UAE Labour Law 2026 | Complete Guide for Employers and Employees

The UAE Labour Law 2025 (as amended by Federal Decree No. 33 of 2021 and subsequent Executive Regulations, Cabinet Resolution No. 1 of 2022) governs employment relationships in the UAE’s offshore and free zone sectors, excluding DIGAD and DIMFC. This guide outlines all the key updates, such as mandatory fixed-term contracts, working hours, maternity and parental leave, WPS compliance, emirate targets, and unemployment insurance. Stay compliant with MOHRE regulations, protect employee rights, and ensure your HR policies are up to date with the latest UAE labour legislation. Also Read About MOHRE Enquiry UAE

Expatriates constitute more than 80% of the UAE’s workforce, so labour law plays a central role in ensuring fairness and stability. Whether you are a skilled professional wanting clarity on gratuity calculations, an employer managing fixed-term contracts, or an HR manager implementing Wage Protection System (WPS) compliance, knowledge of the law is very important.

• Requirement: All employment relationships must have a written contract.
• Copies: Issued in duplicate – employer and employee.
• Duration: Maximum 3 years, renewable for the same/shorter periods.
• Automatic Renewal: If employment continues post-expiry, the contract is extended.
• MOHRE Templates: Available for different professional levels and work models.

• Unlimited contracts abolished.
• Employers must convert existing unlimited contracts to fixed-term contracts.
• Maximum duration: 3 years.

• Full-time – Standard hours with one employer.
• Part-time – Limited hours, can work for multiple employers.
• Temporary – Task-specific, contract ends upon assignment completion.
• Flexible – Hours/days adjusted according to employer needs.
• Remote work – Tasks partially or fully performed outside the workplace.
• Job-sharing – Tasks are divided among employees under part-time rules.

• Maximum 48 hours/week (8 hours/day).
• Break: Minimum 1 hour after 5 hours of work.
• Commute time not included unless specified.
• Summer Rule (June–Sept): Outdoor work prohibited 12:30 PM – 3:00 PM.

• Maximum 2 hours/day.
• Overtime rates:
  • +25% for regular overtime
  • +50% for night work (10 PM–4 AM)
• Work on rest/public holidays: +50% pay or substitute rest day.
  Entities: MOHRE, UAE Labour Law 2025, overtime regulations

• Maximum: 6 months.
• Notice during probation: 14 days.
• Switching employer: 30 days’ written notice.
• Employer can recover recruitment costs if employee leaves within 3 months.

Duration of Service	Minimum Notice
Less than 5 years	30 days
5–10 years	60 days
10+ years	90 days

Purpose: Protects both employers and employees during contract termination.

• No discrimination based on gender, race, religion, nationality, social background, or disability.
• Equal pay for men and women in the same role.
• Women are protected from dismissal during pregnancy/maternity leave.

• Zero tolerance for verbal, physical, or psychological abuse.
• Reporting via MOHRE and the UAE labour courts.
• Violations: Fines up to AED 10,000 or imprisonment.

• Termination for filing a complaint is unlawful.
• Compensation: Up to 3 months’ salary.
• Gratuity must be paid within 14 days of termination.

• 60 days maternity leave: 45 fully paid + 15 half-paid
• Additional unpaid leave up to 100 days with medical proof
• Two 30-minute nursing breaks daily for 6 months post-birth

• Applies even in summary dismissals.

• Mandatory for the private and federal sectors
• Monthly contribution: AED 5 (<16,000 salary), AED 10 (≥16,000 salary)
• Coverage: 60% of salary for 3 months
• Non-compliance: AED 400 fine + visa/work ban risk

• Public sector: 4.5-day week (Friday half-day)
• Sharjah: 4-day week (Mon–Thu)
• Dubai (Summer 2025): Optional 4-day/hybrid schedules
• Private sector: Optional adoption

• Mandatory in additional free zones: RAKEZ, Fujairah, etc.
• Non-compliance results in fines and permit restrictions

Also Read About What is WPS in UAE? – Complete Guide to the Wage Protection System

• Integrates labour card, visa, Emirates ID, and WPS
• Mandatory in Dubai & Abu Dhabi from 2025
• Onboarding in 5 days

• Covers maids, drivers, cooks, etc.
• Enforces contracts, working hours, and rest days
• Managed by the MOHRE domestic worker unit

• Companies with 50+ employees must increase the Emirati workforce by 2% annually
• 7% target by June 2025, 8% by the end of 2025

MOHRE decisions are enforceable up to AED 50,000	2022	2025
Maternity Leave	45 days	60 days
Work Arrangements	Full-time only	Flexible, part-time, temporary, remote
Probation Notice	Not defined	14–30 days depending on situation
Dispute Resolution	MOHRE advisory only	MOHRE decisions enforceable up to AED 50,000
Emiratisation Policy	1 Emirati for 20–49 employees	2 Emiratis required

UAE Labour Law is not static; it evolves with the economy and workforce needs. The 2024 and 2025 amendments introduce stricter penalties for late salary payments, enhanced rights for flexible workers, and clearer rules for termination compensation.

The UAE Labour Law 2025 focuses on employee protection, workplace flexibility, and regulatory compliance. All HR policies must be updated, contracts converted, and WPS compliance must be ensured. Employers and employees should be familiar with MOHRE templates, notice periods, and leave entitlements to maintain compliance and secure rights.