UAE Labour Law Explained: Can Employers Require Employees to Work During Annual Leave Period?

Annual leave is a fundamental right for employees in the United Arab Emirates, guaranteed under the country’s labour legislation. While employers have the authority to organise leave schedules based on operational needs, the law also places clear limits on how that discretion can be exercised, particularly when it comes to requiring employees to work during their approved leave period.

Under the UAE’s labour framework, employers may determine the timing of annual leave in coordination with employees and according to business requirements. This arrangement is designed to ensure the smooth functioning of an organisation while allowing staff to take their legally mandated rest period. In practice, companies often implement leave rotation systems so that operations continue without disruption.

The law requires that employees take their annual leave during the year in which it becomes due. Employers are permitted to fix the dates of leave depending on work requirements, but this should normally occur in consultation with the employee. Once the dates are decided, the employer must notify the employee at least one month in advance. This advance notice requirement ensures that employees have sufficient time to plan their leave and personal commitments.

However, once annual leave has been formally approved in accordance with the law, an employer cannot ordinarily require an employee to continue working during that period. Annual leave is intended to provide rest and recovery, and compelling an employee to work during this time would defeat its purpose.

That said, the law allows some flexibility if both parties agree. In situations where urgent business needs arise, an employee and employer may mutually agree to modify the leave arrangement. For example, the employee may choose to postpone the leave until after the completion of an important assignment or agree to assist with work during the leave period. Such arrangements must be voluntary and cannot be imposed unilaterally by the employer.

When an employee does work during days that were originally allocated as annual leave, the law requires that the employee be compensated. This compensation may take the form of alternative leave days granted at a later time or additional pay in lieu of the leave days that were not utilised. The exact arrangement may depend on the employment contract and the agreement between the employer and employee.

Conflicts sometimes arise when a major project deadline overlaps with a scheduled leave period. In such cases, the appropriate approach is usually for the employer and employee to discuss a possible rescheduling of the leave if both parties agree. Employers may request that employees delay their leave until after critical work is completed, but this must be done through agreement rather than coercion.

Importantly, the law also provides protection for employees against unfair termination in such situations. An employer cannot lawfully dismiss an employee solely because a project deadline coincides with an approved leave period. If an employee is terminated under such circumstances, the dismissal could potentially be challenged as arbitrary.

UAE labour law defines arbitrary dismissal as termination carried out for unlawful reasons, including circumstances where an employee is penalised for exercising their legal rights. If a court determines that a dismissal was arbitrary, the employer may be ordered to pay compensation to the employee. The compensation is assessed by the competent court after considering factors such as the nature of the work, the harm suffered by the employee and the length of service.

The law caps such compensation at a maximum of three months’ wages calculated on the employee’s last drawn salary. This compensation is separate from other statutory entitlements, including notice period pay and end-of-service benefits that may also be due upon termination.

Employees who believe they are being pressured to work during their annual leave or face adverse action for refusing to do so may seek assistance from the relevant labour authorities. They also have the option of filing a complaint if they believe their rights under the employment law have been violated.

In practical terms, most disputes related to leave scheduling or project deadlines can be resolved through discussion and mutual understanding between employers and employees. The law encourages such cooperation while ensuring that employees retain the right to their annual leave and protection against unfair treatment.

Ultimately, the UAE’s labour regulations aim to balance the operational needs of businesses with the well-being and legal rights of employees, ensuring that annual leave remains a protected entitlement rather than a discretionary benefit.

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