Last Legal Review: August 2026
The UAE Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Labour Relations, as amended, commonly referred to as the UAE Labour Law, governs employment relationships in the UAE private sector. Together with its implementing regulations and relevant ministerial decisions, the law establishes the rights and obligations of employers and employees in areas including employment contracts, working hours, leave, end-of-service benefits, occupational safety, termination of employment, and labour dispute resolution.
The legislative framework aims to promote an efficient and competitive labour market while maintaining a balanced relationship between employers and employees and supporting a flexible working environment capable of attracting talent and expertise from around the world.
Important Legal Scope: This guide focuses on private-sector employment relationships governed by the UAE Federal Labour Law. Certain categories of workers and entities are subject to separate legal frameworks, including federal and local government employees, members of the armed forces, police and security services, and domestic workers. Certain free zones, including the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), also operate under separate employment frameworks. The applicable jurisdiction should therefore be confirmed before relying on any legal rule or procedure discussed in this guide.
Core Principles of UAE Labour Law
The UAE private-sector employment framework is based on several principles governing the relationship between employers and employees.
Fixed-Term Employment Contracts
The UAE Labour Law abolished unlimited-term employment contracts in the private sector. Employment contracts are entered into for a specified term in accordance with the law and may be extended or renewed for a similar or shorter period by agreement between the parties, subject to applicable legal requirements.
Multiple Work Models
The law recognizes several work arrangements designed to meet modern workforce requirements, including full-time, part-time, temporary and flexible work, together with other arrangements recognized under the implementing regulations.
Wages Protection System (WPS)
Employers subject to the Wages Protection System must pay employee wages through the procedures and requirements established by the Ministry of Human Resources and Emiratisation (MoHRE) and applicable regulations. Certain categories and circumstances may be subject to specific exemptions or arrangements.
Prohibition of Discrimination, Harassment and Forced Labour
The Labour Law prohibits workplace discrimination on grounds including sex, race, colour, religion, national or social origin, and disability. It also prohibits forced labour, harassment, bullying, physical or verbal violence, and psychological abuse in the workplace.
Protection of Passports and Recruitment Costs
Employers may not unlawfully retain an employee's passport or personal documents. Employers are also responsible for recruitment, employment and work-permit-related costs required by law and may not unlawfully transfer such costs to employees.
Summary of Employee Rights and Employer Obligations
| Legislative Area | Employee Rights | Employer Obligations |
|---|---|---|
| Working Hours | Generally 8 hours per day or 48 hours per week, subject to statutory exceptions | Comply with working-hour limits and pay overtime according to applicable rules |
| Annual Leave | 30 days after completing one year of service, or two days per month after six months and before completing one year | Grant statutory leave and settle unused leave according to applicable law |
| End-of-Service Benefits | Entitlement subject to the law, contract type and applicable scheme | Calculate and settle final entitlements within the statutory period |
| Notice Period | Contractual notice period within the statutory range, generally 30–90 days | Comply with the notice period and applicable payment obligations |
| Health & Safety | Right to a safe workplace and protection against occupational risks and injuries | Provide a safe working environment and comply with occupational health and safety requirements |
| Health Insurance | Subject to applicable federal and emirate-level health-insurance requirements | Comply with health-insurance requirements applicable to the employer and employee |
Key Employment Rules
1. Probationary Period
The UAE Labour Law permits a probationary period of no more than 6 months from the date the employee starts work.
An employee may not be placed on probation more than once by the same employer.
Termination During Probation
If the employer terminates employment during probation:
The employer must provide the employee with at least 14 days' written notice.
If the employee wishes to move to another employer in the UAE during probation:
The employee must provide at least one month's written notice. Rules concerning reimbursement of recruitment costs apply in accordance with the law.
If the employee wishes to leave the UAE during probation:
The employee must provide at least 14 days' written notice.
Additional rules may apply if the employee subsequently returns to the UAE to work under a new work permit, including rules concerning recruitment costs.
2. End-of-Service Gratuity and Calculation
End-of-service gratuity is a statutory financial entitlement for eligible private-sector employees, subject to the conditions of the Labour Law and the employee's employment arrangement.
For eligible expatriate employees working under a full-time contract and covered by the traditional gratuity system, gratuity is generally calculated using the employee's last basic salary, excluding allowances and other benefits.
Basic Calculation
- Less than one year of service: No gratuity is payable under the traditional gratuity system.
- From one to five years: 21 days of basic salary for each year of service.
- More than five years: 30 days of basic salary for each additional year beyond the first five years.
- Maximum: Total gratuity may not exceed the equivalent of two years' wages.
- Payment: The employer must settle the employee's final entitlements, including gratuity where applicable, within the statutory period.
Important Note on Employment Models
The calculation may differ for part-time employees and workers under other employment arrangements. The full-time calculation should therefore not automatically be applied to every employee without checking the contract type and implementing regulations.
The UAE also operates a voluntary alternative end-of-service savings scheme for participating private-sector employers. Where an employer participates and an employee is covered by the scheme, the applicable end-of-service arrangement may differ from the traditional gratuity system.
Leave and Working Hours
1. Annual Leave
Employees are generally entitled to:
After more than six months but less than one year of service:
Two days of annual leave for each month of service.
After completing one year of service:
30 days of fully paid annual leave per year.
If employment ends before the employee uses their accrued statutory leave, the unused entitlement is settled in accordance with applicable legal rules.
For part-time employees, annual leave is calculated according to actual working hours and the requirements of the implementing regulations.
2. Sick Leave
After completing the probationary period, employees are entitled to sick leave subject to the applicable statutory conditions and procedures.
