UAE Labour Law 2025: Complete Guide to Employee Rights & Benefits

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Understanding Dubai Employment laws and regulations is the key to protecting your career and securing your future. Whether starting a new role or facing a workplace challenge, knowing your rights and obligations empowers you to make informed decisions. 

The UAE Labour Law, governed by Federal Decree-Law No. 33 of 2021 and its recent amendments, introduces critical updates such as enhanced protections against arbitrary dismissal.

This guide will walk you through the essential aspects of UAE Labor Law 2024, ensuring you can navigate your career legally.

Employment Contracts in UAE and Dubai

Employment Contracts in UAE and Dubai

Types of Employment Contracts in the UAE: Limited vs. Unlimited

In the UAE, employment contracts are primarily categorized into two types: limited-term and unlimited-term.

Limited-Term Contracts

These are fixed-duration agreements, typically one to three years, and are often linked to the employee’s residency visa. They automatically terminate upon expiration unless renewed by both parties. 

This contract type is advantageous for project-based roles with a clear end date. However, early termination by the employee without a valid reason can lead to penalties, such as compensation to the employer for up to 45 days of wages.

Unlimited-Term Contracts

These contracts offer open-ended employment with no specified end date. They provide greater job security and flexibility regarding termination, as either party can end the contract with notice, adhering to the UAE Labour Law’s minimum notice period of 30 days. This flexibility makes them suitable for long-term employment relationships.

Understanding these distinctions is crucial, as they directly impact job security, termination procedures, and end-of-service benefits. For instance, gratuity calculations differ between the two contract types, with specific provisions outlined in the UAE Labour Law.

Key Clauses to Watch For in Your Contract

When reviewing employment contracts in the UAE and Dubai, pay attention to specific clauses that significantly impact your employment experience.

Probation Periods: Typically, probation periods in the UAE can last up to six months. During this time, either party can terminate the contract with a minimum of 14 days’ notice.

Notice Periods: For unlimited-term contracts, the standard notice period is 30 days. However, this can vary based on mutual agreement, provided it meets the legal minimum.

Core Employee Rights in UAE Labour Law

Core-Employee-Rights-in-UAE-Labour-Law

Wages and Benefits

Understanding your rights regarding wages and benefits under UAE Labour Law is essential for ensuring fair treatment and compliance.

Minimum Wage Requirements: As of 2024, the UAE has NOT established a universal minimum wage applicable to all employees. However, the Ministry of Human Resources and Emiratisation (MOHRE) may set minimum wage standards for specific sectors and categories. It’s advisable to consult your employment contract and stay informed about any sector-specific regulations.

Overtime Pay Calculations: Standard working hours are eight hours per day or 48 hours per week. Any work beyond these hours is considered overtime. Overtime is compensated at 125% of the regular hourly wage. If overtime occurs between 10 PM and 4 AM, the rate increases to 150%, except for shift workers.

End-of-Service Gratuity Entitlements: Employees who have completed at least one year of continuous service are entitled to an end-of-service gratuity. The calculation is as follows:

  • 21 days’ basic salary for each year of service for the first five years.
  • 30 days’ basic salary for each additional year beyond five years. The total gratuity should not exceed two years’ wages.

Annual Leave and Sick Leave Allowances: Employees are entitled to 30 calendar days of paid annual leave after completing one year of service. Leave is accrued at two days per month for periods of service less than a year but more than six months. Regarding sick leave, employees are entitled to 90 days per year, which includes:

  • 15 days at full pay.
  • 30 days at half pay.
  • 45 days without pay. These provisions ensure that employees receive adequate rest and recovery time.

Working Hours and Conditions

Working Hours and Conditions

Standard Working Hours: The UAE Labour Law stipulates that the maximum working hours for employees in the private sector should not exceed eight hours per day or 48 hours per week. However, certain industries or positions may have different working hour requirements, which should be clearly stated in the employment contract.

Breaks and Rest Periods: Employees are entitled to a break of at least one hour after five consecutive hours of work. This break is not included in the calculation of working hours. Additionally, during the holy month of Ramadan, working hours are reduced by two hours daily.

Health and Safety Standards: Employers must provide a safe and appropriate work environment. This includes implementing measures to prevent workplace injuries and occupational hazards. 

Both employers and employees must comply with all health controls and procedures issued by the Ministry of Human Resources and Emiratisation (MOHRE) and other competent authorities regarding occupational health and safety.

Protection Against Discrimination: The UAE Labour Law prohibits discrimination based on race, color, sex, religion, national origin, social origin, or disability. This extends to all stages of employment, from recruitment to continuing employment, ensuring that every worker has an equal opportunity and is not subjected to discriminatory practices.

