The Comprehensive Guide to UAE Labor Law: Employee Rights and Employer Obligations
In a diverse investment environment like that of the UAE, with a workforce from various countries around the world, it was essential for the UAE Labor Law to be the cornerstone that regulates the investment and employment environment in the United Arab Emirates.
So, whether you are an employer, an investor, a worker, or an employee and you want to understand your legal duties and rights, you need to know at least a little about Federal Decree-Law No. (33) of 2021, which regulates labor relations. This understanding is considered a fundamental step to ensure your professional and legal stability within the UAE.
If you are interested in learning more about the UAE Labor Law and the updated regulations governing employment contracts, vacations, salaries, and end-of-service benefits in the UAE job market, continue reading this article, which serves as a comprehensive guide to the labor laws in the UAE.
Working Hours and Weekly Rest Days
The UAE laws precisely defined the permissible working hours in the UAE, characterized by flexibility in protecting workers’ interests and considering the needs of the work environment in the private sector.
The mandatory Friday holiday was abolished, and the determination of the weekly day off in each establishment was left to the employer’s discretion to serve the specific needs of the workers in the establishment.
The labor law in the UAE emphasizes setting working hours so that they are:
Maximum working hours: 8 hours daily and not exceeding 48 hours per week.
Weekly day off: The employee is entitled to at least one day of rest each week, and it is permissible to agree on more than that according to the workplace policy and the employment contract.
Reduced working hours during Ramadan: The regular working hours are reduced by two hours daily for all employees during the holy month.
Summer working hours: Due to the high temperatures during the summer months in the UAE, workers are prohibited from working in open areas and under direct sunlight during peak hours to ensure their safety.
Annual Leave and Sick Leave Under UAE Labor Law
The law has set regulations for annual leave and sick leave in the UAE.
Annual Leave Entitlement
The employee is entitled to annual paid leave of no less than:
30 days for each year if the service period exceeds one full year.
Two days for each month if the duration of service is between six months and one full year.
Can Annual Leave Be Carried Forward or Cashed Out?
Many employees ask:
“I do not benefit from my annual leave in the year it is due. Can I carry it over to another year or cash it out?”
The answer is:
No.
You may receive only the basic salary for unused annual leave at the end of your service. Annual leave will not be carried forward or compensated in cash unless you have written approval from the employer.
Therefore, it is better to use your annual leave when it becomes due.
Sick Leave
Every employee is entitled to sick leave not exceeding 90 days, whether continuous or separate, within one year.
This right is acquired only after completing the six-month probation period.
During the probation period, paid sick leave is not available.
The financial entitlements during sick leave are calculated as follows:
First 15 days: Full salary (100%).
Next 30 days: Half salary (50%).
Remaining 45 days: Unpaid.
Important Notice
If the illness is due to personal misconduct, such as substance abuse, or if it is proven that the employee worked for another employer during the leave period, these benefits do not apply.
Maternity, Paternity, and Bereavement Leave
Emirati law emphasizes family cohesion and stability. Therefore, it includes several provisions that respect important family and social occasions.
Maternity Leave
The employee is entitled to 60 days of maternity leave after childbirth, including:
45 days with full pay.
15 days with half pay.
An additional 30 days without pay if the child is sick or has special needs.
Parental (Paternity) Leave
The employee is entitled to five working days of parental leave following the birth of a child.
This leave may be taken within the first six months from the child’s date of birth.
Bereavement Leave
The employee is entitled to:
Five paid days upon the death of a spouse.
Three paid days upon the death of first-degree relatives, including parents, children, siblings, and grandparents.
Employment Contracts and the Probation Period
Under the new law, employment contracts have been standardized as fixed-term contracts only, with a maximum duration of three years, renewable by mutual agreement.
Probation Period
The probation period is intended to assess the employee’s performance after appointment.
The law provides the following rules:
The probation period must not exceed six months.
An employee may not be placed on probation more than once by the same employer.
