Can UAE Employees Combine Eid Al Adha Compensatory Off Days with Annual Leave? What the Law Says

Employees in the UAE who worked during the Eid Al Adha public holidays may be eligible to combine their compensatory off days with annual leave, although the final decision rests with the employer and the company’s internal leave policies.

Under the UAE’s Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, employees in the private sector are entitled to fully paid leave on official public holidays announced by the Cabinet. However, if business or operational requirements compel an employee to work during such holidays, the law provides two forms of compensation.

The employee may either receive a substitute rest day for each public holiday worked or be paid the employee’s normal wage in addition to at least 50 per cent of the basic salary for that day.

This provision is outlined in Article 28 of the Employment Law, which governs employment relations in the UAE private sector, including mainland companies in Dubai.

The rule became particularly relevant during the Eid Al Adha break, when many businesses in sectors such as retail, hospitality, transport, healthcare and essential services continued operations despite the public holiday period. Employees who reported to work during the break may therefore accumulate compensatory rest days that can later be availed subject to employer approval.

Labour law specialists note that the legislation does not prohibit employees from combining substitute rest days with annual leave to extend a vacation period. However, annual leave scheduling in the UAE is not determined solely by the employee.

Article 29 of the Employment Law grants employers the authority to organise leave schedules according to operational requirements and workplace needs, while also requiring coordination with employees wherever possible. The law further states that employers must notify employees of their approved leave dates at least one month before the commencement of annual leave.

As a result, employees seeking to merge Eid compensatory leave with annual leave may submit a request to their employer, but approval will depend on staffing requirements, workflow demands and internal company regulations.

In many organisations, leave policies are also governed by internal human resources manuals or employment regulations that may provide additional benefits beyond the minimum standards prescribed under UAE law. Article 65 of the Employment Law allows employers to establish internal bylaws and programmes that are more beneficial to employees than the provisions contained in the legislation itself.

This means that if a company’s internal leave policy expressly permits the combination of unused public holiday compensatory leave with annual leave, employees may be able to extend their time off accordingly.

At the same time, employers retain the discretion to approve or reject such requests depending on operational circumstances, staffing levels and business continuity requirements.

Employees are therefore advised to review their company’s HR policies and discuss leave arrangements directly with their employer or HR department well in advance, particularly during peak travel seasons and holiday periods when leave requests tend to increase significantly.

The UAE Employment Law continues to place emphasis on balancing employee welfare with business operational needs, ensuring that workers who sacrifice public holidays for work are compensated either financially or through additional time off, while also allowing employers flexibility in managing workforce schedules.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.