Every career in the UAE begins with a contract, but few truly read the rules that govern it. UAE Labour Law is not just legal text, it quietly decides how you are hired, paid, protected, warned, or even dismissed.
From article 8 UAE labour law that defines contracts, to disciplinary powers under article 120 UAE labour law, grievance pathways in article 121 UAE labour law, suspension rules in article 123 UAE labour law, overtime limits in article 88 of UAE labour law, and compensation safeguards under article 138 UAE labour law, each clause shapes your professional life.
What’s Inside the Guide
✅ UAE Labour Law explained section by section (2026)
✅ Leave, salary, overtime, probation, termination & gratuity breakdowns
✅ Employer obligations vs employee rights
✅ Resignations, disputes, visa cancellation
✅ MOHRE complaint process & timelines
✅ Free zone notes (DIFC, ADGM differences)
Employees who don’t know the law often pay for it emotionally and financially. Employers who ignore it face penalties, fines, and reputational damage that spreads faster than any court notice. This article opens the door to the laws most people only discover when it’s already too late.
Become a UAE Labour Law Expert in less than 10 Mins
You don’t need a law degree to protect your career, you need clarity. This knowledge-driven guide breaks UAE Labour Law into practical truths every employee and employer must know before signing, resigning, warning, or terminating. By the time you finish reading, you’ll start spotting risks, red flags, and rights most professionals miss for years. And this is just the beginning.
Who This Guide Is For
✅ Employees working in the UAE (all nationalities)
✅ HR professionals & people managers
✅ Business owners & startup founders
✅ Recruiters & compliance teams
✅ Anyone signing, renewing, or exiting an employment contract
There are 24 UAE labour laws every working professional must understand to operate at a pro level in the UAE job market. If you want structured mastery, enroll in the Svarna UAE Labour Law Training Program, earn KHDA certification, and learn from real world case interpretations.
What comes next will change how you see employment forever.
1. UAE Labour Law Working Hours
- Standard Limit – Maximum of 8 hours per day or 48 hours per week
- Ramadan Reduction – Daily working hours reduced by 2 hours for all employees
- Summer Mid Day Break – Outdoor work banned from 12:30 PM to 3:00 PM (15 June – 15 September)
- Mandatory Breaks – No more than 5 continuous working hours without a 1 hour unpaid break
- Commuting Time – Travel between home and work is not counted as working hours
Under UAE labour law working hours, time itself becomes a form of protection. The law quietly draws boundaries around the human body, how long it can give, when it must rest, and when heat, fatigue, or burnout are no longer negotiable. These limits exist not to slow productivity, but to sustain it, ensuring work does not quietly erode health, dignity, or balance.
In government roles, working hours in uae labour law follow a different rhythm. Federal entities operate on a 4.5 day week, while Sharjah pioneered a 4 day workweek, giving employees a three day weekend. These structures reflect a growing belief that efficiency improves when rest is respected, not resisted.
When work stretches beyond its legal frame, overtime rules step in. Overtime is capped, carefully measured, and financially compensated, 25% extra for daytime hours, rising to 50% for night work or rest days. Yet the law also knows hierarchy, senior leadership, supervisory roles, and certain sectors operate under modified rules. For juveniles, however, the law is uncompromising, no overtime, no night work, no exceptions. Here, the law speaks clearly, time at work must never come at the cost of safety or humanity
2. UAE Labour Law Probation Period
- Maximum Duration – Strictly capped at 6 months from the date of joining
- Extension Rule – Probation cannot be extended or renewed under any circumstance
- Employer Termination – Requires a minimum of 14 days’ written notice
- Employee Resignation – 14 days’ notice if leaving the UAE, 30 days if joining another UAE employer
- Compensation Risk – Failure to follow notice rules triggers salary based compensation
Under UAE labour law probation period, probation is not a trial with unlimited power, it is a tightly controlled legal window. The law sets clear limits so neither side can stretch uncertainty indefinitely. Once six months pass, probation ends automatically, and those months count fully toward continuous service, including end of service benefits. An employer cannot reset probation by changing job titles or renewing contracts. The clock only runs once.