If the employer wishes to terminate the employee during probation, written notice of at least 14 days must be given.
If the employee wishes to resign during probation to join another employer within the UAE, one month’s notice must be provided, and the new employer is required to provide compensation in accordance with the law.
Termination of Service and Severance Pay
The UAE Labor Law guaranties the rights of both parties when they wish to terminate the contractual relationship.
Warning Period
The notice period is a duration clearly stated in the employment contract, ranging from 30 to 90 days. Neither the employer nor the employee has the right to terminate the contract without providing the notice period. If the employee wishes to leave before the notice period ends, they must pay the employer the salary for the remaining period.
The meaning:
The notice period in your contract is one month, and if the employer wants you to leave immediately, they are obligated to pay the full salary for this month (the notice period). You will pay them if you are the one who wants to leave immediately.
Unlawful (Arbitrary) Dismissal
Some employers do not grant the worker their annual leave salary despite it being their right, or they delay salaries. The UAE Labor Law guarantees the worker the right to file a labor complaint with the Ministry of Human Resources and Emiratisation, and in such cases, the employer may terminate the employee’s service due to their filing an official labor complaint. And this is called: arbitrary dismissal.
The UAE law obliges the employer to pay the employee a fair financial compensation, determined by the court, not exceeding the salary of 3 months.
Early Termination of the Employment Contract
The affected party has the right to claim financial compensation for the early termination of the contract based on the documented terms in the contract and what the law stipulates.
End-of-Service Gratuity
How Is the End-of-Service Gratuity Calculated?
An employee who has completed a full year in their job is entitled to a compensation called end-of-service gratuity, and they are not entitled to it if they have not completed a full year of continuous service on their contract.
The end-of-service gratuity is calculated based on the employee’s last basic salary received, excluding allowances such as housing and transportation. The employer has the right to deduct any legally due amounts or fixed debts owed by the employee from the gratuity before disbursing it.
Method of calculating the end-of-service gratuity:
From one year to five years: 21 days of pay for each of the first five years.
What exceeds 5 years: 30 days’ wages for each year beyond that.
Health Commitments and Medical Insurance
The regulations of the Ministry of Human Resources and Emiratisation require companies operating in the United Arab Emirates to:
Providing comprehensive health insurance for the employee, fully covered by the employer.
UAE law prohibits deducting the value of medical insurance, residence fees, or work permit issuance from the employee’s monthly salary.
Professional Legal Consultations on All Matters Related to Labor Laws and Labor Relations in the UAE
Has your employer deprived you of your labor rights? Do you need to file a labor complaint? Or do you want to know if the end-of-service gratuity you received is fair? Or were you unfairly dismissed?
Contact our experts at FHS Solutions Law Firm to provide you with precise advice that ensures you receive your legal rights and avoid any legal issues that your employer might cause to deprive you of your rights.
The FHS Legal and Law Firm in Abu Dhabi includes a select group of legal advisors specialized in labor and employment cases to assist you in drafting contracts, resolving disputes, and providing comprehensive judicial support through our legal services.
Contact Us Today to Protect Your Legal Rights
Address: Abu Dhabi, Electra Street, Al Reem Plaza Tower, Office No. 401.
Contact us today to schedule a consultation with one of our experienced lawyers.
Frequently Asked Questions About the UAE Labor Law
Is the Employee Entitled to Severance Pay if They Are the One Who Resigned?
Yes, an employee in the private sector is entitled to an end-of-service gratuity upon resignation, provided they have completed a full year or more of continuous service.
According to the amendments to the Labor and Workers Law, the bonus is calculated based on the last basic salary, and its value is not affected by whether the contract termination was due to the employee’s resignation or dismissal from work.
What Is the Legal Notice Period When Wishing to Leave a Job?
The notice period in employment contracts is determined by the agreement between the employee and the employer, provided it is not less than 30 days and not more than 90 days.
