UAE Labour Law (Federal Decree–Law No. 33 of 2021 and amendments thereto) governs all private-sector labour relations. The 2025 amendments are built on employee protection, flexibility, and compliance. Understanding the regulations avoids punishment for the company and gives employees more clarity on their rights.
If your company engages in various forms of employment, professional HR services or payroll services guarantee welfare, contracts, and salary processing are all within MOHRE jurisdiction.
Table of Contents
- Introduction to the New UAE Labour Law 2025
- Employment Contracts and Types of Jobs
- Rules on Working Time and Overtime
- Leave Policy and Public Holidays
- Wages and Payroll Provisions
- Employee Allowances and Benefits
- Workplace Health and Safety Standards
- Gender Equality and Non-Discrimination
- Rules of Conduct and Staff Discipline
- End-of-Service Benefits and Termination
- Work Visa and Work Permit Procedures
- Flexible, Remote, and Part-Time Work
- Frequently Asked Questions on UAE Labour Law 2025
Introduction to the New UAE Labour Law 2025
The 2025 updates modernise the UAE’s labour framework with more protection for employees and clearer rules for employers. The law now officially recognises flexible work models, extends maternity lave, clarifies termination rights, and enforces payroll compliance through the Wage Protection System (WPS).
Employment Contracts and Types of Jobs
Private Sector Employment Contracts
According to the Article 8 of the Labour Law, all workers are entitled to a signed written fixed-term employment contract, approved by MOHRE. The contract may be for up to three years and will automatically be extended if it is not terminated. The contract must stipulate salary, job title, allowances, and notice.
Types of Work Arrangements (Article 7)
The UAE regulates the different work arrangements in accordance with the demands of contemporary workplaces:
Full-time: The employee does the complete hours for a single employer.
Part-time: Shorter number of work hours, maybe for several employers.
Temporary work: For a single project or for one given time period.
Flexible work: Flexible days and flexible hours based on the employer’s need.
Remote work: Work performed outside the organization’s office, via electronic media.
Job sharing: Two employees perform a single full-time job.
Probation Period in the Private Sector
According to the Article 9:
- Maximum probation period: 6 months.
- Employer giving 14-day written notice to resign on probation.
- Resigning on probation by employee to join another UAE company should give one month’s notice.
- Leaving the UAE: 14-day notice required.
Public Sector Employment Contracts
The federal government and local governments utilise the same types of contracts:
Full-time Contract: General fixed-hour employee contract.
Part-time Contract: Part-time flexible working arrangement under contracted hours.
Temporary Contract: Temporary or for special work.
Special Contract: For high-grade professional services or less often under special conditions.
Rules on Working Time and Overtime
Private Sector
Standard working hours: 8 hours/day or 48 hours/week (Article 17).
During Ramadan: 2 hours less per day.
Reduced to only 2 hours/day except emergency.
Overtime payment = basic hourly pay × 1.25; holidays/weekends × 1.5.
Example formula
Overtime Pay = (Basic Salary for a month ÷ 30 ÷ 8) × Overtime Hours × 1.25
Public Sector
Government offices have their own schedules, typically 7 hours a day, with special shifts for emergency or field duty shifts. Overtime is controlled by the HR policy of each agency and not the labour law.
Leave Policy and Public Holidays
There are legally mandated entitlements for all leaves:
| Type of Leave | Entitlement (as per law) |
|---|---|
| Annual Leave | 30 calendar days after 1 year of service; 2 days/month if under 1 year |
| Sick Leave | 90 days/year (15 full pay + 30 half pay + 45 unpaid) |
| Maternity Leave | 60 days (45 full pay + 15 half pay) + 45 days unpaid if complications occur |
| Paternity/Parental Leave | 5 working days within 6 months of birth |
| Study Leave | 10 days/year for employees with 2 + years of service |
| Bereavement Leave | 5 days (spouse) / 3 days (parent, child, sibling) |
Public holidays are regulated by UAE Cabinet announcements and should be paid in full.
Wages and Payroll Provisions
Minimum Wage
Law may grant UAE Cabinet the discretion to institute a minimum wage. The employer will be obliged once the rates have been determined by MOHRE.
Unpaid or Withheld Wages
Salaries will be remitted by Wage Protection System (WPS) within 15 days of payment date. Late payment will result in MOHRE fines or suspension of new work permits.
Gratuity (End-of-Service)
Workers who have served for 1 year are eligible for gratuity:
Gratuity = (21 days of basic pay × duration of employment)
Should be minus bonus and allowance and at the proper time at the termination of the contract.
Employee Allowances and Benefits
Fixed allowances are:
Housing allowance – rent cost.
Transport allowance – fuel or day trip.
Health insurance – mandatory in Dubai and Abu Dhabi.
Bonus and incentives – company-dependent or performance-linked.
Airfare or ticket allowance – for annual travel.
All the allowances must be specified in the employment contract and payroll.
Workplace Health and Safety Standards
According to Article 36, employers must ensure that the workplace is safe to work in.
