UAE Labour Law: Complete Guide for Employees and Employers

UAE private sector employment is governed by Federal Decree-Law No. 33 of 2021, a comprehensive modernization that replaced the older 1980 labour law and now covers gig workers, part-time employees, and remote teams alongside traditional full-time employment, making it worth understanding as a complete framework rather than piecing together isolated rules.

Working hours are capped at eight hours per day or 48 hours per week, reduced by two hours daily during Ramadan for all employees regardless of religion, with mandatory rest breaks after five consecutive working hours. Annual leave entitlement reaches 30 paid days after one year of continuous service (two days per month for six-to-twelve months of service), while sick leave provides up to 90 days annually structured as 15 days full pay, 30 days half pay, and the remainder unpaid, though sick leave isn't available during probation. Maternity leave was increased to 60 days total, 45 days at full pay and 15 at half pay, effective from day one of employment with no minimum service requirement, alongside newer entitlements like bereavement leave and study leave (10 days annually for employees pursuing approved education with at least two years of service).

Probation periods are capped at six months with no extension or renewal permitted, requiring 14 days' written notice for either party to terminate during this period; after probation, standard notice periods apply, generally 30 days minimum under Article 43, extending up to 90 days depending on the specific contract terms. Gratuity remains calculated on basic salary only (21 days per year for the first five years, 30 days per year beyond that, capped at two years' total salary), payable within 14 days of termination alongside all other outstanding entitlements, with 2024 amendments introducing fines up to AED 1,000,000 for serious violations including failure to settle these payments on time. Given how significantly enforcement has tightened, real-time WPS monitoring, higher penalty multipliers based on affected worker count, and an extended two-year limitation period for labour claims, both employers and employees benefit from treating this framework as an active compliance requirement rather than background knowledge referenced only when a dispute has already arisen.