Employees are entitled to official public holidays under the UAE Labour Law. There are industries that cannot shut down completely and may require employees to work even on public holidays. In such situations, the law provides alternative benefits and compensation that must be given to such employees.
Applicable Law
The Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations regulates the employment relationships in the UAE private sector. Article 28 of the law states about public holidays and provisions relating to that.
Employee Entitlement to Official Holidays
Employees are entitled to weekly rest days and companies may provide additional leave benefits at their discretion. The employees are also entitled to official holidays that are determined by the cabinet resolutions with full pay.
Working During Official Holidays
Employers may require employees to work during public holidays if work circumstances require it.The employer in such cases must compensate the employee by:
- giving another rest day; OR
- paying normal daily wages plus at least 50% of the employee’s basic wage.
How is Compensation Calculated?
If the employee works on a public holiday they receive:
- normal daily wage; PLUS
- minimum 50% additional basic salary for that day.
The fifty percent is calculated on the basic wage and not on the salary and the employers may provide better benefits through company policies.
Practical Issues Faced by Employees
- Employees not receiving substitute leave.
- Employers giving only normal salary without the additional 50%.
- Confusion regarding overtime and holiday pay.
The UAE Labour Law provides clear protection to employees regarding official holidays and compensation for working during such days. Employers are required to either grant substitute leave or provide additional payment in accordance with the law. Understanding these rights helps maintain fair employment practices and workplace compliance.