The United Arab Emirates (UAE) has emerged as a global business hub, attracting professionals and companies from around the world. With this growth, the UAE Labour Law plays a crucial role in ensuring fair treatment and protection for both employers and employees.

In this guide, we’ll break down the key rights and obligations under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), updated for 2025.

🔍 1. Employment Contracts: Fixed vs. Unlimited Term

As of the recent changes, only fixed-term contracts (up to 3 years) are allowed. Unlimited contracts are no longer valid.

Key points:

  • All employment contracts must be converted to fixed-term contracts.

  • Contracts can be renewed multiple times.

  • Clear terms regarding salary, job title, and duration must be included.

🕒 2. Working Hours & Overtime

The standard working hours in the private sector are:

  • 8 hours per day or 48 hours per week

  • During Ramadan, reduced to 6 hours per day

  • Employees are entitled to overtime pay for extra hours.

Overtime rate:

  • 125% of base salary (daytime)

  • 150% of base salary (nighttime or weekends)

🌴 3. Leave Entitlements

Employees in the UAE are entitled to the following leave:

✅ Annual Leave

  • 30 calendar days after completing one year of service

  • 2 days per month for those with 6–12 months of service

✅ Sick Leave

  • Up to 90 days per year

  • First 15 days fully paid, next 30 days half-paid, last 45 days unpaid

✅ Maternity Leave

  • 60 days total: 45 days fully paid + 15 days half-paid

  • Extended unpaid leave available in certain cases

✅ Paternity Leave

  • 5 working days, to be taken within 6 months of childbirth

🧾 4. Termination & End of Service Benefits

Termination Notice

  • Minimum 30 days’ notice must be given

  • Shorter or longer notice periods can be agreed upon contractually

Termination Without Notice

An employer may terminate without notice if the employee:

  • Uses forged documents

  • Discloses business secrets

  • Fails to perform basic duties after warnings

End of Service Gratuity

For employees completing one or more years:

  • 21 days’ wage for each of the first 5 years

  • 30 days’ wage for every year after 5 years

  • Calculated based on basic salary only

⚖️ 5. Dispute Resolution: MoHRE & Labour Courts

If a dispute arises:

  1. File a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).

  2. If unresolved, the case is escalated to the Labour Court.

Employees cannot be forced to work during the legal dispute and are protected from retaliation.

🌐 6. Key Protections for Employees in the UAE

  • No discrimination based on race, gender, religion, or disability

  • Equal pay for men and women performing the same job

  • Protection from unlawful termination during maternity or sick leave

  • Right to keep personal documents (like passport)

✅ Final Thoughts

Whether you’re an expat employee or an employer in the UAE, understanding your rights and obligations under the UAE Labour Law is essential. The law has been designed to ensure a fair and transparent relationship between employers and workers in a fast-paced, multicultural workforce.