period | Relevant rule | Maximum / treatment |
|---|---|---|
| General unpaid leave | Article 33 | Subject to employer approval; no fixed statutory maximum stated in Article 33 |
| Pregnancy/childbirth-related illness | Article 30 | Up to 45 additional unpaid days after maternity leave, subject to medical certification |
| Sick leave | Article 31 | After the first 15 days at full pay and next 30 days at half pay, the remaining period up to 90 days is unpaid |
| Sick or child-care extension | Article 30 | Up to 30 additional unpaid days after the 30-day fully paid leave for a sick child or child of determination requiring constant care, subject to the legal conditions |
| Hajj leave | Applicable UAE government guidance | Up to 30 days unpaid, once during employment, subject to the applicable conditions |
The statutory provisions should not be combined into one generic “unpaid leave entitlement.” Each category has its own eligibility requirements and legal treatment.
Extended Maternity-Related Unpaid Leave
A female worker who has used her statutory maternity leave may be absent without pay for up to 45 continuous or intermittent days where she or her child suffers an illness resulting from pregnancy or childbirth that prevents her from returning to work. The illness must be established by a medical certificate. This period is expressly excluded from the service term used for end-of-service benefits.
There is also a separate provision where a worker gives birth to a sick child or a child of determination whose condition requires constant care. After the maternity leave, the worker may receive 30 days with full pay and may extend the leave by another 30 days without pay, subject to the statutory conditions.
Unpaid Sick Leave
Under Article 31, a worker who has completed probation may receive up to 90 days of sick leave per year, whether consecutive or intermittent:
| Sick-leave period | Pay |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Remaining period up to 90 days | Unpaid |
During probation, the worker is not entitled to paid sick leave, although the employer may grant unpaid sick leave where a medical report establishes that it is necessary.
Hajj Leave
UAE government guidance recognises special unpaid leave for employees performing Hajj, generally for up to 30 days and once during the employment period with the employer. This should be treated separately from general Article 33 unpaid leave because it has its own purpose and conditions.
Umrah should not automatically be treated as a statutory Hajj leave entitlement. Where an employee needs time off for Umrah, the arrangement may instead depend on annual leave, approved general unpaid leave, or the employer’s policy.
Employer Responsibilities When Approving Unpaid Leave
Employers should treat unpaid leave as a documented employment arrangement rather than simply removing salary for unexplained absences.
Key steps include:
- Confirming that the leave has been approved.
- Recording the start and end dates.
- Identifying whether the leave is general unpaid leave or a statutory unpaid period.
- Applying the appropriate payroll deduction.
- Maintaining accurate attendance and leave records.
- Confirming the employee’s expected return date.
- Reviewing whether the period affects service-related entitlements.
- Ensuring that unpaid leave is not used to bypass statutory paid-leave rights.
A written leave request and approval record can provide useful evidence for both sides, even where the legislation itself refers to employer approval rather than prescribing a particular written-agreement format.
Employee Rights and Responsibilities During Unpaid Leave
Employees should also understand that approved unpaid leave does not mean the employment relationship has ended.
During an approved unpaid leave period, the employee should:
- Follow the agreed leave dates.
- Keep a copy of the approval.
- Return to work on the agreed date.
- Obtain further approval if the leave needs to be extended.
- Check how the absence affects salary and service-related benefits.
- Avoid treating an unapproved extension as automatically protected leave.
Failing to return after an approved leave period without a legitimate reason can result in the employee losing wages for the subsequent period of absence and may create further employment consequences.
Unpaid Leave During the Notice Period
Unpaid leave can also intersect with an employee’s notice period, but the two concepts should not be confused.
Under Article 43, the normal notice period for termination must be between 30 and 90 days, and the employment contract remains effective during the notice period. The worker is generally entitled to their wage during that period.
Article 35 also provides a specific rule for termination while a worker is on leave: unless the parties agree otherwise, the notice period does not begin until the day after the worker’s scheduled return from leave.
This means an employee should not assume that taking unpaid leave automatically shortens or replaces the contractual notice period.
Unpaid Leave and End-of-Service Gratuity Calculations
The impact of unpaid leave is especially relevant when calculating end-of-service gratuity.
