Contracts, probation, notice, leave, gratuity, pay rules, non-competes, resignation, termination, redundancy, changing jobs and unemployment insurance, checked against the law itself.
Most private sector jobs in the UAE are governed by Federal Decree-Law No. 33 of 2021 and overseen by the Ministry of Human Resources and Emiratisation (MOHRE). Contracts are fixed term, probation is capped at six months, notice runs from 30 to 90 days, annual leave is 30 days, and expatriates who complete a year earn an end-of-service gratuity of 21 days' basic pay per year for the first five years and 30 days per year after that. Salaries must go through the Wage Protection System and, since 1 June 2026, are due on the first day of the month. Unemployment insurance (ILOE) is compulsory and costs AED 5 or AED 10 a month.
This guide is general information, not legal advice. It summarises UAE law as we read it on 11 October 2026 and cannot account for your contract, your employer's policies or your free zone. Where a point is uncertain we say so. For anything that turns on your own facts, speak to a licensed UAE employment lawyer. Davidson & Co., our legal partner, is the firm we suggest.
Every factual claim carries a source tag so you can see how much weight it will bear.
| Tag | What it means |
|---|---|
| LAW | Taken from the text of a UAE law or its executive regulations, read on the official UAE Legislation platform |
| OFFICIAL | Published by a government body such as MOHRE, u.ae or the ILOE insurance pool |
| REPORTED | Reported by a named law firm or established news outlet; we have not read the underlying instrument ourselves |
| ESTIMATE | A date or figure that is expected but not yet confirmed |
| VERIFY | Sources disagree or the rule is unclear; confirm before relying on it |
Article numbers refer to Federal Decree-Law No. 33 of 2021 ("the Labour Law") unless we say otherwise. "ER" means its Executive Regulations, Cabinet Resolution No. 1 of 2022. The Arabic text of every UAE law prevails over any translation.
| Topic | The rule | Source |
|---|---|---|
| Governing law | Federal Decree-Law No. 33 of 2021, in force since 2 February 2022, amended three times | LAW |
| Regulator | MOHRE for mainland employers; free zone authorities administer employment in their zones | LAW REPORTED Art. 1 |
| Contract type | Fixed term only, renewable, with no maximum length in the current text | LAW Art. 8 |
| Probation | Six months at most, once per employer | LAW Art. 9 |
| Working hours | 8 a day or 48 a week; two hours a day fewer in Ramadan | LAW Art. 17, ER Art. 15 |
| Overtime | Basic pay plus 25%, or plus 50% between 10pm and 4am; normally two hours a day at most | LAW Art. 19 |
| Weekly rest | At least one paid day | LAW Art. 21 |
| Annual leave | 30 days a year; two days a month between six and twelve months' service | LAW Art. 29 |
| Sick leave | Up to 90 days a year after probation: 15 full pay, 30 half pay, 45 unpaid | LAW Art. 31 |
| Maternity leave | 60 days: 45 full pay, 15 half pay, no minimum service | LAW Art. 30 |
| Parental leave | 5 working days for either parent within six months of the birth | LAW Art. 32 |
| Notice period | 30 to 90 days, as written in the contract | LAW Art. 43 |
| Gratuity | 21 days' basic pay per year for years one to five, 30 days per year after, capped at two years' wage | LAW Art. 51 |
| Final pay deadline | Within 14 days of the contract ending | LAW Art. 53 |
| Salary payment | Through the Wage Protection System; due on the 1st of the month since 1 June 2026 | LAW REPORTED ER Art. 16 |
| Minimum wage | None for expatriates; AED 6,000 a month for Emiratis in the private sector from 1 January 2026 | LAW REPORTED Art. 27 |
| Non-compete | Allowed for up to two years if limited by time, place and type of work | LAW Art. 10 |
| Unemployment insurance | Compulsory; AED 5 or AED 10 a month; pays 60% of basic salary for up to three months | OFFICIAL |
| Time limit to claim | Two years from the end of the employment relationship | LAW Art. 54(9) |
Three separate employment regimes operate in the UAE. Which one covers you depends on where your employer is licensed, not where you live.
