Part-time employees are entitled to public holidays that fall on their workdays. Getty Images
Part-time employees are entitled to public holidays that fall on their workdays. Getty Images
Part-time employees are entitled to public holidays that fall on their workdays. Getty Images
Part-time employees are entitled to public holidays that fall on their workdays. Getty Images


Does the UAE’s annual leave law apply differently to part-time employees?


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January 13, 2025

Question: I saw a recent question that you answered about annual leave being carried forward for an employee but I have a similar question for part-time staff. I work three days a week and I would like to know if the same rules apply to me.

I started this job last summer and my boss says I get enough holidays as I don’t work for five or six days a week, but that doesn’t allow for a real holiday or going home to visit my family. Does the law about annual leave not apply to part-time employees in the same way? SB, Dubai

SB works for a private mainland employer and is subject to the provisions of UAE labour law. No employer should claim that the law doesn’t apply to part-time employees and they must also have a proper contract of employment, a visa if required, and a work permit.

This is from the Ministry of Human Resources and Emiratisation website: “If you are a part-time worker, then you are entitled to annual leave according to your actual working hours with the employer, and its duration is determined based on the total working hours converted to working days, divided by the number of working days per year, multiplied by the legally prescribed leaves, at a minimum of five working days per year for annual leave.”

This is also covered in the UAE labour law, as Federal Decree Law 33 of 2021, Article 29, clause 2 states: “The part-time worker shall be entitled to annual leave according to the actual working hours the worker spends working for the employer and its period shall be defined in the employment contract, in accordance with what is stipulated in the Implementing Regulation hereof.”

Generally speaking, days of leave are calculated pro-rata in comparison to full-time employees. If full-time staff work five days a week and the working hours are the same, a person who works three days per week will be entitled to three fifths of the standard leave days per the contact of employment and staff handbook.

Part-time employees are also eligible for all public holidays that fall on their workdays.

Q. I work for a company in Ras Al Khaimah. I heard that the law is changing and they have to provide employees with medical insurance from the start of this year.

We don’t have any medical insurance and I asked the company owner about it. He said that they don’t have to do this.

Can you tell me the actual rules? FB, Ras Al Khaimah

A. In March 2024, it was first announced that mandatory medical insurance was to be introduced across all emirates. Both Abu Dhabi and Dubai have required employers to provide insurance for a number of years but this is being extended to the other five emirates with a start date of January 1 this year.

Employers will have the option to set up a group plan with an insurance company or they can enrol staff in the basic medical insurance plan that has been launched to offer low-priced cover for companies.

Abu Dhabi and Dubai have long required employers to provide medical insurance and this has now been extended to the other five emirates starting from January 1. Silvia Razgova / The National
Abu Dhabi and Dubai have long required employers to provide medical insurance and this has now been extended to the other five emirates starting from January 1. Silvia Razgova / The National

The launch will take a while as not all employees need to be insured from the start.

The requirement is for employers to have suitable cover in place, or to enrol the individual in a new health insurance plan, as a condition of either issuing or renewing a residency visa.

It is important to note this requirement does not yet apply to those who have existing visas and work permits, and the cover will become mandatory for them only when their visas and/or permits are due to be renewed.

In this situation, the employer must provide medical insurance to employees in accordance with the law and it is not optional. Failure to comply with the law is a serious offence and will have financial consequences for the company. It will also mean they are unable to take on any new employees or to renew visas.

I understand that FB’s residency visa is due for renewal in September 2025, so he must be provided with insurance from that date.

Q. I am working my notice for my Dubai International Financial Centre (DIFC) employer. I plan to leave the UAE but want to stay for a while so I want to know if my employer can keep my visa open for a few weeks after leaving work. AD, Dubai

A. Under DIFC employment law, following the end of employment, employers must cancel the employee’s visa as soon as reasonably practicable. This should be within 30 days from the termination date.

The termination date is the final date of employment.

An employer may be fined up to $2,000 (Dh7,360) for failing to cancel an employee’s residency visa.

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: January 13, 2025, 4:00 AM