One major question expats have before moving to the United Arab Emirates (UAE) is the kind of work environment to expect. But here, you’ll find a country with strong labour laws that define your legal protections as a worker. Reviewing employer-specific policies and comparing them with federal employment laws will guide you when negotiating the terms of service.
This Remitly guide will help you understand UAE labour laws, know your rights, negotiate wisely, and make informed decisions about your career.
Overview of UAE labour law structure
Federal Decree Law No. 33 of 2021—otherwise known as the UAE Labour law—governs employment in the private sector. The Ministry of Human Resources and Emiratisation (MoHRE) enforces this law and resolves all employer-employee disputes.
These regulations were recently amended by Federal Decree law no. 20 of 2023, designed to protect both parties in an employment relationship. It provides official guidance on issues such as employment contracts, employee rights, wages, working hours, and full-time or part-time work models. This amendment also offers regulations about leave, termination, anti-discrimination policy, harassment, and trade unions.
The new law applies to all UAE workers, employers, and business owners, whether immigrants or Emirati citizens. However, it doesn’t cover federal or local government employees, domestic workers, and members of the police, security or armed forces.
Importance of labour laws for employees and employers
Labour laws create a fair, productive, and sustainable standard that ensures a good working environment. By clearly outlining the responsibilities of employers and employees, both parties can reap the benefits.
Benefits for employers
Understanding responsibilities towards employees prevents court cases, which are usually time-consuming and expensive. Other benefits include the following:
- Creates a fair and healthy work environment that motivates employees to boost productivity.
- Attracting and retaining top talent reduces operational costs. It’s expensive to keep hiring people, train new staff, and deal with a bad reputation—a common challenge for workplaces that suffer from high employee turnover.
- Helps build a stable business, allowing employers to focus on other important issues like growth and expansion.
Benefits for employees
Knowing your rights protects you against discrimination, harassment, and unfair treatment. It also:
- Ensures you’re paid at least the minimum wage for your role.
- Guarantees benefits that support a healthy work-life balance, like sick leave, maternity leave, paid leave, and overtime pay.
- Guarantees you will work in a safe, healthy environment that doesn’t expose you to accidents, illnesses, or injury.
- Provides a framework for joining a trade union to help you negotiate better deals and raise issues about the work environment or terms without fear of being singled out.
- Assures you of job security by protecting you from unfair or unlawful dismissal.
- Allows you to improve and develop your skills to enhance productivity and efficiency.
- Protects children from working. However, the law attaches several conditions, such as written consent from parents or guardians.
Employment contracts
You require a work permit issued by MoHRE to work in the UAE as an expatriate. Before starting in any role, you’ll also sign an employment contract—a legally binding document that outlines the agreed-upon terms and conditions surrounding working hours and other arrangements.
Key components of employment contracts
UAE Labour laws outline several mandatory components of a valid employment contract. They include the following:
- The employer and employee’s details, including full names, addresses, and contacts
- Job title and responsibilities
- Salary and benefits
- Working hours, leaves, holidays, and rest days
- Probation period, if applicable
- Termination terms and notice periods
- Disciplinary policy and actions
- Contract duration
- Type of contract, such as limited or unlimited term agreements
Depending on your role, a contract could include other relevant clauses, such as confidentiality, non-discrimination, non-compete, and dispute resolution provisions.
Different types of contracts
Work contracts in the UAE’s private sector are usually renewable and fixed-term, not exceeding three years. Your employer must give you a copy of the contract you signed.
Most jobs are either full-time or part-time. You can work full-time for one employer throughout the daily working hours, or part-time for one or more employers for specified hours a day or days per week.
Part-time roles can be temporary, meaning the contract ends after you complete a certain task. They are also more flexible, so working terms may vary depending on the workload or other needs. For example, you could be required to work in the office on some days and remotely on others.
Working hours, leave entitlements, and rest hours
Your employer must follow UAE labour law guidelines on working hours, leave, and rest hours to ensure you enjoy a good work-life balance.
