UAE Labour Law 2026:

Latest Rules, Employee Rights, and Key Updates

Understanding work rules in the UAE isn’t always simple. Laws get updated, advice online often conflicts, and important details can be easy to miss. This page explains what applies right now under the current UAE labour law — clearly, directly, and without unnecessary legal jargon.

It focuses strictly on private sector employment and outlines what employees and employers are required to follow today. Whether you are reviewing your contract, checking your workplace rights, or estimating your end-of-service benefits using a Gratuity Calculator UAE, this guide is designed to give you accurate, practical information you can rely on.

What Is the UAE Labour Law?

The UAE Labour Law is Federal Decree-Law No. 33 of 2021. It governs private sector employment in the UAE and is enforced by the Ministry of Human Resources and Emiratisation (MOHRE). The law defines employee rights, employer duties, workplace protections, contract rules, and how employment relationships must be managed.

Who the UAE Labour Law Applies To

The UAE Labour Law applies exclusively to private sector roles. It covers both UAE nationals and expatriates working for an employer within the country. The law defines contractual terms, salary obligations, working conditions, and workplace protections.

It does not apply to government employees, armed forces, police personnel, or domestic workers, as these groups are regulated under separate laws. Employees should also review their UAE Labour Card status and details to ensure their records are correctly registered under current labour regulations.

Employment Contracts Under UAE Labour Law

All private sector employment in the UAE now operates under fixed-term contracts only. Unlimited contracts are no longer issued, and existing ones were required to convert within the legal transition period.

A fixed-term contract can run for a defined period and may be renewed by mutual agreement. This structure gives flexibility to both employer and employee while keeping terms clear, documented, and legally enforceable throughout the employment period.

Probation Period Rules in UAE

The probation period is tightly defined under the current UAE labour law. Both sides have clear notice duties, and extensions aren’t allowed.

Key probation rules:

Maximum duration: 6 months only
Extension: Not permitted under any condition
Written notice: Mandatory for both parties

Notice period during probation:

Employer terminates: Minimum 14 days’ written notice
Employee resigns to join another UAE employer: Minimum 30 days’ written notice
Employee resigns to leave the UAE: Minimum 14 days’ written notice

These rules apply uniformly across the private sector and are enforced by MOHRE to prevent sudden or unfair exits.

Working Hours and Overtime Rules in UAE

Working time in the UAE follows clear limits, but employers and employees can agree on flexible arrangements within the law.

Standard working hours:

8 hours per day
48 hours per week (for a six-day workweek)

Overtime rules:

Overtime is allowed only when required by work conditions
Total overtime generally can’t exceed 2 hours per day
Weekly working hours must stay within legal limits unless an approved exemption applies

Rest day flexibility:

Friday is no longer mandatory as the weekly rest day
Employers must provide at least one paid rest day per week
The rest day can be any day agreed in the contract

These rules apply across the private sector and aim to balance productivity with employee well-being.

Leave Entitlements Under UAE Labour Law

The law sets clear rules on paid and unpaid leave, with eligibility tied to service length and employment status.

Annual leave

30 days paid leave after completing one year of service
2 days per month if service exceeds six months but is less than one year
Unused leave payout is calculated on basic salary only

Sick leave

Available after completing probation
First 15 days: full pay
Next 30 days: half pay
Final 45 days: unpaid
Medical proof is required

Maternity & parental leave

Maternity leave: 60 days total
45 days full pay
15 days half pay
Parental leave: 5 paid working days for each parent

Compassionate leave

5 paid days for the death of a spouse
3 paid days for the death of a parent, child, sibling, grandparent, or grandchild

Study leave

Friday is no longer mandatory as the weekly rest day
Employers must provide at least one paid rest day per week
The rest day can be any day agreed in the contract

These leave rules help protect income, support life events, and keep expectations clear for both sides.

Contract Termination Rules in UAE

Ending an employment contract follows strict rules under UAE labour law. Both sides must stick to what’s written and what the law allows.

Notice period

Must be written
Ranges from 30 to 90 days
Exact length depends on the employment contract

Legitimate reasons

Either party can end a fixed-term contract for a valid reason
Reasons don’t need to involve misconduct
Performance, conduct, or business reasons may apply

Redundancy

Redundancy is legally recognised
Economic or structural reasons can justify termination
Employer must still follow notice rules

End-of-service settlement

All dues must be paid within 14 days of the last working day
Includes salary, unused leave, and contractual entitlements
Delays can trigger MOHRE penalties

This keeps exits structured and reduces disputes.

Employee Rights and Workplace Protections

UAE labour law places strong limits on employer behaviour to protect employees at work.

Anti-discrimination

Discrimination is prohibited based on gender, race, religion, nationality, disability, or social origin

Equal pay

Men and women must receive equal pay for the same work

Harassment and abuse protection

Physical, verbal, psychological, or sexual harassment is prohibited

Pregnancy protection

Termination due to pregnancy or maternity leave is not allowed

Disciplinary Rules Employers Must Follow

Discipline must follow a defined legal process.

Mandatory requirements

Formal investigation before penalties
Employee must be allowed to respond

Allowed penalties

Written warning
Salary deduction within limits
Suspension
Termination in serious cases

Time limits

Action must be taken within a defined period after violation discovery

Skipping steps weakens employer claims and strengthens employee disputes.

Wages and End-of-Service Obligations

Salary handling is tightly monitored under UAE labour law.

Wage payment

Salaries must be paid through the Wages Protection System (WPS)
Delays can trigger MOHRE enforcement

Currency

Salary may be paid in another currency
Only if stated in the employment contract

Final settlement

Must be completed within 14 days of the last working day
Includes wages, leave balance, and end-of-service dues

End-of-service calculations are explained separately to avoid confusion.

Recent UAE Labour Law Updates (2024–2026)

Labour law enforcement tightened between 2024 and 2026. The impact is practical and immediate.

Extended labour claim window

Employees now have 2 years to file labour claims
Employers must retain records longer

Faster dispute resolution

Claims under AED 50,000 go directly to the Court of First Instance

Higher penalties

Fines can reach up to AED 1,000,000

MOHRE wage continuation power

Employers may be ordered to continue wages for up to two months during disputes

Stronger compliance focus

Work permits, WPS, contracts, and settlements face stricter checks

For 2026, compliance is operational reality.

Common Mistakes Employees Make Under UAE Labour Law

Most disputes start with wrong assumptions.

Misreading contracts
Ignoring notice rules
Assuming allowances count
Delaying complaints

Avoiding these mistakes prevents stress later

UAE Labour Law FAQs

No. Unlimited contracts are no longer valid in the private sector. All employees must be on fixed-term contracts of up to three years, renewable by agreement.

The new UAE labour law is Federal Decree-Law No. 33 of 2021. It governs private sector employment and defines employee rights, employer duties, contract rules, leave entitlements, termination procedures, and end-of-service obligations across the UAE.

Yes. You can resign during probation, but notice rules apply. If leaving the UAE, you must give at least 14 days’ notice. If joining another UAE employer, a minimum of 30 days’ notice is required unless stated otherwise.

The notice period must be between 30 and 90 days, as written in the employment contract. Both employer and employee must follow the agreed notice period regardless of who initiates termination.

The full and final settlement must be paid within 14 days of the last working day. This includes unpaid salary, unused leave, and end-of-service dues.