UAE Labour Law: Essential Guide for Job Seekers

Understanding UAE labour laws is crucial for anyone seeking employment in the United Arab Emirates. This comprehensive guide covers federal labour laws, emirate-specific regulations, employee rights, employer obligations, and essential information every job seeker should know.

UAE Federal Labour Law Overview

The UAE Labour Law (Federal Law No. 33 of 2021) governs labor relations throughout the United Arab Emirates. Replacing the previous law from 1980, this updated legislation provides a comprehensive framework for employment relationships, protecting both employers and employees.

Key Labour Law Changes (2021-2022)

  • Introduction of flexible work models (part-time, temporary, and freelance work)
  • Discrimination and harassment protection
  • Equal pay requirements for equal work
  • Extended maternity leave benefits
  • Updated end-of-service gratuity calculations
  • New work permit and visa regulations

Employment Contracts in UAE

All employment relationships in the UAE must be formalized through a contract, which can be either limited (fixed-term) or unlimited. As of February 2022, all contracts must be limited (fixed-term) with a maximum duration of three years (renewable).

Essential Contract Elements

  • Employer and employee details
  • Contract start date and duration
  • Nature of work and location
  • Working hours and days
  • Probation period (if applicable, maximum 6 months)
  • Salary details and payment schedule
  • Leave entitlements
  • Notice period for termination
  • End-of-service benefits

Working Hours and Leave Entitlements

Standard Working Hours

  • Maximum 8 hours per day or 48 hours per week (standard)
  • Maximum 6 hours per day during Ramadan for Muslim employees
  • At least one day off per week (typically Friday)
  • Maximum 2 hours of overtime per day (paid at 125% of regular wage)

Leave Entitlements

  • Annual Leave: 30 calendar days per year (after one year of service)
  • Sick Leave: 90 days per year (first 15 days full pay, next 30 days half pay, remaining unpaid)
  • Maternity Leave: 60 calendar days (45 days full pay, 15 days half pay)
  • Paternity Leave: 5 working days (within 6 months of child's birth)
  • Study Leave: 10 working days per year (for UAE national employees)
  • Compassionate Leave: 5 days for spouse's death, 3 days for parent's, child's, or sibling's death

Salary and Benefits

Wage Protection System (WPS)

The WPS ensures that all employees receive their salaries on time through authorized financial institutions. Employers must register with the WPS and transfer salaries within the specified timeframe.

End-of-Service Gratuity

Employees who complete at least one year of continuous service are entitled to end-of-service gratuity calculated as follows:

  • 21 days' basic salary for each year of the first five years
  • 30 days' basic salary for each additional year
  • Maximum gratuity capped at two years' total salary

Termination of Employment

Notice Periods

  • Minimum 30 days, maximum 90 days (as specified in the contract)
  • Payment in lieu of notice is permissible by mutual agreement

Grounds for Termination

  • With Notice: Mutual agreement, contract expiration, or legitimate business reasons
  • Without Notice: Serious misconduct, fraud, or violation of contractual obligations

Labour Disputes and Complaints

Employees with grievances should first attempt to resolve issues directly with their employer. If unsuccessful, they can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through:

  • MOHRE website or mobile application
  • Tasheel service centers
  • MOHRE call center (800 60)

Unresolved disputes will be referred to the Labour Court in the relevant emirate.

Labour Fines and Penalties

Both employers and employees may face fines for violating UAE labour laws, including:

  • Working without a valid work permit (AED 50,000 for employer, AED 5,000 for employee)
  • Hiring workers sponsored by another employer (AED 50,000 per worker)
  • Late salary payment (AED 1,000-5,000 per worker)
  • Non-registration with WPS (up to AED 5,000)
  • Failure to provide adequate housing (AED 10,000-50,000)
  • Illegal termination during sick leave (compensation may be awarded)

Emirate-Specific Labour Regulations

While federal labour laws apply throughout the UAE, each emirate may have additional regulations and processes. For detailed information, visit our emirate-specific pages:

Free Zones and DIFC/ADGM Regulations

Special economic zones in the UAE may operate under different employment regulations:

  • Dubai International Financial Centre (DIFC): DIFC Employment Law No. 2 of 2019
  • Abu Dhabi Global Market (ADGM): ADGM Employment Regulations 2019
  • Other Free Zones: Typically follow federal labour laws with specific modifications

Essential Tips for Job Seekers in UAE

  • Always obtain and review your employment contract before signing
  • Ensure your employer provides a proper work permit and residence visa
  • Keep copies of all important documents (passport, visa, contract, qualifications)
  • Familiarize yourself with the UAE's ban system for changing employers
  • Understand your rights regarding working hours, overtime, and leave
  • Know the procedures for filing complaints in case of disputes
  • Calculate your end-of-service benefits before resigning
  • Follow proper resignation procedures to avoid employment bans

Additional Resources

This information is provided as a general guide to UAE labour laws. Laws and regulations may change, and specific cases may vary. For the most current and personalized advice, consult with a legal professional specializing in UAE employment law.