Working on a UAE Public Holiday: Your Legal Right to Compensatory Leave, Extra Pay, and What Employers Can and Cannot Decide

In the United Arab Emirates, employees are legally entitled to time off on officially declared public holidays, with full pay. These holidays are determined by Cabinet decisions and implemented through announcements by the Ministry of Human Resources and Emiratisation. The governing framework for this entitlement is set out in Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which applies to private sector employees across the mainland.

Under Article 28(1) of the Employment Law, employees must be granted official leave with full pay on public holidays. However, the law also recognises that certain business needs may require employees to work on such days. In such cases, Article 28(2) provides clear protection: employees who are required to work during a public holiday are entitled to compensation in one of two forms. They must either be given a substitute rest day for each holiday worked or be paid their regular salary for that day along with an additional supplement of at least 50 per cent of their basic salary.

This dual-option framework ensures that employees are not disadvantaged for working during periods that are otherwise designated as paid leave. The choice between compensatory leave and additional pay is typically determined by the employer, depending on operational requirements and internal policies, although it must always comply with the minimum standards set by law.

An important aspect that often creates confusion among employees is the validity or expiry of compensatory leave. The Employment Law itself does not explicitly define how or when such leave must be utilised. This means there is no statutory deadline prescribed for employees to take their compensatory off. Instead, this area is generally governed by the employer’s internal human resources policies.

For companies employing more than 50 workers, the law mandates the establishment of formal internal regulations. Article 13(3) of the Employment Law requires such employers to implement documented policies covering work instructions, benefits, promotions, sanctions, and other employment-related rules. These internal frameworks typically include provisions on how compensatory leave is accrued, scheduled, and whether it is subject to an expiry period.

In practice, many organisations stipulate that compensatory leave must be used within a defined timeframe — such as within one or three months from the date it is earned. Others may allow more flexibility, subject to managerial approval. While such conditions are permissible, they must not contradict or undermine the employee’s fundamental entitlement under the law. Any internal rule that effectively deprives an employee of their right to compensation for working on a public holiday could be challenged as inconsistent with the statutory framework.

For smaller establishments employing fewer than 50 workers, the requirement to maintain detailed internal regulations may not be mandatory. Nevertheless, even in such cases, employers are still bound by the core provisions of the Employment Law. This means they must ensure that employees who work on public holidays receive either compensatory leave or the prescribed additional pay.

Employees are therefore advised to review their company’s HR handbook or employment contract to understand how compensatory leave is administered in their organisation. Where policies exist, they should clearly outline eligibility, approval processes, and any time limits for availing such leave. If there is any ambiguity, it is prudent to seek clarification from the employer’s HR department.

Ultimately, while UAE law guarantees compensation for working on public holidays, the mechanics of how that compensation is delivered — particularly in terms of compensatory leave — are shaped by internal company policies. However, these policies must operate within the boundaries of the law and cannot override the minimum rights granted to employees.

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