UAE Labour Laws
The UAE Labour Law is governed by Federal Decree-Law No. 33 of 2021, which regulates employment relations in the private sector. It establishes clear guidelines on contracts, working hours, leave entitlements, and employee rights. The law aims to enhance job security, promote equality, and ensure a balanced work environment. It also introduces flexible work models and protects workers from discrimination and unfair dismissal. Compliance with these regulations is essential for both employers and employees operating in the UAE.​
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Some of the main regulatory guidelines are:
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Employment Contracts: All employment relationships must be formalized through written contracts specifying job roles, compensation, and duration.
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Fixed-Term Contracts: Employment contracts are typically fixed-term, with a maximum duration of three years, renewable upon mutual agreement.
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Probation Period: an vary from 3 to 6 months. Termination during this period requires a 14-day notice from either party.
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Working Hours: Standard working hours are eight hours per day or 48 hours per week. Employees should not work more than five consecutive hours without at least a one-hour break.
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Overtime Compensation: Overtime is limited to two hours per day. Employees are entitled to an overtime wage with a 25% increase, and a 50% increase if overtime occurs between 10 PM and 4 AM.
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Annual Leave: Employees are entitled to 30 days of paid annual leave after completing one year of service.
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Sick Leave: Employees are entitled to a maximum of 90 days of sick leave per year: the first 15 days with full pay, the next 30 days with half pay, and the remaining 45 days without pay.
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Maternity Leave: Female employees are entitled to 60 days of maternity leave—45 days with full pay and 15 days with half pay.
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Paternity Leave: Male employees are granted five days of paternity leave, to be taken within six months following the child's birth.
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Bereavement Leave: Employees receive five days of leave for the death of a spouse and three days for the death of a parent, child, sibling, grandchild, or grandparent.
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Equal Pay: The law mandates equal pay for men and women performing the same role or roles of equal value.
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Non-Discrimination: Discrimination based on race, color, sex, religion, nationality, or disability is prohibited.
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Prohibition of Harassment: The law protects employees from sexual harassment, bullying, and verbal, physical, or psychological violence.
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Prohibition of Forced Labor: Employers are prohibited from forcing employees to perform tasks against their will or under threat of penalty.
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Retention of Employee Documents: Employers are prohibited from retaining employees' official documents, including passports.
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Non-Compete Clauses: Such clauses are limited in terms of place, time (maximum of two years), and type of work.
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Minimum Wage: The law introduces a minimum wage for private sector employees, with specifics to be determined by the UAE Cabinet.
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Flexible Working Models: The law recognizes various work models, including part-time, temporary, and flexible work arrangements.
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Employment of Teenagers: Employers cannot hire individuals under 15 years old. Teenagers are not allowed to work more than six hours a day and are prohibited from working between 7 PM and 7 AM or in hazardous jobs.
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Health and Safety Regulations: Employers are required to provide a safe working environment and adhere to health and safety standards to prevent workplace injuries and accidents.
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End-of-Service Gratuity: Employees who have completed at least one year of service are entitled to end-of-service gratuity. For the first five years, this is calculated as 21 days' wages for each year; for subsequent years, 30 days' wages for each year.
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Termination Notice Period: The minimum notice period for termination is 30 days, with a maximum of 90 days, depending on the employment contract and length of service.
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Redundancy Recognition: The law recognizes redundancy as a valid reason for termination if the employer is bankrupt, insolvent, or facing economic or exceptional reasons.
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Disciplinary Procedures: Employers must follow a defined disciplinary process, including conducting a written investigation and issuing two written warnings before dismissing an employee for failing to perform their main duties.
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Compassionate Leave: Employees are entitled to five days of paid leave for the death of a spouse and three days for the death of a close family member.
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Study Leave: After two years of service, employees enrolled in accredited institutions in the UAE are entitled to 10 working days of study leave per year.