UAE Labour Law (Federal Decree-Law No. 33 of 2021 and its amendments) governs employment relationships in the UAE private sector. Here is the essential reference guide for UAE employers.
Employment Contract Requirements
All UAE employment contracts must be: in writing, in Arabic (or bilingual Arabic/English — both are legally valid), registered with MOHRE (Ministry of Human Resources and Emiratisation) for mainland companies, and in compliance with the free zone’s labour regulations for free zone employees. Probation period: maximum 6 months. During probation, either party can terminate with 14 days’ notice.
Working Hours
Standard: 8 hours/day or 48 hours/week. During Ramadan: 6 hours/day or 36 hours/week for Muslim employees. Overtime: entitled to 125% of basic salary for overtime hours; 150% for work on rest days or public holidays. Maximum overtime: 2 hours/day.
Annual Leave
Minimum annual leave entitlement: 30 calendar days per year (after completing 1 year of service). Part-year: pro-rated. During probation: no annual leave entitlement (but annual leave accrues from day 1). Unused leave at termination: must be paid out in cash.
End-of-Service Gratuity
UAE employees are entitled to end-of-service gratuity upon completing 1+ year of service: 21 days’ basic salary per year for the first 5 years; 30 days’ basic salary per year for service beyond 5 years. Gratuity is calculated on the last basic salary (excluding allowances). Maximum gratuity: 2 years’ basic salary.
Termination Rules
Termination without cause: employer must give notice (minimum 30 days, or longer if contracted). Termination with cause (Article 44 grounds): employee commits fraud, assault, abandons work for 7+ consecutive days without reason, or is found guilty of a serious offence. Arbitrary dismissal (no valid cause): employee is entitled to 3 months’ salary compensation in addition to all other dues.