Compensatory off, or comp off, refers to a paid rest day that an employer gives to an employee who works on a weekly rest day or public holiday. UAE’s Federal Decree by Law No. (33) of 2021 states that every employer has to provide a substitute rest day or the normal wage plus an increase of no less than 50% of the basic wage to the employee for the day they worked.
In the UAE’s rapidly growing business sector, many organizations need some of their workforce to be on duty even during holidays or weekends to cover emergencies or support critical deadlines. To safeguard the rights of employees in this situation, businesses have to ensure they fully appreciate this extra effort of their employees in the form of comp offs.
But what exactly are comp off leave in the UAE and what do they mean? This blog tries to answer these questions in detail. So stay with us till the end to know all there is about these types of leaves in the UAE.
- What is Compensatory Off or Comp Off Leave in the UAE?
- Is Comp Off Mandatory Under UAE Labor Law?
- Comp Off Rules and Regulations in the UAE Private Sector
- Comp Off Rules and Regulations for the UAE Federal Government Employees
- Can Employers Choose Between Overtime Pay and Comp Off?
What is Compensatory Off or Comp Off Leave in the UAE?
A compensatory day off is a paid rest day that businesses offer to employees who report for duty on weekends or public holidays. The main goal of a comp off leave is to ensure every employee gets adequate recovery time after a specific period of continuous work. This leave aims to protect the work-life balance of employees who have to work even on weekends or holidays.
Employees who work overtime beyond their regular working hours or who cover emergency business requirements can also become eligible for a compensatory off in the UAE.
In this case, the employees do not receive overtime wages for extra time. Instead they get an equivalent leave that they can take later as per applicable UAE labor laws 2026.
The Compensatory Off Policy in the UAE Labor Law
The Federal Decree-Law No. 33 of 2021 of the UAE states basic rules for compensatory leave for public or private sector employees in the UAE. Here are some guidelines that businesses have to adhere to in this regard.
If the nature of work necessitates an employee to work on any of the official holidays, the employer has to compensate them with another rest day for each day the employee works.
They can also offer the employee wage for that day, which they can calculate by adding the wage for the established normal business day with an increase of no less than 50% of the basic wage for that day.
How fast an employee can use the substitute day depends on the individual corporate compensatory off or the internal HR policies and procedures in the UAE for the business.
Some companies require their employees to use their comp off leave within 30 to 90 days of the date on which they worked. After this period, the employee either becomes eligible for an automatic payroll payout or a lapse as per their employment contract.
Is Comp Off Mandatory Under UAE Labor Law?
The exact comp off leave policy for employees depends mainly on the employment sector you work in. There is not one universal comp off leave rule that is applicable to every worker in the UAE.
The comp off leave in the private sector follows the guidelines of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and its Executive Regulations.
For public sector or federal employees, the Federal Human Resources Law and its Executive Regulations are what govern comp off leave.
This is why, to get a better understanding of applicable comp off leave policies, every employee has to look mainly at their employment contract or the company’s HR and recruitment services in the UAE. They also need to consider the collective agreements along with applicable legislation to make sure their employer never violates their rights.
Comp Off Rules and Regulations in the UAE Private Sector
If you are someone who works in the private sector in the UAE, the comp off leave you get is subject to Federal Decree-Law No. 33 of 2021. According to this low the maximum normal working hours in the UAE are 8 hours per day or 48 hours per week. If an employee works for additional hours, they are counted as overtime as per UAE employment laws and regulations.
- In case the employee works overtime on regular days, they become entitled to their normal wage for the overtime hours plus at least 25% additional pay calculated on the basic wage.
- If the employee works overtime at night, i.e., between 10:00 PM and 4:00 AM, they receive normal wage plus at least 50% of additional pay based on the basic wage.
- Employees who work on weekly rest days can either get another day off as a replacement or they receive normal wage plus at least 50% of their basic wage for that day.
- Employees in the private sector who work on public holidays are also eligible for another day off or a compensatory off for that day or a wage that includes their pay for the day plus an additional payment as per applicable UAE labor laws.
Comp Off Rules and Regulations for the UAE Federal Government Employees
The comp off leave rules for employees who work for the federal government are relatively straightforward. The Federal Human Resources Law authorizes federal entities to assign work during weekends, public holidays, or overtime during normal workdays.
Employees who work on weekends or public holidays get replacement or comp off leave equal to the number of days they work. Employees who work overtime are also eligible for both monetary overtime compensation and comp off leave. These employees must work overtime that is officially assigned after departmental approval.
For every 8 hours of overtime, the employee can get a compensatory off leave or cash compensation if the employee is eligible for federal grades.
Can Employers Choose Between Overtime Pay and Comp Off?
Under the private sector UAE labor laws, employees cannot legally choose between monetary compensation and a comp off for the work they do on weekends or holidays.
Article 28 of the labor law states that employees who work on these days can either get another rest day or a payment that includes the normal wage for the day plus 50% of the basic wage for that day.
This law is an obligation on the employer. It is on the employer to choose one of these two forms of compensation for the employee. However, in cases when the employment contract, collective agreement, or the internal policy of the company permits this choice, then the employee can make this decision themselves.
Conclusion
A compensatory off is an important leave policy that provides employees with time off equivalent to the days they work on weekends or holidays. The framework for comp off leave differs slightly for employees who work in public or private sectors.
It is important both for employers and employees to consider their employment agreement and the applicable legislation in their area to decide the exact comp off policies they need to follow.
This can ensure better adherence to the UAE labor laws and guarantee better implementation of comp off benefits for all parties involved.
Visit our website HRSG today to learn more about the UAE labor laws regarding compensatory off leave. We also specialize in providing professional HR, recruitment, accounting, and facility management solutions for your business in the UAE and beyond.
