UAE jobs: Can employers refuse summer annual leave due to staff shortages?

In the United Arab Emirates, employers generally hold the discretion to approve or deny annual leave requests, particularly during peak periods like the summer break. This authority stems from the UAE's employment law, which prioritizes business needs.

According to Article 29(4) of the Federal Decree Law No. 33 of 2021, employers can determine leave dates through rotation or mutual agreement, ensuring the smooth operation of the business. Employees must be informed of their scheduled leave at least one month prior. Therefore, an employer can legally decline a four-week summer leave request if it conflicts with operational requirements, such as staff shortages.

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The employee shall use his leave in the year of entitlement. The employer may fix the dates of leave according to the work requirements and in agreement with the employee, or rotate leaves among employees for the smooth progress of work, and shall notify the employee of the date of his leave at least (1) one month before the same.

However, the law also mandates that employees are entitled to take their accrued annual leave at least once every two years. Employers cannot prevent this unless the employee agrees to carry forward the leave or receive payment in lieu. This provision ensures that employees eventually benefit from their entitled leave, even if the timing is subject to the employer's operational needs.

Legal experts advise that employees should mutually agree on leave dates with their employers to avoid potential conflicts. While employees have rights regarding their annual leave, the employer's right to manage leave schedules based on work requirements is a significant factor in the UAE's labor law.

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The employer may not prevent the employee from using his accrued annual leave for more than (2) two years unless the employee wants to carry it over or be paid in lieu of leave according to the establishment bylaws and as specified by the executive regulations of this Decree Law.