Notice during probation carries weight. If an employer ends the relationship, 14 days’ written notice is mandatory. If an employee resigns, the notice depends on intent 14 days when exiting the UAE, 30 days when staying to join another company. In such cases, the law allows recruitment cost recovery from the new employer, not the employee. Ignore these timelines, and compensation equal to the notice salary becomes legally payable.
Probation does not mean zero protection. Medical insurance must begin from day one. Sick leave exists, though often unpaid, and annual leave continues to accrue even if its use depends on approval. What the law forbids outright is charging employees for visa or recruitment costs. And for those who exit without serving notice, the consequences can be severe including a one year labour ban. In the UAE, probation tests performance, not rights.
3. UAE Labour Law Annual Leave
- Your First 6 Months there is no statutory right to paid leave, unpaid leave may be granted at employer discretion.
- 6 Months to 1 Year you are entitled to 2 calendar days of paid leave per month.
- After 1 Year you are entitled to 30 calendar days of paid annual leave per year.
- Part Time Employees eligible for pro rated leave based on actual working hours, minimum 5 days annually.
Under UAE labour law annual leave, entitlement is calculated using calendar days, not working days. This means weekends and public holidays that fall within your leave period are counted as part of your leave balance, often surprising employees who expect otherwise.
Salary during leave must be paid before the leave begins, covering basic pay plus regular allowances. However, when leave is encashed at the end of employment, the law clearly limits the calculation to basic salary only, not allowances.
Leave planning is a shared process, but the employer holds final scheduling authority, provided they give at least one month’s notice. Employees may carry forward up to 50% of unused leave with written approval, but the law draws a firm line, no employer may deny leave for more than two consecutive years.
While on annual leave, employees are strictly prohibited from working elsewhere. Violating this rule can legally justify termination without notice.
4. Basic Salary in UAE Labour Law
The fixed wage stated in the employment contract, excluding allowances or in kind benefits
- Structure – Total salary = Basic salary + allowances (housing, transport, etc.)
- Minimum Wage – No fixed minimum for private sector expats, Emirati minimum set at AED 6,000 from Jan 2026.
- Regulation – Salaries must be paid through WPS within the legal timeframe.
- Legal Weight – Forms the foundation for multiple statutory calculations.
Under basic salary in UAE labour law, one number quietly carries the heaviest consequences. It is the figure that follows you to the end of your service, long after allowances disappear from the payslip. Defined clearly in Federal Decree Law No. 33 of 2021, basic salary excludes housing, transport, and perks but it determines what truly counts when rights are calculated.
Gratuity is built on it. Overtime is priced from it. Even ILOE insurance compensation traces its value back to this single figure. This is why understanding the basic salary percentage in UAE labour law matters. A contract overloaded with allowances and a low basic may look generous today, yet shrink tomorrow’s end-of-service benefits without warning.
While private sector expats do not have a statutory minimum wage, salaries must still meet living standards shaped by industry norms. For UAE nationals, however, the law now speaks plainly from 1 January 2026, the minimum private sector salary is AED 6,000. Paid through the Wage Protection System, your basic salary is not just income. In the UAE, it is the legal anchor of your working life.
5. UAE Labour Law Overtime
- When Overtime Starts – Work beyond 8 hours per day or 48 hours per week
- Regular Overtime Rate – 125% of hourly basic wage (basic + 25%)
- Night Overtime (10 PM – 4 AM) – 150% of hourly basic wage (basic + 50%)
- Weekly Rest / Public Holiday – Compensatory day off or 150% basic pay
- Maximum Limit – Total working hours capped at 144 hours over any three week period
Under uae labour law overtime, extra hours are not invisible effort, they are measured, priced, and protected. When work stretches beyond legal limits, the law steps in to ensure time is repaid with fairness. Every minute of overtime is calculated strictly on basic salary, never on allowances, anchoring compensation to a clear and consistent base.
