New Employment Labour Law UAE 2025

New Labour Laws UAE 2025

UAE labour law under Federal Law No. (8) of 1980 regulating employment relationships has been abrogated, and employers now must abide by the New Employment UAE Labour Law under Federal Decree Law No. (33) of 2021, which is enforced as of 02 February 2022, legislation provides new guidelines and protocols for employment, gives policies on hiring employees, and protection of workers rights.

Employment Labour Law UAE 2025 important updated points are mentioned here.

There are two types of contracts in the UAE: Limited (fixed-term) and Unlimited. After these amendments to the UAE labor laws,

• All employment contracts will be fixed-term only.
•  Employers must convert previous unlimited/undefined term contracts to fixed-term contracts before February 2023.

All employers must ensure employment contracts.

Maximum Term of Contracts: 3 years, which can be renewed with the mutual agreement of both parties.

• Full Time: Working for one employer for full working hours throughout the working days.
• Part-time: Working for one or more employers for a specified number of hours.
• Temporary Work: Work whose implementation requires a certain period, and the job ends upon its completion.
• Flexible Work:  Work whose hours and days change according to the work need, and the financial condition and requirements of the employer.

The implementing regulations specify rules for each work pattern and the responsibilities of both the employer and the worker.

Maximum Probation Period: 6 Months
During this period,
The employer may terminate the worker: 14–day notice.
Employee may resign:
If leaving the country: 14-day Notice Period.
If joining another UAE employer: 30-day Notice Period.
The original employer can recover the cost of hiring and contracting from the new employer, unless mutually agreed upon.

• The maximum normal working hours shall be 8 hours per day or 48 hours per week.
• The worker may not work continuously for more than 5 hours without a break.

Allowed time for Overtime:

• Not exceed 2 hours/day.
• Not exceed 144 hours / Total 3 weeks.

Wages of Overtime:

• Regular working hours: Basic Pay plus an increase of 25%.
• Time between 10 PM – 4 AM: Basic Wage plus an increase of not less than 50 %.
• Work on Off Days or Public Holidays: Either a +50 % salary increase or a substitute off day.

Annual Leaves

• 30 Days each year in extended service.
• 2 Days for each month if the service period is more than 6 months but less than 1 year.
• The employer may not prevent an employee from availing his annual leaves accrued for more than two years unless the worker agrees to carry it forward or receive a cash allowance.

Maternity Leave & Nursing Breaks

• 60 Days leave for females in terms of maternity leave, from which:
  • The initial 45 Days will be fully paid.
  • The next 15 days with half pay.
• 60 Days more leave after maternity leave if a female gives birth to a child whose health condition requires continuous companionship (with valid medical proof);
  • 30 days with full pay
  • 30 days without pay
• Two 30-minute breaks, not exceeding an hour in a day, for a 6-month post-delivery nursing mother.

Sick Leave

Maximum 90 days leave, continuous or intermittent per year (after completion of probation period),

• 15 days with full pay
• 30 days with half pay
• No pay for subsequent periods
• No wage for sick leave if the sickness resulted from the misconduct of the employee.

Study Leave

10 leaves per year for a worker who is studying through an educational institute approved in the state, provided the worker has worked with the same employer for more than two years.

Compassionate Leave

• 5 days in case of the death of the spouse.
• 3 days in case of the death of siblings, children, parents, and grandparents.

The new amendments empower employees, which include that the employer must pay 2 months’ salary to employees while any disputes are being resolved.

• Equal wages for women as for men for the same job.
• No organisational discrimination based on religion, sex, colour, race, disability, national or social background.

Protection against Harassment, Bullying, and any Physical or Psychological Assault

• Strong protection against Sexual harassment, bullying, or any verbal, physical, or psychological violence.
• Proper reporting mechanism via the Ministry of Human Resources & Emiratisation (MOHRE) and labor courts.
• Impose a fine and other punishments for law breaches and violations of rules.

Illegitimate Termination of the Worker’s Service

• Dismissal of a worker based on filing a complaint against the employer with the ministry.
• Compensation: Employer will pay up to 3 months’ wages.
• There will be no effect on end-of-service benefits.

Claim Value Limit for Labour Disputes

If the dispute claims are up to Dh 50,000, then MOHRE can make the decisions. For any dispute in which the amount crosses that limit, MOHRE has the right to work as a moderator and refer the case to competent courts.

Foreign workers who have completed 1 year of service are entitled to full gratuity. You can calculate gratuity by using a free online gratuity calculator UAE tool.

For domestic workers you can check Gratuity for Domestic Workers.

Either party to the employment contract can terminate the contract for any valid reason, provided that the party willing to terminate the contract will give notice in writing and will serve the employer within the said period. The duration of the notice period will be as agreed upon in the contract, which shall not be less than 30 days and will not be more than 90 days.
Further Notice Period Enlisted as:

• 30 days for less than 5 years.
• 60 days for 5 to 10 years.
• 90 days for above 10 years.

This scheme is to compensate the insured workers with a cash amount for a limited period in case of termination from the job. Compulsory, for all private and federal sector workers, the following are exempted: investors, business owners, domestic workers, temporary contract employees, minors (under 18), and pensioners.

Monthly Expense:

• AED 5 (for salary less than 16,000)
• AED 10 (for salary more than or equal to 16,000)

Compensation:

Provide sixty percent (60 %) of the salary for up to 3 months in case of job loss.

• 10,000 AED (for contribution of AED 5 per month)
• 20,000 AED (for contribution of AED 10 per month).

Fine for non-compliance:  AED 400 (visa & work ban risk).

For a more detailed step-by-step guide for working in the private sector, you can also check the UAE Government Portal.

The amendments in the New UAE Employment Labour Law 2025 are a transformative step towards a better, safer, and flexible workplace environment for all, which ensures the legal rights of both employers and workers, and so the employment relationship will be more positive, balanced, and will remove many ambiguities.