The UAE Labour Law for private-sector employers, article by article from MOHRE's official text: contracts, probation, working hours, overtime, leave, notice, gratuity, disputes and fines.
Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships — the "UAE Labour Law" — governs every private-sector employer and employee in the UAE. u.ae says it took effect on 2 February 2022, replacing Federal Law No. 8 of 1980. This guide is built from the consolidated English text MOHRE publishes, Federal Decree-Law No. 33 of 2021 and its amendments, which also contains the Implementing Regulation (Cabinet Resolution No. 1 of 2022). We read it on 25 October 2026. It is a summary for employers, not legal advice.
Who the UAE Labour Law covers
Quick answer: All private-sector businesses, employers and employees in the UAE, UAE nationals and expatriates alike. u.ae lists the exceptions: employees of federal and local government entities, the armed forces, police and security, and domestic workers, who have their own law. Two financial free zones are outside it: ADGM says it is exempt from the federal Labour Law and applies its own Employment Regulations 2024 (ADGM Employment Affairs Office), and the DIFC has its own Employment Law, DIFC Law No. 2 of 2019.
Employment contracts
Quick answer: The law abolished "unlimited" contracts and admits only fixed-term ones (u.ae). Contracts are made on MOHRE's forms for the work pattern agreed — full-time, part-time, temporary, flexible, remote or job sharing (Implementing Regulation, Art. 10).
The Implementing Regulation (Art. 10) lists what a contract must contain: the employer's name and address; the worker's name, nationality, date of birth, proof of identity and qualification; the job, start date, workplace, working hours and rest days; any probation period; the contract term; the agreed wage including benefits and allowances; annual leave; the notice period; and the termination procedure. A contract can move from one work pattern to another only with both parties' approval and after the entitlements under the original contract are paid. How MOHRE issues, renews and shows the contract is in our MOHRE labour contract guide, and MOHRE's 13 work permit types, with the fee schedule, are in our UAE work permit types guide.
Probation period
Quick answer: Up to six months, once per employer (Art. 9). The employer can end employment during probation with at least 14 days' written notice.
- An employee who wants to move to another UAE employer during probation must give written notice of at least one month. The new employer then compensates the original employer for the recruitment or contracting costs, unless agreed otherwise.
- A foreign employee who wants to leave the UAE during probation must give at least 14 days' written notice. If they return within three months on a new work permit, the new employer pays the same compensation, unless the employee and the original employer agreed otherwise.
- A party that ends the contract without following these rules pays the other compensation equal to the employee's wage for the notice period, or what remains of it.
- A foreign employee who leaves the UAE without following Article 9 is not given a work permit for one year from departure; MOHRE may exclude some job categories and skill levels.
- No paid sick leave is due during probation, though the employer may grant unpaid sick leave on a medical report (Art. 31). More in our probation period guide.
Working hours, breaks and overtime
Quick answer: At most 8 hours a day or 48 hours a week (Art. 17, per u.ae), reduced by 2 hours a day in Ramadan. Overtime is capped at 2 hours a day and paid at the basic hourly wage plus at least 25%.
| Rule | What the law says |
|---|---|
| Normal hours | 8 a day or 48 a week; the Cabinet can raise or lower them for some sectors (Art. 17) |
| Ramadan | Working hours reduced by 2 hours every day (u.ae) |
| Breaks | No more than 5 consecutive hours without a break or breaks totalling at least an hour, not counted as working time |
| Overtime limit | No more than 2 hours a day, and total hours no more than 144 every 3 weeks (Art. 19) |
| Overtime pay | Basic wage for the hours plus at least 25% (Art. 19) |
| Overtime 10 pm–4 am | Basic wage plus at least 50%; shift workers excluded (Art. 19) |
| Work on the weekly rest day | Another day off, or the day's wage plus at least 50% of the basic wage (Art. 19) |
| Weekly rest | At least one paid day a week, per the contract or work regulations |
Ramadan hours, breaks, commuting and the summer midday break are in our working hours guide.
Wages and the Wage Protection System
Quick answer: Wages are paid on their due dates through the Wage Protection System (WPS) or another MOHRE-approved system, in UAE dirhams unless the contract agrees another currency.
