Can an Employee Elect to Work on a UAE Public Holiday and Take a Compensatory Day in Lieu?

In the United Arab Emirates, public holidays are a legally protected entitlement for employees. Yet, with evolving business demands and operational exigencies, many employers occasionally require employees to work on such holidays. This raises a key legal question: can an employee choose to work on a public holiday and then utilise a compensatory day off (comp-off) at a later date of their own choosing under UAE Labour Law? The short answer is yes, but the process and rights involved must be clearly understood within the framework of UAE Labour Law.

Legal Framework: Public Holidays and Compensation

Under UAE Labour Law, employees are entitled to official public holidays with full pay, as determined by Cabinet resolutions. These include holidays such as New Year’s Day, Eid Al Fitr, Eid Al Adha, Islamic New Year, Prophet Muhammad’s Birthday and National Day, among others.

Crucially, the law also addresses situations where an employee works during a public holiday. If work requirements necessitate an employee working on an official public holiday, the employer must compensate them either by granting a substitute rest day (a compensatory day off) or by paying an enhanced wage for that day.

Compensation Options: Time Off or Enhanced Pay

The law provides two distinct options for compensating employees for work performed on a public holiday:

Compensatory Day Off (Time Off in Lieu):

The employee is entitled to an additional day off for each public holiday worked. This compensatory leave may be taken at a later date.

Enhanced Pay:

As an alternative to time off, the employer may opt to pay the employee their normal wage for the day plus at least 50 per cent of their basic salary. Effectively, the employee receives 150 per cent of their basic wage for working on the public holiday.

In practice, this means that an employee who elects to work on a public holiday may choose to take a substitute rest day later, subject to agreement with the employer regarding scheduling, or opt for monetary compensation. The law affords employees this choice, and it is advisable that the preferred method of compensation is agreed in advance to avoid disputes.

Is the Compensatory Day Off at the Employee’s “Own Choice”?

While the law clearly entitles an employee to a compensatory day off in lieu of enhanced pay, the timing of that leave is generally subject to mutual agreement between the employee and the employer. The legislation does not prescribe a specific timeframe for when the compensatory day off must be taken, allowing flexibility in recognition of differing operational and personal needs.

Accordingly, while an employee may elect to work on a public holiday and intend to use the comp-off at a preferred time, employers retain a degree of discretion in scheduling the substitute rest day. Best practice dictates that both parties agree in advance—ideally in writing—on when the compensatory leave will be taken, particularly where multiple employees may seek comp-off during the same period.

What Are the Employer’s Obligations?

Employers are required to ensure that:

• Public holiday work is necessitated by operational requirements.
• Appropriate compensation, either through compensatory leave or enhanced pay, is provided.
• Policies governing public holiday work and compensatory leave are clearly communicated to employees.
  
  

If an employer fails to provide the legally mandated compensation—whether through a substitute rest day or enhanced pay—employees are entitled to lodge a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).

Combining Compensatory Leave with Other Types of Leave

It is noteworthy that UAE Labour Law and its implementing regulations are silent on whether compensatory leave may be automatically combined with annual leave. Some legal interpretations suggest that only specific categories of leave -- such as unpaid leave, bereavement leave or parental leave—may be combined with annual leave. Consequently, whether compensatory leave can be taken in conjunction with annual leave remains subject to employer policy or mutual agreement.

Conclusion

In conclusion, UAE Labour Law clearly permits an employee to work on a public holiday and be compensated either through a compensatory day off or enhanced pay. While the entitlement to a substitute rest day is guaranteed, the timing of its utilisation is typically determined through agreement between the employee and employer. Employers are encouraged to clarify these arrangements in advance to ensure legal compliance and promote workplace harmony.

 

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