This study aims to examine the effect of employee happiness on employee performance in the public sector in the United Arab Emirates (UAE). The study operationalized employee happiness into performance appraisal, flexible working hours, promotion, rewards and recognition, income, peer and supervisor support, workload, and workplace environment. The data was collected from 319 employees working in Abu Dhabi and Dubai using a questionnaire “The effect of employee spirituality and emotional wellness toward the relationship between employee happiness and employee performance 2019”. The findings were derived using Smart Partial Least Squares (PLS). The findings showed that performance appraisal, income, workplace environment, promotion, reward and recognition, and peer and supervisor support are significant predictors of employee performance. Flexible Working Hours (FWH) and workload have an insignificant effect on employee performance. Findings were discussed, and decision-makers are advised to increase employee happiness among employees in UAE.