Standard working hours in the UAE
You aren’t just in the UAE to work and earn money to send back home. You’re also living in one of the most sought-after tourist destinations in the world, so you need some time to enjoy the experience.
The government makes this possible by limiting work to eight hours a day, with a mandatory one-hour break at minimum, or 48 hours a week.
In the summer, employers cannot assign you outdoor work between 12:30 p.m. and 3:00 p.m. This is when the heat is highest, and you’re in danger of heat exhaustion or heat stroke.
Overtime rules and wage calculations
You may work paid overtime for a maximum of two hours daily. However, employers can’t assign you overtime work on more than two consecutive weekends unless you’re a day worker.
Overtime pay is calculated as shown below:
| Time | Compensation
(Basic wage for regular working hours PLUS…) |
| General | Not less than 25% more |
| Between 10 p.m. and 4 a.m. (excluding shift workers) | Not less than 50% more |
| Weekends | Another day off OR not less than 50% more |
(Source)
Leave entitlements
So, when do you travel back home to visit your family and friends? The law provides for at least 30 days of fully paid leave annually. Religious days like Eid, Ramadan, and other public holidays count toward your annual leave. However, sick days and parental leave are handled a little differently.
Sick leave
You’re allowed to stay home when sick. If you don’t get sick on the job, you must inform your employer within three days and submit a medical report.
You can claim a maximum of 90 calendar days of sick leave every year. You’ll be paid the full salary for the first 15 days, half for the next 30 days, and nothing for the remaining days.
However, workers on probation don’t receive pay during sick leave.
Maternity leave
New mothers are entitled to stay home for 60 days post-birth. You’ll receive your full salary for the first 45 days, then half your salary for the remaining 15 days.
However, you can stay home for an additional 45 days after completing your maternity leave in case of sickness or complications after childbirth. Unfortunately, these extra days will be unpaid. You must also produce a medical certificate issued by a relevant medical authority if pregnancy- or childbirth-related issues cause this extension.
Female employees can apply for maternity leave 30 days before the expected due date. After returning to work, you’re also allowed two one-hour breaks for nursing for up to six months. Learn more about maternity leave in the UAE here.
Other leave entitlements
Both male and female new parents can receive paid parental leave for five working days, but only during the six-month period after childbirth.
Workers can also receive bereavement or compassionate leave as follows:
- Five days after the loss of a spouse
- Three days in case of the loss of a child, parent, sibling, grandparent, or grandchild
Sometimes, you’ll need time off for other reasons. The law leaves this decision at the discretion of your employer. Explain your issue to get an unpaid leave of absence outside of these legal provisions.
Employee rights and legal protections
The law gives both Emiratis and expats several rights and protections in the world of work.
Rights under UAE Labour law
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- Non-discrimination: You’re protected against harassment, unfair treatment, or discrimination based on race, colour, sex, religion, nationality, or disability.
- Scope: Your manager can’t assign you work in an area beyond your employment contract for reasons such as being short-staffed.
- Safety: The government takes occupational health and safety seriously. You have a right to a clean, safe, and healthy work environment. So, employers must provide personal protective equipment (PPE) and offer regular, free training on work safety and health.
- Insurance: If you get sick, you can access the UAE’s world-class public and private medical facilities using health insurance provided by your employer.
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- Renting: Renting in the UAE is easy when you’re employed. The law directs employers to provide suitable accommodation licenced by the relevant authorities or pay an accommodation allowance.
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- Probation: The probation period must not exceed six months. If your employer decides to terminate your service instead of offering a full-time position, they must notify you in writing at least 14 days before the end of the probation period. You’re entitled to a free certificate of experience at the end of your service.
- Contract termination: You can terminate your contract with your current employer at any point, but you must give 14 days’ written notice before leaving.
- Non-compete: If you work on a competing project in the same sector as your previous employer, the non-competition clause you signed prohibits you from sharing work secrets with your new job for a maximum of two years. However, it doesn’t bind you if they terminated your employment before your contract ended.
