Overview of UAE Labour Law

The UAE Labour Law is the official legal framework that governs employment relationships in the country. Updated in 2022 under Federal Decree-Law No. 33 of 2021, the law protects both employees and employers and applies to most private sector workers across all Emirates — including Dubai, Abu Dhabi, Sharjah, and others.

Key Features of UAE Labour Law (2025)

1. Fixed-Term Contracts

All employees must now be hired under fixed-term contracts (up to 3 years), renewable upon agreement. Unlimited contracts are no longer permitted.

2. Working Hours

• Standard working hours: 8 hours/day or 48 hours/week

• During Ramadan: Reduced to 6 hours/day

• Overtime is allowed but must be paid extra (125%–150% depending on time/day)

3. Leave Entitlements

• Annual leave: 30 calendar days after 1 year of service

• Sick leave: Up to 90 days per year (first 15 days fully paid)

• Maternity leave: 60 days (45 paid + 15 unpaid)

• Paternity leave: 5 paid days

• Study leave: 10 days/year for employees enrolled in UAE-based institutions

4. Termination & Resignation Rules

Both employers and employees have the right to end the contract — with notice.

• Notice period: 30 to 90 days depending on the contract

• Resignation: Must be in writing with required notice

• Termination without notice is allowed in certain cases (like gross misconduct)

5. End-of-Service Benefits

When an employee completes one year or more of continuous service, they are entitled to a gratuity based on basic salary:

• 21 days' wage per year for the first 5 years

• 30 days' wage per year after 5 years

Note: Employees terminated for misconduct may lose this benefit.

6. Work Permits and Visas

All employees must have a valid work permit and residency visa, usually arranged by the employer. Illegal employment is punishable under UAE law.

7. Anti-Discrimination Protections

The updated law prohibits discrimination based on gender, race, color, religion, or nationality. Equal pay for men and women doing the same job is a legal requirement.

8. Part-Time and Freelance Work

The law now allows for part-time, remote, and flexible contracts. However, freelancers still need appropriate permits from authorities like MOHRE or free zone regulators.

Common FAQs About UAE Labour Law

Q: Can my employer hold my passport in the UAE?
No. It is illegal for employers to hold employees' passports without written consent.

Q: What if I lose my job — do I get any unemployment benefit?
Yes. As of 2023, the UAE offers an Unemployment Insurance Scheme for eligible employees. You must register and contribute monthly to qualify.

Q: Can I switch jobs during my contract?
Yes, but you must follow the correct notice procedures and obtain a NOC (No Objection Certificate) if required.

Q: What is the probation period in the UAE?
The maximum probation period is 6 months. Employers must give 14 days’ notice to terminate during this period.

Final Thoughts

Whether you're an expat worker, a new job seeker, or an employer, understanding the UAE Labour Law is essential. It ensures fairness, clarity, and compliance for everyone in the workforce. With regular updates and increased protection for workers, the UAE continues to evolve into a globally competitive and employee-friendly job market.

If you'd like to explore more labor law topics — such as gratuity calculators, unemployment insurance, or MOHRE complaints, feel free to ask!