| Where your employer is licensed | Law that applies | Who you deal with |
|---|---|---|
| Mainland (onshore), any emirate | Federal Decree-Law No. 33 of 2021 | MOHRE, then the labour courts |
| Most free zones (for example JAFZA, DMCC, Masdar, RAKEZ) | The same federal Labour Law, administered by the free zone authority | The free zone authority first, then the courts |
| Dubai International Financial Centre (DIFC) | DIFC Employment Law No. 2 of 2019, as amended | DIFC Authority and DIFC Courts |
| Abu Dhabi Global Market (ADGM) | ADGM Employment Regulations 2024, in force since 1 April 2025 | ADGM Registration Authority and ADGM Courts |
The federal Labour Law covers every private sector establishment, employer and worker in the country. It does not cover federal or local government employees, members of the armed forces, police and security services, or domestic workers. [LAW] Art. 3. Domestic workers have their own law, which we cover in our guide to hiring a maid or nanny.
The rights in the Labour Law are minimums. A contract or company policy can give you more, and any term that gives you less is void, as is any waiver of a right the law grants you. [LAW] Art. 65.
Your offer letter or contract should name the employing entity and its licence. If the entity is in DIFC or ADGM, most of the numbers in sections 2 to 16 do not apply to you. Go to section 17 first.
Yes. The Labour Law is federal, so the rules on contracts, leave, notice and gratuity are identical in Dubai, Abu Dhabi, Sharjah and the northern emirates. What differs is health insurance (see section 15), the two financial free zones, and local court procedure.
MOHRE is the federal ministry that issues work permits for mainland private sector jobs, registers employment contracts, runs the Wage Protection System and handles labour complaints. You cannot lawfully work for a mainland employer until MOHRE has issued a work permit for that employer. [LAW] Art. 6.
Three points protect new arrivals:
The visa side of starting a job, including medical tests, Emirates ID and timelines, is covered step by step in our UAE Visa Requirements Guide.
| Channel | Use it for |
|---|---|
| Labour Claims and Advisory Centre, 80084 | Registering or following up a labour complaint, legal questions [OFFICIAL] |
| Call centre and WhatsApp, 600590000 | General enquiries, service follow-up [OFFICIAL] |
| MOHRE website and MOHRE UAE app | Viewing your contract, filing complaints, checking fines |
Every employee must have a written contract in two copies, one for each side. [LAW] Art. 8(1). For a mainland job the contract is registered with MOHRE on an approved template, and you can add clauses to the template as long as they do not undercut the law. [LAW] ER Art. 10.
The regulations list the minimum content: the employer's name and address, your name, nationality and date of birth, your qualifications and job title, start date, place of work, working hours, rest days, probation period if any, contract term, the agreed wage including benefits and allowances, annual leave, notice period and the procedure for ending the contract. [LAW] ER Art. 10(1).
All contracts are for a definite period and can be renewed by agreement. [LAW] Art. 8(3). Unlimited contracts no longer exist for new hires. Many websites still say a UAE contract can run for three years at most. That described the original 2021 text. The consolidated law on the UAE Legislation platform sets no maximum term. [LAW] Art. 8(3).
Two practical consequences follow:
| Model | What it means | Source |
|---|---|---|
| Full time | One employer, full daily hours | LAW Art. 7 |
| Part time | One or more employers for set hours or days | LAW Art. 7 |
| Temporary | Work tied to a specific period or task | LAW Art. 7 |
| Flexible | Hours or days change with the employer's workload | LAW Art. 7 |
| Remote | Work done wholly or partly outside the workplace, full time or part time | LAW ER Art. 5 |
| Job sharing | Duties and pay split between two or more workers, treated as part time | LAW ER Art. 5 |
Moving from one model to another needs agreement from both sides and settlement of everything owed under the first contract. [LAW] ER Art. 10(3).
Contracts must be in Arabic, with a second language you understand alongside it. If the two versions conflict, the Arabic text prevails. [LAW] Art. 66. Read both columns, or have someone you trust read the Arabic.
Why the split between basic salary and allowances matters so much is explained in our UAE Salary Guide 2026/27.
Probation in the UAE can last up to six months from your start date, and an employer can put you on probation only once. If you pass, the probation months count as part of your service. [LAW] Art. 9.
