Unpaid Leave in UAE: Rules, Eligibility & Labour Law

Unpaid leave is time off work without salary, granted at the employer's discretion once an employee's paid annual leave is exhausted or for reasons outside standard leave categories. UAE Labour Law does not set a fixed limit on unpaid leave, and time spent on it does not count toward gratuity or other end-of-service benefits.

Quick Summary

• Unpaid leave in the UAE is not a defined statutory entitlement - it is managed through company policy and employer discretion.
• Employer approval is required and can be declined based on business needs.
• Salary impact: Full salary stops for the entire duration of the unpaid leave period.
• Annual leave accrual typically pauses during unpaid leave.
• Gratuity impact: Unpaid leave periods are generally excluded from the service length used to calculate end-of-service benefits.
• Health insurance and other benefits may be affected - employees should confirm with HR before taking extended unpaid leave.
• Common reasons include extended personal travel, medical recovery beyond sick leave limits, family matters, and further education.
• There is no fixed statutory limit on the number of unpaid leave days.

Unpaid Leave at a Glance

What Is Unpaid Leave?

Definition

Unpaid leave is a period of authorized absence from work during which the employee receives no salary. It is distinct from annual leave and sick leave, both of which come with statutory pay entitlements.

When Employees Take Unpaid Leave

Employees typically request unpaid leave once they have used their full annual leave balance and need more time off, or when facing situations not covered by other paid leave categories.

Common Reasons

Extended personal travel, family matters, further education, or medical recovery that exceeds the standard sick leave limit are common reasons employees request unpaid leave.

Unpaid Leave Under UAE Labour Law

Legal Framework

UAE Labour Law does not include a dedicated article defining unpaid leave in the way it defines annual leave or sick leave. It is generally handled through the employment contract and company policy.

Employer Approval

Since there is no statutory entitlement, employers have full discretion over whether to approve unpaid leave requests.

Employee Rights

Employees do not have an automatic legal right to unpaid leave, but once granted, they retain their basic employment protections and their job should be preserved for their return, as agreed with the employer.

Employer Responsibilities

Employers should clearly document the terms of unpaid leave, including its duration, effect on benefits, and expected return date, to avoid disputes later.

Who Is Eligible for Unpaid Leave?

Full-Time Employees

Any full-time employee can request unpaid leave, subject to employer approval.

Part-Time Employees

Part-time employees can also request unpaid leave, following the same discretionary approval process.

Private Sector Employees

This applies broadly across UAE private sector companies, since unpaid leave is governed by company policy rather than a specific statutory right.

Reasons for Taking Unpaid Leave

Personal Reasons

Family matters, relocation preparations, or other personal commitments that require extended time away from work.

Medical Reasons

Recovery that extends beyond the 90-day statutory sick leave limit may require unpaid leave to continue.

Family Emergencies

Situations requiring extended time with family beyond what compassionate or emergency leave policies cover.

Education or Exams

Employees pursuing further studies may request unpaid leave for exam periods beyond their statutory study leave entitlement.

Travel

Extended international travel plans that exceed the available annual leave balance.

How to Apply for Unpaid Leave

Approval Process

Submit a written request to your manager or HR, stating the reason, requested duration, and return date. The employer reviews the request based on business needs and company policy.

Required Documents

Depending on the reason, supporting documents such as a medical report or educational institution letter may be requested.

Sample Unpaid Leave Request

"Dear [Manager's Name], I would like to request unpaid leave from [start date] to [end date] due to [brief reason]. I have used my full annual leave balance for this year and would appreciate your approval for this additional time off. I will ensure a proper handover before my leave begins."

Salary & Benefits During Unpaid Leave

Salary Deduction

Full salary stops for the duration of the unpaid leave period.

Annual Leave Accrual

Annual leave accrual typically pauses during unpaid leave, since no salary is being paid for that time.

End-of-Service Benefits

Periods of unpaid leave are generally excluded from the service length used to calculate gratuity.

Health Insurance & Other Benefits

Health insurance and other benefits may be affected during unpaid leave, depending on company policy. Employees should confirm this with HR before taking extended unpaid leave.

Can an Employer Refuse Unpaid Leave?

Yes. Since unpaid leave is not a statutory entitlement, employers can decline a request based on business needs, staffing requirements, or company policy.

Unpaid Leave During

Probation

Unpaid leave during probation is rare and typically only granted in exceptional circumstances, since probation periods focus on evaluating the employee's fit for the role.

Notice Period

Unpaid leave during an active notice period is uncommon, since the employer generally expects the employee to work through the notice period unless otherwise agreed.

Maternity Leave

After using the standard 60-day maternity leave, a mother experiencing pregnancy or childbirth-related illness can take up to 45 additional days unpaid, with a medical certificate.

Sick Leave Exhaustion

Once an employee has used the full 90-day sick leave entitlement, any further absence for the same illness typically becomes unpaid leave, subject to employer agreement.

Common HR Scenarios

Extended Vacation

An employee wants a six-week trip but only has three weeks of annual leave remaining. The company approves three weeks as paid annual leave and three weeks as unpaid leave.

Family Emergency

An employee needs a month to support a family member abroad after exhausting other leave options. HR approves unpaid leave with a clear return date agreed in writing.

Personal Commitments

An employee needs time to handle a property matter in their home country. The company grants two weeks of unpaid leave after confirming there is no remaining annual leave balance.

Medical Recovery

An employee recovering from a long illness has used their full 90-day sick leave entitlement and requests additional unpaid leave to complete recovery, supported by a medical report.

Common Mistakes to Avoid

Employees sometimes assume unpaid leave is guaranteed once annual leave runs out, when it actually depends on employer approval. Employers sometimes fail to document the terms clearly, leading to confusion about benefits continuity or the employee's return date.

Frequently Asked Questions

What is unpaid leave in the UAE?

It is authorized time off without salary, typically granted after an employee's annual leave balance is exhausted or for reasons outside standard paid leave categories.

Is unpaid leave allowed under UAE Labour Law?

The law does not specifically regulate unpaid leave. It is managed through company policy and mutual agreement between employer and employee.

Can an employer refuse an unpaid leave request?

Yes, since it is discretionary and not a statutory right.

How many days of unpaid leave can an employee take?

There is no fixed statutory limit. The duration depends entirely on what the employer agrees to.

Does unpaid leave affect salary?

Yes, the employee does not receive salary for the days taken as unpaid leave.

Does unpaid leave affect annual leave entitlement?

It typically pauses further annual leave accrual during the unpaid period, though it does not remove leave already earned before that period.

Does unpaid leave affect end-of-service benefits?

Yes, unpaid leave periods are generally excluded from the service length used to calculate gratuity.

Can unpaid leave be taken during the notice period?

This is uncommon and depends on employer agreement, since employees are generally expected to work through their notice period.

What is the difference between unpaid leave and annual leave?

Annual leave is a paid statutory entitlement of 30 days a year. Unpaid leave has no salary and no fixed statutory limit, and is granted entirely at the employer's discretion.

How do I apply for unpaid leave in the UAE?

Submit a written request to your manager or HR stating the reason, duration, and return date, and wait for approval before finalizing any personal plans.