Whether you're a seasoned professional or new to the UAE job market, understanding your rights and obligations under the country's employment regulations is crucial for a fair and positive working experience. The primary legislation governing employment in the private sector is Federal Decree-Law No. 33 of 2021 regarding the Regulation of Labour Relations (the "UAE Labour Law"), along with its Executive Regulations.
This law aims to protect employee rights, enhance flexibility and efficiency in the labour market, and regulate the relationship between employers and employees. While this guide covers key essentials as of May 3, 2025, it's intended for informational purposes and is not a substitute for specific legal advice.
Section 1: Scope of the Law
The UAE Labour Law primarily applies to private sector companies and employees operating on the UAE mainland. Companies registered in financial free zones like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have their own distinct employment laws. Other free zones may have their own rules, but many align closely with or adopt principles from the federal law. Always check the specific regulations applicable to your employer's registered location.
Section 2: Key Provisions and Employee Rights
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Employment Contracts:
- Fixed-Term Only: All employment contracts must now be for a defined period, with a maximum duration of three years per contract. These can be renewed for similar or shorter periods. Unlimited contracts were required to be converted.
- Key Contents: Your contract must clearly state essentials like job title, work location, contract duration, start date, salary (broken down into basic wage and any allowances), working hours, and the notice period for termination. Ensure you receive and understand both English and Arabic versions if provided.
- Probation Period: Can be up to a maximum of six months. The employer must give 14 days' notice to terminate during probation. An employee wishing to resign during probation must typically give 14 days' notice (if moving within UAE) or 1 month's notice (if leaving UAE), subject to specific conditions.
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Working Hours & Overtime:
- Standard: Maximum 8 hours per day or 48 hours per week. Working hours are reduced during the holy month of Ramadan (typically by 2 hours per day).
- Overtime Pay: If required to work extra hours, overtime is calculated based on your basic wage at a rate of +25% for normal hours and +50% for hours between 10 PM and 4 AM or if work occurs on your designated rest day (e.g., Friday/Sunday). Certain managerial positions may be exempt.
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Wages & Payment:
- WPS: Most mainland companies must pay salaries through the official Wages Protection System (WPS), ensuring transparency and timeliness.
- Pay Details: Employers should provide clear pay slips detailing salary components and any deductions.
- Deductions: Only legally specified deductions from your salary are permitted (e.g., recovery of advances, legally mandated contributions, court-ordered payments, specific disciplinary fines under strict conditions).
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Leave Entitlements:
- Annual Leave: Minimum of 30 calendar days per year after completing one full year of service. During the first year (after 6 months), leave accrues at 2 calendar days per month. Leave pay is based on your full salary (basic + allowances).
- Sick Leave: After probation, up to 90 calendar days per year (consecutive or intermittent): first 15 days at full pay, next 30 days at half pay, remaining 45 days unpaid. A valid medical certificate is required.
- Maternity & Paternity Leave: Maternity leave is 60 days (45 days full pay, 15 days half pay). Paternity leave is 5 working days.
- Other Leaves: Provisions exist for bereavement leave (3-5 days depending on relation) and parental leave (5 working days).
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Non-Compete Clauses:
- Can be included in contracts but must be reasonable and limited in duration (max 2 years), geographical scope, and the type of work restricted. They must be necessary to protect the employer's legitimate interests.
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Anti-Discrimination & Harassment:
- The law explicitly prohibits discrimination based on race, colour, sex, religion, national origin, social origin, or disability that would impair equal opportunity. It also forbids sexual harassment, bullying, or any verbal, physical, or psychological violence against employees.
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Termination & Notice Period:
- Notice: Termination by either party (after probation) requires written notice as specified in the contract (minimum 30 days, maximum 90 days). You must work during the notice period.
- Summary Dismissal (Article 44): An employer can terminate without notice for specific reasons defined as gross misconduct (e.g., assault, causing substantial material loss, revealing confidential secrets, being absent without cause for 7+ consecutive days).
- Resignation Without Notice (Article 45): An employee can leave without notice under specific circumstances (e.g., employer's breach of obligations, assault by employer).
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End-of-Service Gratuity (EOSG):
- Eligibility: Payable to employees completing at least one year of continuous service upon termination/resignation.
- Calculation: Calculated based on the employee's last drawn basic wage. It's 21 days' basic wage for each of the first five years of service, and 30 days' basic wage for each subsequent year. The total gratuity amount cannot exceed two years' total salary.
Section 3: Workplace Models
The new law formally recognizes various work patterns, including full-time, part-time, temporary work, flexible work (varying hours/days), and remote working arrangements, subject to employer agreement and contractual terms.
Section 4: Disputes and MOHRE
If you have a dispute with your employer (e.g., unpaid wages, unfair dismissal), the first step is usually to attempt an amicable resolution. If that fails, you can register a labour complaint with MOHRE (or the relevant Free Zone authority). MOHRE will attempt mediation. If no settlement is reached, the case may be referred to the Labour Courts.
Section 5: Key Takeaways for Employees
- Read Your Contract: Understand every clause before signing. Pay attention to basic salary vs. allowances, notice period, and job title.
- Know Your Rights: Be aware of your legal entitlements regarding pay, hours, leave, and termination.
- Document Everything: Keep secure copies of your contract, visa, Emirates ID, pay slips, and any important official communication with your employer.
- Communicate Professionally: Maintain clear and professional communication with your employer/HR.
- Seek Help: If you face issues or are unsure about your rights, contact MOHRE's helpline or seek advice from legal professionals specializing in UAE Labour Law.
A clear understanding of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) is essential for expatriates working in the private sector. Knowing your rights and responsibilities helps foster a fair working relationship and provides recourse if issues arise. Always refer to your specific employment contract and seek professional legal advice for complex situations.