Notice during probation is not the same in each direction.
| Who ends the contract, and why | Written notice | What else applies |
|---|---|---|
| Employer dismisses you | At least 14 days | None [LAW] Art. 9(1) |
| You resign to join another UAE employer | At least one month | Your new employer compensates the old one for recruitment costs unless agreed otherwise [LAW] Art. 9(3) |
| You resign to leave the UAE | At least 14 days | If you return on a new work permit within three months, the new employer pays that compensation unless agreed otherwise [LAW] Art. 9(4) |
Whoever skips the notice owes the other side pay for the notice period, or for the part not worked. [LAW] Art. 9(5).
An expatriate who leaves the country during probation without following these rules will not be given a new work permit for one year from the date of leaving. [LAW] Art. 9(6). The Ministry can exempt people sponsored by family, Golden Visa holders and workers with skills the country needs. [LAW] ER Art. 11.
The normal maximum is 8 hours a day or 48 hours a week. [LAW] Art. 17. You may not work more than five hours in a row without breaks adding up to at least one hour. [LAW] Art. 18. Commuting time is not working time, apart from narrow exceptions such as breakdowns of employer transport. [LAW] ER Art. 15(1).
| Situation | What you are owed | Source |
|---|---|---|
| Beyond normal working hours | Normal pay for the hour, calculated on basic wage, plus at least 25% | LAW Art. 19(2) |
| Overtime 10pm to 4am | Normal pay on basic wage plus at least 50% (shift workers excluded) | LAW Art. 19(3) |
| Working on your rest day | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 19(4) |
| Working on a public holiday | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 28(2) |
Overtime is limited to two hours a day unless the work is needed to prevent a serious loss or accident, and total hours may not exceed 144 in any three weeks. You cannot be made to work more than two rest days in a row. [LAW] Art. 19, ER Art. 15(3).
Who is not covered by the hours limits. Board chairs and members, people in supervisory roles who hold the powers of the employer, ship crews, and shift-based work averaging no more than 56 hours a week are exempt from the maximum hours rules. [LAW] ER Art. 15(4). In practice many senior managers fall into the second group and have no legal claim to overtime.
Normal working hours are reduced by two hours a day during Ramadan. [LAW] ER Art. 15(2). The law does not limit this to employees who are fasting.
The Labour Law guarantees at least one paid rest day a week and leaves the day to the contract or company rules. [LAW] Art. 21. Government offices moved to a Saturday and Sunday weekend with a half day on Friday in 2022, and most private employers follow a Saturday and Sunday pattern, but that is a choice, not a legal requirement. [REPORTED]
MOHRE bans outdoor work in direct sun from 12:30pm to 3pm between 15 June and 15 September each year. [REPORTED] The dates are announced annually.
Remote work is a recognised work model. The regulations define it as work done wholly or partly outside the workplace, with contact between employer and employee by electronic means, on a full-time or part-time basis. [LAW] ER Art. 5. There is a dedicated remote employment contract template. [LAW] ER Art. 10(4).
What the law does and does not give you:
This is a different situation. If your employer is outside the UAE, you are not covered by the Labour Law. The usual route is the one-year virtual work residence visa, which requires proof of employment outside the UAE and a monthly income of at least USD 3,500. [OFFICIAL] The Abu Dhabi Residents Office asks for six months of bank statements. Details are in our visa guide.
The law separates two terms. Basic wage is the pay set in your contract, excluding all allowances. Wage is the basic wage plus cash allowances and benefits in kind such as housing, transport or cost-of-living allowances. [LAW] Art. 1.
The distinction decides how much you receive when it matters:
Sources: [LAW] Art. 19, 29, 43, 47, 51; ER Art. 19(2); [OFFICIAL] ILOE.
There is no minimum wage for expatriate employees. The Labour Law allows the Cabinet to set one but no general figure has been issued. [LAW] Art. 27. Emirati nationals in the private sector must be paid at least AED 6,000 a month under work permits issued, renewed or amended from 1 January 2026. [REPORTED] Pay must be equal for men and women doing the same work or work of equal value. [LAW] Art. 4(4).
The WPS is the electronic system through which every establishment registered with MOHRE must pay wages, using approved banks and exchange houses, so that the Ministry can see whether staff were paid in full and on time. [LAW] ER Art. 16.
