UAE Labour Law 2026 | Updated Rules & Employee Benefits
Having a job in any country also requires you to follow its labour laws. Especially when you are a country like UAE that is strict when it comes to following the laws. Getting a job in the UAE may be easy but after getting a job, knowledge of relevant labour laws and its impact on your job is important.
If you are working in the United Arab Emirates or planning to take a job there, you must know its labour law. The law determines how much you should be paid, how many working hours are allowed, what type of leave you are entitled to, and how your gratuity is calculated when your job ends. This law sets the rules that protect both sides of the employment relationship.
The latest UAE labour law is designed to create a fair balance between employers and employees. It introduces straightforward employment contracts, protection against discrimination, and more flexible work arrangements. Whether you are an employee trying to understand your rights, an employer looking to stay compliant, a first-time employee, a seasoned professional, or a business owner managing a team in the UAE, understanding the UAE Labour Law before a problem arises puts you in a position of clarity and confidence.
What is the new UAE Labour Law?
The UAE labour law is the legal framework that regulates employment relationships in the private sector. It is governed primarily by:
- ● Federal Decree-Law No. 33 of 2021
- ● Its executive regulations and later amendments
This law applies to most private-sector employees across the UAE, including workers in Dubai, Abu Dhabi, Sharjah, and other emirates. Employees should also ensure their employment details are properly registered and reflected in official records such as their UAE Labour Card, as it helps confirm their legal employment status in the UAE. Its main goals are to:
- ● Protect employee rights
- ● Increase workplace flexibility
- ● Promote equal opportunities
- ● Ensure timely salary payments
- ● Clarify contract and termination procedures
- ● Strengthen dispute resolution mechanisms
The most recent major update to the UAE Labour Law came through Federal Decree-Law No. 33 of 2021, with changes rolled out in 2022 and 2023. The new law was introduced to modernize employment practices and bring UAE workplaces in line with international standards.
11 Key Things You Must Know About UAE Labour Law
There are several changes in updated labour law and job holders must be aware of these significant changes. I explain each aspect of UAE updated labour laws below:
Unlimited Contracts Have Been Replaced
Before 2022, some employees had “unlimited contracts” meaning there was no specific end date of a contract. The old unlimited contract system has been abolished.. Now, every private sector employee in the UAE must have a fixed-term contract. The maximum length is 3 years, but contracts can be renewed. Companies had to switch all old unlimited contracts to fixed-term ones by February 2023.
Notice Period for Resignation
Under the UAE labour law, employees who resign must provide written notice.
- ● At least 30 days notice if staying in UAE to work somewhere else
- ● At least 14 days notice if you are leaving the UAE completely.
- ● If the employer ends the contract, then the employer must give 14 days written notice to the employee.
If an employee leaves the UAE permanently during probation, they must generally give at least 14 days’ notice. The probation period is a trial period for employees and employers. The maximum duration of probation period under UAE laws is six months which cannot be extended.
Working Hours and Overtime
Recent changes in labour laws are beneficial for employees. Your off day will not specifically be Friday. It could be any day agreed in a contract with the employer.
- The normal working limit in the UAE is:
- ● 8 hours a day
- ● 48 hours a week
If your employer asks you to work more than the standard hours, you must be paid extra for that overtime. And if you work more than 144 overtime hours in 3 weeks, you get additional pay (overtime) on it. Your annual holidays must be used in the same year. You can agree with your employer for extra pay based on basic pay, if annual leaves are not utilized. Normally, during Ramadan, Muslim employees work 2 fewer hours each day.
Leaves Allocation
Under the UAE Labour Law, employees are entitled to a structured and fair leave system that ensures proper work-life balance. Once an employee completes one year of service, they are generally entitled to 30 days of paid annual leave. For employees who have worked between six months and one year, leave is calculated on a pro-rata basis, typically around two days per month. This system is designed to ensure that every employee, regardless of their length of service, receives fair rest and recovery time.
In addition to annual leave, the law also provides special leave entitlements such as maternity leave, study leave, and compassionate leave under specific conditions. These provisions reflect the UAE’s commitment to employee wellbeing and workplace fairness, ensuring that workers are supported during both professional and personal life events.
Maternity Leave
UAE’s latest law protects pregnant female employees with 60 days of maternity leave. Below are the details:
- ● 45 days fully paid leaves
- ● 15 days unpaid leaves
But if there is some medical issue related to the child, 45 additional unpaid leaves are also allowed only if there is a valid certificate of medical issue from the doctor.