The distinction between day and night matters. Under overtime calculation in UAE as per labour law, work done between 10 PM and 4 AM carries a higher cost, recognizing the physical and social toll of night labour. During Ramadan, this threshold arrives earlier, as daily working hours are reduced by two, meaning overtime applies sooner than many expect.
Yet the law also knows exceptions. Senior managers, supervisory roles, and certain shift workers may fall outside standard overtime rules. Even then, limits exist. Overtime is generally capped at two extra hours per day, except in urgent cases involving serious loss or damage. Long stretches of work require rest, a mandatory break after five continuous hours, and commuting time remains excluded unless extraordinary circumstances apply. In the UAE, overtime is not generosity. It is legal currency.
6. labour law uae leave salary
- First Year Entitlement – From 6 months to 1 year, 2 calendar days of paid leave per month
- After 1 Year – 30 calendar days of paid annual leave
- Part Time Employees – Leave is calculated on a pro rated basis
- Public Holidays – Paid day off or 150% of basic salary if worked
Under labour law uae leave salary, rest is not treated as absence, it is treated as earned time, fully paid and legally protected. Once an employee completes one year, annual leave becomes a full 30 paid calendar days, while the first year builds gradually at two days per month after six months of service. These days are not symbolic, they must be paid before the leave begins, and the payment must include basic salary plus fixed allowances such as housing and transport.
The law also draws a clear line between leave taken and service ended. When employment concludes, unused leave is encashed based strictly on basic salary only, unless the contract offers more. This distinction matters. A generous allowance structure does not inflate final leave payouts unless the employer explicitly agrees. Employees may typically carry forward up to half their leave, but long-term denial of rest is not permitted.
Public holidays carry their own protection. If work is required on an official holiday, the employee must receive either a compensatory day off or 150% of basic pay for that day. And when leave goes unpaid without legal basis, unpaid leave UAE labour law allows recourse, violations can be reported to MOHRE. In the UAE, leave salary is not goodwill. It is enforceable law.
7. Sick Leave as Per UAE Labour Law
- Annual Entitlement – Maximum of 90 days per year after probation
- Pay Structure – 15 days full pay, 30 days half pay, 45 days unpaid
- Medical Proof – Valid medical certificate is mandatory
- Notification Rule – Employer must be informed within 3 days
- Misconduct Exception – Sick leave is void if illness results from misconduct
Under Sick Leave as Per UAE Labour Law, illness is treated as a human reality, not a professional failure. Once probation is completed, the law grants up to 90 days of sick leave, whether taken continuously or in intervals. The structure is deliberate, the first 15 days fully paid, the next 30 days at half salary, and the remaining 45 days unpaid, balancing compassion with continuity of business.
Probation, however, is different terrain. During this period, employees are not entitled to paid sick leave, though unpaid leave may be granted at the employer’s discretion if medical evidence is produced. A licensed medical report is non negotiable, and silence is not permitted, employees must notify their employer within three days of falling ill.
The law also draws firm boundaries. Sick leave cannot be used during a resignation notice period, nor does it protect misconduct related illness, such as substance abuse. Employers cannot terminate an employee simply for being sick, unless the employee works elsewhere during sick leave. If illness stretches beyond 90 days, termination becomes lawful, but dignity remains intact through full end of service benefits. In the UAE, sickness is protected, but only when honesty walks with it.
8. Emergency Leave in UAE Labour Law
- Legal Status – No standalone emergency leave defined under UAE Labour Law
- Approval Requirement – Employer consent is mandatory
- Payment Treatment – Usually deducted from annual leave or treated as unpaid
- Policy Driven – Governed largely by internal company regulations
- Proof Required – Documentation may be requested to justify absence
Under emergency leave in uae labour law, silence speaks as loudly as written rules. The law does not carve out a specific category called “emergency leave” for private sector employees. Instead, it leaves space, trusting employers and employees to act with reason when life interrupts work without warning. That space, however, must be navigated carefully.
Without approval, an emergency absence risks being labeled unexcused, carrying consequences that can escalate to termination. Most organizations resolve emergencies by adjusting annual leave balances, or by granting unpaid leave when no balance exists. This is where internal policies quietly matter more than many contracts.
