Leave Policy

Define the types of leave, eligibility and processes for all employees in your organisation in the UAE

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Leave Policy -undefined

The Company Leave policy ensures employees are provided with a reasonable and regular amount of rest and recreation away from work. Some types of leaves are introduced for personal emergencies. This policy template is a guideline for all employees to follow and explains the types of leaves available, the eligibility and procedure to avail leaves. This policy template is available for download in Word format.

Leave Policy


The objective of the Company Leave Policy is aimed toward building a structured framework of an effective and efficient company leave policy that supports the operations of the organisation and creates an effective and efficient work environment that supports the well-being of all employees. Effective and Efficient Leave Policy ensures the well-being of the employees within the organization along with ensuring that there are no disruptions in the operations of the organization due to unplanned leave taken by the employees. The policy educates the employees about the different types of leaves, the applicability of the leave, eligibility for availing leave, and the procedure for application & availing the respective leave.

Scope and Applicability

The scope of this policy covers different types of leave, applicability, eligibility and procedures. This policy covers various types of leave such as Annual Leave, Sick Leave, Maternity Leave, Paternity Leave, Bereavement Leave, Study Leave, Compensatory Offs and Sabbatical Leave.

This policy is applicable to all regular employees of the company.

Policy Definition

The Company Leave Policy defines the structured framework of leaves that apply to the employees. The policy shall assist the organisation and the employees in planning the operations of business effectively and efficiently in order to avoid any disruptions in regular business operations.

Employees are the most valuable assets of an organisation. Lack of proper leave management can lead to unauthorised absence from duty and thereby further leading to lower productivity, fall in productivity hours, missing client commitments, disruptions of processes, and so on. These types of issues can be resolved with a proper Company Leave Policy for employees in the workplace.

Types of Leave

Annual Leave (AL)

The AL calendar year for calculations of leave runs from January 1 to Dec 31. Employees will need time off from their daily official duties and routine for rest and recreation.

  • Once employees complete one year of service within the organisation, then employee/s are entitled to a fully paid AL of 30 days.
  • Once employees complete six months of service, but not one year, then employees are entitled to fully paid AL of 2 days per month.
  • Only full-time employees are entitled to a 30-day AL every year.
  • The AL calendar year for calculations of leave runs from January 1st to Dec 31st of each year.
  • AL plans should be prepared through coordination between the employees and the Line Manager. All employees shall apply for their AL 60 calendar days in advance. In the event of the absence of response and or approval from the Line manager, the employee must reach out to the Line manager via an email as a reminder for necessary approval of AL. Mere application of AL does not construe approval of leaves.
  • Employees must use their leaves in the year of entitlement. The Line Manager may, in agreement with the employees, set the dates of leave according to the work requirements.
  • The Line Manager must notify the employees of any change in the date of applied leaves at least one month in advance.
  • Employees may, with the consent of the Line Manager and following company’s regulations, carry forward the AL balance to the following year. Leaves must be carried forward only due to business exigencies. AL carry forward is limited to xx days only.
  • Leave encashment of only AL unavailed balance is allowed. This can be encashed only at the time of retirement or termination of the contract. The encashment payment is calculated based on the Basic salary.
  • Line Manager may not prevent employees from using their accrued AL for more than two years.
  • If the employee’s service has ended before the AL balance is availed, leave will be prorated for the fraction period of service.
  • Only employees going on unplanned short leaves for emergency cases (not to exceed three working days) will be exempted from taking necessary approvals. However, the employees taking leave shall keep the line manager informed of such an emergency.
  • The calculation of the duration of AL will include official holidays specified by law or by agreement and any other leaves caused by sickness if they fall within the AL unless the employment contract or the company’s regulations have other provisions.
  • AL balances cannot be transferred to or from other employees.

Sick Leave (SL)

Employees may need time off to rest and recoup during sickness or for medical care and check-up.

  • Employees are entitled to an SL of not more than 90 days per year only after the end of their probationary period.
  • The 90 days SL can be continuous or intermittent, and the salary is paid as follows:
  • Full pay for the first 15 days
  • Half pay for the next 30 days
  • No pay for the rest of the 45 days
  • However, during the probationary period, the employees may get an SL without pay, subject to the approval of the employer and based on a medical report issued by the medical entity that stipulates the necessity of the leave.
  • Employees are not eligible for SL if the illness directly arises from the misconduct of the worker, such as consumption of alcohol or narcotics or accidents caused by reckless driving.
  • The employees are not eligible for SL if they have violated the safety instructions following effective legislations in the UAE and the rules set out in the firm's regulations, which the employees were informed of.
  • The organisation may not dismiss an employee or give a termination notice while the employee is on SL. If the employee uses all of the 90 days of SL and has still been unable to report to work, then the employer may terminate his services. In such a case, the employees are entitled to the end-of-service benefits as per the provisions of the labour law.
  • If employees fall sick and require SL, then he/she should notify the respective Line Manager within 48 hours of becoming sick, if not prevented by a forced situation and give an estimation of how long the employees will be absent from work due to their sickness. Failure to do so without a forced situation will lead to deducting the said days from the employee AL.
  • The sick employees, upon return from SL, are required to fill Sick Leave Form and submit a medical certificate to the HR Department.
  • SLs cannot be carried forward or encashed, or transferred.

