September 29, 2025
A common question in the UAE workplace is whether employers can deduct salaries while employees are on annual leave. Experts explain labor law provisions and best practices.
Salary deductions during annual leave are generally prohibited. However, UAE labor law allows certain exceptions, such as:
Unpaid Leave: If the leave is classified as unpaid, employers are not required to pay the employee.
Disciplinary Penalties: If an employee has committed misconduct and a legal penalty allows salary deduction, this may apply during leave.
Overpayment or Advances: Employers can adjust for prior overpayments or advances if agreed in writing.