For moments of real loss, the law does step forward. Bereavement leave exists, typically 3 to 5 days of paid leave, depending on the relationship, acknowledging that grief cannot be scheduled. Employers may request supporting documents, not to challenge hardship, but to formalize protection. In the UAE, emergency leave is not automatic. It is negotiated, and handled best with transparency, speed, and respect.
9. Ramadan Working Hours UAE Labour Law
- Mandatory Reduction – Daily working hours reduced by 2 hours
- Private Sector Standard – 8 hours become 6 hours per day
- Weekly Limit – Reduced from 48 to 36 hours
- Salary Protection – No wage deduction permitted
- Overtime Trigger – Work beyond reduced hours counts as overtime
Under Ramadan working hours UAE labour law, time itself slows in respect. Federal Decree Law No. 33 of 2021 makes the rule unambiguous, during Ramadan, every private sector employee receives a two hour daily reduction, regardless of religion or fasting status. The law protects both spirituality and fairness, ensuring productivity continues without compromising dignity. Shorter hours never mean shorter pay.
Any work performed beyond the reduced Ramadan schedule is automatically treated as overtime, attracting legal compensation, usually at 25% above the basic wage. To support balance, MoHRE actively encourages flexible and remote work arrangements, recognizing that Ramadan reshapes energy, focus, and family rhythms across the country.
Free zones such as DMCC and JAFZA follow the same two hour reduction rule. However, special jurisdictions draw distinctions in DIFC and ADGM, reduced hours apply only to Muslim employees, with ADGM limiting it to those who are fasting. Certain senior leadership or technical roles may be exempt due to operational necessity. Where violations occur, the law provides recourse, complaints can be filed directly through the MoHRE Smart App. In Ramadan, the UAE does not reduce rights. It refines them.
10. Maternity Leave uae labour law
Under maternity leave UAE labour law, childbirth is not treated as a career interruption, it is protected time, written into law with clarity and care. Female employees in the private sector are entitled to 60 calendar days of maternity leave, structured as 45 days of full pay followed by 15 days at half pay, with the option to begin leave up to 30 days before delivery. The law draws a firm line here: no employer may terminate, warn, or penalize an employee for choosing motherhood.
The law also listens when childbirth is not simple. If the mother or child faces health complications, an additional 45 days of unpaid leave may be taken with medical certification. When a newborn requires constant care due to illness or disability, the mother is entitled to 30 extra days of fully paid leave, extendable by another 30 days unpaid. Even in cases of miscarriage or stillbirth after six months of pregnancy, the law grants the same 60 day entitlement acknowledging loss with dignity, not silence.
Returning to work does not mean returning unchanged. For six months after delivery, mothers receive paid nursing breaks totaling one hour per day. No minimum service is required to qualify, and maternity leave never reduces entitlement to annual or sick leave. Beyond the mother, the law recognizes shared responsibility both parents are entitled to 5 days of paid parental leave, usable within six months of birth.
11. UAE Labour Law Compassionate Leave
- Spouse Death – 5 working days (paid)
- Immediate Family – 3 working days (paid)
- Start Date – From the date of death
- Proof – Official documentation may be required
Under UAE labour law compassionate leave, grief is recognised, not negotiated. Federal Decree Law No. 33 of 2021 grants paid leave when loss strikes, five days for a spouse, and three days for parents, children, siblings, grandparents, or grandchildren. This right exists regardless of job title or length of service.
The leave is fully paid, including basic salary and applicable allowances, and begins immediately from the date of death. Employers may request official proof, not as resistance, but as legal formality. While in laws are not covered by default, some employers extend additional support through internal policy.
In a system built on contracts and timelines, compassionate leave reminds us that humanity still has legal weight.
