UAE Labor Law Explained in Simple Terms
Introduction
If you work or plan to work in the United Arab Emirates (UAE), understanding the country’s labor law is essential. The UAE has a modern legal framework designed to protect both employees and employers while supporting business growth.
This guide explains UAE labor law in simple, easy-to-understand English. It is written for workers, job seekers, HR beginners, and business owners who want clear answers without complicated legal language.
What Is UAE Labor Law?
UAE Labor Law is the set of rules that governs the relationship between employers and employees in the private sector. The main law currently in force is:
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations
This law replaced the old 1980 labor law and introduced more flexible work models and stronger protections for workers.
The law is enforced by the Ministry of Human Resources and Emiratisation (MOHRE).
Who Does UAE Labor Law Apply To?
The law applies to most private sector workers in the UAE, including:
✅ Full-time employees
✅ Part-time workers
✅ Temporary workers
✅ Remote workers
✅ Flexible work arrangements
However, it generally does not apply to:
❌ Government employees
❌ Domestic workers (they have a separate law)
❌ Armed forces personnel
Types of Employment Contracts
Under the current UAE labor law, all private sector contracts must be limited-term contracts.
1. Limited-Term Contract
This is now the standard contract type.
Key features:
- Has a fixed duration (usually up to 3 years)
- Can be renewed
- Clearly states start and end dates
- Specifies salary and benefits
📌 Important: Unlimited contracts were phased out and replaced with limited contracts.
Probation Period Rules
Employers in the UAE can place new employees on probation.
Maximum probation period
- Up to 6 months only
During probation
Employee rights:
- Must give 14 days’ notice if leaving the UAE
- Must give 1 month’s notice if moving to another UAE employer
Employer rights:
- Can terminate with 14 days’ written notice
⚠️ Probation cannot be extended beyond 6 months.
Working Hours in the UAE
Normal working hours
- 8 hours per day
- 48 hours per week
During Ramadan
Working hours are reduced by 2 hours per day for all employees (Muslim and non-Muslim).
Overtime rules
If an employee works extra hours:
- Overtime must be paid
- Rate is usually 125% of basic salary
- Night overtime may be 150%
Employers must keep proper overtime records.
Weekly Rest Day
Employees are entitled to:
- At least one paid rest day per week
Most companies use Sunday or Friday, but it depends on company policy.
Annual Leave (Vacation)
After completing one year
Employees get:
- 30 calendar days of paid annual leave
After 6 months but less than 1 year
- 2 days per month
During probation
- Annual leave is usually not granted until confirmed.
📌 Unused leave must be compensated if the employee leaves the job.
Public Holidays in the UAE
Employees are entitled to paid leave on official UAE public holidays such as:
- Eid Al Fitr
- Eid Al Adha
- UAE National Day
- Islamic New Year
If an employee works on a public holiday, they must receive:
- Another day off or
- Extra pay
Sick Leave Policy
Employees become eligible for sick leave after completing probation.
Sick leave entitlement (per year)
- First 15 days: full pay
- Next 30 days: half pay
- Additional 45 days: unpaid
Total maximum: 90 days per year
⚠️ A medical certificate is usually required.
Maternity Leave in the UAE
Female employees are entitled to maternity leave.
Current entitlement
- 60 days total
- 45 days full pay
- 15 days half pay
- Up to 45 extra days if medically required
Protection
An employer cannot terminate a woman because of pregnancy or maternity leave.
End of Service Benefits (Gratuity)
One of the most important employee rights in the UAE is the end-of-service gratuity.
Who qualifies?
Employees who complete at least 1 year of continuous service.
How gratuity is calculated
Based on basic salary only (not allowances).
Formula:
- First 5 years: 21 days basic salary per year
- After 5 years: 30 days basic salary per year
📌 The total gratuity cannot exceed 2 years’ basic salary.
Notice Period Rules
When ending a contract, both employer and employee must give notice.
Standard notice period
- Minimum: 30 days
- Maximum: 90 days
The exact period is written in the employment contract.
⚠️ If notice is not served, compensation may be required.
Termination of Employment
Employment can end in several legal ways:
Lawful termination
- Contract expiry
- Mutual agreement
- Resignation
- Employer termination with valid reason
Unlawful termination (arbitrary dismissal)
If an employee is terminated without a valid reason, they may claim compensation through MOHRE.
Employee Rights You Should Know
Under UAE labor law, employees have the right to:
✅ Receive wages on time
✅ Work in a safe environment
✅ Keep their passport (employer cannot confiscate it)
✅ Receive a written contract
✅ Get end-of-service benefits
✅ File complaints with MOHRE
Employer Obligations
Employers in the UAE must:
- Pay salaries through the Wage Protection System (WPS)
- Provide health insurance (in most emirates)
- Respect working hour limits
- Provide safe working conditions
- Not charge recruitment fees to employees
Failure to comply may result in fines.
How to File a Labor Complaint in the UAE
If a dispute occurs, employees can file a complaint with the Ministry of Human Resources and Emiratisation.
Steps
- Submit complaint via MOHRE website or app
- Attend mediation session
- If unresolved → case goes to UAE labor court
Most cases are resolved during mediation.
Important Tips for Workers in the UAE
✔ Always read your contract before signing
✔ Keep copies of salary slips
✔ Record overtime hours
✔ Do not work without a valid work permit
✔ Report violations early
These steps protect your legal rights.
Conclusion
UAE labor law is designed to balance the rights of employees and employers while supporting the country’s fast-growing economy. Understanding key rules — such as working hours, leave entitlements, gratuity, and termination rights — helps you avoid disputes and protect your income.
Whether you are a new expatriate worker or an HR professional, staying informed about UAE labor regulations is essential for a smooth and lawful employment experience.
Source
- Official UAE Labour Law — Federal Decree-Law No. 33 of 2021
- Ministry of Human Resources and Emiratisation (MOHRE) official guidelines