Understanding UAE Law on Annual Leave Priority: Can Employers Favor Employees with Families?

If you’ve heard that your boss is giving preference to employees with families when scheduling leave -- especially during school holiday periods -- you may wonder whether that is legally allowed in the UAE. The short answer is: yes, to an extent. But there are important legal limits and protections. Let’s unpack what the UAE labour law says, what rights employees have, and what you can do.

 

What Does UAE Law Say About Annual Leave?

 

1. Minimum Annual Leave Entitlement
   
   Under Federal Decree-Law No. 33 of 2021 (the UAE Employment Law), an employee working in the private sector is entitled to at least 30 calendar days of paid annual leave once they have completed one year of service.
   
   Employer’s Right to Fix Leave Dates
   
   The same law grants employers the flexibility to decide when employees take their annual leave. According to Article 29(4): the employer may fix leave dates “in accordance with work requirements,” in agreement with the employee, or by rotating leave among staff to ensure the business runs smoothly.
   • Importantly, the employer must notify the employee of the leave dates at least one month in advance.
   • If business needs demand it, an employer can postpone or shift when people take leave -- but within the boundaries of legal protections.
      
2. Carry-Over or Encashment of Unused Leave
    
   • Employees may carry forward a portion of their unused annual leave, but only up to 50% of the entitlement, based on Cabinet Resolution No. 1 of 2022.
   • Alternatively, an employee and employer may agree that the employee receives a cash allowance in lieu of that carried-over leave.
   • There’s another important rule: the employer cannot prevent an employee from using their accrued leave for more than two years, unless the employee agrees to carry it forward or take cash instead. This is under Article 29(8).
   • On termination, any unused annual leave must be paid out based on the employee’s basic salary.
      

So, Is It Legal for Employers to Give Priority to Employees with Families?
 

Yes -- with limitations. Because the employer has the legal right to fix annual leave dates (Article 29(4)), they can take into account “work requirements,” which often include higher leave demand during school holiday periods. In practice, this means they can give preference to employees who are more likely to want leave during those dates (for example, those with children on school break), provided they do so in a way that respects their legal obligations:

 

• They must notify leave dates at least one month in advance. They must ensure that each employee is able to take their full leave entitlement, or at least allow carry-over (up to the legal limit).
• They cannot indefinitely withhold leave beyond two years without either letting you take it, or offering cash in lieu (if agreed).
   

What Can You Do as an Employee If You’re Affected?
 

If you feel you are being unfairly denied leave or squeezed out because of “preference” to others:
 

1. Have a Conversation
   
   Try to speak with your manager or HR. Explain your need (for instance, you planned to travel home). Because the law requires mutual agreement (where possible) for leave dates, there is room to negotiate.
    
2. Refer to Company Policy
   
   Check your company’s internal policy or HR handbook. Many companies lay out their leave-approval process and rotation policy more explicitly, and these may be more favorable than the legal minimum.
    
3. Know Your Rights for Deferred Leave
   
   If you can’t take your leave when you want, you may carry forward up to 50%, or agree to take cash in lieu (depending on your employer) -- as per Cabinet Resolution No. 1 of 2022.
    
4. Seek Legal Advice or File a Complaint
   
   If you believe your employer is violating the law (for example, by not granting your leave for over two years without offering cash or carry-over), you can approach:
   • Your company’s HR or legal team; or
   • MoHRE (Ministry of Human Resources & Emiratisation), which enforces labour law in the UAE.
      

Why Such a Policy (“Priority to Families”) Is Not Automatically Illegal
 

• Business needs justify it: Many businesses experience high leave demand during peak holiday times (e.g., school breaks), so they plan leave schedules accordingly.
• Law already anticipates this: Article 29 explicitly gives the employer discretion to “rotate leaves” or schedule based on work needs.
  Protection exists: The law isn’t one-sided -- employees also have enforceable rights (monthly notice, carry-over, payment for unused leave, etc.).
   

Conclusion: Legally Permissible but Not Unbounded
 

• Prioritising leave for families is not inherently illegal under current UAE law -- employers have the discretion to set leave dates in line with business needs.
• However, there are important legal guardrails: automatic long-term postponement, ignoring leave entitlements, or failing to inform employees in time, may constitute a breach of the law.
• If you feel your leave request is being unfairly denied, use the law to support your discussion with your employer -- and, if needed, escalate through HR or regulatory channels.

 

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