If your baby has some disability or special needs (known as ‘people of determination’) then you are entitled to:
- ● 30 extra leaves with full pay after your maternity leave ends.
- ● If required, then another 30 days unpaid leaves after 30 extra leaves ended
Sick Leave in UAE
After completing your probation, you are entitled to 90 days of sick leave in a year if you have some medical issues. You are required to inform your employer in writing within three of your medical issues along with your medical reports from the doctor to support your sick leave application. Below is the breakdown of these leaves:
- ● 15 days leaves with full salary
- ● Next 30 days leaves with a half salary
- ● After that 45 days unpaid leaves
Paternity Leave:
Parents of new born babies are also entitled to paternity leaves and UAE was the first Arab nation to introduce these leaves for parents. Both the father and the mother are entitled to 5 days of paid leaves. These leaves can be availed within 6 months following the birth of a child in consecutive days or separate days.
Hajj Leave
UAE labour laws also support employees to perform religious obligations as well. To perform the Hajj pilgrimage, Muslim employees are entitled to a total of 30 days unpaid Hajj leaves. These leaves can only be availed once in your lifetime during your employment with a single company. But if company policies allow another Hajj leaves you can also avail it.
Umrah Leave
In UAE labour laws there is not a specific provision related to Umrah leaves. It means the employer is not legally obliged for these leaves. These leaves totally depend upon the company’s internal policy and approval granted by the employer. Some companies show respect towards religious affairs so they may easily grant these leaves. You have to make a request to your employer and the employer decides whether it will grant you these leaves. If it grants then employer has to decide whether its part of your annual leaves or separate unpaid or paid leaves
Study Leave
New labour law also grants study leaves to employees who want to pursue further education along with their job. The government encourages employees to enhance their skillset by allowing these leaves. But these leaves depend upon certain conditions:
- ● You have to complete at least 2 years of employment with your employer
- ● You must enroll at an educational institution that must be approved for education in the UAE.
- ● Then you are enabled for a total of 10 days paid study leave per year
Annual Leave
You are also allowed for annual paid leaves to remain fresh and to take some rest from busy schedules. The breakdown for these leaves are explained below:
- ● If you have worked for more than a year then you are entitled for a total of 30 paid annual leaves.
- ● If you worked for more than six months but less than a year then 2 paid leaves per month are allowed.
You have to use your leaves in the same year in which it was granted. But you may agree with your employer to carry forward the leaves to next year or to pay you for annual paid leaves. The payment of these leaves will be calculated upon your basic salary.
Leave to Find a Job
You are entitled to a weekly one day unpaid leave if you are in a notice period and your employer terminates the contract. This will help to apply for a new job in some other company and to attend interviews without using your annual leave. You must inform your employer to avail this benefit and decide any day as your off day. If you are resigning voluntarily then employers have to decide whether you will get this leave benefit or not.
Compassionate Leave
Bereavement leaves are also allowed to support you in tough times of losing your family members. The number of leaves depends upon the relationship with deceased family members.
- ● If your spouse passed away then you are entitled to 5 days paid leaves
- ● 3 days paid leaves on the death of parent, child, sibling, grandparent, or grandchild
These leaves will help you to manage your crucial matters and grieve without thinking of losing a job.
Termination Rules for Contracts
Under the article 31 of UAE labour law Federal Decree-Law No. 33 of 2021, the process of terminating a contract is simple. You have to write a notice if your employer or you wants to terminate a contract. The time for giving a notice is being written in your employment contract. But notice must be given between 30 to 90 days.
The old rules for giving a notice which most people remembered has now been changed. Following are old rules details:
- ● 30 days notice if your service is less than five years
- ● 60 days notice if you serve for more than five years but less than 10 years
- ● 90 days notice if the employment period is more than 10 years.
Rules for Contract Suspension
Employers may suspend the employee temporarily and to start an investigation due to some serious concerns. The reason may include leaking secret internal data, breaking company policies & safety rules, causing significant losses to the company. The suspension lasts up to a maximum one month and the employee is entitled to half of its salary.
New changes in labour protects employees from unfair suspension and if the employee is found innocent then the employer has to reimburse the remaining salary of the suspension period to its employee.
