A public holiday is a paid day off set by the UAE government for all employees, such as Eid or National Day. Annual leave is a personal, paid leave entitlement of 30 days a year that employees request and use at their own choice. Public holidays do not need approval or reduce annual leave balance. Annual leave does need approval and comes from the employee's own leave balance.
Quick Summary
- Public holidays are government-mandated paid days off for all employees, with no approval needed and no impact on annual leave balance.
- Annual leave is a personal paid entitlement of 30 calendar days per year, requiring employer approval and available after one year of service.
- Both types are paid at full salary.
- Public holidays are set by the UAE government each year and typically cover national and religious occasions.
- If a public holiday falls during approved annual leave, it is generally not deducted from the annual leave balance.
- Employees required to work on a public holiday are entitled to 150% of their normal wage or a substitute day off.
- Annual leave can be carried forward within employer policy limits. Public holidays are not carried forward.
- UAE Labour Law references: Public holidays under Article 28 and annual leave under Article 29 of Federal Decree-Law No. 33 of 2021.
Public Holiday vs Annual Leave at a Glance
| Factor | Public Holiday | Annual Leave |
|---|---|---|
| Purpose | National or religious observance | Personal rest and time off |
| Who is eligible | All employees | Employees with 1 year of service (pro-rata after 6 months) |
| Paid or unpaid | Paid | Paid |
| Number of days | Set by UAE government each year | 30 calendar days a year |
| Employer approval required | No | Yes |
| Can it be carried forward | Not applicable | Yes, within employer policy limits |
| Impact on salary | None, normal pay continues | None, full pay during leave |
| UAE Labour Law reference | Article 28 | Article 29 |
What Is a Public Holiday?
Definition
A public holiday is a day officially designated by the UAE government for rest, tied to national or religious events. All employees receive the day off with pay.
Purpose
Public holidays mark significant national or religious occasions and apply uniformly across the country, regardless of company or industry.
Official UAE Public Holidays
These typically include New Year's Day, Eid Al Fitr, Arafat Day, Eid Al Adha, Islamic New Year, Prophet Mohammed's Birthday, Commemoration Day, and National Day. Exact dates for Islamic holidays shift each year based on the lunar calendar and are confirmed closer to the date.
What Is Annual Leave?
Definition
Annual leave is the personal paid leave entitlement every private sector employee earns under Article 29 of the UAE Labour Law.
Purpose
It gives employees dedicated time for rest, travel, or personal matters, planned and approved in advance with their employer.
Annual Leave Entitlement
Employees earn 30 calendar days a year after one year of service, or 2 days per month once they pass six months of service.
Key Differences Between Public Holiday and Annual Leave
Eligibility
Every employee gets public holidays regardless of service length. Annual leave eligibility depends on time served with the employer.
Leave Duration
Public holidays are fixed by the government each year, typically around 14 to 15 days combined across all occasions. Annual leave is a fixed 30-day yearly entitlement.
Salary & Pay
Both are paid at full salary. The difference is that public holiday pay applies automatically, while annual leave pay is tied to an approved leave request.
Employer Approval
Public holidays require no approval since they apply to everyone on the same date. Annual leave dates must be requested and approved based on business needs.
Carry Forward Rules
Public holidays are not something to carry forward, since they occur on fixed calendar dates. Annual leave can sometimes be carried forward to the next year, depending on company policy, though many employers cap the carried amount.
Working on a Public Holiday
If an employee is required to work on a public holiday, UAE Labour Law entitles them to compensation of 150% of their normal wage for those hours, or a substitute day off, depending on employer policy.
Public Holidays During Annual Leave
If a public holiday falls within an approved annual leave period, it is generally not deducted from the annual leave balance, since it is a separate, government-mandated day off.
Public Holidays & Annual Leave Under UAE Labour Law
Employee Rights
Employees are entitled to all public holidays with pay and to their full 30-day annual leave entitlement once eligible.
Employer Responsibilities
Employers must observe all official public holidays and cannot ask employees to work without proper compensation. They must also process annual leave requests fairly and pay full wages during approved leave.
Compensation for Working on Public Holidays
Employees who work on a public holiday should receive 150% of their regular pay for those hours, or an alternative rest day, as per company policy and labour law guidance.
What Happens If a Public Holiday Falls During Annual Leave?
Different Scenarios
If an employee is on approved annual leave and a public holiday occurs during that period, most companies do not count that day against the annual leave balance. Some companies may offer to extend the leave by that day or simply not deduct it, but practices vary, so employees should confirm their company's specific policy.
HR Best Practices
HR teams should clearly state in the leave policy whether public holidays falling within annual leave are excluded from the leave count, to avoid confusion and disputes.
Which Leave Should You Use?
Vacation
Annual leave, planned and approved ahead of time.
National Holiday
No leave request needed. All employees automatically get the day off.
Religious Holiday
Same as national holidays. These are set centrally and applied uniformly.
Long Weekend Planning
Employees often combine a public holiday with a short annual leave request to create an extended break, which is a common and efficient use of both entitlements together.
Real-Life HR Scenarios
Employee Planning Annual Leave Around Eid
An employee requests three days of annual leave right after the Eid Al Fitr public holiday to create a longer break. HR processes the annual leave request separately from the holiday days.
Working on a Public Holiday
An employee in a client-facing role is asked to work on National Day. The company compensates the employee with 150% pay for that day, as per policy.
Public Holiday During Approved Leave
An employee's approved two-week annual leave includes a public holiday. HR does not deduct that day from the employee's annual leave balance.
Public Holiday vs Annual Leave vs Unpaid Leave
| Factor | Public Holiday | Annual Leave | Unpaid Leave |
|---|---|---|---|
| Pay | Full pay | Full pay | No pay |
| Approval needed | No | Yes | Yes, discretionary |
| Source | Government calendar | Personal leave balance | Employer discretion |
Common Mistakes Employees Make
Employees sometimes assume public holidays count against their annual leave balance, which they should not. Others forget to confirm company policy on how public holidays during leave are treated, leading to disputes later.
Frequently Asked Questions
What is the difference between a public holiday and annual leave in the UAE?
A public holiday is a government-mandated paid day off for everyone. Annual leave is a personal, approved leave entitlement of 30 days a year.
Are public holidays counted as annual leave in the UAE?
No. Public holidays are separate from annual leave and should not reduce the annual leave balance.
What happens if a public holiday falls during my annual leave?
Most companies do not deduct that day from the annual leave balance, though employees should check their specific company policy.
Do I need employer approval for annual leave but not public holidays?
Yes. Annual leave requires approval based on business needs. Public holidays apply automatically to all employees.
Am I paid for public holidays in the UAE?
Yes, employees receive full pay for official public holidays.
What if I work on a public holiday in the UAE?
You are entitled to 150% of your normal pay for those hours, or a substitute day off, based on company policy.
Can I combine annual leave with public holidays?
Yes, many employees combine a public holiday with annual leave days to plan a longer break.
Are public holidays deducted from my annual leave balance?
No, they are treated as separate paid days off.
Can an employer require employees to work on a public holiday?
Yes, in certain roles, but the employer must provide the legally required compensation or a substitute day off.
Which is better for planning a vacation - public holidays or annual leave?
A combination works best. Employees can use annual leave alongside a public holiday to extend a break while using fewer leave days.
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