Working on UAE Public Holidays? Here’s What the Law Says About Compensatory Leave, Extra Pay and Employee Rights

Employees in the UAE’s private sector who are required to work during official public holidays are entitled to specific protections under the country’s labour law, including compensatory leave or additional financial compensation. However, disputes frequently arise when employers delay granting substitute leave, restrict when it can be used, or inform employees that the entitlement has “lapsed”.

Under the UAE Labour Law, employees are entitled to official holidays with full pay on dates announced by the Cabinet. These public holidays apply across the private sector and are treated as paid leave days for eligible employees.

Despite this entitlement, employers are legally permitted to require employees to work on official public holidays if work circumstances demand it. In such situations, the law obligates employers to compensate employees either through substitute rest days or through additional salary payments.

The law states that an employee who works on a public holiday must receive either another day off in lieu of the holiday or receive payment equivalent to a normal working day’s salary along with an additional supplement of at least 50 per cent of the employee’s basic salary for that day.

This means employers cannot simply ask employees to work on public holidays without offering one of the legally recognised forms of compensation. The entitlement applies regardless of whether the employee works a full shift or is assigned duties during the official holiday period as part of operational requirements.

While the law clearly establishes an employee’s right to compensatory leave or extra pay, it does not specify a fixed timeframe within which substitute leave must be used. The legislation remains silent on whether compensatory offs can expire after a certain period or automatically lapse if not availed within a defined duration.

In practice, many companies implement internal HR policies governing when substitute leave may be taken. Employers may determine the scheduling of compensatory leave based on operational needs, staffing requirements and workflow considerations. However, such policies cannot override the employee’s statutory entitlement to compensation for working on a public holiday.

As a result, employees may not always be free to take compensatory leave whenever they choose, especially in sectors that require continuous staffing or shift-based operations. Employers generally retain the authority to approve leave dates in line with business requirements.

At the same time, employers are expected to ensure that employees are actually granted the compensatory leave or paid the additional amount required by law. If an employer refuses both options or claims that the substitute leave has expired without offering proper compensation, employees may raise the issue with the Ministry of Human Resources and Emiratisation (MoHRE).

Employees who believe they have been denied their legal entitlement may file a labour complaint with MoHRE, which handles disputes related to wages, leave benefits and employment rights in the private sector.

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