Since 1 June 2026, Ministerial Resolution No. 340 of 2026 makes the 1st of each month the single due date for the previous month's wages, with new work permits suspended from day 5 of a delay — see our WPS guide. The law lets the Cabinet set a minimum wage (Art. 27); for UAE nationals in the private sector, MOHRE set it at AED 6,000 a month from 1 January 2026 — see the Emiratisation guide.
Annual leave, public holidays and other leave
Quick answer: At least 30 days' paid annual leave a year, or 2 days a month when service is more than six months and under a year (Art. 29). Use our leave salary calculator for the pay.
| Leave | Entitlement |
|---|---|
| Annual leave | 30 days a year; 2 days a month between six months and a year; taken with full wage (Art. 29) |
| Unused annual leave | Can be carried forward with the employer's approval (Art. 29); the Implementing Regulation caps it at half the annual leave, or the parties agree a cash allowance at the wage then received (IR Art. 19(1)). Unused days on exit are paid on the basic wage (Art. 29(9); IR Art. 19(2)) |
| Public holidays | Full pay; work on one earns another day off, or the day's wage plus at least 50% of the basic wage (Art. 28) |
| Sick leave | After probation, up to 90 days a year: 15 days full pay, 30 days half pay, the rest unpaid; notify within 3 working days with a medical report (Art. 31) |
| Maternity leave | 60 days: 45 days full wage, 15 days half wage (Art. 30), plus up to 45 unpaid days for illness from pregnancy or childbirth |
| Child needing constant care | 30 days full pay after maternity leave, extendable by 30 days unpaid (Art. 30) |
| Parental leave | 5 working days for either parent, within six months of the birth (Art. 32) |
| Bereavement | 5 days for a husband or wife; 3 days for a mother, father, son, brother, sister, grandson, grandfather or grandmother (Art. 32) — u.ae words it as a parent, child, sibling, grandchild or grandparent |
| Study leave | 10 working days a year for exams, after at least two years' service (Art. 32) |
| Unpaid leave | By agreement; it does not count towards the service period (Art. 33) |
A new mother is also entitled to one or two breastfeeding breaks a day, totalling no more than an hour, for six months after the birth, and her service cannot be terminated because of pregnancy or maternity leave (Art. 30). For the full annual-leave rules, see the annual leave guide.
Ending employment: notice and termination
Quick answer: Either party can end the contract for a legitimate reason with written notice of 30 to 90 days, as agreed in the contract (Art. 43). The employee is paid in full during the notice period; a party that does not give notice owes the wage for the notice period or its remainder.
- When a contract ends (Art. 42): written agreement of both parties; expiry of the term unless extended or renewed; either party's wish, with notice; the employer's death where the contract depends on the employer's person; the employee's death or full permanent disability; a final prison sentence of at least three months; permanent closure of the establishment; the employer's bankruptcy or insolvency; or the employee failing the conditions for renewing the work permit for reasons beyond the employer's control.
- Job-hunting day: when the employer gives notice, the employee may take one unpaid working day a week off to look for work, telling the employer at least three days before (Art. 43).
- Quitting without notice (Art. 45): an employee may leave without notice and keep their end-of-service rights if, for example, the employer breaches its obligations and does not put it right after MOHRE is told — the employee must notify MOHRE 14 working days before leaving — or if the employer assaulted or harassed the employee, or there is a grave workplace danger the employer does not remove.
- Unlawful termination (Art. 47): dismissing an employee because they filed a serious complaint with MOHRE or a valid lawsuit is unlawful; the court sets compensation of up to three months' wage, on top of notice pay and gratuity.
- Non-compete (Art. 10): allowed where the job gives access to clients or business secrets, limited in time, place and type of work, and for no more than two years after the contract ends. It is void if the employer ended the contract in breach of the law, and an employer's claim must be filed within a year of discovering the breach. For notice in detail, including the full lists of no-notice cases, see the notice period guide.
End-of-service gratuity and final dues
Quick answer: A full-time foreign employee with at least one year of continuous service gets 21 days' basic wage for each of the first five years and 30 days for each year after, capped at two years' wage (Art. 51). All final dues are paid within 14 days of the contract ending (Art. 53).