MOHRE replaced the WPS framework with Ministerial Resolution No. 340 of 2026, in force from 1 June 2026. We have relied on law firm and press summaries of the resolution, so every point in this table is tagged [REPORTED].
| Rule | Detail |
|---|---|
| Pay day | Wages for the previous calendar month are due on the 1st of each month. Anything later counts as delayed |
| Compliance threshold | An employer is compliant if at least 85% of total wages due are paid on time, up from 80% |
| Individual threshold | You count as paid if you receive at least 85% of your wage and the shortfall is a lawful deduction |
| New starters | The old 30-day exemption for new employees has gone. You are inside WPS from your first payroll |
| Day 2 onwards | MOHRE may send warnings |
| Day 5 | MOHRE may suspend new work permits for the employer |
| Day 11 | Repeat offenders within six months may be fined and downgraded |
| Day 16 | For employers of 25 or more in targeted sectors, a labour dispute may be registered automatically |
| Day 21 | Asset attachment, travel bans on responsible individuals and referral to the Public Prosecutor are possible |
| Free zones | Whether free zones that run their own WPS will follow the same dates was not confirmed when the resolution was issued |
Older articles say salaries must be paid "within 15 days of the due date" or "by the 14th of the following month". Those describe the previous resolution. If your mainland employer still pays mid-month for the month before, it is late under the 2026 rule.
Deductions are allowed only for a closed list of reasons, each with its own cap. [LAW] Art. 25.
| Reason | Limit |
|---|---|
| Repaying a loan from your employer, with your written consent, no interest | Within the overall monthly cap |
| Recovering an overpayment | 20% of wage |
| Pension, social security and insurance contributions required by law | As the law requires |
| Disciplinary fines under approved company rules | 5% of wage |
| Court-ordered debts | A quarter of wage (maintenance debts can be more) |
| Damage you caused through fault or breach of instructions | Five days' wage a month |
| All deductions together | 50% of wage |
Because WPS now treats you as unpaid below 85%, deductions above 15% in a month are likely to flag your employer even where the Labour Law would allow them. [REPORTED]
Your employer must let you do your job or pay you regardless. [LAW] Art. 26. If wages stop, file a complaint with MOHRE (section 16). During a dispute the Ministry can order the employer to keep paying you for up to two months. [LAW] Art. 54(5).
| Length of service | Paid annual leave | Source |
|---|---|---|
| Under six months | No statutory entitlement to take leave | LAW Art. 29 |
| Six to twelve months | Two days for each month | LAW Art. 29(1)(b) |
| One year or more | At least 30 days for each year | LAW Art. 29(1)(a) |
| Part time | Pro rata to hours worked, with a floor of five working days a year | LAW ER Art. 18 |
How the rules work in practice:
You are entitled to full pay on official public holidays set by the Cabinet. [LAW] Art. 28. The list is the same for the public and private sectors under Cabinet Resolution No. 27 of 2024. [REPORTED]
| Holiday | Date |
|---|---|
| New Year's Day | 1 January |
| Eid Al Fitr | 1 to 3 Shawwal (expected 9 to 11 March 2027) [ESTIMATE] |
| Arafah Day and Eid Al Adha | 9 to 12 Dhu Al Hijjah (expected 15 to 18 May 2027) [ESTIMATE] |
| Islamic New Year | 1 Muharram, set by moon sighting |
| Prophet's Birthday | 12 Rabi Al Awwal, set by moon sighting |
| Eid Al Etihad (National Day) | 2 and 3 December |
Islamic holidays depend on the moon sighting and are confirmed shortly beforehand. Extra days that an emirate grants to its own government staff do not automatically apply to private employers. [REPORTED] For term dates and long weekends see our UAE School Holiday Calendar 2026 to 2027.
After probation you can take up to 90 days of sick leave a year, in one block or in separate periods. [LAW] Art. 31(3).
The conditions:
Work injuries are separate. If you are injured at work or develop an occupational illness, your employer pays for treatment and pays your full wage for up to six months, then half wage for up to a further six months. [LAW] Art. 37.
