UAE Labour Law: A Complete Guide for Employers and Employees

Which law applies, and to whom?

UAE private-sector employment is governed by Federal Decree-Law No. 33 of 2021 and its Executive Regulations (Cabinet Resolution No. 1 of 2022). It applies to private-sector employers and employees across the UAE, UAE nationals and expatriates alike, and is administered by MOHRE.

It does not apply to federal and local government employees, the armed forces, police and security, or domestic workers, who are covered by separate laws.

Free zones can differ. The Dubai International Financial Centre (DIFC) has its own DIFC Employment Law No. 2 of 2019 (as amended). The Abu Dhabi Global Market (ADGM) uses the ADGM Employment Regulations 2024, in force since 1 April 2025. Other free zones apply their own employment regulations alongside the federal law.

What types of employment contract are allowed?

Since February 2022, all private-sector contracts must be fixed-term (limited) contracts. Unlimited contracts were abolished, and existing ones had to be converted by 31 December 2023 (the deadline MOHRE extended from the original one-year window). A fixed-term contract can be renewed or extended by agreement, and renewal periods count towards continuous service. If work continues after expiry without renewal, it is treated as renewed on the same terms.

A written contract must be agreed and registered with MOHRE. The law recognises full-time, part-time, temporary, flexible, remote, and job-sharing work models.

What is the probation period?

Probation cannot exceed six months and cannot be extended. A worker may be placed on probation only once with the same employer, and once probation is passed, that period counts towards total service. During probation:

• If the employer ends the contract, it must give at least 14 days' written notice.
• If the worker moves to another UAE employer, they must give at least one month's notice, and the new employer compensates the original for recruitment costs (Article 9), unless agreed otherwise. There is no time condition on this.
• If the worker leaves the UAE during probation, they must give at least 14 days' notice. If they return to the UAE on a new work permit within three months, the new employer pays the original the same compensation. Leaving without following these rules means no new UAE work permit for one year.
• A party that breaks these notice rules owes the other side the wage for the notice period not served (Article 9).

What are the standard working hours?

The standard working time is 8 hours per day or 48 hours per week. A worker may not work more than five consecutive hours without a break or breaks totalling at least one hour.

Working hours are reduced by two hours per day during Ramadan (Executive Regulations, Article 15(2)). MOHRE confirms the arrangements each year.

Every worker is entitled to at least one paid rest day a week (Article 21). A full-time worker cannot be required to work beyond their contracted hours without written consent (Article 17).

How does overtime work?

Overtime rules are set by Article 19:

How are wages paid, and what is the Wage Protection System?

Wages are paid monthly. Since 1 June 2026, the previous month's wages are due on the 1st of each Gregorian month, a single due date that replaces individual contract pay dates. Private-sector employers must pay wages through the Wage Protection System (WPS), an electronic system that transfers salaries through approved banks, exchange houses and financial institutions, or any other system MOHRE adopts, so MOHRE can confirm workers are paid in full and on time. Wages are paid in UAE dirhams unless the contract agrees another currency.

What are the 2026 WPS rules?

MOHRE set the WPS rules under Ministerial Resolution No. 340 of 2026, effective 1 June 2026, replacing Ministerial Resolution No. 598 of 2022. They apply to all establishments registered with MOHRE:

Payment deadline

The 1st of each Gregorian month is the single due date for all private-sector employers. Any payment after it counts as a delay.

85% compliance threshold

At least 85% of the establishment's total wage bill must be transferred by the deadline, measured after any lawful deductions under Article 25.

Proof of payment

Employers must submit the documents and data proving wages were paid, under MOHRE's rules.

Common triggers for a WPS violation

• Salaries paid after the deadline;
• Less than 85% of the total wage bill transferred;
• An employee is paid less than their full wage without a lawful, documented deduction;
• An employee is left off the WPS file without an approved exclusion;
• Salary is paid outside WPS without an authorised arrangement; or
• The company cannot evidence a deduction, unpaid-leave period or WPS exclusion.

What are the consequences of non-compliance?