- Disciplinary action: If you’re accused of misconduct, your employer may temporarily suspend you for not more than 30 days to conduct investigations. You won’t be paid for this period unless proven innocent.
Find out more about how the UAE protects your worker rights here.
Rights for working women
Women are paid the same as men who work in similar roles and sectors.
As a female professional, you will also earn the same as men who offer similar value in alternative fields or positions.
Employing juveniles
Children under the age of 15 cannot be legally employed in the UAE unless:
- The work isn’t dangerous or strenuous.
- A parent or guardian consents to it.
- A medical doctor proves that the child is physically fit and capable of doing the job.
- Work runs up to six hours daily for a maximum of four consecutive hours, with a minimum of one one-hour break.
- No work is scheduled at night, between 7:00 p.m. and 7:00 a.m.
- No work runs into overtime or is scheduled on weekends and holidays.
Salary and compensation
All workers receive payments in the UAE Dirham (AED). However, the transaction can also occur in any other agreed-upon currency. Ensure your employment contract details your salary and the expected due date.
While there is no federal minimum wage, MoHRE sets non-binding salary guidelines for the private sector. So, you’ll negotiate your salary based on the prevailing market rates.
However, Article 27 of the federal law no. 33 gives the cabinet powers to determine the minimum wage in an industry through a resolution.
End-of-service benefits and gratuity
After completing at least one year of continuous service, you’re entitled to end-of-service benefits (EOSB). The amount is based on how long you served and your basic salary. That said, the basic rate is calculated as 21 days of basic salary for each year of service for employees who’ve served for one to five years.
You’ll earn more if you’ve worked for more than five years, receiving 30 days of basic salary for each year of service after the first five years. However, the amount is capped at a maximum of two years’ pay.
Termination of employment
The law protects employers by allowing them to terminate your services legally.
Grounds for termination
Your employer has the right to terminate your services for the following reasons:
- The expiry of your contract.
- Poor performance, like failing to meet your duties to standard. Usually, you’ll receive a warning first.
- Misconduct such as falsifying documents, being under the influence of illegal substances, breaching safety regulations, or assaulting colleagues, managers, or customers.
- Economic necessity, as sometimes businesses must cut costs to continue operating.
- Mutual agreement between you and the employer.
Employee rights upon termination
You’re also protected against unlawful termination and economic shock in several ways:
- You’ll receive an end-of-service gratuity and unpaid wages.
- You may receive compensation from MoHRE to protect you from unlawful discharge if your case amounts to arbitrary dismissal, like if the employer terminates your services because you filed a lawsuit or legitimate complaint against them.
Advice for HR professionals and employers
Compliance with UAE Labour laws is essential to protect your business and investments. Here are some simple tips to remember:
- Stay informed on the latest revisions and amendments of employment law.
- Develop and implement clear policies that align with federal Labour laws.
- Maintain detailed and transparent records to ensure accountability.
- Seek legal advice to clarify issues.
- Regularly audit policies to prevent involuntary non-compliance.
- Ensure a healthy and safe working environment for all.
FAQ
What are my rights as an employee in the UAE?
Whether citizens or expats, employees in the Emirates are protected against discrimination, harassment, exploitation, and unfair treatment. You also have a right to a safe and healthy working environment, to receive a fair salary, and to access benefits such as paid leave and end-of-service gratuity.
What is Article 42 of the UAE Labour law?
UAE Labour law provides guidelines for a wide range of issues, from employment contracts and employee rights to wages, working hours, leave, trade unions, and more. However, Article 42 discusses legal grounds for termination, such as poor performance, contract expiry, and misconduct.
How is salary calculated under UAE Labour law?
The federal government doesn’t institute a minimum wage, but MoHRE sets non-binding salary guidelines for private-sector employers. You will negotiate your salary based on current market rates.
Does 8 hours of work include lunch in the UAE?
No, it doesn’t. However, all workers in the UAE are entitled to receive a mandatory one-hour break, at a minimum, every day.