UAE Labour Law

Who Does UAE Labour Law Cover?

• UAE Labour law applies to all employees and employers of the private sector in the UAE, including UAE and expatriate employees. It does not apply to government employees, armed forces, security & police personnel, or domestic workers as they are governed by other laws.
• The law has been designed to protect employees’ rights, protect them from forced and unfair work, and create a flourishing and stable employment market.
• It also promotes Emiratisation, which helps UAE nationals to secure employment with private companies.

Employment Contracts Under UAE Labour Law

• All jobs require a written employment contract. UAE labour law introduces several new work models such as full-time, part-time, temporary and flexible. It abolished the ‘unlimited’ type of contracts and admitted only limited or fixed-term contracts.
• The contract must specify whether the job is full-time, part-time, temporary or flexible.
• If both the employer and the employee keep working after the contract ends, and they do not make a new agreement, the old contract is automatically continued with the same terms and conditions.
• Under the law the Employer may appoint the Worker under the Probation Period for a period not exceeding six (6) months from the date of joining the office.
• The employer may terminate the Worker’s service during this period (probation) after notifying the Worker in writing at least fourteen (14) days prior to the date specified for termination of service.

UAE Employment Labour LAW Working Hours, Overtime, and Rest

• The maximum normal working hours for Workers shall be eight (8) hours per day or forty-eight (48) hours per week. It should only be extended by the employer if the employee agrees and is permitted by the law.
• The employer can ask the worker to work extra hours, but only up to 2 extra hours a day. More than this is only allowed if the law says so.
• Total work hours cannot be more than 144 hours in 3 weeks. If the worker works extra hours, it becomes overtime. Overtime pay = normal basic wage + at least 25% extra.
• Working overtime between the hours of 10 PM to 4 AM, or during the official holidays of the country, entitles the employee to a 50% increase in payment. This rule does not apply to shift workers.
• Employees are ensured of at least one paid weekly day off.
• All private-sector workers are provided with reduced working hours during the month of Ramadan.
• It is further specified by the law that no worker can work more than 5 consecutive working hours without having a break of no less than 1 hour.

These regulations contribute to ensuring a safer, fairer and healthier workplace for all, according to the UAE labor law.

Labour Contract Wages, Benefits, and Payment Rules

• Salary (income) of the employee has to be stated in clear terms in the employment contract. Employers are also obliged to pay their salary on time under the Wage Protection System (WPS).
• By default, the employer is considered late in paying the wage if it is not paid within the first 15 days after the date stipulated in the employment contract unless the employment contract stipulates a shorter period of time.
• UAE labour law does not allow any deductions except for a valid reason such as for a loan or for damages. Total deductions cannot be more than 50% of pay.
• Some sectors have a minimum wage established by Cabinet resolutions. Experience certificates must be provided on termination of employment. This section of UAE employment law is designed to protect your disposable income and your rights.

UAE Labour Law Leave Entitlements

Workers are entitled to various kinds of paid leave:

• Annual leave: The worker has the right to paid annual leave. It must be at least:

1. 30 days of leave every year if the worker has completed one full year of service.
2.  2 days of leave for each month if the worker has worked more than 6 months but less than 1 year.
3.  Leave for the part of the last year worked if the worker’s job ends before using all their annual leave.

• Maternity leave: The female Worker shall be entitled to maternity leave of (60) sixty days, according to the following:
  1. The first forty-five (45) days with full pay.
  2. The following fifteen (15) days with half pay.

The law further adds that it is not permissible to terminate the service of a female Worker or to give her notice because of pregnancy.

• Sick leave: After the Probation Period, the Worker may receive a sick leave of no more than (90) ninety consecutive or intermittent days per year, provided that it shall be calculated as follows:
  1. The first fifteen (15) days with full pay.
  2. The following thirty (30) days with half pay.
  3. The following period shall be unpaid.
• Other leaves: Mourning (3-5 days), parental (5 days), study (10 days if you are a student), official holidays with full pay.

These leaves are to support work-life balance under the UAE labour law.

End of Service Gratuity and Job Termination

• The foreign full-time Worker, who has completed one or more years of continuous service, is entitled to an end-of-service gratuity upon the end of his service, calculated according to the basic wage, as follows:

1. The wage of twenty-one (21) days for each year of the first five years of service.
2. The wage of thirty (30) days for each year in excess of that..
3. The sum of the end of service gratuity payable to the foreign Worker shall not exceed the wage of two years.

• The UAE labour law makes provision for the termination of the contract. Either party may give notice as is agreed (notice period at least 30 days and not more than 90 days).
• Either party may be dismissed with no notice only for a serious cause such as serious misconduct, repeated absence and disclosure of secrets.

The law protects against unfair dismissal. You cannot dismiss a worker for lodging a complaint or for filing a court case.

Employee Rights and Employer Duties

UAE labour law needs to be followed strictly. No discrimination on the basis of race, colour, sex, religion, nationality, origin or disability. Equal pay for equal work. No forced labour, no sexual harassment, no bullying or violence at work. Employers must:

• Maintain safe working conditions
• Give proper training
• Provide suitable housing or house allowance
• Keep records
• Pay for medical care and insurance

Workers must do their work properly, obey rules and keep company secrets. Non-compete clauses are permitted but only up to two years, only for a certain type of work and only if the worker knows trade secrets.

UAE Employment Law Dispute Resolution 

• Workplace dispute resolution begins with internal discussion between employees and employers. They try to find an amicable settlement.
• If that fails, an employee can lodge a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). MOHRE then reviews the complaint and resolves the dispute via mediation.
• MOHRE’s decision is final and binding for all labour claims of up to AED 50,000 under Federal Decree-Law No. 20 of 2023 on the Determination of Certain Labour Disputes, which give authority to the MOHRE to make final decisions for small claims.
• Employees have two years to lodge any labour claim after the employment relationship ends
• These initiatives support a quicker, easier and fairer dispute resolution process for both parties.

To stay up to date and for accurate information, always refer to the official MOHRE or u.ae websites as the laws may change or consult qualified labour lawyers for any information.

Why Understanding UAE Labour Law Matters

UAE labor law aims to provide a calm, structured work environment for the employer and employees. It sets up a secure, structured, and fair work environment for all concerned. There are many employment related matters the law clarifies, including:

• Employment contract
• Salary structures
• Working hours
• Annual leaves
• Termination of employment
• Employee rights

These procedures enable employees to know their rights, and allow companies to adhere to labor law.

If you need to know anything related to Dubai labor law, end of service gratuity, or labor disputes, MOHRE and u.ae are the best places to find the right information.

Disclaimer: This information is for general purposes only and does not create any client–attorney relationship. It should not be construed as legal advice. For guidance specific to your situation, please consult a qualified legal professional.

Frequently Asked Questions (FAQs)

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The UAE labour law regulates all the phases of the employment relationship and sets definite obligations of the employer and employees. The consequences of the wrong interpretation or failure to comply may include monetary loss, interference with the operations of a business or even criminal prosecution.

Knowledge of the legal system, timely action, and due process are critical to employment relationship management and workplace conflict resolution based on the UAE law.

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