Under the UAE Labour Law, eligible foreign full-time workers generally receive gratuity based on their last basic wage and qualifying service period. Article 33 separately states that general unpaid leave is not included in the worker’s service term.
As a result, an employer calculating final benefits should identify approved unpaid periods rather than simply using the employee’s calendar employment dates.
For employees, this means that taking unpaid leave may have a longer-term financial effect than the immediate salary deduction because the excluded period may also affect the service period used for end-of-service benefits.
Unpaid Leave Disputes Between Employers and Employees
Disputes can arise when:
- An employee believes unpaid leave was approved but payroll deducted additional days.
- An employer records an absence as unpaid leave when the employee says it was paid or statutory leave.
- An employee does not return on the agreed date.
- The parties disagree about the duration of approved leave.
- Unpaid leave is incorrectly included or excluded when calculating end-of-service benefits.
- An employer refuses a request that the employee believes is a statutory leave entitlement.
- The employee is placed on unpaid leave without the approval required for Article 33 leave.
The first step is usually to review the employment contract, leave request, approval records, attendance records, payroll statements and relevant medical or supporting documents.
Where the issue cannot be resolved internally, the employee or employer may need to use the applicable labour-dispute process.
How Al Ramsy Advocates Can Help With Unpaid Leave Disputes
Unpaid-leave disputes can involve more than a salary deduction. The legal issue may also concern whether the absence was authorised, whether a statutory leave provision applies, and whether the period affects service-related entitlements.
Labour & Employment Lawyers can assess the employment relationship, applicable leave provisions, contract terms and supporting records to determine the legal position.
The firm can assist with matters involving:
- Unpaid-leave requests and disputes
- Leave entitlement and approval issues
- Salary deductions during unpaid leave
- Employment-contract interpretation
- End-of-service benefit implications
- Disputes concerning unauthorised absence
- MOHRE labour disputes
- Employment-related litigation where formal proceedings are required
Where a leave dispute develops into a formal employment claim, Al Ramsy’s Employment Litigation Lawyers can provide representation and litigation support in accordance with the applicable UAE legal process.
Practical Checklist Before Taking Unpaid Leave
Employees should confirm the following before starting unpaid leave:
| Check | Why it matters |
|---|---|
| Employer approval | Confirms the absence is authorised |
| Start and end dates | Prevents disputes about the approved period |
| Salary deduction | Clarifies the financial impact |
| Leave category | Determines which legal rules apply |
| Service-term impact | General Article 33 leave is excluded from service |
| Return date | Prevents an unauthorised extension |
| Supporting documents | Important for statutory unpaid leave based on medical circumstances |
| Written records | Helps establish what the parties agreed |
Employers should maintain equivalent records to demonstrate that the leave was properly approved, recorded and reflected in payroll.
Frequently Asked Questions About Unpaid Leave in the UAE
Is unpaid leave a legal right in the UAE?
General unpaid leave under Article 33 is not an automatic entitlement; it requires employer approval. Separate statutory provisions may provide specific unpaid periods where their legal conditions are satisfied.
Can an employer force an employee to take unpaid leave?
Article 33 addresses unpaid leave taken after the employer’s approval. It does not provide a general mechanism for an employer to simply designate any period as Article 33 unpaid leave without the required approval. Other provisions of the Labour Law may apply to temporary suspension or other employment situations.
Does unpaid leave affect gratuity in the UAE?
General unpaid leave under Article 33 is excluded from the employee’s service term, so it can reduce the qualifying service period used for end-of-service benefit calculations.
Is unpaid sick leave included in the 90-day sick-leave period?
Yes. After the first 15 days at full pay and the next 30 days at half pay, the remaining period within the maximum 90-day sick-leave entitlement is unpaid.
How many days of unpaid maternity-related leave are available in the UAE?
A female worker may take up to 45 additional unpaid days after maternity leave where she or her child has a pregnancy- or childbirth-related illness that prevents her from returning to work, subject to a medical certificate and the conditions in Article 30.
Conclusion
Unpaid leave in the UAE is not a single category with one set of rules. General unpaid leave under Article 33 requires employer approval and is excluded from the worker’s service term, while specific unpaid periods can arise under provisions dealing with maternity-related illness, sick leave and Hajj.