End-of-Service Benefits and Gratuity in UAE

Understanding end-of-service benefits and gratuity in the UAE is crucial for both employees and employers to ensure compliance with labor laws and to safeguard financial interests.

Eligibility Criteria and Calculation Methods

In the UAE, employees who have completed at least one year of continuous service are entitled to end-of-service gratuity. The calculation is based on the employee’s last drawn basic salary and the length of service. 

For the first five years, the gratuity is calculated at 21 days’ basic salary for each year of service. For each additional year beyond five, it is calculated at 30 days’ basic salary per year. However, the total gratuity should not exceed two years’ wages.

Factors Influencing Gratuity Amounts

Several factors can influence the gratuity amount:

  • Basic Salary: Gratuity is calculated solely on the basic salary, excluding allowances such as housing, transportation, and other benefits.
  • Length of Service: The number of years an employee has worked directly impacts the gratuity calculation, with higher benefits for longer service periods.
  • Contract Type: The nature of the employment contract (limited or unlimited) can affect gratuity entitlements, especially in cases of resignation.

Impact of Resignation or Termination on Gratuity

The circumstances under which employment ends can affect gratuity entitlements:

  • Resignation: If an employee resigns after completing at least one year of service but less than five years, they are entitled to one-third of the gratuity. If the service period is between five and ten years, they are entitled to two-thirds of the gratuity. After ten years of service, they are entitled to full gratuity.
  • Termination: If an employer terminates the employee without cause, the employee is entitled to full gratuity, provided they have completed at least one year of service. However, if the termination is for a reason stipulated under Article 120 of the UAE Labour Law, the employee may forfeit their gratuity rights.

Resignation and Termination Rights in the UAE

Resignation and Termination Rights in the UAE

Notice Period Requirements for Resignation

Employees intending to resign are legally required to provide a written notice to their employer. The standard notice period ranges from 30 to 90 days, as stipulated in Article 43 of the UAE Labour Law. The exact duration should be specified in your employment contract. It’s essential to adhere to this notice period to avoid potential legal consequences or financial penalties.

Read How to Resign from Your Job in the UAE for a detailed guide on ensuring a smooth and legal resignation (Stress-Free & Legal).

Legal Grounds for Termination by Employers

Employers can terminate an employment contract for legitimate reasons, provided they comply with the legal requirements. Justifiable grounds for termination include:

  • Performance Issues: Consistent underperformance or failure to meet job requirements.
  • Misconduct: Violations such as breach of trust, disclosure of confidential information, or workplace harassment.
  • Redundancy: Organizational restructuring leading to the elimination of the position.

It’s important to note that arbitrary dismissal—termination without a valid reason—is prohibited. Employees have the right to challenge such dismissals and seek compensation.

Actions to Take If Wrongfully Terminated

If you believe you’ve been wrongfully terminated, consider the following steps:

  1. Review Your Employment Contract: Understand the terms and conditions related to termination.
  2. Gather Evidence: Collect relevant documents, emails, and records that support your claim.
  3. File a Complaint with MOHRE: Submit a formal complaint to the Ministry of Human Resources and Emiratisation (MOHRE) within 30 days of the incident. The ministry will attempt to resolve the dispute within 14 days.
  4. Seek Legal Advice: Consult with a legal professional specializing in UAE labor law to explore further legal recourse, including potential compensation for arbitrary dismissal.

Non-Compete Clauses and Employee Mobility

Non-compete clauses are contractual agreements that restrict employees from engaging in activities that compete with their former employer after the termination of employment. Under the UAE Labour Law, these clauses are enforceable if they meet specific criteria:

  • Scope: The clause must clearly define the nature of restricted activities.
  • Geographical Area: It should specify the geographic boundaries where the restrictions apply.
  • Duration: The restriction period should not exceed two years from the end of the employment contract.

For a non-compete clause to be valid, it must be reasonable in scope, duration, and geographic area and should not unfairly limit the employee’s ability to work.

Switching Jobs Without Legal Issues

To transition to a new role without violating a non-compete agreement:

  1. Review Your Contract: Carefully examine the non-compete clause to understand its terms and limitations.
  2. Assess Reasonableness: Evaluate whether the clause is reasonable in terms of scope, duration, and geographic area.
  3. Seek Legal Advice: Consult a legal professional to assess the enforceability of the clause and to understand your rights.
  4. Negotiate with Your Employer: If possible, discuss the clause with your employer to seek modifications or a waiver.

Health and Safety in the Workplace in UAE

Health and Safety in the Workplace in UAE

Employers are legally required to provide a safe and appropriate work environment for their employees. This includes implementing measures to prevent workplace injuries and occupational hazards. 

