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 sabbatical and annual leave? Can employers cancel leave early? Frequently asked questions are explained



by Web Desk

published: Friday, January 6, 2023, 12:57 p.m

latest update: Friday, January 6, 2023, 4:40 p.m

From January 2, 2023, the UAE government implemented an entrepreneurial leave for self-employment in the country. This one-year leave is granted to UAE nationals who work in the public sector and wish to start their own business ventures.

Emiratis will receive 50% of their salary during this period. The leave is approved by the head of the federal department where the employee works and can be combined with unpaid leave and annual leave.

The aim is to encourage the youth to take advantage of the huge business opportunities offered by the country and to empower national talents. Here are some frequently asked questions about vacation leave.

Does self-employment leave include all employees?

All national and civil servants working in federal institutions can apply for this leave, with the exception of employees of federal state enterprises, employees on temporary contracts and part-time workers.

How long is the employee’s service to take leave?

The employee’s service period should not be less than five years in the federal government or local governments in case of transfer from a local entity to a federal entity.

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What are the conditions for taking employee leave?

The conditions are as follows:

1. The employee has a performance rating of less than 2 or its equivalent in his business unit.

2. The total period of service of the employee in the federal institution or in a local institution should not be less than five years. The employee’s length of service in a local entity is admissible for calculation, whether the employee was transferred from a local government to the federal government or resigned from the local entity and was appointed to the federal government.

3. The employee has already completed his national service or has a certificate of his position.

4. An employee shall not serve his institution as a result of a delegation or appointment on a study mission, unless the employer decides otherwise.

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

The employee will receive 50% of his/her total monthly salary excluding job related bonuses and allowances.

Is it mandatory to do national service to get this leave?

Yes. That’s right. The employee must perform national service or have a document proving his position.

Is the period of self-employment leave calculated in the years of actual service with the institution?

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Yes, the employee still participates in the pension fund and the said leave is calculated in the actual years of service of the employee.

What is the period of notice employees must have after approval of vacation leave?

The notice period shall be a maximum of two months, and the head of the federal entity or his representative may waive or reduce the notice period for the employee, as the interests of the work in the federal entity require.

Does the notice period include the leave period taken by the employee?

The notice period is not included in the entrepreneurial leave period for self-employment granted to the employee.

Can employees be combined? Research Opportunity And annual leaves?

Yes, an employee can combine entrepreneurial leave for self-employment with the annual leave they are entitled to before starting entrepreneurial leave for self-employment.

What happens if the number of applicants exceeds the required percentage? How is the selection process?

In case of an increase in the number of applicants, the selection from among the employees is made based on people who have more criteria than those mentioned in the sixth paragraph of the project guide.

If the business project is online, can employees still apply for self-employment leave?

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Yes, an employee who has an Internet business project is subject to entrepreneurial leave for self-employment, subject to obtaining the necessary permits to carry out the activity.

Does the organization have the right to cancel the leave granted to the employee before its expiration?

After taking the leave, the employer should not terminate the entrepreneurial leave and summon the employee unless he has obtained the employee’s consent.

Can people planning medium start-up projects still apply for this leave?

Yes, an employee can apply for entrepreneurial leave based on a start-up project, provided that the project has received the necessary permits or is in the process of registration and obtaining permits.

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

Yes, if the parent company has the necessary approvals, the employee can apply for leave, provided the employee proves that the representative is authorized or involved in the management or supervision of the branch.

Can employees file a complaint if self-employment leave is not granted?

Yes, the employee may appeal to the Grievance Committee and Grievance Committee in the Federal Government in accordance with the procedures specified in the Executive Regulations of the Human Resources Act in the Federal Government.

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