UAE’s self-employment leave: Taking a sabbatical to start your business? Eligibility, salary, notice period; all you need to know – News

Can employees combine vacation and annual leave? Can employers cancel early leave? Explain common questions

Through the Web Desk

Publishing: Friday 6 Jan 2023, 12:57 PM

Last update: Friday 6 Jan 2023, 4:40 PM

Starting January 2, 2023, the UAE government implemented the Self-Employment Tax in the country. Annual sabbatical leave will be granted to UAE citizens working in the public sector who wish to start their own business.

Emiratis will receive 50 percent of their wages this season. The leave will be approved by the head of the federal authority where the employee works and may be combined with unpaid leave and annual leave.

The aim is to encourage the youth to take advantage of the great business opportunities offered by the country and strengthen the country’s talents. Here is an explanation of some frequently asked questions about sabbatical holidays.

Are all employees covered by self-employment leave?

All national and public employees working in the federal sector can apply for this leave, except for employees of federal government companies, temporary contract employees and individuals part-time work.

How long of service does an employee need to be eligible for leave?

The employee’s working time must not be less than five years in the federal government or in the local government if he is transferred from a local organization to a federal organization.

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What conditions are required for the employee to receive the leave?

Here are the conditions:

1. The employee has a performance evaluation of a level of at least 2 or its equivalent in his organization.

2. The employee’s total length of service in a federal or local organization must not be less than five years. The employee’s length of service with an organization within the country is accepted for consideration, whether the employee was transferred from a local government to the federal government, or resigned. returned from the local company and assigned to the federal.

3. The worker has already performed his national service or there is proof of his status.

4. The employee must not serve his organization because of the release or assignment to a research mission, unless the manager decides.

What kind of financial aid will be paid during the leave period?

The employee will receive 50% of his full monthly salary, excluding bonuses and job-related allowances.

Is it necessary to do national service in order to get this leave?

Yes it is. The employee must perform national service or have proof of his status.

Will the length of personal leave be calculated within years of actual service with the company?

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Yes, the employee continues to participate in the retirement fund, and this leave is counted among the employee’s years of service.

What is the notice period that employees must work after the sabbatical is approved?

The notice period must be more than two months, and the head of the federation or his representative may exempt or reduce the notice period for the employee, as required by federal labor interest.

Will the notice period be included in the leave period earned by the employee?

The notice period is not included in the period of Business Leave for self-employment granted to the employee.

Employees can be combined sabbath and annual leaves?

Yes, the employee can combine the Business Leave for self-employment with the annual leave he is entitled to, before starting the Business Leave for himself.

What happens if there are more applicants than the required percentage? What is the selection process?

In the case of an increase in the number of applicants, the decision is made between employees based on those who meet more criteria than those mentioned in Item VI of the Projects Guide .

If the project is online business, can employees apply for personal work leave?

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Yes, the employee who owns his business project on the internet is entitled to a Business Leave for self-employment, if he obtains the necessary licenses to carry out the activity.

Does the organization have the right to cancel the leave granted to the employee before the end of the day?

The employer must not terminate the Business Leave and summon the employee after the leave, unless the employee’s consent is obtained.

Can individuals who are planning start-ups still apply for this leave?

Yes, the employee can apply for a Business Leave application based on a start-up project, if the project has received the necessary licenses, or registration is in progress and received a license.

If the project represents a branch of the company located outside the country, can employees apply for leave?

Yes, the employee can apply for leave if the main company has the necessary proof, if the employee proves that he is an authorized representative, or has a role in management or supervision the branch.

Can employees register a grievance if they are denied leave?

Yes, the employee can go to the Complaints Committee and the Protest Committee in the federal government according to the procedures specified in the regulation of the Law of Federal Employees.



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