The United Arab Emirates (UAE) has long been known for its dynamic economy, offering vast opportunities for businesses and workers alike. However, with a rapidly changing job market and an increasingly diverse workforce, understanding UAE labor laws is crucial for both employers and employees. The UAE government has made significant reforms to its labor laws, ensuring better protection for workers and addressing evolving workplace dynamics.
This guide provides an overview of the UAE Labour Laws in 2025, covering key provisions related to employment contracts, working hours, wages, benefits, and termination. Let’s dive into the key aspects of these updated regulations.
1. Employment Contracts
Types of Contracts: UAE labor law recognizes two types of employment contracts:
- Limited-Term Contract: This contract is for a fixed duration and automatically ends when the term expires.
- Unlimited-Term Contract: This contract has no specific duration and continues indefinitely, with either party having the right to terminate it with appropriate notice.
Key Changes in 2025:
- Written Contracts: Employment contracts must be written and signed by both the employer and the employee. Oral contracts are no longer considered valid.
- Probation Period: The maximum probation period is 6 months. During this time, either party can terminate the contract with limited notice (usually 14 days).
2. Working Hours and Rest Periods
Working Hours:
- The standard working week in the UAE is 48 hours, typically divided into 6 working days, with a maximum of 8 hours per day.
- Ramadan Adjustments: During Ramadan, working hours are reduced to 6 hours per day for Muslims. Non-Muslims are also encouraged to adjust working hours accordingly.
Rest Periods:
- Workers are entitled to a 1-hour break during the workday for rest and meals.
- Weekend: Friday and Saturday are considered the official weekend in the UAE, though some sectors may require employees to work on Saturdays or Sundays, especially in retail or hospitality.
3. Wages and Salary Protection
Minimum Wage: As of 2025, the UAE has not implemented a nationwide minimum wage, but salaries vary by industry, profession, and the skill level of the employee. However, employers are required to adhere to international labor standards for fair compensation.
Salary Payment:
- Employers are obligated to pay wages on time. Any delay in payment beyond 7 days of the agreed date can result in penalties.
- Wages Protection System (WPS): The UAE enforces the WPS, which ensures that salaries are paid electronically to employees, and the system monitors and tracks payments.
Overtime: Employees who work beyond the regular working hours are entitled to overtime pay. The overtime rate is typically 1.25 times the regular hourly wage.
4. Leave Entitlements
Annual Leave:
- Employees are entitled to 30 calendar days of paid annual leave after one year of service. The leave is prorated for those who have worked for less than one year.
- Employers can set a policy for when employees can take annual leave but must ensure it doesn’t conflict with the employee’s rights.
Sick Leave:
- Employees are entitled to 90 days of sick leave. The pay for sick leave is:
- Full pay for the first 15 days
- Half pay for the next 30 days
- Unpaid leave for the remaining 45 days
- Sick leave is typically provided for illness confirmed by a medical certificate.
Maternity and Paternity Leave:
- Maternity Leave: Female employees are entitled to 60 days of maternity leave, with 45 days paid at full salary and 15 days unpaid.
- Paternity Leave: Male employees are entitled to 5 days of paid paternity leave to support their spouse during childbirth.
Public Holidays:
- Employees are entitled to paid leave on public holidays, which include national holidays such as UAE National Day, Eid al-Fitr, Eid al-Adha, and others.
5. Termination of Employment
Termination by Employer:
- Employers can terminate employees for valid reasons, such as poor performance, misconduct, or violation of company policies. However, employers must provide a valid reason and follow the correct legal procedures.
- Notice Period: Employees are entitled to a notice period of at least 30 days if they have been employed for over 1 year. For employees with less than 1 year of service, the notice period is 14 days.
- Severance Pay: Employees are entitled to severance pay (end of service benefits), calculated based on their length of service:
- 21 days’ salary for each year of the first 5 years
- 30 days’ salary for each additional year after 5 years of service
- Unjustified Dismissal: If an employee is terminated without a valid reason or due process, they may file a claim for unfair dismissal.
Termination by Employee:
- Employees can resign from their position by providing a notice period. The length of the notice period depends on the terms of the contract (typically 30 days for unlimited contracts).
- Employees who resign without providing the proper notice period may face penalties, such as the forfeiture of end-of-service benefits.
6. Workplace Safety and Health
Occupational Health and Safety:
- Employers are legally required to provide a safe and healthy work environment. This includes ensuring the safety of the workplace, particularly for those working in hazardous environments such as construction sites.
- Employers must provide employees with the necessary personal protective equipment (PPE) and ensure compliance with health and safety regulations.
Workplace Accommodations:
- Workers in physically demanding jobs or those working in extreme heat must be provided with rest breaks and hydration to avoid heat-related illnesses, especially during the summer months.
7. Employee Rights and Discrimination
Equality and Non-Discrimination: The UAE labor law prohibits discrimination based on gender, race, religion, nationality, or disability. Employers are obligated to treat all employees fairly and equally in all aspects of employment, from hiring to promotion and termination.
Workplace Harassment: Sexual harassment or any form of abuse at the workplace is strictly prohibited under UAE law. Employees who experience harassment have the right to report it to the authorities.
8. Employment of Non-Nationals
Work Visas and Permits:
- Non-UAE nationals (expatriates) must hold a valid work permit to work in the UAE. Work permits are issued by the UAE Ministry of Human Resources and Emiratisation (MOHRE).
- Work permits are typically sponsored by the employer, and employees must follow the legal procedures for obtaining and renewing visas.
Wages for Foreign Workers:
- Employers are required to pay expatriate workers in accordance with their contractual agreements. Foreign workers should not be paid less than the agreed wage and must be included under the WPS.
9. Labour Dispute Resolution
Labour Disputes:
- If a worker has a dispute with their employer, they can approach the UAE Ministry of Human Resources and Emiratisation (MOHRE). The ministry offers a mediation service to resolve conflicts between employers and employees.
- Court Proceedings: If mediation fails, the case can be referred to the labor court for a resolution.
Conclusion
The UAE’s labor laws in 2025 reflect the country’s evolving economy and the growing need to balance the interests of employers and employees. With reforms that focus on fairness, transparency, and protection of workers’ rights, the UAE is positioning itself as an attractive place to work and do business.
As the legal landscape continues to evolve, both employers and employees must stay informed about their rights and responsibilities. By understanding and adhering to the labor laws, both parties can contribute to a fair and harmonious working environment in the UAE.
If you’re working or planning to work in the UAE, it’s essential to familiarize yourself with these regulations to ensure compliance and avoid any potential issues.