The party wishing to terminate the contract must continue working throughout this period, or pay the other party a notice compensation equivalent to the wage for this period.
Is It Permissible for the Employer to Cancel the Employee’s Residency or Deport Them During Sick Leave?
The UAE Labor Law guaranties the rights of the worker during their sick leave, and the UAE Labor Law prohibits the employer from terminating the employee’s service or canceling their contract and residency while they are on legitimate sick leave supported by a medical report.
And if the employer decides to terminate the service for medical reasons, they must wait until the employee has exhausted their full legal sick leave balance (90 days), then ask them to return to work. If the employee is still ill, it is up to the employer to grant the employee unpaid leave or terminate their employment.
Who Bears the Costs of Residence and Visa Fees?
All costs and fees related to the recruitment of the employee, obtaining the work visa, residence fees, medical examination, and health insurance are entirely the responsibility of the employer (the company).
The law completely prohibits deducting these amounts from the employee’s salary or charging them directly or indirectly.
What Is the Legal Action in Case the Company Delays Salary Payments?
If the employer refuses or delays the payment of wages on the specified due date, the employee has the right to file an official complaint through the channels of the Ministry of Human Resources and Emiratisation (MOHRE).
To ensure the rights of workers in the United Arab Emirates, labor law considers the delay in salary payment a clear violation of the Wage Protection System (WPS). In this case, the law allows the employee to transfer to another employer without the need to adhere to the notice period if the delay exceeds the legal limits.
Your Trusted Legal Partner
The law was established to protect interests and ensure rights, so if you are an employer or an employee working in the United Arab Emirates, rest assured that the law protects you.
Trust our experts at FHS Solutions Law Firm for legal advice and consultations, and ensure you receive your rights and avoid breaking the law through precise consultations with our legal advisors, who specialize in labor law, labor complaints, labor rights, wage recovery claims, and end-of-service benefits.
To learn more about our legal services or Contact us to schedule a consultation with one of our experienced lawyers.
Complete Guide To UAE Labour Law in 2026
The Comprehensive Guide to UAE Labor Law: Employee Rights and Employer Obligations
In a diverse investment environment like that of the UAE, with a workforce from various countries around the world, it was essential for the UAE Labor Law to be the cornerstone that regulates the investment and employment environment in the United Arab Emirates.
So, whether you are an employer, an investor, a worker, or an employee and you want to understand your legal duties and rights, you need to know at least a little about Federal Decree-Law No. (33) of 2021, which regulates labor relations. This understanding is considered a fundamental step to ensure your professional and legal stability within the UAE.
If you are interested in learning more about the UAE Labor Law and the updated regulations governing employment contracts, vacations, salaries, and end-of-service benefits in the UAE job market, continue reading this article, which serves as a comprehensive guide to the labor laws in the UAE.
Working Hours and Weekly Rest Days
The UAE laws precisely defined the permissible working hours in the UAE, characterized by flexibility in protecting workers’ interests and considering the needs of the work environment in the private sector.
The mandatory Friday holiday was abolished, and the determination of the weekly day off in each establishment was left to the employer’s discretion to serve the specific needs of the workers in the establishment.
The labor law in the UAE emphasizes setting working hours so that they are:
Maximum working hours: 8 hours daily and not exceeding 48 hours per week.
Weekly day off: The employee is entitled to at least one day of rest each week, and it is permissible to agree on more than that according to the workplace policy and the employment contract.
Reduced working hours during Ramadan: The regular working hours are reduced by two hours daily for all employees during the holy month.
Summer working hours: Due to the high temperatures during the summer months in the UAE, workers are prohibited from working in open areas and under direct sunlight during peak hours to ensure their safety.
Annual Leave and Sick Leave Under UAE Labor Law
The law has set regulations for annual leave and sick leave in the UAE.
Annual Leave Entitlement
The employee is entitled to annual paid leave of no less than:
30 days for each year if the service period exceeds one full year.