Unpaid absence does not count towards service, and part-years are paid in proportion once the first year is complete. UAE nationals receive end-of-service benefits under the pensions and social security legislation instead. Estimate it with our gratuity calculator; the visa side of an exit is in the visa cancellation guide.
Labour disputes
Quick answer: A dispute goes to MOHRE first, for an amicable settlement (Art. 54, as amended by Federal Decree-Law No. 9 of 2024). MOHRE can decide claims of up to AED 50,000 itself — and, under Art. 54(2), regardless of value in some cases involving non-compliance with an amicable settlement decision — either party can take that decision to the Court of Appeal within 15 working days. Claims are barred two years after the employment relationship ends.
Larger disputes that do not settle are referred by MOHRE to the competent court with a memorandum, and MOHRE can require the employer to keep paying the employee's wages for up to two months where a dispute has led to wages being withheld.
Penalties for employers
Quick answer: Fines of AED 100,000 to AED 1,000,000 apply to employing someone without a work permit, recruiting someone and not giving them work, using work permits for other purposes, closing an establishment without settling employees' dues, juvenile employment violations and fictitious hiring (Art. 60, as amended). Fines multiply with the number of workers involved, up to AED 10,000,000 (Art. 62).
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Frequently Asked Questions
Q: What is the current UAE Labour Law? A: Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, with its amendments and its Implementing Regulation (Cabinet Resolution No. 1 of 2022). u.ae says it took effect on 2 February 2022, replacing Federal Law No. 8 of 1980.
Q: How long can a probation period be in the UAE? A: Up to six months, and only once with the same employer. The employer can end employment during probation with at least 14 days' written notice (Art. 9).
Q: What is the notice period under UAE Labour Law? A: Whatever the contract says, between 30 and 90 days, given in writing. The employee is paid their full wage during the notice period, and a party that skips it owes the wage for the notice period or its remainder (Art. 43).
Q: How is overtime paid in the UAE? A: At the basic hourly wage plus at least 25%, or plus at least 50% between 10 pm and 4 am (shift workers excluded). Overtime is capped at two hours a day, and total hours at 144 every three weeks (Art. 19).
Q: How many sick leave days do UAE employees get? A: After probation, up to 90 days a year: the first 15 days at full pay, the next 30 at half pay, the rest unpaid. The employee must tell the employer within three working days and provide a medical report (Art. 31).
Q: How many days of annual leave are employees entitled to? A: At least 30 days a year, or two days a month when service is more than six months and less than a year (Art. 29).
Q: What are the working hours under UAE Labour Law? A: A maximum of 8 hours a day or 48 hours a week, reduced by 2 hours a day during Ramadan (u.ae).
Q: Can an employer still offer an unlimited contract? A: No. u.ae states that the law abolished unlimited contracts and admits only fixed-term contracts.
Q: Does the UAE Labour Law apply to free-zone companies? A: u.ae states it applies to all private-sector businesses, employees and employers. The exceptions are two financial free zones: ADGM, which says it is exempt from the federal Labour Law and applies its own Employment Regulations 2024, and the DIFC, which has its own Employment Law (DIFC Law No. 2 of 2019).
Related guides
All guidesAbsconding in the UAE (2026): What It Means, How Employers Report It, and the One-Year Ban
Absconding (work abandonment) in the UAE, from MOHRE's service page and the Labour Law: the 7-day rule, how an employer files the report, documents, 2 working days, the one-year work-permit ban and who is exempt.
Annual Leave in the UAE (2026): Days, Pay, Carry-Over and the Rules for Employers
UAE annual leave under Article 29 of the Labour Law and its Implementing Regulation: 30 days a year, 2 days a month after six months, full pay, carry-over up to half, public holidays, part-time leave and pay on exit.
Probation Period in the UAE (2026): Length, Notice, Resigning and the Rules for Employers
The UAE probation period under Article 9 of the Labour Law: up to six months, once per employer, 14 days' notice to end it, one month to move to another UAE employer, the one-year permit ban, and the exemptions.
Maternity and Parental Leave in the UAE (2026): 60 Days, Pay, Nursing Breaks and Paternity Leave
UAE maternity and parental leave for the private sector under Articles 30 and 32 of the Labour Law: 60 days (45 full pay, 15 half pay), extra leave for illness or a child needing care, nursing breaks, dismissal protection and 5 days' parental leave.
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