A female employee is entitled to 60 days of maternity leave: the first 45 days on full pay and the next 15 days on half pay. [LAW] Art. 30(1). The law sets no minimum period of service.
| Situation | Entitlement | Source |
|---|---|---|
| Standard maternity leave | 60 days: 45 full pay, 15 half pay | LAW Art. 30(1) |
| When it can start | Any time from the last day of the month before the expected month of birth, with a medical certificate | LAW Art. 30(5) |
| Illness of mother or baby linked to pregnancy or birth | Up to 45 further days, unpaid, with a medical certificate | LAW Art. 30(2) |
| Baby born sick or with a disability needing constant care | 30 more days on full pay, extendable by 30 days unpaid | LAW Art. 30(4) |
| Stillbirth or death of the baby after six months of pregnancy | Full maternity leave still applies | LAW Art. 30(3) |
| Nursing breaks | One or two breaks a day totalling no more than one hour, for six months from the birth | LAW Art. 30(9) |
| Protection from dismissal | You cannot be dismissed or given notice because of pregnancy or maternity leave | LAW Art. 30(8) |
Maternity leave does not reduce your other leave. [LAW] Art. 30(6). The 45 days of unpaid illness-related absence do not count towards gratuity. [LAW] Art. 30(2).
Some guides quote two hours of nursing breaks a day, or 90 or 98 days of maternity leave. Two hours is not in the current law. Ninety days is the government sector entitlement, and longer leave has been discussed for government staff in the Federal National Council. [REPORTED] None of that has changed the 60 days that apply to private sector employees.
Either parent is entitled to five working days of paid parental leave, taken together or separately within six months of the child's birth. [LAW] Art. 32(1)(b). For fathers this is the only statutory leave on the birth of a child. Mothers receive it in addition to maternity leave.
| Leave | Entitlement | Source |
|---|---|---|
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent | LAW Art. 32(1)(a) |
| Study leave | 10 working days a year to sit exams at a UAE-accredited institution, after two years' service | LAW Art. 32(2) |
| National service | Paid leave for Emirati employees | LAW Art. 32(3) |
| Unpaid leave | By agreement with your employer; not counted as service | LAW Art. 33 |
Hajj leave. The current Labour Law does not list a separate Hajj leave. Articles describing a 30-day statutory Hajj leave are describing the repealed 1980 law. Today it is a matter for your contract, company policy or unpaid leave by agreement. [LAW] Art. 32, Art. 33.
End-of-service gratuity is a lump sum your employer pays when your job ends, in place of a pension. Expatriate employees who work full time qualify once they complete one year of continuous service. [LAW] Art. 51(2).
| Period of service | Gratuity earned |
|---|---|
| Less than one year | Nothing |
| Each of the first five years | 21 days' basic wage |
| Each year after the fifth | 30 days' basic wage |
| Part years, once you have passed one year | Pro rata |
The rules that sit around the formula:
Basic salary AED 10,000 a month, seven years' service, no unpaid leave. The law treats a month as 30 days. [LAW] Art. 67.
| Daily basic wage (10,000 ÷ 30) | AED 333.33 |
| Years one to five (21 days × 5 years × 333.33) | AED 35,000 |
| Years six and seven (30 days × 2 years × 333.33) | AED 20,000 |
| Gratuity | AED 55,000 |
Some payroll teams calculate the daily rate as basic salary x 12 divided by 365, which gives a slightly lower figure. Ask which method your employer uses. Our free calculator at the end of this guide uses the 30-day month.
Gratuity is an unfunded promise from your employer, not money held in your name. If the company fails, you are a creditor. Workers' entitlements rank ahead of most other debts, after sums owed to the public treasury and court-ordered family maintenance. [LAW] Art. 65(7). Treat gratuity as a bonus when you plan your savings, not as your pension. Our UAE Wealth Management guide covers how expats build long-term savings here.
| Group | What applies | Source |
|---|---|---|
| Emirati employees | Pension and social security instead of gratuity | LAW Art. 51(1) |
| Part time and job sharing | Gratuity scaled by contracted hours against full-time hours | LAW ER Art. 30(1) |
| Temporary work, or service under one year | No gratuity | LAW ER Art. 30(2) |
| Employer in the Savings Scheme | Monthly employer contributions to an investment fund replace future gratuity accrual | REPORTED |
| DIFC employees | A funded workplace savings plan (DEWS or another qualifying scheme) replaced gratuity from 1 February 2020 | REPORTED |
| ADGM employees | Gratuity, with the option of a pension or savings scheme instead | REPORTED |
Cabinet Resolution No. 96 of 2023 created a voluntary alternative to gratuity for mainland and most free zone employers. An employer that opts in pays a monthly contribution into a licensed investment fund: 5.83% of basic salary for employees with under five years' service and 8.33% after that. Gratuity earned before the switch is preserved and paid when you leave. The scheme remains voluntary. [REPORTED]
A UAE employer may include a non-compete clause only if your job gives you knowledge of its clients or access to its business secrets. To be valid the clause must be limited in time, place and type of work to what is needed to protect a legitimate business interest, and it cannot run for more than two years after the contract ends. [LAW] Art. 10(1).
