UAE labour law has undergone significant reform in recent years. Here is the complete guide to UAE labour law updates through 2025.
Federal Decree-Law No. 33 of 2021 (New UAE Labour Law)
The new UAE Labour Law (in force since 2 February 2022) replaced the 1980 Labour Law and introduced major changes: Employment contract types: only FIXED-TERM contracts now (maximum 3 years, renewable). Unlimited-term contracts no longer issued for new employees. Existing unlimited contracts: converted to fixed-term by 1 February 2023. Gratuity (End of Service Benefits): calculation for limited-term contracts: 21 days per year for the first 5 years, then 30 days per year after 5 years (unchanged). Resignation: employees who resign are now entitled to full gratuity after completing 1 year of service (previously: reduced gratuity for resignation). Probation period: maximum 6 months. Notice during probation: 14 days notice (by employer or employee). Annual leave: 30 days per year (after 1 year of service) — unchanged. Study leave: 10 days per year for employees attending UAE educational programmes. Parental leave: 5 days for new fathers (increased from 3 days). New mother leave: 60 days maternity leave (45 fully paid + 15 half-paid). Non-compete clauses: enforceable for up to 2 years, limited to the employee’s specific geographic area and sector. UAE Courts will balance employee rights against legitimate business interests.