The UAE Labour Law serves as the legal foundation for employment relationships across the Emirates.
It regulates everything from hiring procedures, working hours, wages, leave entitlements, contract types, end-of-service benefits, and termination rules to occupational safety standards.
Whether you’re a foreign professional arriving in Dubai for a job or an employer managing a diverse workforce, understanding the UAE Labour Law is critical to ensuring fair, lawful, and productive working arrangements.
In February 2022, Federal Decree Law No. 33 of 2021 came into force, replacing the more outdated 1980 Labour Law.
The new system has more relaxed conditions for work and increased protection of employees and is aligned with world best practice.
Overview of The UAE Labour Law
Labour Law covers all private sector employees in all UAE emirates, including free zones (with the exception of DIFC and ADGM, which have their own regulations). Government sector employees are regulated by independent law.
Key objectives of the Labour Law:
- Protect the rights of employees but, at the same time, balance interests between employers.
- Enhance a competitive labor market.
- Harmonize contracts of employment and benefits.
- Encourage fairness in the workplace and avoid discrimination.
Employment Contracts
An employment contract is the one that stays between the employee and the employer. These are mandatory contracts that establishes the legal boundaries for the workplace.
Private-sector Employment
- With Federal Decree-Law No. 33 of 2021, the UAE has made private-sector employment contracts formal only to fixed-term terms—the previous unlimited contracts are void and of no effect. This applies in mainland UAE and most free zones (although they like DIFC and ADGM have their own laws).
- Employers must register contracts online with MoHRE.
- Contracts must contain:
- Duration (e.g., 12, 24, or 36 months)
- Job title and job description
- Work location and working hours
- Remuneration (ideally in UAE dirhams), including allowances (housing, transport)
- End-of-service gratuity details and any probationary period details
- Overtime rates, leave allocation, social insurance coverage (where applicable)
- Renewals of contracts are permitted; continued employment past expiration is considered a tacit renewal—but still needs registration with MoHRE.
Public-sector Employment
- Governed by autonomous rules and regulations depending on the federal or emirate administration.
- May have benefits like housing, yearly air travel, education assistance, pension schemes, and structured grade levels.
- Recruitment may involve structured tests, career progression, and gradual promotion compared to the private sector.
Types of Work Arrangements
Aside from traditional full-time jobs, the law and MoHRE allow flexible and modern work arrangements:
- Part-time (short of regular hours; benefits proportionate)
- Temporary/Seasonal (short, specified period)
- Remote or Hybrid Work, increasingly better understood after the pandemic
- Flexible Schedules
- Freelance Permits, especially in IT and creative fields
- Talent Programs (e.g., Golden Visa holders, virtual work schemes)
- Student Employment (through NAFIS or similar) — limited pay scales and hours
Probation Period (Private Sector)
- A probation period of up to 6 months is allowed.
- During this time:
- Either can be terminated by giving 14 days’ notice.
- Where the staff member is being transferred to another role, a 30-day notice and perhaps reimbursement for recruitment costs may be the scenario.
- Employment benefits like annual leave and some entitlements to sick leave may not be entirely applicable during probation.
Professional Job Levels
- Although not always strictly defined, job grades tend to be graded as Junior, Mid-level, Senior, Supervisory, and Executive/Managerial.
- More advanced positions—like managerial and supervisory—are normally exempt from overtime and can be subject to specialized contract terms.
- Government employment includes formal grade structures tied to qualification and career progress.
Working Hours
The working hours that you have to do depends on the sector that you are working, private or public sector.
Private Sector
- Norm: 8 hours/day or 48 hours/week.
- Ramadan: reduced by 2 hours on each working day for fasting employees.
- Overtime (OT):
- Allowed with a maximum 2 extra hours a day.
- Compensated at
- +25% (approximately) within regular hours (e.g., 4 am–10 pm)
- +50% or +70% night-time or rest-day work
- Cannot exceed 144 hours in a period of three weeks.
Public Sector
- Pays by organization—typically 7–8 hours/day.
- Overtime treatment depends; some give compensatory leave, others pay above normal rates.
Leaves and Holidays
The leaves and holidays of employees working in private sectors and public sectors are different. For employees working in private sectors the number of leaves and holidays they are entitled to are;
Annual Leave
- Within 6 months: 2 days leave per month, granted pro rata.
- After 1 year: 30 calendar days.
- Carryover limited to half the yearly entitlement; in excess, paid in lieu.
Sick Leave
- During probation: normally unpaid, save by agreement under employer policy.
- After probation:
- First 15 days: full pay
- Next 30 days: half pay
- A maximum of 90 days; after that, employers may dismiss.
Study Leave
- For employees with over 2 years’ service and in an accredited UAE institution: up to 10 days/year for study or exams.
Maternity Leave
- Emirati women are entitled to up to 90 days fully paid maternity leave (variable by emirate and employer).
- Non-Emirati female employees’ rights vary; some are given 45 days paid and 45 days unpaid, depending on conditions.
Paternity Leave
- Not federally mandated; some kind employers offer 3–5 days paid time off.
Compassionate Leave
- Typically:
- 5 days on death of spouse
- 3 days on death of parent, child, sibling, or grandparent
Religious Pilgrimage Leave
- Hajj: can be offered under an internal policy of a company; not legislation.
- Umrah: rarely covered in formal agreements—any concession will be at the discretion of the employer.
Public Holidays
Employees are to be given full pay for gazetted public holidays declared by the UAE government, e.g.,
- Eid al-Fitr (4 Days)
- National Day (2 Days)
- Georgian New Year or 1st January
- Arafat Day and Eid Al Adah (4 Days)
- Prophet Mohammed’s Birthday
To work on a statutory holiday would normally earn employees 150% pay or compensatory leave.