MOHRE's response escalates with the length of the delay, whether it is repeated, the number of employees affected, and the establishment's size and sector:

At day 16 and day 21, and only in the listed sectors, action can extend to other establishments under the same ownership. Affected employees keep the right to claim unpaid salary even where the firm meets the overall 85% threshold.

Exclusions

The rules list 11 exclusions, such as approved unpaid leave, wage claims before the courts, absconding reports, banks and financial institutions, and places of worship (Article 4).

Third-party payment

An employer may use a third party to pay wages, but must give MOHRE its details and the contract, and stays responsible if wages are paid late (Article 5).

Procedural guide

MOHRE will issue a procedural guide for applying the resolution (Article 6).

What can be deducted from wages?

An employer may deduct from wages only in the cases listed in Article 25, and total deductions can never exceed 50% of the wage.

What annual leave are employees entitled to?

After one year of service, an employee is entitled to 30 days of fully paid annual leave. Between six months and one year, the entitlement is two days per month. A worker who leaves before using their balance is paid for the part-year worked.

Part-time workers

Leave is based on the hours actually worked, and works out to at least 5 working days a year.

During probation

The employer may allow leave; if the worker does not pass, unused leave is paid out.

When to take it

Leave should be taken in the year it is earned; dates are set by agreement or by rotation among staff, with at least one month's notice.

Carry-forward

With the employer's approval, unused leave can be carried over, capped at half the year's leave, or, by agreement, paid in cash at the wage due when the leave fell due.

No indefinite blocking

An employer cannot stop a worker from using their leave for more than two years.

Rest days within leave

Rest days and public holidays that fall inside annual leave count as leave, unless the contract or policy is more generous.

On leaving

All unused leave is paid out, calculated on the basic wage.

What are the public holidays?

Private-sector employees get paid public holidays set by the UAE Cabinet each year. The Islamic holidays follow the Hijri calendar, so the Cabinet announces the exact Gregorian dates close to the time. The holidays are:

What sick leave applies?

After probation, an employee can take up to 90 days of sick leave per year, continuous or intermittent, once they notify the employer within three working days and provide a medical report. Pay is tiered:

What maternity, parental and family leave apply?

Maternity leave

A female employee is entitled to 60 days of maternity leave: 45 days on full pay and 15 days on half pay. Leave can start from the last day of the month before the month the baby is due, on a medical certificate. The full 60 days also apply after a stillbirth or the death of the infant, where the pregnancy lasted at least six months. If an illness of the mother or child prevents her returning to work, she may take up to 45 additional unpaid days, continuous or intermittent, on a medical certificate; these days do not count as service for gratuity. If the child is sick or disabled and needs constant care, she is entitled to a further 30 days on full pay, extendable by 30 unpaid days. For six months after the birth, she is entitled to nursing breaks totalling up to one hour a day, in one or two breaks. An employee cannot be dismissed or given notice because of pregnancy, maternity leave or the related additional leave.

Parental leave

Both parents are entitled to five working days of paid parental leave, taken within the first six months after the child's birth.

Other family and personal leave

Bereavement leave

Five days for the death of a spouse, and three days for a parent, child, sibling, grandchild or grandparent.

Study leave

10 working days a year for a worker enrolled in an accredited UAE institution, after at least two years of service.

Hajj leave

Up to 30 days, unpaid, once during employment with the same employer.

National service leave

UAE nationals are entitled to paid leave for national and reserve service.

Unpaid leave (Article 33)

Allowed with the employer's approval; it does not count as service for gratuity or pension.

How is end-of-service gratuity calculated?

A full-time worker who completes at least one year of continuous service is entitled to end-of-service gratuity (Article 51), calculated on the basic wage (allowances such as housing and transport are excluded):

The total is capped at two years' wage. Gratuity and any outstanding entitlements must be paid within 14 days of the end of the contract (Article 53). Gratuity covers full-time non-UAE nationals; Emiratis receive end-of-service benefits under the pensions law. Part-time and job-sharing workers receive a pro-rated amount, temporary contracts of under one year receive none, and periods of unpaid absence do not count as service.

Work out an exact figure: try the free Bayzat UAE Gratuity Calculator →

How can employment be terminated, and what notice applies?

