Annual leave is one of the most important employment benefits, allowing employees to rest, spend time with their families, and maintain a healthy work-life balance. However, many employees assume that once they have accrued annual leave, they are free to take it whenever they choose. In reality, UAE employment law adopts a balanced approach that protects both the interests of employees and the operational needs of employers.
A common question arises is whether an employee could take annual leave during peak holiday seasons, or whether an employer refuse an employee’s request for annual leave due to staff shortages or any other employment related reasons. The answer, under UAE law, is yes, subject to certain conditions.
Employer’s Right to Schedule Annual Leave
Employees working for private sector companies in UAE are governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and its implementing regulations.
Under Article 29(4) of the said law, employees are expected to take their annual leave during the year in which it becomes due. However, the law also grants employers the authority to determine the timing of annual leave based on operational requirements.
The provision states that the employer may fix the dates of annual leave in accordance with work requirements, in agreement with the employee, or rotate leave among employees to ensure the smooth continuation of business operations. The employer is also required to notify the employee of the approved leave date at least one month in advance.
This means that annual leave is not an unrestricted entitlement that an employee may exercise at any time of their choosing. While employees have the right to receive annual leave, the scheduling of that leave remains subject to legitimate business needs.
Can Staff Shortages Justify Refusing Leave?
Yes. If granting leave during a particular period would adversely affect business operations, for example, during peak business seasons, major projects, or when there is a shortage of staff, an employer may postpone or reject an employee’s preferred leave dates.
Many businesses experience increased operational demands during summer months, public holidays, or seasonal periods. In such situations, employers are legally entitled to organize annual leave schedules so that sufficient personnel remain available to maintain normal business operations.
Accordingly, an employer’s decision to postpone leave due to staffing requirements is generally consistent with UAE employment law, provided that the decision is made reasonably and in accordance with the statutory provisions.
Protection Against Indefinite Postponement
Although employers have the discretion to determine leave schedules, this discretion is not unlimited.
Article 29(8) of the UAE Employment Law specifically protects employees from being indefinitely deprived of their annual leave. The law provides that an employer may not prevent an employee from taking accrued annual leave for more than two years unless the employee voluntarily agrees to carry forward the leave or to receive payment in lieu of leave in accordance with the company’s internal policies and the applicable executive regulations.
This provision reflects the legislature’s recognition that annual leave serves an important purpose in promoting employee wellbeing and should not be continuously deferred.
In practice, annual leave planning works best when both employers and employees communicate well in advance. Employees should submit leave requests early, particularly during popular holiday periods, while employers should apply leave policies consistently and fairly across the workforce.
Where operational requirements necessitate postponing leave, employers should discuss alternative dates with employees and make reasonable efforts to accommodate their preferences whenever possible.
Conclusion
Under UAE employment law, employees are entitled to annual leave, but they do not have an absolute right to choose the dates on which that leave will be taken. Employers may refuse or postpone a leave request where genuine business requirements, including staff shortages, justify such a decision. Nevertheless, employers cannot indefinitely deny annual leave and must ensure that employees are permitted to utilize their accrued leave within the limits prescribed by law.
At Ayesha AlDhaheri Advocates and Legal Consultants, we provide expert legal guidance on UAE labour law matters, including employee entitlements, leave policies, and dispute resolution, ensuring clarity and compliance for both employers and employees.