12. UAE Labour Law Resignation
- Notice Period – Typically 30 to 90 days, as defined in the employment contract
- Probation Exit – 14 days’ notice if leaving the UAE, 30 days if switching employers within the UAE
- Written Requirement – Resignation must always be submitted formally in writing
- Compensation – Leaving without notice may require payment equal to the remaining notice salary
- Job Search Right – One unpaid day per week to attend interviews with prior notice
Under UAE labour law resignation, leaving a job is not an emotional exit, it is a legal process measured in days, documents, and consequences. A resignation letter is more than courtesy; it is your protection. The uae labour law notice period exists to create balance, allowing employers to plan continuity while safeguarding employees’ rights to close one chapter without burning the next.
Probation resignations carry sharper edges. Follow the wrong timeline and the law responds firmly sometimes with a labour ban. Yet the law also knows when to step aside. UAE labour law resignation without notice is permitted when wages go unpaid for 60 days, abuse enters the workplace, or contractual promises are broken. In those moments, the law stands with the employee, not the employer.
Beyond exit lies entitlement. Under UAE labour law resignation benefits, employees who complete service lawfully remain eligible for end of service benefits and are granted dignity during transition including one unpaid day per week to search for work, with notice. Even after visa cancellation, the law grants a grace period to breathe, decide, and move forward. In the UAE, how you resign shapes how your career remembers you.
13. UAE Labour Law Visa Cancellation
- Who Initiates – The employer (sponsor) must start the visa cancellation
- Authorities Involved – MOHRE for labour contract, GDRFA / ICP for residency visa
- Notice Period – Must be completed before cancellation
- Grace Period – Typically 30 – 60 days after cancellation
- Non Cooperation – Can be escalated through MOHRE
Under UAE labour law visa cancellation, exit is not a switch you flip, it is a sequence you must walk through carefully. The law places responsibility on the employer to initiate cancellation, first ending the labour contract through MOHRE, then cancelling the residency visa via GDRFA or ICP. Until this happens, your legal status remains tied to your sponsor, and working elsewhere is not permitted.
Timing matters. Cancelling a visa before completing the notice period can block your right to work legally. Once cancellation is approved, the law grants a grace period, usually between 30 and 60 days, to either transfer sponsorship or exit the country. Overstay this window, and fines begin accumulating daily. During this time, practical matters fall on the employee, closing bank accounts, settling utilities, and ending subscriptions.
When cooperation breaks down, the law does not stay silent. If an employer refuses to cancel a visa, a complaint can be filed with MOHRE, clearly requesting cancellation as part of the labour case. Authorities can intervene when violations exist. In the UAE, visa cancellation is not punishment, it is a regulated transition, designed to protect status, order, and dignity when employment ends.
14. Marriage Leave in UAE Labour Law
- Federal Status – Not a statutory entitlement for private sector employees
- Public Sector Benefit – Recognised for Dubai Government Emirati employees
- Proof Required – UAE certified marriage certificate
- Private Sector Practice – Granted only if company policy allows
Under Marriage Leave in UAE Labour Law, the law speaks softly, and selectively. Federal labour legislation does not mandate marriage leave for the private sector. Instead, it leaves the decision to employer policy, culture, and discretion. Many private companies voluntarily offer one to three days of paid leave, usually upon submission of a marriage certificate, but this remains a benefit, not a legal right.
The clarity appears in Dubai’s public sector. For Emirati government employees, marriage leave is a defined entitlement: 10 working days of fully paid leave. Eligibility is precise, the employee must be a UAE national, the spouse must also be Emirati, probation must be completed, and the marriage certificate must be UAE-certified and dated after 31 December 2024. The leave may be taken continuously or split and can be combined with other leave types.
This contrast reveals something deeper. While private sector rules remain flexible, the public sector decree signals a broader shift toward recognising life milestones as part of employment well being. In the UAE, marriage leave is not yet universal, but its presence marks the direction the law is quietly moving toward.
15. UAE Labour Law Harassment
- Scope – Covers harassment, bullying, discrimination, and abuse
- Legal Basis – Federal Decree Law No. 33 of 2021 (Article 14)
- Reporting Authority – MOHRE and Labour Courts
- Protection – Strong safeguards against retaliation
Under uae labour law harassment, the workplace is not merely a place of productivity, it is a space protected by dignity. The law draws a hard line against verbal, physical, psychological, or sexual harassment, as well as bullying and discrimination based on gender, religion, nationality, race, disability, or social status. Silence is not neutrality here; it is violation.