Maternity Leave (ML)

Female employees are eligible for pre and post-maternity time-off to cater to the needs of the newborn child and to take proper rest.

  • Female employee/s are entitled to an ML of 60 days, out of which:
  • 5 days will be fully-paid leave.
  • 15 days will be half-paid leave.
  • Female employees may apply for ML up to 30 days before the expected date of delivery.
  • In addition to the primary ML, she may take additional 45 days without pay if she has an illness as a result of pregnancy or childbirth and is unable to resume work. The illness must be proved via a medical certificate issued by the respective medical authority. These leave days can be consecutive or intermittent.
  • If the baby is sick or suffers from a disability, the employee may take additional leaves of 30 days fully paid. This leave can be further extended for additional 30 days without pay. The illness or disability of the child must be proved via a medical certificate issued by the respective medical authority.
  • After the employee resumes work, she is entitled to one or two additional breaks each day for nursing her child. The duration of the two breaks must not exceed one hour. The woman is entitled to such breaks for six months following the date of delivery. Such breaks are fully paid for.
  • Employees can choose to combine their maternity leave with any other approved holiday, and employers cannot terminate employees for taking ML.
  • The Line Manager should approve the leave applied by the employee and keep the HR department informed of the same. In the event of non-receipt of approval from the Line Manager, the employee may escalate the issue to the HR department.

Paternity Leave (PAL)

Paternity leave allows the male parent of a newly born child to take time off to be with the family, which helps in bonding and to support the spouse.


Married men can claim a five-day Pa.L to be used consecutively or throughout the first six months of their child’s birth.

  • Employees must apply for Pa.L with their Line Manager at least a week before the expected date of birth of the child.
  • The Pa.L can commence from the same day of birth of the child.

Compassionate Leave or Bereavement Leave (BL)

Employees need time off to mourn the death of their beloved family member and to attend to any rituals.


An employee of the private sector is entitled to:

  • a paid leave of five days in the event of the death of a spouse
  • a paid leave of three days in the event of the death of a parent, child, sibling, grandchild or grandparent
  • Employees can apply for BL by keeping the Line Manager informed.
  • The Line Manager should keep HR informed via email or the official Leave Management System platform.

Study Leave (STL)

The Company encourages its employees to gain knowledge continuously, which not only helps them to perform better but also is suitable for the organisation.

  • Employees enrolled in a UAE-accredited educational institution or university inside or outside the country are entitled to 10 days off a year for exams.
  • To apply for STL, employees must have completed at least two years of service with the Company.
  • The employee and the Line Manager may mutually agree on STL. The Line Manager shall approve the leave post the mutual agreement.

Official Leave & Vacations

Official Leave and vacations refer to the number of rest days per week to be extended by the organisation to employees, e.g., public holidays.

  • Official leaves also include the public holidays in the country that all the employees are entitled to avail.
  • Employees of the private sector are entitled to at least one day of paid rest per week as specified in the employment contract or work regulations of the company.
  • The company may increase the number of weekly rest days. Additionally, employees are entitled to paid leave on public holidays.

The HR department shall educate or communicate to the employees at the beginning of the calendar year regarding the Public Holidays available in that year.

Compensatory Off

If employees are required to work during holidays or leave days, s/he will be compensated with another rest day or be paid for that day, a wage as he would be paid on a typical day plus an addition of at least 50 per cent on his/her basic wage.

  • All employees who work on a public holiday.
  • Employees on probation are also entitled to a Compensatory Off if they work on public holidays.
  • The Line Manager, in mutual agreement with the employee, shall deploy the employee on work assignments or projects where the presence and contribution of the said employee shall be required.
  • The employee then needs to apply for compensatory off for the approval of Line Manager via the official Leave Management System.
  • The Line Manager can notify the HR department about the Compensatory Off of the employee via e-mail and the HR shall keep the records.
  • The Compensatory off cannot be applied in advance.

Sabbatical Leave

Emiratis working in the private sector are entitled to a paid sabbatical leave (extended break from work) to perform National service.

  • The employee needs to be an Emirati National.
  • The Emirati employee should mutually agree with the line manager and the latter should keep the HR department informed of the same.

Hajj Leave

  • Employees may request and shall also be granted leave for performing the journey of Hajj.
  • The Hajj Leave is given without pay.
  • The Hajj Leave may not extend 30 days.
  • Is granted only once during the employment duration with the company
  • If the employee requests a Hajj leave, the employer may extend the consent for the Hajj leave and deduct it from the employee's annual leave or consider unpaid leave.

Employee/s in the private and public sector following and practising Islam may apply for leave and the employer may grant the same.


The employee should mutually agree with the Line Manager and the Line Manager should keep the HR department informed of the same.

Non-compliance and Consequences

Non-compliance or violation or misuse of any of these benefits or procedures shall result in breaching laws and regulations and damage the overall reputation of the organisation. The company shall take disciplinary action against the employee, including termination of the employment contract.

Special Circumstances and Exceptions

  • In the event of a personal mishap or personal emergency of an employee, the company may take a lenient view on a case-to-case basis.
  • In the event of a life-threatening situation of any employee, the company shall not deduct the employee’s leave or salary and shall forgo the compliance of company leave policy for the respective employee.
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This template is meant to provide general guidelines and should be used as a reference. This is not a legal document. greytHR will not assume any legal liability that may arise from the use of this template.
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