Wages
The salaries and wages are something that depends on the employers, but they should be clearly stated on the employer contract.
Minimum Wage
- No national-level minimum wage, except nationals in government-funded schemes.
- The employers must comply with the Wage Protection System (WPS) to allow timely, electronic payment.
Delays or Non-Payment
- The worker can file a complaint with MoHRE.
- Fines can be imposed, and employers might be banned from particular licenses or transactions.
Gratuity (End-of-Service)
- Less than 1 year: no gratuity.
- 1–5 years: 21 days’ pay per year.
- More than 5 years: first 5 years at 21 days/year, subsequent years at 30 days/year, up to a maximum of 2 years’ total salary.
- Based on basic wage only (allowances except where stated otherwise).
Employee Benefits
There are few important employer benefits that the employer should provide as per the law, they are;
Health Insurance
- Mandatory in all emirates except Abu Dhabi and Dubai.
- Varies by emirate and quality; occasionally includes medical, dental, and prescriptions.
Unemployment Insurance
- The UAE now does not possess a statutory unemployment insurance program.
End-of-Service Benefits
- Besides gratuity, employers can offer non-monetary benefits, including:
- Farewell bonuses
- Renewal bonus
- Repatriation allowance
- Quality-of-life benefits (e.g., housing, children’s education)
Workplace Health & Safety
- Employers are required to provide safe working conditions, especially in:
- Building
- Manufacturing
- Logistics
- Safety protocols shall involve:
- Suitable PPE
- Fire drills
- First-aid
- Secure transport and accommodation of blue-collar staff
- Inspections can be conducted by MoHRE or other regulatory bodies.
Non-Compete Clauses
- Permitted only if:
- Reasonable in time (not exceeding 2 years)
- Logically bounded by geographical reach
- Must safeguard legitimate business interests
- Should be stipulated in a contract and not be overly restrictive.
Gender Equity and Anti-Discrimination
- Discrimination on the basis of gender, nationality, religion, color, or disability is a Federal prohibition.
- Equal pay for equivalent work is encouraged, but enforcement varies.
- Emiratisation schemes don’t contravene this principle—they are considered strategic workforce development.
Disciplinary Rules
- Employers with 50 or more employees are obliged to record:
- Disciplinary procedures
- Grievance mechanisms
- Performance appraisals and incentives
- Procedures vary from verbal warning, to written warning, suspension, and dismissal—with proper documentation.
Termination of Employment
Both the employer and Employee have the right to terminate an employer contract. This can easily be done by serving the notice period and also complying with other legal proceedings.
Notice Periods
- Probation: 14 days’ notice, unless otherwise agreed.
- Fixed-term post-probation: as specified in the contract (usually 30 days).
- Employers are always required to refer to the signed contract and local legislation.
Termination Without Notice
Authorized for serious misconduct, including:
- Gross misconduct
- Fraud or criminal conduct
- Material breach of confidence
- Physical violence or harassment
Arbitrary Dismissal
- Employees can challenge unfair dismissals using MoHRE.
- Illegal termination is typically compensated at 3 months’ salary, unless higher is paid contractually.
Work Permits and Visas
- Transfer of employment involves:
- Authorization by employer
- Release via MoHRE portal
- Specific special visa categories for:
- Freelancers
- Talents (Golden Visa)
- Remote workers
- Students
- Cancellation of visa: The employers must:
- Cancel visas on layoff
- Make arrangements for repatriation if no fresh employment is located within 30 days
- Refund return air ticket unless otherwise agreed
UAE Work Permit Cancellation
Work permit cancellation is a critical procedure when an employee leaves service — via resignation, dismissal, or termination of contract. It removes the employment status of the worker from the Ministry of Human Resources and Emiratisation (MOHRE) database.
1. Who is Eligible to Cancel a Work Permit?
- Only the employer or their appointed PRO is eligible to apply for the cancellation.
- Cancellation of the employee-owned permits is not permitted.
2. When to Cancel a Work Permit?
- Termination of employment.
- When an employee’s employment contract expires and will not be extended.
- When an employee switches jobs.
3. Procedure to Cancel a Work Permit
- Settlement of Dues: Employer settles all wages due, leave encashments, and end-of-service gratuities.
- Submit Through MOHRE: Employer makes a cancellation request of work permit through the MOHRE online platform or Tasheel service center.
- Upload Documents:
- Signed cancellation form.
- Employee’s Emirates ID.
- Copy of passport.
- Visa page.
- Employee Signature: Employee is requested to sign the request for cancellation as an acceptance.
- Notice of Immigration: The visa is canceled along with the work permit cancellation within 30 days.
- Last Exit: When exiting the UAE, the employee must exit before the expiry date of the visa; when the employee switches employers, the new employer must process the visa.
4. Fees
- Work permit cancelation is generally AED 100–200, paid by the employer.
Emiratisation
- Firms having 50+ employees on mainland must increase Emirati employees by 2% annually, with the target of 10% by 2026.
- Banks have a greater target (around 4%).
- Incentives:
- Wages subsidy
- Training schemes
- Priority licensing benefits
Summing Up!
The UAE 2021-2022 Labor Law reforms have modernized the work environment, prioritizing openness and safeguarding of workers while giving employers operational freedom. Key aspects are:
- Solely use of fixed-term contracts
- Transparent probation and dismissal rules
- Quantified leave and benefit entitlements
- Enhanced Wage Protection System
- Emphasis on health and safety
- System to promote Emiratization and workforce diversity
According to tradition, labour practice can vary somewhat in public or free zones. For precise application or legal advice, always consult MoHRE or specialist UAE labour law professionals.
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