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

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

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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 vacation? Can employers cancel the license early? FAQs explained



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Published: Fri 6 Jan 2023, 12:57 pm

Last update: Fri 6 Jan 2023, 13:45

As of January 2, 2023, the UAE government implemented the Entrepreneurship License for self-employment in the country. This one-year 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 for which the employee works and may be combined with unpaid leave and annual vacation.

The objective is to encourage young people to take advantage of the enormous commercial opportunities that the country offers and promote national talents. Here is an explanation of some of the most frequently asked questions about sabbatical leave.

Does self-employment leave include all employees?

This license can be applied for by all national and civil employees who work in federal entities, with the exception of employees of federal government companies, temporary contract employees and part-time workers.

What is the required period of service for an employee to be licensed?

The employee’s period of service 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 license?

The conditions are the following:

1. That the employee has a performance evaluation of a level of not less than 2 or its equivalent in his entity.

2. The total time of service of the employee in the federal entity or in a local entity will not be less than five years. The employee’s period of service in a local entity is acceptable for calculation whether the employee 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 carried out his national service or has proof of his position in it.

Four. The employee may not serve his entity as a consequence of being delegated or assigned on a study mission, unless the employer decides otherwise.

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

The employee will receive 50% of their total monthly salary, excluding bonuses and work-related allowances.

Is it essential to have done national service to obtain this license?

Yes it is. The employee must carry out the national service or have proof of his position in it.

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

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

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

The notice period will be a maximum of two months, and the head of the federative entity or his delegate may waive or reduce the notice period for the worker, as required by the labor interest in the federative entity.

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

The notice period is not included in the period of Permit for Self-Employment granted to the worker.

Can employees combine sabbatical and annual leaves?

Yes, the worker may combine the Self-Employed Entrepreneurship Permit with the annual vacation to which they are entitled, before the start of the Self-Employed Entrepreneurship Permit.

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

In the event of an increase in the number of applicants, the selection is made among the employees based on those who meet more criteria than those mentioned in Point VI of the Project Guide.

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

Yes, the worker who owns an online business project is entitled to a Self-Employment Permit, provided they obtain the necessary licenses to carry out the activity.

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

The employer may not terminate the Entrepreneurial License and summon the employee after taking the leave, unless the employee’s approval has been obtained.

Can people planning modest start-up projects apply for this license?

Yes, the employee can apply for an entrepreneurship leave based on a start-up project, as long as the project has obtained the necessary licenses or is in the process of registering and obtaining a license.

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

Yes, the employee can apply for a license if the parent company has the necessary approvals, as long as the employee demonstrates that they are an authorized agent, or that they have a role in the management or supervision of the branch.

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

Yes, the employee can go to the Complaints Committee and the Objections Committee in the federal government in accordance with the procedures provided in the executive regulation of the Human Resources Law in the federal government.

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