Employers carry a clear duty, create a safe environment, implement anti harassment policies, train employees, and maintain confidential reporting channels. Every complaint must be documented and investigated. For employees, the law opens multiple doors, filing a complaint with MOHRE, escalating to labour court, or even resigning without notice in abuse cases after filing a complaint.
Severe violations do not end internally. Physical assault or defamation can escalate to criminal cases, supported by medical or psychiatric evidence. Penalties range from disciplinary action to heavy fines and imprisonment. In the UAE, harassment is not workplace conflict, it is a legal offense.
16. Disciplinary Action in UAE Labour Law
- Legal Framework – Article 39, Federal Decree Law No. 33 of 2021
- Controlled Powers – Employers can discipline, not punish arbitrarily
- Process Driven – Documentation and timelines are mandatory
Under disciplinary action in uae labour law, authority is restrained by procedure. Employers may issue warnings, impose fines (up to five days’ salary per month), suspend employees (up to 14 days), withhold promotions or bonuses, or dismiss, but only through a documented, lawful process.
Every disciplinary action must begin with written notice, followed by a fair investigation where the employee’s defense is heard and recorded. Penalties must be communicated in writing, with reasons clearly stated. Timing matters, investigations must begin within 30 days, and penalties imposed within 60 days of conclusion.
Employers may suspend employees during investigations for up to 30 days, with pay reduced by 50%. What the law forbids outright is invention, any punishment not listed in Article 39 is invalid. Employees retain the right to appeal or approach MOHRE. In the UAE, discipline without due process is not discipline. It is violation.
17. Final Settlement UAE Labour Law
- Payment Deadline – Within 14 days of last working day
- Responsibility – Entirely on the employer
- Enforcement – Delays can trigger MOHRE complaints
Under final settlement uae labour law, employment does not truly end until dues are settled. The law mandates that all final payments, gratuity, unpaid salary, unused leave, notice pay, and contractual benefits, be cleared within 14 days of the last working day. Delay is not inconvenience, it is non compliance.
Gratuity is calculated on basic salary only, 21 days per year for the first five years, and 30 days thereafter, capped at two years’ total salary. Employers must also handle visa cancellation and, where applicable, provide repatriation tickets unless the employee joins a new sponsor.
Legal deductions are permitted for proven dues like loans or salary advances. Anything beyond that crosses into illegality. In the UAE, final settlement is not generosity, it is a legal obligation with a clock ticking.
18. UAE Labour Law Termination Benefits
- Eligibility – Minimum one year of continuous service
- Calculation Base – Basic wage, not allowances
- Deadline – Payable within 14 days
Under UAE labour law termination benefits, separation is measured, not emotional. Employees are entitled to end of service gratuity, notice period pay, accrued leave salary, and unpaid wages. If an employer terminates without serving notice, full salary for the notice period becomes payable.
For limited contracts, unlawful early termination triggers compensation of up to three months’ salary or the remaining contract term, whichever is lower. Health insurance usually extends through the sponsorship grace period, and staff accommodation may continue briefly post-termination.
Gratuity follows a strict formula, capped and pro rated, ensuring predictability for both sides. UAE nationals fall under separate pension laws, but for most employees, termination benefits are the final measure of fairness. In the UAE, how employment ends is just as regulated as how it begins.
19. UAE Labour Law Gratuity Calculation
- Eligibility – Minimum 1 year of continuous service
- Calculation Base – Last drawn basic salary only
- Cap – Maximum gratuity limited to 2 years’ total salary
- Resignation Impact – Full entitlement if notice rules are followed
Under UAE labour law gratuity calculation, time becomes currency. Every completed year quietly accumulates value, payable when employment ends. The new UAE labour law gratuity calculation is simple in structure but powerful in impact, 21 days’ basic salary for each of the first five years, and 30 days’ basic salary for every year beyond, all calculated on the final basic wage, never allowances.
