Key Takeaways
- Federal Decree-Law No. 33 of 2021 and its amendments regulate most private-sector employment relationships in the UAE.
- Employment contracts must be for a specified term, but there is no longer a statutory three-year maximum.
- Normal working hours are eight hours per day or 48 hours per week, subject to sector-specific exceptions.
- Ramadan working hours are reduced by two hours per day for all covered private-sector employees.
- Employers must observe statutory rules on leave, overtime, notice periods, wage payments and end-of-service benefits.
- Labour-law penalties depend on the violation and can reach AED 1 million.
Introduction
The United Arab Emirates is one of the most dynamic economies in the Middle East, supported by a diverse and rapidly expanding workforce. To protect workplace rights and maintain balanced employment relationships, the UAE has established a comprehensive legal framework governing employers and employees.
This guide explains the principal requirements of the UAE Labour Law, including employment contracts, working hours, leave, termination, end-of-service benefits, workplace equality and dispute resolution. It is primarily relevant to employers and employees in the UAE private sector.
What Is the UAE Labour Law?
The UAE Labour Law is the federal legal framework regulating private-sector employment relationships in the UAE. It establishes minimum requirements for employment contracts, wages, working hours, leave, workplace protections, termination and end-of-service entitlements. The principal legislation is Federal Decree-Law No. 33 of 2021, together with its amendments, Executive Regulations and applicable ministerial resolutions.
The UAE private-sector labour market continued to expand during 2025. According to the Ministry of Human Resources and Emiratisation, workforce numbers grew by 12.4%, the number of establishments increased by 7.8%, and labour-market compliance levels rose by 34% compared with 2024.
| UAE private-sector indicator | Change reported for 2025 |
| Workforce | 12.4% growth |
| Establishments | 7.8% growth |
| Labour-market compliance | 34% increase compared with 2024 |
Key Features of UAE Labour Law
1. Applicable Legislation and Scope
The principal legislation is Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, as amended. It took effect on 2 February 2022 and is supported by Cabinet Resolution No. 1 of 2022, which contains the Executive Regulations.
The federal law generally applies to private-sector establishments, employers and employees in the UAE, whether the employee is a UAE national or an expatriate. It does not generally apply to:
- Employees of federal or local government entities
- Members and employees of the armed forces, police and security services
- Domestic workers, who are governed by separate legislation
- Employees in financial free zones such as the Dubai International Financial Centre or Abu Dhabi Global Market where a separate employment-law framework applies
Other free-zone employers may remain subject to the federal law even where the relevant free-zone authority administers employment permits or related procedures. Employers should therefore confirm the legislation applying to their particular free zone.
2. Employment Contracts and Work Patterns
Employment contracts must be concluded for a specified period and may be renewed or extended by agreement. The previous statutory maximum of three years has been removed, meaning the parties can agree on the appropriate contract duration without a federal three-year cap.
Employers must:
- Prepare the employment contract in the required form
- Provide one copy to the employee and retain another
- Clearly state the wage, workplace, working hours, rest days, contract duration, leave entitlement, notice period and other relevant conditions
- Obtain the appropriate work permit before employing the worker
- Avoid charging the employee recruitment or employment costs
The permitted work patterns include full-time, part-time, temporary, flexible, remote and job-sharing arrangements, subject to the relevant permit and contractual requirements.
3. Working Hours, Rest Periods and Overtime
Normal working hours are limited to eight hours per day or 48 hours per week. Different limits may apply to certain sectors or employee categories under the Executive Regulations or other applicable decisions.
Employees must not ordinarily work for more than five consecutive hours without one or more breaks totalling at least one hour. These breaks are generally excluded from working hours.
During Ramadan, normal working hours are reduced by two hours per day for covered private-sector employees. The reduction is not restricted to Muslim employees.
Overtime is generally limited to two hours per day, except in circumstances permitted under the Executive Regulations. Total working hours must not exceed 144 hours over a three-week period.
| Work performed | Minimum statutory treatment |
| Ordinary overtime | Normal hourly wage calculated using the basic wage, plus at least 25% |
| Overtime between 10:00 PM and 4:00 AM | Normal hourly wage calculated using the basic wage, plus at least 50%; this night premium does not apply to shift workers |
| Work on the contractual weekly rest day | A substitute rest day, or the normal wage for that day plus at least 50% of the basic wage |
| Work on an official public holiday | A substitute day off, or the normal wage for that day plus at least 50% of the basic wage |
Employees should receive at least one paid weekly rest day, as specified in the employment contract or workplace regulations.
4. Leave Entitlements
Private-sector employees may qualify for annual, sick, maternity, parental, bereavement, study and other statutory leave.
| Leave type | Principal entitlement |
| Annual leave | 30 days with full wage after one year of service; two days per month where service exceeds six months but is less than one year |
| Sick leave | After probation, up to 90 days per year: first 15 days at full pay, next 30 days at half pay and the remaining 45 days unpaid |
| Maternity leave | 60 days: first 45 days at full pay and next 15 days at half pay |
| Parental leave | Five paid working days for either parent, taken continuously or intermittently within six months of the child’s birth |
| Bereavement leave | Five paid days following the death of a spouse; three paid days following the death of a parent, child, sibling, grandparent or grandchild |
| Study leave | Ten working days per year for eligible employees studying at an approved UAE educational institution after at least two years of service |
| Hajj leave | Up to 30 days of unpaid leave, once during the employee’s service, for an eligible Muslim employee |
An employer may grant annual leave during probation, although the arrangements should be properly documented. Paid sick leave is not a statutory entitlement during probation, but the employer may grant unpaid sick leave based on an appropriate medical report.
