1st September 2017
If your business operates during public holidays, be aware of the UAE Labour Law in relation to compensating employees.
Which Public Holidays are employees entitled to in the UAE?
Employees are entitled to leave and full payment on the following public holidays in the UAE:
New Years Day (one day)
Hijri New Year (one day)
Eid al Fitr (two days)
Eid al Adhad & Arafat Day (three days)
Prophet Mohammed's Birthday (one day)
Isra and Miraj (one day)
National Day (one day)
What is the compensation for employees working on public holidays in the UAE?
For those employees working on a public holiday, they are entitle to the following compensation:
Time off in lieu of the public holiday worked AND a bonus of 50% of their wage.
If time off in lieu is not granted, a bonus of 150% of their basic salary.
Article 81 of the Labour Law relates to compensation for public holidays and is cited below:
"Should the work circumstances require that the worker work during holidays or leaves for which complete or partial payment is paid thereto, the worker shall be granted a substitute leave as well as an increase in the wage amounting to 50% thereof. Should he not be granted a substitute leave, the employer shall pay to the worker an additional sum to the basic salary thereof amounting to 150% with regards to the days of work."
Related Blogs that you may be interested in:
Emiratisation Regulations for UAE Companies CLICK HERE
What you need to know about WPS, the UAE’s Federal payroll system CLICK HERE
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