In the United Arab Emirates, Public Holidays are a legally protected entitlement for employees. However, with evolving business demands and operational exigencies, many employers may occasionally require employees to work on such holidays. This raises an important legal question: can an employee choose to work on a Public Holiday and then utilise a compensatory day off (comp-off) at a later date of their own choosing under UAE Labour Law?
The short answer is yes — but the process and the rights involved must be clearly understood within the framework of the UAE Labour Law.
Legal Framework: Public Holidays and Compensation
Under the UAE Labour Law, employees are entitled to official Public Holidays with full pay, as determined by Cabinet resolutions. These include holidays such as New Year’s Day, Eid Al-Fitr, Eid Al-Adha, Islamic New Year, Prophet Muhammad’s Birthday and National Day, among others.
Crucially, the law also addresses situations where an employee is required to work during an official Public Holiday. Where work requirements necessitate such attendance, the employer must compensate the employee either by granting a substitute rest day (a compensatory day off) or by paying an enhanced wage for that day.
Compensation Options: Time Off or Enhanced Pay
The law provides two distinct options for compensating employees for work performed on a Public Holiday:
Compensatory Day Off (Time Off in Lieu):
The employee is entitled to an additional day off for each Public Holiday worked. This constitutes compensatory leave, which may be taken at a later date.
Enhanced Pay:
As an alternative to time off, the employer may pay the employee their normal wage for the day, plus at least 50 per cent of their basic salary. In effect, the employee receives 150 per cent of their basic wage for working on that Public Holiday.
In practice, this means that an employee who elects to work on a Public Holiday may choose either to take a substitute rest day later — subject to agreement on scheduling with the employer — or to receive monetary compensation. The law recognises this choice, and it is advisable for the preferred mode of compensation to be agreed in advance to prevent disputes at a later stage.
Is the Compensatory Day Off at the Employee’s “Own Choice”?
While the law clearly entitles employees to a compensatory day off in lieu of enhanced pay, the scheduling of that day is generally subject to mutual agreement between the employee and the employer. The legislation does not prescribe a specific timeframe within which the compensatory leave must be taken.
Instead, the law allows flexibility, recognising that both operational requirements and employee preferences may vary. Accordingly, while an employee may intend to utilise the comp-off at a preferred time, employers retain a degree of discretion in determining when the substitute rest day can be granted.
Best practice therefore dictates that both parties agree in advance — ideally in writing — on when the compensatory leave will be taken. Such clarity helps to avoid misunderstandings, particularly where multiple employees seek comp-off during overlapping periods.
What Are the Employer’s Obligations in Such Cases?
Employers are obligated to ensure that:
ü Public Holiday work is required due to genuine operational needs.
ü Appropriate compensation, either through compensatory leave or enhanced pay, is provided.
ü Policies governing Public Holiday work and compensatory leave are clearly communicated to employees.
If an employer fails to provide the legally mandated compensation — whether in the form of a substitute rest day or enhanced pay — employees are entitled to file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).
Combining Compensatory Leave with Other Types of Leave
It is worth noting that the UAE Labour Law and its implementing regulations are silent on whether compensatory leave can automatically be combined with Annual Leave. Certain legal interpretations suggest that only specific types of leave — such as unpaid leave, bereavement leave or parental leave — may be formally combined with Annual Leave.
As a result, whether compensatory leave can be merged with Annual Leave generally depends on employer policy or mutual agreement between the parties.