Two days for each month if the duration of service is between six months and one full year.
Can Annual Leave Be Carried Forward or Cashed Out?
Many employees ask:
“I do not benefit from my annual leave in the year it is due. Can I carry it over to another year or cash it out?”
The answer is:
No.
You may receive only the basic salary for unused annual leave at the end of your service. Annual leave will not be carried forward or compensated in cash unless you have written approval from the employer.
Therefore, it is better to use your annual leave when it becomes due.
Sick Leave
Every employee is entitled to sick leave not exceeding 90 days, whether continuous or separate, within one year.
This right is acquired only after completing the six-month probation period.
During the probation period, paid sick leave is not available.
The financial entitlements during sick leave are calculated as follows:
First 15 days: Full salary (100%).
Next 30 days: Half salary (50%).
Remaining 45 days: Unpaid.
Important Notice
If the illness is due to personal misconduct, such as substance abuse, or if it is proven that the employee worked for another employer during the leave period, these benefits do not apply.
Maternity, Paternity, and Bereavement Leave
Emirati law emphasizes family cohesion and stability. Therefore, it includes several provisions that respect important family and social occasions.
Maternity Leave
The employee is entitled to 60 days of maternity leave after childbirth, including:
45 days with full pay.
15 days with half pay.
An additional 30 days without pay if the child is sick or has special needs.
Parental (Paternity) Leave
The employee is entitled to five working days of parental leave following the birth of a child.
This leave may be taken within the first six months from the child’s date of birth.
Bereavement Leave
The employee is entitled to:
Five paid days upon the death of a spouse.
Three paid days upon the death of first-degree relatives, including parents, children, siblings, and grandparents.
Employment Contracts and the Probation Period
Under the new law, employment contracts have been standardized as fixed-term contracts only, with a maximum duration of three years, renewable by mutual agreement.
Probation Period
The probation period is intended to assess the employee’s performance after appointment.
The law provides the following rules:
The probation period must not exceed six months.
An employee may not be placed on probation more than once by the same employer.
If the employer wishes to terminate the employee during probation, written notice of at least 14 days must be given.
If the employee wishes to resign during probation to join another employer within the UAE, one month’s notice must be provided, and the new employer is required to provide compensation in accordance with the law.
Termination of Service and Severance Pay
The UAE Labor Law guaranties the rights of both parties when they wish to terminate the contractual relationship.
Warning Period
The notice period is a duration clearly stated in the employment contract, ranging from 30 to 90 days. Neither the employer nor the employee has the right to terminate the contract without providing the notice period. If the employee wishes to leave before the notice period ends, they must pay the employer the salary for the remaining period.
The meaning:
The notice period in your contract is one month, and if the employer wants you to leave immediately, they are obligated to pay the full salary for this month (the notice period). You will pay them if you are the one who wants to leave immediately.
Unlawful (Arbitrary) Dismissal
Some employers do not grant the worker their annual leave salary despite it being their right, or they delay salaries. The UAE Labor Law guarantees the worker the right to file a labor complaint with the Ministry of Human Resources and Emiratisation, and in such cases, the employer may terminate the employee’s service due to their filing an official labor complaint. And this is called: arbitrary dismissal.
The UAE law obliges the employer to pay the employee a fair financial compensation, determined by the court, not exceeding the salary of 3 months.
Early Termination of the Employment Contract
The affected party has the right to claim financial compensation for the early termination of the contract based on the documented terms in the contract and what the law stipulates.
End-of-Service Gratuity
How Is the End-of-Service Gratuity Calculated?
An employee who has completed a full year in their job is entitled to a compensation called end-of-service gratuity, and they are not entitled to it if they have not completed a full year of continuous service on their contract.
The end-of-service gratuity is calculated based on the employee’s last basic salary received, excluding allowances such as housing and transportation. The employer has the right to deduct any legally due amounts or fixed debts owed by the employee from the gratuity before disbursing it.
