UAE Law Clearly Prohibits Employers from Holding Workers’ Passports, Guarantees Full Annual Leave Pay

In the United Arab Emirates, the law is unequivocal: employers are not permitted to retain employees’ passports or other official documents. The prohibition forms part of the modernised labour framework introduced under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into force on February 2, 2022.

The legislation expressly obliges employers to respect workers’ personal documentation. Article 13(2) states that the employer must not withhold the worker’s official documents or compel the worker to leave the country at the end of the employment relationship. In practical terms, this means any routine company practice of keeping employee passports “for safekeeping” is unlawful unless the employee gives genuine, voluntary consent and can retrieve the document at any time. Even in such cases, authorities generally discourage the practice.

The position has been repeatedly emphasised by the Ministry of Human Resources and Emiratisation, which considers passport retention a violation of workers’ rights and a form of coercion if done without free consent. Employees who face such situations may file complaints through the ministry’s official channels.

The same law also clarified employees’ entitlement to annual leave pay. Under the current framework, workers are entitled to receive their full salary during annual leave. This entitlement has applied since February 2, 2022 — the date the decree-law entered into force. The law’s enforcement clause confirms that the provisions became legally binding from that date upon publication in the Official Gazette.

Importantly, Federal Decree-Law No. 33 of 2021 replaced the long-standing Federal Law No. 8 of 1980. Article 73 of the new law expressly abrogated the earlier statute and nullified any provisions that conflict with the updated framework. This marked a significant modernisation of UAE labour regulation, strengthening worker protections and clarifying employer obligations.

For employees, the takeaway is straightforward. Companies cannot legally hold passports as a condition of employment, and workers taking annual leave are entitled to their full salary in accordance with the current law. For employers, compliance is not optional — violations can expose businesses to complaints, penalties and labour disputes.

As the UAE continues to reform its labour market, the message from lawmakers remains clear: worker mobility, document control and timely payment of entitlements are protected rights under the country’s updated employment regime.

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