UAE Free Zone Labour Law Reference 2026 — Key Employment Rules for Employers
UAE free zone companies employing staff must comply with UAE Federal Labour Law. Here is the 2026 reference guide to the key rules.
In this guide:
UAE Labour Law Applicability to Free Zones
- Federal Labour Law: UAE Federal Decree-Law No. 33 of 2021 (amended) applies to most UAE free zone employees
- Exceptions: DIFC and ADGM have their own Employment Laws (DIFC Employment Law No. 2 of 2019; ADGM Employment Regulations 2019)
Key Employee Entitlements (UAE Federal Labour Law)
- Annual leave: 30 calendar days per year (after 1 year service); 2 days per month in first year
- Public holidays: 11-14 days per year (UAE national holidays)
- Sick leave: 90 days total (first 15 days: full pay; next 30 days: half pay; remaining: unpaid)
- Maternity leave: 60 calendar days (45 days full pay; 15 days half pay)
- Gratuity: 21 calendar days salary per year for first 5 years; 30 days per year after 5 years
Notice Period Requirements
- Minimum: 30 days notice (by either party)
- Contractual: Contract can specify longer notice period up to 90 days
WPS (Wages Protection System)
- Mandatory: All UAE private sector employers must pay salaries via WPS-compliant bank accounts
- Deadline: Salaries must be paid within 10 days of the agreed salary date
- Penalty for non-compliance: MOHRE can suspend work permits for the company