End-of-service gratuity
Employees will also get a final gratuity (also known as thank you payment) at the end of service. You are only entitled for gratuity if you have completed your employment for at least 1 year. Gratuity payment is based on your most recent basic salary and calculated as allows:
- ● If your employment is less than five years, then your gratuity will be 21 days of your recent basic salary per year.
- ● If employment is more than 5 years then for first the calculation is being divided into two portions:
- ● For the first five years you will get 21 days of your recent basic salary per year.
- ● 30 days of recent base salary per year, for each additional year
You may use any gratuity calculator tool to calculate the exact amount of your gratuity. Remember that as per labour laws your employer is bound to make gratuity payment and any other settlement within the last 14 days following the end of service to employers. You may submit a formal request for payment of gratuity to make sure the deadline for payment has been met and will receive you payment smoothly.
Currency of Salary Payments:
New labour provides flexibility regarding currency for payment of salary. As per old labour law employers are required to pay a salary amount in UAE Dirham (AED). As per new law, your employer will pay you in any currency such as the Dollar, Euro, INR, PKR etc as agreed with your employment contract.
Employers are required to pay salaries through the Wages Protection System (WPS) to ensure timely payment of salaries. Through this system your salary directly transfers into your bank account. If an employer pays the salary through any other medium he may face severe fines and penalties.
Workplace Guidelines
New labour law ensures a fair, safe and respectful work environment for all employees. Key points are explained below:
Disciplinary sanctions:
Employers have the right to charge fair penalties to employees who break company policies. These penalties can only be charged after proper investigation to protect the employee as well.
As per Article 39 employer will can charge any of the below explained penalties:
- ● Employers can give the employee a written notice and written warning through a formal letter explaining the issue.
- ● 5 days deduction from salary in a month
- ● Suspend the employee for 14 days without salary
- ● Hold the promotion for 2 years
- ● Denied the annual increment in employee salary
- ● If has serious concerns about the employee, he may terminate the contract
Employers can make employees liable to penalties within 30 days after the discovery of the issue. All the actions taken by the employer must be documented in written form and also following the company policies and also the law. If actions taken by the employer were unfair, employees may submit a complaint at MOHRE.
Unemployment Insurance Scheme
This scheme is being started in 2023 to support employees who lose their jobs. The scheme helps employees to manage their expenses while finding a new job.
To avail Unemployment Insurance Scheme you must have to subscribe to the scheme for at least 12 continuous months.
UAE public holidays
All UAE employees in the private sector are entitled to fully paid leaves on UAE declared public holidays. This will help the employees to have a great time with their loved ones and to get a break from work on special occasions. Below is the list of UAE public holidays.
| Holiday Name | Number of Days |
|---|---|
| Gregorian New Year | 1 day (January 1) |
| Eid Al Fitr | 4 Days |
| Arafat Day & Eid Al Adha | 4 Days |
| Hijri New Year (Islamic New Year) | 1 Day |
| Prophet Mohammed’s Birthday | 1 Day |
| Commemoration Day | 1 day (December 1) |
| National Day | 2 days (December 2 & 3) |
UAE Salary
Your employer needs to follow the MOHRE guidelines for payment of your salary. Your salary must be paid on time and the salary amount is also mentioned in the employment contract. Below are some basic rules for salary payment:
2 Newly Added Benefits for Employees:
Health Insurance
The UAE government has serious concerns related to health insurance of the employee. According to the new law, it is mandatory for employers in Dubai and Abu Dhabi to provide basic health insurance for their employees. Also, the payment for this insurance premium is the sole responsibility of the employer. Employers are not allowed to charge the amount from the salary of an employee. The employer will be legally obliged to cover the health insurance of only its employees and not its family. However, it is legally mandatory for all citizens to have their health insurance.
Employee Insurance System
UAE labour laws protect the financial rights of every employee especially when it comes to your end of service money. While hiring you, your employer must choose any single option from below to make surety of payment:
Conclusion
The UAE labour law has become more employee friendly and simple than ever before. It clearly defines rules regarding contracts, salaries, leave, termination, and gratuity, helping both employers and employees understand their rights and responsibilities.
I, as a legal consultant, try to create a UAE labour law guide as easy as possible for me to consider that a common man having a job in UAE can take benefit from it. If you are working in the UAE, staying informed about the UAE labour law is essential for protecting your career and financial interests.