They must:
- Provide personal protection equipment.
- Fire protection and emergency response training.
- MOHRE should be notified of serious accidents within 24 hours.
- Default will lead to penalty or closure orders.
Gender Equality and Non-Discrimination
Prohibition on discrimination on the grounds of gender, race, color, religion, or disability (Article 4). Women should receive the same pay as men for work of equal value. Dismissal of a woman on grounds of pregnancy or maternity leave is prohibited.
Rules of Conduct and Staff Discipline
Penalties are to be imposed only after due inquiry (Article 39).
These disciplinary actions as permitted are:
- Verbal or written warning
- Deduction of pay (up to 5 days a month)
- Suspension or dismissal on grounds of habitual or serious misconducts
Termination and End-of-Service Benefits
Termination of employment contract in the UAE is governed with clear-cut guidelines under Article 42 of the Labour Law for the protection of employers as well as employees.
Under What Conditions Can the Contract be Terminated?
A work contract can terminate under any one of the following conditions:
- The period of the contract elapses, or the project under agreement is completed.
- Both employer and employee mutually agree in writing.
- The employee resigns or is terminated with notice.
- The employer shuts down for good.
- The employee passes away or gets permanently disabled.
- The employee receives a deportation order or loses the right to work legally.
- The employee’s work permit expires and is not renewed.
Notice Period
Both sides in most instances need to provide between 30 to 90 days’ notice of cancellation of a contract. The actual period, however, may be different if the two sides have otherwise fixed this in the employment contract.
Termination Without Notice (Article 44)
At other times, termination may happen instantly without warning.
This is when the employee:
- presented false certificates or documents.
- Reveals company secrets of trade.
- Handles responsibilities carelessly despite written notice.
- Reports to work under the influence of alcohol or drugs.
- Physically attacks a fellow employee or supervisor.
- Is away for 20 irregular or 7 consecutive days without satisfactory reason.
On the other hand, an employee can leave without notice when:
- Employer is in breach of contract conditions.
- Working conditions turn abusive or dangerous.
- The employee is being assaulted or harassed.
Arbitrary Dismissal (Article 47)
If an employee is unfairly dismissed, for example, without a valid reason or contrary to the Labour Law, it is called arbitrary dismissal. The employee is then entitled to a three-month salary claim as damages, the amount of which will rely on his/her last salary and the judge’s discretion.
Work Permits and Visa Procedures
All UAE employment contracts are supported by official work permits that have been issued by the Ministry of Human Resources and Emiratisation (MOHRE). They provide legal protection to employees and employers alike.
Types of Work Permits
The following are the most popular work permits that may be obtained in the UAE:
Standard Work Permit: For permanent workers who work within the same firm.
Part-Time Work Permit: Permits employees to work legally under several employers.
Juvenile Work Permit: Issued to juvenile employees between 15 and 18 years, in special situations for protection.
Student Training Permit: Issued to training or internship students working for a licensed employer.
Golden Visa Work Permit: For long-term residents, investors, and high-skilled professionals.
Freelancer Permit: Issued to independent free self-employees working on their own.
Mission Work Permit: For project work or short-term employment.
Cancellation of Work Permits
On the end of the employment contract, the work permit is likewise to be cancelled once within 30 days via the MOHRE platform.
They must settle all the arrears, terminal wage, notice leave allowance, and gratuity to the employee before doing this.
This practically closes the employment file and fulfills the UAE labour law.
Flexible, Remote, and Part-Time Work
The UAE has adopted new work arrangements in Ministerial Resolution No. 518 of 2022, which provides employees with more flexibility and equilibrium between work and life.
Flexible Work: The employees work flexible hours according to business requirements and not predetermined working hours.
Remote Work: The employees work from home or other places allowed by the employers.
Part-Time Work: The employees work limited hours and can work for more than one company.
Regardless of the style of format, all workers have an equal right like equal salary, holidays leave, medical benefit, and gratuity on resignation.
FAQs
- How long can a private sector probation period last?
A probation period can be up to six months. Within this time, employer and employee shall give written notice before the contract’s termination.
- Are public and private sector contracts different?
No. Although the public sector functions under its own government HR system, the private sector comes under MOHRE guidelines and the UAE Labour Law.
- Is gratuity payable to part-time workers?
Yes. Gratuity is payable to part-time workers on a pro-rata basis, as per their working hours and length of service.
- When salary payments are delayed, what can be done?
Unpaid or delayed salaries can incur fines for the employer. MOHRE may also annul new work permits or incur other administrative penalties.
- Is home working officially recognized under UAE law?
Yes. Remote and hybrid work arrangements are officially recognized within the UAE, offering flexibility with the same employee rights and privileges.
Stay Compliant with UAE Labour Law 2025
At Payroll Middle East, we help organizations stay up to date with the latest labour regulations by giving them our HR and payroll outsourcing services. From contract of employment to WPS processing, we make sure your business is operating smoothly and within the law so you can focus on what really matters: growth and people.
