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UAE Self-employment leave: All you need to know

In the month of January 2023, the government in the United Arab Emirates implemented a new UAE leave; which they called an entrepreneurship license for self-employment within the country. This is a one-year sabbatical leave that will be granted to citizens in the UAE, who work for the government sector. And not only that but also all those people who wish to start their commercial companies.

In this article, you will see everything related to this new UAE leave. The first thing to present will be the definition of a sabbatical leave. Secondly, you will see all the important things about the new entrepreneurship license for self-employment. For instance, its duration, who can use it, when, and much more.

1. What is Sabbatical leave?

uae leave

The sabbatical leave in the UAE is granted to all citizens in the United Arab Emirates; for having performed some national and reserve service, and following the laws and regulations of the country. The new entrepreneurship license for self-employment was introduced to the country as a type of sabbatical leave.

All Emiratis are granted 50% of their salaries for the period the leave is in force. This UAE leave must be approved by the head of the federal authority that hires the employee. Furthermore, this leave can be combined with annual leave and unpaid leave.

The government in the UAE thought of different sabbatical leave reasons to create this license, which are; to encourage young people to take advantage of all the opportunities offered by the country. It is also intended to promote national talent. Surely, you have different questions, which is why you will see the answers to some frequently asked questions below. Thus, when the company must carry out the annual leave salary calculation, it has the necessary information.

Annual Leave Salary Calculation

1.1  How long must an employee be working in the company to opt for this UAE leave?

All employers must be aware of these changes that are made in the law, to avoid a high payroll due to inconvenience. The first thing you should know about this new UAE leave is when employees can request it. The worker must have worked for a minimum of five years in the government sector.

1.2 Can all employees have access to this license?

All national and civil employees who work in federal entities can request this license. But, there are three exceptions which are employees with temporary contracts, part-time workers, and employees of government companies.

1.3 Learn the necessary conditions for an employee to obtain this license

Different conditions that must be met are not many and are listed below.

  1. The worker must have submitted a performance evaluation and obtain a rating of no less than 2 or its equivalent in the entity.
  2. The employee must have a total time of service in the federal or local entity of at least five years.
  3. In addition, it is considered whether the employee has already provided national service and has proof of his position.
  4. Finally, the worker cannot provide services to his entity because he is delegated or assigned to a study mission. There is an exception and that is that the employer does not agree.

1.4 During the time of leave, how much is the salary that corresponds to the employee?

The employee is entitled to receive 50% of his total monthly salary. But, bonuses and work-related allowances are not taken into account. For instance, sales commissions.

1.5 If the project that the employee wants to develop is online, can he request this new license?

Of course. All workers who own an online business project also have the right to obtain an entrepreneurship license for self-employment. It is important that you keep in mind that if you want to request this UAE leave, you must have all the necessary licenses to carry out the activity.

These are some of the questions that both employees and employers may have. If you need more information on issues related to payroll payment and personnel recruitment; feel free to contact Connect Staff. We are the best at connecting employees with employers and growing businesses by having good people. You can contact us by phone at +971 43 316 688. In addition, we have an email that you can write to if you consider it appropriate and it is

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