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

Starting January 2, 2023, the UAE government implemented the Entrepreneurship Leave for self-employment in the country. This year-long sabbatical leave will be granted to UAE citizens working in the government sector who wish to start their business ventures.

Emiratis will get 50 per cent of their salaries during this period. The leave will be approved by the head of the federal authority the employee works for and can be combined with unpaid leave and annual leave.

The aim is to encourage the youth to take advantage of the huge commercial opportunities offered by the country and empower national talents. Here's an explainer of some of the frequently asked questions regarding the sabbatical leave.

Does the self-employment leave include all employees?

All national and civil employees working in federal entities can apply for this leave, with the exception of employees of federal government-owned companies, employees of temporary contracts and part-time workers.

What is the period of service required of an employee to obtain the leave?

The employee's service period shall not be less than five years in the federal government or local governments in the event that he is transferred from a local entity to a federal entity.

What are the conditions required for an employee to obtain the leave?

The conditions are as follows:

1. The employee have a performance evaluation of a level of not less than 2 or its equivalent in his entity.

2. The total period of service of the employee in the federal entity or in a local entity shall not be less than five years. The period of service of the employee in a local entity is acceptable for calculation, whether the employee was transferred from a local government to the federal government, or he resigned from the local entity and was appointed in the federal government.

3. The employee has already performed his national service or has a proof of his position thereof.

4. The employee shall not serve his entity as a result of being delegated or assigned 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 total monthly salary, excluding bonuses and allowances related to the job.

Is it a must to have performed the national service to obtain this leave?

Yes, it is. The employee shall perform the national service or have a proof of his position thereof.

Will the duration of the leave for self-employment be calculated within the years of the actual service period with the entity?

Yes, the employee continues to participate in the retirement fund, and the said leave is counted within the employee's years of actual service.

What is the notice period employees must serve after sabbatical leave is approved?

The notice period shall be a maximum of two months, and the head of the federal entity or his delegate may exempt or reduce the notice period for the employee, as required by the working interest in the federal entity.

Will the notice period be included in the leave period that an employee has obtained?

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

Can employees combine sabbatical and annual leaves?

Yes, the employee may combine the Entrepreneurship Leave for self-employment with the annual leave he/she is entitled to, before the commencement of the Entrepreneurship Leave for self-employment.

What happens in case there are more applicants than the required percentage? What is the process of selection?

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