Under the general statutory structure:
- First 15 days: Full pay.
- Next 30 days: Half pay.
- Following 45 days: Unpaid.
Employees must notify their employer of illness and provide the required medical documentation in accordance with applicable procedures.
3. Maternity and Parental Leave
Maternity Leave
Female employees in the private sector are entitled to 60 calendar days of maternity leave:
- First 45 days at full pay.
- Remaining 15 days at half pay.
The Labour Law and implementing regulations also provide additional protections in certain circumstances related to pregnancy, childbirth and related medical conditions.
Nursing Breaks
After returning to work, female employees are entitled to nursing breaks in accordance with the law. The total duration of the daily nursing breaks may not exceed one hour per day during the statutory period.
Parental Leave
Employees, whether fathers or mothers, are entitled to 5 working days of paid parental leave during the first six months following the birth of a child, subject to applicable legal rules.
4. Working Hours and Overtime
Standard Working Hours
Normal working hours in the private sector are generally:
8 hours per day or 48 hours per week.
Working hours may vary for certain economic sectors or categories of employees under the implementing regulations.
Working Hours During Ramadan
Daily working hours are reduced by two hours per day during Ramadan for employees covered by this rule, in accordance with the applicable regulations.
Overtime
Overtime is subject to statutory limits and conditions.
As a general rule, overtime should not exceed the statutory limit, which is normally two hours per day, subject to specific exceptions provided by law, including circumstances necessary to prevent substantial losses, serious accidents, or their consequences.
Overtime is compensated according to the rates established by law, including:
- The basic hourly wage plus a minimum 25% premium in ordinary overtime situations.
- A minimum 50% premium for qualifying overtime performed during the statutory night period, subject to exceptions applicable to certain shift workers.
Termination of Employment and Labour Disputes
1. Termination of Employment Contracts
An employment relationship may end in circumstances recognized by the Labour Law, including:
- Expiry of the contract term without renewal.
- Mutual agreement between the parties.
- Termination in accordance with the applicable notice period.
- Termination without notice in cases specifically provided by law.
- Other circumstances established by the Labour Law and its implementing regulations.
Termination With Notice
Either party may terminate an employment contract for a legitimate reason by complying with the applicable notice period.
The notice period agreed in the employment contract must generally be at least 30 days and no more than 90 days.
2. Termination Without Notice by the Employer – Article 44
An employer may terminate an employee without notice in the specific circumstances established under Article 44 of the UAE Labour Law and after following the required legal procedures.
Examples of circumstances addressed by the law include:
- Impersonation or submission of forged documents or certificates.
- Committing a serious error resulting in substantial material loss to the employer where the statutory conditions apply.
- Breaching occupational health and safety instructions in circumstances specified by law.
- Disclosing confidential business information or trade secrets.
- Being intoxicated or under the influence of drugs during working hours in circumstances covered by the law.
These examples should not be treated as an exhaustive list. Article 44 establishes specific grounds and procedural requirements that must be assessed based on the facts and evidence of each case.
3. Termination Without Notice by the Employee – Article 45
An employee may terminate an employment contract without notice while retaining statutory rights in the specific circumstances established under Article 45.
These circumstances include certain cases involving an employer's failure to fulfil legal or contractual obligations, assault against the employee, or serious safety risks that are not properly addressed.
However, the right to terminate without notice is subject to specific legal conditions and procedures depending on the circumstances.
For example, where the employer fails to fulfil contractual or statutory obligations, the law may require the employee to notify MoHRE and allow the employer an opportunity to remedy the breach before the employee terminates the contract without notice.
Employees should therefore verify that the requirements of Article 45 and the applicable procedures have been satisfied before leaving employment without notice.
Labour Dispute Filing Process
For employment relationships falling under the jurisdiction of the Ministry of Human Resources and Emiratisation, labour disputes generally begin with a complaint filed with MoHRE and an attempt to reach an amicable settlement.
1. Submit a Complaint to MoHRE
An employee or employer may submit a labour complaint through the official electronic services and channels provided by MoHRE, in accordance with the applicable procedures.
2. Amicable Settlement
MoHRE reviews the dispute, communicates with the parties and attempts to facilitate an amicable settlement.
3. Referral to the Competent Judicial Authority
If the dispute cannot be resolved amicably, it may be referred to the competent court or judicial authority in accordance with the applicable procedures and jurisdiction.
4. Registering the Case and Judicial Proceedings
Following referral, the claimant may register the case with the competent judicial authority and proceed with the required hearings and legal procedures until a judgment is issued.
Important: Labour dispute procedures and jurisdiction may vary depending on the employer, the employee's work location and the legal framework applicable to the employment relationship. Certain free zones, including DIFC and ADGM, operate under separate employment and judicial frameworks.
Conclusion
The UAE Labour Law provides a comprehensive framework for regulating private-sector employment relationships and establishes important rights and obligations concerning employment contracts, working hours, leave, wages, occupational health and safety, end-of-service benefits and termination.
However, the application of labour law may differ depending on the employment contract, work arrangement, circumstances of the employee, employer, location and applicable jurisdiction, as well as the regulations and ministerial decisions in force at the relevant time.
The information in this guide should therefore not be treated as a substitute for legal advice in an individual case.
If you are facing an employment dispute, a contractual issue, an end-of-service gratuity claim or a termination matter, obtaining professional legal advice before taking action can help protect your rights and ensure compliance with the applicable procedures.
Legal Disclaimer: This guide is provided for general informational purposes only and does not constitute legal advice. UAE legislation, regulations and implementing decisions may change, and the applicable legal position may vary depending on the facts and jurisdiction of each case.