A female employee may also qualify for up to 45 additional unpaid days where she or her child suffers an illness resulting from pregnancy or childbirth that prevents her from returning to work, subject to medical evidence. Where a child is born sick or with a disability requiring continuous care, an additional 30 days at full pay followed by 30 days without pay may apply.
5. Probation, Termination and End-of-Service Benefits
Probation period
A probation period may not exceed six months. An employer terminating employment during probation must generally give at least 14 days’ written notice.
The notice required from an employee during probation depends on the circumstances:
- An employee moving to another employer in the UAE must generally give at least one month’s written notice. The new employer may be responsible for compensating the original employer for recruitment or contracting costs unless otherwise agreed.
- A foreign employee leaving the UAE must generally give at least 14 days’ written notice.
- If the employee returns to the UAE for a new work permit within three months, the new employer may become responsible for the prescribed recruitment compensation.
Termination notice
Outside probation, either party may terminate the employment contract for a legitimate reason by giving written notice. The contractual notice period must generally be no shorter than 30 days and no longer than 90 days.
The employment relationship continues during the notice period, and the employee remains entitled to their full wage. A party that fails to observe the required notice may have to pay compensation equivalent to the wage for the unserved notice period.
End-of-service gratuity
A foreign full-time employee who completes at least one year of continuous service is generally entitled to end-of-service gratuity calculated using the employee’s last basic wage:
- Twenty-one days’ basic wage for each of the first five years
- Thirty days’ basic wage for each additional year
- A proportional amount for part of a year after the employee has completed the first year
Periods of unpaid absence are excluded from the service period used for the calculation. The total statutory gratuity must not exceed two years’ wage. UAE nationals are generally covered by the applicable pension and social-security legislation instead.
The employer must pay the employee’s wages and other end-of-service entitlements within 14 days after the employment contract ends.
6. Equality, Anti-Discrimination and Workplace Conduct
The UAE Labour Law prohibits discrimination based on race, colour, sex, religion, national or social origin, or disability where the discrimination impairs equal employment opportunities or equal treatment.
Women must receive the same wage as men when performing the same work or work of equal value. Measures intended to increase UAE-national participation in the labour market are not treated as prohibited discrimination under the law.
Sexual harassment, bullying and verbal, physical or psychological violence against an employee are also prohibited. Employers should maintain written equal-opportunity, anti-harassment, grievance and disciplinary policies and apply them consistently.
7. Wage Protection and Labour Disputes
Employers must pay wages on their contractual due dates through the systems approved by MoHRE. Where the Wage Protection System applies, it enables MoHRE to monitor whether employees receive their agreed wages in full and on time.
Labour complaints should ordinarily be submitted to MoHRE for attempted settlement. MoHRE may issue an enforceable decision where a claim does not exceed AED 50,000 or concerns failure to comply with an earlier amicable-settlement decision. A party may challenge such a decision before the Court of First Instance within 15 working days.
Following the 2024 amendments, employment-related claims generally will not be heard once two years have passed from the termination of the employment relationship. Employers should therefore maintain contracts, payroll records, leave records and termination documents for the required retention periods.
How Premia TNC Can Help Your Business
Navigating the UAE Labour Law can be complex, particularly for businesses entering the market, hiring their first employees or expanding an existing workforce. Premia TNC offers support designed to help employers manage their employment, payroll and regulatory obligations.
Our Services Include
1. Employment Contract Drafting and Review
Premia TNC can review employment documentation against relevant UAE requirements, including contract duration, work patterns, compensation, leave, probation and notice provisions.
2. HR Policy Development
We help businesses establish HR policies covering working hours, overtime, leave administration, disciplinary procedures, grievances, workplace conduct and occupational safety.
3. Labour-Law Compliance Support
Our team assists employers in understanding the practical obligations arising from the UAE Labour Law, its Executive Regulations and relevant MoHRE decisions.
4. End-of-Service Gratuity Calculations
We assist with end-of-service calculations based on the employee’s eligible service period, basic wage, unpaid absences and applicable statutory rules.
5. Workplace Equality and Conduct Policies
Premia TNC helps businesses introduce appropriate anti-discrimination, equal-pay, anti-harassment and workplace-conduct procedures.
6. Payroll Management and Leave Tracking
Our payroll and HR support services help employers maintain accurate records of wages, overtime, statutory leave and employee entitlements.
7. Labour-Law Updates and Training
We provide regulatory updates and practical training for HR teams and management personnel.
8. Support for Startups and Foreign Companies
For businesses new to the UAE, we provide support covering company incorporation, employment administration, payroll processes and ongoing compliance.
Why Choose Premia TNC?
- Expert Knowledge: Our team has practical experience supporting businesses operating in the UAE.
- Tailored Solutions: Services can be adapted to the company’s workforce, sector and operational requirements.
- Comprehensive Support: Assistance is available from company establishment and initial hiring through to ongoing payroll and HR compliance.
- Efficient Processes: Structured employment and payroll procedures can reduce administrative errors, delays and avoidable disputes.