Unpaid leave does not count toward service, and gratuity cannot exceed two years’ total salary, no matter how long the service. Under gratuity as per uae labour law, resignation no longer dilutes entitlement, employees who resign after one year generally receive full gratuity, provided notice obligations are met.
This is why uae labour law gratuity matters at contract stage, not just at exit. A low basic salary may reduce future payouts significantly. In the UAE, gratuity is not a bonus. It is deferred justice for years worked.
20. UAE Labour Law Medical Insurance
- Mandatory Coverage – All private sector employees and domestic workers
- Cost – Fully borne by the employer
- Visa Link – Required for residency issuance or renewal
- Nationwide Rule – Effective across all Emirates from 2025
Under uae labour law medical insurance, healthcare is no longer optional, it is a legal prerequisite to employment. Employers must provide at least basic health insurance, covering inpatient, outpatient, emergency, maternity, and essential treatments. Premium costs cannot be deducted from salaries, and failure to insure blocks visa issuance or renewal.
The basic scheme is intentionally affordable, offering coverage at low annual costs with regulated co payments. While employers are not legally required to insure dependents, many offer enhanced plans as part of competitive benefits. Systems like Taa-meen also support compliant recruitment.
Non compliance carries consequences, fines, visa suspensions, and operational disruptions. In the UAE, UAE labour law health insurance is not a perk. It is the foundation of lawful employment.
21. New Labour Law for Limited Contract in UAE
- Contract Type – Fixed term only
- Maximum Duration – 3 years per term
- Renewals – Allowed by mutual agreement
- Unlimited Contracts – Fully phased out
Under the new labour law for limited contract in uae, certainty replaces ambiguity. Every private sector contract must now be fixed term, with a clear end date not exceeding three years. Unlimited contracts are history, officially phased out by 2023. Yet flexibility remains, contracts can be renewed repeatedly with consent.
Termination no longer depends on contract type but on process. Either party may terminate with notice, scaled by service length, or allow the contract to expire naturally. If both sides continue working after expiry without renewal, the law treats the contract as implicitly renewed on the same terms.
Gratuity applies once one year is completed, probation remains capped at six months, and early termination by the employer, outside lawful reasons, can trigger compensation. In the UAE, limited contracts do not limit rights. They define them clearly.
22. Labour Law for Domestic Workers in UAE
- Governing Law – Federal Decree Law No. 21 of 2023
- Daily Rest – Minimum 12 hours (8 consecutive)
- Weekly Rest – 1 paid day off
- Annual Leave – 30 days paid
Under labour law for domestic workers in the UAE, protection enters the private home. Housemaids, nannies, drivers, cooks, and private nurses are no longer informal labour, they are legally safeguarded workers. The law mandates regulated contracts, a maximum six-month probation, and strict limits on working hours.
Domestic workers are entitled to medical insurance, suitable accommodation, meals, 30 days annual leave, sick leave, and a return air ticket every two years. Employers may not withhold passports, delay wages, or employ anyone under 18. Wages must be paid on time, and end of service gratuity applies after one year.
Disputes are handled through MOHRE, and violations carry heavy fines. In the UAE, dignity at work does not stop at the office door.
Knowing the Law Is No Longer Optional
UAE Labour Law is no longer a document you discover after damage is done. In 2026, it is a living framework that decides how careers begin, how conflicts unfold, and how exits are remembered. Every notice period served correctly, every leave calculated accurately, every settlement paid on time, these are not administrative details. They are legal moments with real financial and reputational consequences.
For employees, understanding the law is self defence. It protects income, dignity, and future mobility. For employers, it is risk management at the highest level, shielding the organisation from penalties, disputes, and public scrutiny that travels faster than any court judgment. The law rewards awareness and punishes assumptions.
What this guide reveals is simple, most workplace damage in the UAE doesn’t happen because of bad intent, it happens because of ignorance. And ignorance is no longer forgiven. Whether you are signing your first contract or managing hundreds of employees, knowing the law is not about winning disputes. It is about preventing them.