UAE Employment Law — Hiring Employees in UAE Guide 2026
UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the new UAE Labour Law) governs employment in UAE mainland and most free zones. Understanding UAE employment law is essential before hiring your first employee. This guide covers UAE employment law for 2026.
In this guide:
UAE Employment Contract Types
- Fixed-term contract: has a defined end date; maximum initial period 3 years; renewable; most common type under the new UAE Labour Law 2021
- Unlimited contract: no end date; still valid for existing contracts signed before 2021 law; new contracts from February 2022 onwards must be fixed-term
- Part-time contract: allowed under UAE Labour Law; pro-rata benefits; employee can have multiple part-time UAE employers
- Flexible work: various flexible work patterns permitted; task-based, hourly arrangements; employer and employee can agree flexible terms
UAE Employee Benefits — Mandatory Requirements
- Health insurance: mandatory for all Dubai employees (DHA); mandatory in Abu Dhabi (DoH); employer cost
- Annual leave: 30 calendar days after 1 year of service; pro-rated in first year
- Sick leave: 90 days total per year (15 days full pay; 30 days half pay; 45 days unpaid); after completing 3 months probation
- Maternity leave: 60 days (45 paid + 15 unpaid)
- Paternity leave: 5 working days paid leave
- Public holidays: UAE has 14 official public holidays per year; employer must provide these or compensate
- End of Service Gratuity (EOSB): 21 days of last basic salary for each year of service for first 5 years; 30 days for each year after 5 years; capped at 2 years total salary
UAE Wage Protection System (WPS)
- What is WPS: UAE electronic salary transfer system; all employers must pay employee salaries through UAE banks using WPS
- Mandatory for mainland companies: WPS is mandatory for Dubai mainland and Abu Dhabi mainland employers; free zones may have their own WPS requirement or equivalent
- WPS deadline: salaries must be paid within 10 working days of the end of each pay period
- Penalty for WPS non-compliance: suspension of new work permit applications; significant fines; Ministry of Human Resources enforcement action
UAE Probation Period
- Maximum probation: 6 months (cannot be extended)
- During probation (employer terminating): employer can terminate with 14 days notice; no EOSB payable if employee terminated in probation
- During probation (employee resigning): employee must give 14 days notice (or 1 month if going to new UAE employer); if employee joins another UAE employer within 3 months after resignation during probation, the outgoing employer can claim recruitment costs from the new employer
- After probation: standard notice period (minimum 30 days) applies