Both employers and employees must comply with all safety controls and procedures issued by the Ministry of Human Resources and Emiratisation (MOHRE) and other competent authorities regarding occupational health and safety.

Steps to Take If Your Workplace Is Unsafe

If you believe your workplace is unsafe, consider the following steps:

  1. Report Internally: Immediately inform your supervisor or the designated health and safety officer about the hazards.
  2. Document the Issue: Keep detailed records of the unsafe conditions, including dates, times, and any communications.
  3. Escalate to Authorities: If the issue remains unresolved, file a complaint with MOHRE through their official channels. The ministry provides mechanisms to report workplace injuries and unsafe conditions.
    MoHRE
  4. Know Your Rights: Employees can refuse work that poses an imminent danger to their health or safety without fear of retaliation.

Salary, Deductions, and Wages in the UAE

The UAE mandates that employers pay salaries promptly through the Wage Protection System (WPS), an electronic salary transfer system developed by the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MOHRE). This system ensures that wages are paid on time and in full, enhancing transparency and protecting employee rights.

Legal Deductions in the UAE

Employers are permitted to make specific deductions from an employee’s salary under UAE Labour Law. These include:

  • Loan Repayments: Deductions for loans granted to the employee, provided they do not exceed 10% of the employee’s periodic pay.
  • Overpayment Recovery: Reimbursement for overpayments made to the employee.
  • Contributions to Social Schemes: Deductions for social security or insurance schemes as required by law.

It’s important to note that any other salary deductions in UAE require the employee’s explicit consent and must comply with legal standards. Employers cannot impose arbitrary deductions, ensuring that employees receive their rightful earnings.

Impact of Labour Law on Visa Status

In the UAE, an individual’s residency visa is typically linked to their employment. Upon termination or resignation, the employer is obligated to cancel the employee’s work permit and residency visa

Following visa cancellation, the individual is granted a grace period—commonly 30 days—to either secure new employment and obtain a new visa or exit the country. It’s essential to be aware that remaining in the UAE beyond this grace period without a valid visa can lead to fines and legal complications.

Employer Responsibilities for Work Visa Cancellation

Employers are responsible for canceling an employee’s work permit and residency visa upon the cessation of employment. The standard procedure involves:

  1. Work Permit Cancellation: The employer submits a request to the Ministry of Human Resources and Emiratisation (MOHRE) to cancel the employee’s labor contract and work permit. This process requires the employee’s signature on the cancellation application, confirming receipt of all dues and end-of-service benefits.
  2. Residency Visa Cancellation: Subsequently, the employer applies to the General Directorate of Residency and Foreigners Affairs (GDRFA) to cancel the employee’s residency visa. The employee must provide their original passport and Emirates ID card for this process.

Employers are expected to complete these procedures promptly to ensure compliance with UAE regulations and to facilitate the employee’s transition, whether to new employment or departure from the country.

Dispute Resolution and Enforcement

Resolving workplace disputes in the UAE requires a clear understanding of the available channels and legal recourse to ensure your rights are protected.

Channels for Reporting Workplace Violations

The Ministry of Human Resources and Emiratisation (MOHRE) offers several avenues for employees to report workplace violations:

  • MOHRE Hotline: Call 80060 to lodge complaints or seek guidance on labor-related issues.
  • Online Portal: Access the MOHRE website to file complaints electronically.
  • Mobile Application: Utilize the MOHRE app for convenient complaint submission and tracking.

These platforms facilitate prompt reporting and resolution of grievances, ensuring compliance with UAE labor laws.

Legal Recourse Options Available to Employees

If initial resolutions are unsatisfactory, employees can pursue further legal actions:

  1. Filing a Complaint with MOHRE: Submit a formal complaint detailing the violation. Visit MOHRE to mediate between the employee and employer to resolve the issue amicably.
  2. Labour Court Proceedings: If mediation fails, escalate the matter to the Labour Court. It’s advisable to consult a legal professional to navigate the complexities of the legal system effectively.

Additional Resource

For an in-depth understanding of Dubai’s employment laws and regulations, download the Dubai Labour Law PDF.

Conclusion

Understanding your rights under UAE Labour Law in 2024 is crucial for building a secure and balanced career. From wages and gratuity entitlements to protections against arbitrary dismissal, the law provides comprehensive support to safeguard employees. 

Know someone who could benefit from this guide? Share it to help them understand their rights under UAE Labour Law and make informed decisions for their career.

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Amir Lahi

Amir Lahi is a seasoned content expert with over 6 years of experience helping businesses thrive in Dubai’s digital landscape. He specializes in data-driven content strategies that boost online visibility and drive growth. With a deep understanding of Dubai's market, Amir is a trusted partner for those looking to succeed in the region.

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