Method of calculating the end-of-service gratuity:
From one year to five years: 21 days of pay for each of the first five years.
What exceeds 5 years: 30 days’ wages for each year beyond that.
Health Commitments and Medical Insurance
The regulations of the Ministry of Human Resources and Emiratisation require companies operating in the United Arab Emirates to:
Providing comprehensive health insurance for the employee, fully covered by the employer.
UAE law prohibits deducting the value of medical insurance, residence fees, or work permit issuance from the employee’s monthly salary.
Professional Legal Consultations on All Matters Related to Labor Laws and Labor Relations in the UAE
Has your employer deprived you of your labor rights? Do you need to file a labor complaint? Or do you want to know if the end-of-service gratuity you received is fair? Or were you unfairly dismissed?
Contact our experts at FHS Solutions Law Firm to provide you with precise advice that ensures you receive your legal rights and avoid any legal issues that your employer might cause to deprive you of your rights.
The FHS Legal and Law Firm in Abu Dhabi includes a select group of legal advisors specialized in labor and employment cases to assist you in drafting contracts, resolving disputes, and providing comprehensive judicial support through our legal services.
Contact Us Today to Protect Your Legal Rights
Address: Abu Dhabi, Electra Street, Al Reem Plaza Tower, Office No. 401.
Contact us today to schedule a consultation with one of our experienced lawyers.
Frequently Asked Questions About the UAE Labor Law
Is the Employee Entitled to Severance Pay if They Are the One Who Resigned?
Yes, an employee in the private sector is entitled to an end-of-service gratuity upon resignation, provided they have completed a full year or more of continuous service.
According to the amendments to the Labor and Workers Law, the bonus is calculated based on the last basic salary, and its value is not affected by whether the contract termination was due to the employee’s resignation or dismissal from work.
What Is the Legal Notice Period When Wishing to Leave a Job?
The notice period in employment contracts is determined by the agreement between the employee and the employer, provided it is not less than 30 days and not more than 90 days.
The party wishing to terminate the contract must continue working throughout this period, or pay the other party a notice compensation equivalent to the wage for this period.
Is It Permissible for the Employer to Cancel the Employee’s Residency or Deport Them During Sick Leave?
The UAE Labor Law guaranties the rights of the worker during their sick leave, and the UAE Labor Law prohibits the employer from terminating the employee’s service or canceling their contract and residency while they are on legitimate sick leave supported by a medical report.
And if the employer decides to terminate the service for medical reasons, they must wait until the employee has exhausted their full legal sick leave balance (90 days), then ask them to return to work. If the employee is still ill, it is up to the employer to grant the employee unpaid leave or terminate their employment.
Who Bears the Costs of Residence and Visa Fees?
All costs and fees related to the recruitment of the employee, obtaining the work visa, residence fees, medical examination, and health insurance are entirely the responsibility of the employer (the company).
The law completely prohibits deducting these amounts from the employee’s salary or charging them directly or indirectly.
What Is the Legal Action in Case the Company Delays Salary Payments?
If the employer refuses or delays the payment of wages on the specified due date, the employee has the right to file an official complaint through the channels of the Ministry of Human Resources and Emiratisation (MOHRE).
To ensure the rights of workers in the United Arab Emirates, labor law considers the delay in salary payment a clear violation of the Wage Protection System (WPS). In this case, the law allows the employee to transfer to another employer without the need to adhere to the notice period if the delay exceeds the legal limits.
Your Trusted Legal Partner
The law was established to protect interests and ensure rights, so if you are an employer or an employee working in the United Arab Emirates, rest assured that the law protects you.
Trust our experts at FHS Solutions Law Firm for legal advice and consultations, and ensure you receive your rights and avoid breaking the law through precise consultations with our legal advisors, who specialize in labor law, labor complaints, labor rights, wage recovery claims, and end-of-service benefits.
To learn more about our legal services or Contact us to schedule a consultation with one of our experienced lawyers.
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