A contract can end by mutual agreement, by expiry of its term, or by either party giving written notice with a valid reason. It can also end in the other Article 42 cases: the death of the worker or employer, the worker's permanent disability, a final prison sentence of three months or more, closure of the business, insolvency, or failure to renew a work permit for reasons outside the worker's control. The notice period must be at least 30 days and no more than 90 days.

When can an employer dismiss without notice (Article 44)?

An employer may dismiss a worker without notice only after a written investigation and a written, reasoned decision handed to the worker. Gratuity is still payable. The cases are:

• Impersonating another person or submitting false certificates or documents.
• Causing a grave material loss, or deliberately damaging the employer's property and admitting it (MOHRE informed within seven working days).
• Breaching written, displayed workplace safety rules they were informed of.
• Failing to perform basic duties and continuing after a written investigation and two written warnings.
• Disclosing work secrets causing loss or personal gain.
• Being drunk or under the influence of a narcotic during working hours, or an act against public morals at work.
• A verbal or physical assault on the employer, a manager, a superior or a colleague.
• Absence without a valid reason for more than 20 non-consecutive days, or more than seven consecutive days, in a year.
• Illegally exploiting their position for personal gain, or working for another establishment improperly.

What is arbitrary dismissal (Article 47)?

Dismissing a worker because they filed a serious MOHRE complaint, or a valid case against the employer, is arbitrary dismissal. The court may award compensation of up to three months' wage, based on the last wage received, plus notice-period pay and end-of-service gratuity.

When can an employee leave without notice (Article 45)?

• The employer breaks the contract or the law and has not fixed it after 14 working days' MOHRE notice;
• The employer or its representative assaults, abuses or harasses the employee (reported within five working days);
• There is a serious danger at work the employer knew about and did not remove;
• The employee is moved to substantially different work without written consent, except where the law allows.

What happens during the notice period (Article 43)?

• The notice period must be the same for both sides, unless a difference favours the employee.
• The employee receives full pay during notice and must keep working if asked.
• If the employer gave notice, the employee can take one unpaid day a week to look for a job (with three days' notice).
• Whoever skips notice pays the other side the wage for the notice period not worked.

Are non-compete clauses allowed (Article 10)?

Yes, within limits. A non-compete clause is valid only where the job gives access to clients or business secrets, and it must be limited in time, place and type of work, lasting no more than two years after the contract ends. It is void if the employer ended the contract in breach of the law, and the employer must bring any claim within one year of discovering the breach.

What disciplinary action can an employer take?

The employer's written internal rules must set out the penalties. Under Article 39, in increasing order:

• A written caution
• A written warning
• A deduction of up to five days' wage a month
• Unpaid suspension of up to 14 days
• Losing a periodic pay rise for up to one year, or a promotion for up to two years, where the company has a pay-rise or promotion system
• Dismissal, with the worker keeping their end-of-service gratuity

What protections do employees have?

Non-discrimination

Discrimination on grounds such as race, colour, sex, religion, nationality, social origin or disability is prohibited, and women receive equal pay for work of equal value.

No forced labour or harassment

Forced labour and sexual harassment, bullying or violence at work are prohibited.

No recruitment fees

Charging a worker recruitment fees is illegal; the employer bears recruitment costs.

Passports

Under Article 13, employers may not retain a worker's official documents or force a worker to leave the UAE when employment ends.

Young workers

No one under 15 may work; workers aged 15 to 18 are limited to six hours a day, no night work (7pm to 7am), and no overtime or rest-day work.

Work injury

Workers are entitled to treatment and compensation for work-related injuries and occupational illnesses.

What happens if an employee is injured at work?

Under Articles 37 and 38:

• The employer pays for treatment until the employee recovers or a disability is confirmed.
• The employee receives full wage for up to six months, then half wage for up to six more, or until recovery, disability or death.
• Disability compensation is set by Cabinet resolution according to the type and degree of disability.
• If the employee dies, the family receives 24 months' basic wage, between AED 18,000 and AED 200,000, on top of gratuity.
• There is no compensation for a self-inflicted injury, wilful misconduct, an injury under the influence of alcohol or drugs, deliberately breaking safety rules, or refusing treatment or a medical examination without good reason.

