All employers in the United Arab Emirates must comply with the UAE labor law. However, the Ministry of Human Resources and Emiratisation can issue additional requirements. Indeed, they established five new commitments you must include in your MoHRE labour contract.
In this article, we will talk more about annual leave encashment in the UAE. As a result, you will know how to calculate annual leave in the UAE. So, learn how to comply with these five new commitments by reviewing the following topics:
1. What new commitments must employers consider in the UAE?
Every employer in the UAE must have an expert in the UAE labor law to write employment contracts. After all, he can help your business to avoid legal issues related to their employees. But is it all you need if you own a company that uses mass hiring?
Indeed, you also must turn your employment contract into a MoHRE labour contract. Above all, your oil and gas company can achieve this by complying with the following new commitments in the UAE:
- Your temporary staffing team must only use the contract model that matches the job offer.
- Every employer can add additional benefits that do not appear in the job offer.
- Unless they contradict the UAE labor law, you can add further annexes to the contract.
- Your E-commerce firm must save every employment contract and every job offer for two years from the employee’s departure.
- Finally, your employees must know their contractual rights and duties.
2. Annual leave encashment in the UAE
You may think the previous commitments are the only ones MoHRE issued in recent years. However, they also released important guidelines regarding annual leaves in the UAE that remain relevant in 2025. These apply across all industries, including Information and Technology.
MoHRE allows employees to encash their unused annual leave, turning it into a cash allowance. This provides flexibility for workers who prefer a payout — for instance, to invest in the fast-growing UAE digital economy.
In addition, employees can use an annual leave calculator during their notice period to determine how much compensation they’re entitled to based on any remaining unused leave.
3. What should you know about annual leaves in the UAE?
In addition to its earlier reforms, MoHRE continues in 2025 to support employee well-being, especially in sectors like manufacturing. While it may sound like a salary increase, this good news relates to how annual leaves can be optimized for longer breaks.
For example, in 2025, employees who strategically plan their time off by combining 24 days of annual leave with UAE public holidays—such as Eid Al Fitr, National Day, and Islamic New Year—could enjoy up to 55–60 days off throughout the year.
This offers a great opportunity for rest, travel, or spending time with loved ones—ensuring both personal well-being and professional productivity.
4. Where to find more insights about how to calculate annual leave in the UAE
Learning how to calculate annual leave in the UAE is now more essential than ever before. After all, employees must take advantage of policies such as the annual leave encashment in the UAE. Most importantly, they must ensure their employers write an adequate MoHRE labour contract.
On the other hand, there is a high possibility that you are a busy businessperson in the UAE. Consequently, you will not have time to study the UAE labor law and other regulations. Fortunately, you can rely on Connect Staff to provide the knowledge you need in your company.
Let us help you regarding your MoHRE labour contract and annual leaves in the UAE. Moreover, you can contact us to discover tools such as our annual leave calculator. So, submit your requests via email at [email protected] or phone at +971 43 316 688.