What insurance is required?

Unemployment insurance (ILOE)

Private-sector employees must join the Involuntary Loss of Employment scheme and pay the premium themselves: AED 5 a month for a basic salary up to AED 16,000, or AED 10 above that. Investors, workers on temporary contracts and under-18s are exempt. After 12 continuous months of contributions, a claim pays up to 60% of average basic salary for up to three months, capped at AED 10,000 a month (lower category) or AED 20,000 (higher). A AED 400 fine applies for not enrolling, and a further fine for not paying premiums.

Health insurance

Abu Dhabi and Dubai already required it; from 1 January 2025, MOHRE's basic scheme extended the requirement to Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain (from AED 320 a year). It covers all private-sector employees and is a condition of issuing or renewing residency permits; workers whose permits were issued before 2025 need it at renewal.

Emirati pensions

Emiratis employed from 31 October 2023 contribute a total of 26% of salary (employer 15%, employee 11%), on a salary cap of AED 70,000. Where the salary is under AED 20,000, the government pays 2.5% of the employer's share.

What are the employer's obligations?

Under Article 13, every employer must:

• Keep each worker's file for at least two years after employment ends.
• Never keep a worker's passport or force a worker to leave the UAE when employment ends.
• Issue written workplace rules covering instructions, discipline, promotions and bonuses.
• Provide licensed accommodation, a housing allowance, or housing within the wage.
• Invest in workers' skills and provide a minimum level of training.
• Keep the workplace safe through prevention, awareness, training and safety checks.
• Pay for the worker's medical care and the insurance the law requires.
• Give a free experience certificate on request at the end of the contract.
• Pay the worker's return ticket home, unless they join another employer or the contract ended because of the worker.
• Make sure workers know their rights and duties, and not allow a worker to work for others except as the law allows.

What is Emiratisation (NAFIS)?

Emiratisation requires private-sector companies to increase the share of UAE nationals in skilled roles, supported by the NAFIS program.

Companies with 50 or more employees

• Increase Emiratis in skilled jobs by 2% a year, reaching 10% by the end of 2026.
• At least 1% must be met by 30 June, with the remaining 1% by the end of the year.
• The penalty for an unfilled Emirati role is AED 9,000 a month (AED 108,000 a year) in 2026, having risen by AED 1,000 a year from AED 6,000 in 2023.

Companies with 20 to 49 employees (14 sectors)

• Sectors include information and communications, healthcare, construction, manufacturing and hospitality.
• Must hire one Emirati in 2024 and another in 2025, and keep existing Emirati staff.
• Penalties: AED 96,000 in January 2025 for missing the 2024 hire, and AED 108,000 in January 2026 for the 2025 hires.

Minimum wage for Emiratis

AED 6,000 a month in the private sector, from 1 January 2026.

Fake Emiratisation

Hiring Emiratis on paper only carries fines of AED 100,000 to AED 1 million, charged per Emirati involved, and the employer may have to repay any incentives received.

What are the penalties for employers who break the law?

Since the 2024 amendment, fines of AED 100,000 to AED 1 million apply to employers who:

• Employ a worker without a work permit;
• Bring a worker into the UAE and then do not give them work;
• Misuse work permits;
• Close a business without settling workers' entitlements;
• Employ minors illegally; or
• Hire Emiratis on paper only, where the fine is multiplied by the number of workers involved.

How are labour disputes resolved?

A worker or employer first files a complaint with MOHRE, which tries to settle it amicably within 14 days. For claims up to AED 50,000, or where a party fails to honour a settlement, MOHRE issues a binding decision, which either party can challenge before the Court of First Instance within 15 working days of being notified. Claims above AED 50,000 that are not settled are referred to court.

Workers can contact MOHRE on the toll-free number 80084, and are exempt from court fees on claims under AED 100,000. Claims must be brought within two years of the end of employment.

Government sources

This guide summarises official UAE government information. For the full detail, visit the official pages below. The primary law is Federal Decree-Law No. 33 of 2021 and its Executive Regulations (Cabinet Resolution No. 1 of 2022).

Reference only, not legal advice. Open the links above for the full official detail. Last updated October 2026.