| Question | Answer | Source |
|---|---|---|
| Maximum length | Two years from the end of the contract | LAW Art. 10(1) |
| What the clause must specify | Geographical scope, duration and the nature of the work that would harm the employer | LAW ER Art. 12(1) |
| Who has to prove harm | The employer, in court | LAW ER Art. 12(2) |
| If the employer ends the contract unlawfully | The clause is void | LAW Art. 10(2) |
| If the contract ends during probation | You are exempt | LAW ER Art. 12(5)(b) |
| Can it be bought out? | Yes. You or your new employer may pay the old employer up to three months of your wage, with its written agreement | LAW ER Art. 12(5)(a) |
| Can it be waived? | Yes, by written agreement | LAW ER Art. 12(4) |
| Time limit for the employer to sue | One year from discovering the breach | LAW Art. 10(3) |
The regulations also say the clause "shall not be applicable if the cause of terminating the contract is due to the employer's will" or the employer's breach. [LAW] ER Art. 12(3). Read literally, that would release anyone whose employer chose to end the contract. The wording comes from the official English translation, and how far courts apply it is a point for a lawyer. [VERIFY]
In doubt? A non-compete is the clause most worth paying a lawyer to read before you resign, not after. Davidson & Co., our legal partner, can advise on your specific contract.
Either side may end the contract for a legitimate reason by giving written notice and working the notice period in the contract, which must be between 30 and 90 days. [LAW] Art. 43(1).
| Rule | Detail | Source |
|---|---|---|
| Length | 30 to 90 days, as the contract says | LAW Art. 43(1) |
| Same for both sides | Unless the difference favours the employee | LAW Art. 43(2) |
| Pay during notice | Full wage, based on your last pay | LAW Art. 43(2) |
| Leaving without notice | You owe the other side pay for the whole notice period or the part not worked. This applies to employers too | LAW Art. 43(3) |
| Notice given while you are on leave | Starts the day after you are due back, unless agreed otherwise | LAW Art. 35 |
| Job-hunting time | If the employer gave notice, one unpaid day off a week to look for work, with three days' warning to the employer | LAW Art. 43(5) |
You may walk away without notice and keep all your end-of-service rights in four situations. [LAW] Art. 45.
Each has conditions. Leaving first and arguing later risks an absconding report (see section 14).
The law lists nine ways a contract ends: written agreement, expiry of the term, notice by either side, death of the employer where the contract was personal to them, death or permanent total disability of the employee, a final prison sentence of three months or more, permanent closure of the business, bankruptcy or insolvency or exceptional economic reasons, and failure to meet work permit renewal conditions for reasons outside the employer's control. [LAW] Art. 42.
An employer can end the contract for a legitimate reason by giving the contractual notice in writing. [LAW] Art. 43. The law does not define "legitimate reason". Poor performance and business restructuring are the usual grounds.
An employer may dismiss without notice only on one of ten grounds, only after a written investigation, and only by a written decision that gives reasons. [LAW] Art. 44.
Disciplinary action has its own time limits. An employee cannot be accused of an offence more than 30 days after it was discovered, and a sanction cannot be imposed more than 60 days after the investigation ends. [LAW] ER Art. 24(4). Even after summary dismissal you are still owed gratuity, unpaid wages and unused leave.
The Labour Law treats a dismissal as unlawful when it is made because you filed a serious complaint with MOHRE or brought a claim against your employer that proved to be true. A court can then award compensation of up to three months' wage, on top of your notice pay and gratuity. [LAW] Art. 47. That is narrower than the unfair dismissal rules in the UK, Ireland or Australia. There is no general right to challenge a dismissal as unreasonable, and no reinstatement. Other specific protections do apply: you cannot be dismissed because of pregnancy or maternity leave, or for ill health before your sick leave is used. [LAW] Art. 30(8), Art. 46. Discrimination on grounds of race, colour, sex, religion, nationality, social origin or disability is prohibited, as are harassment, bullying and violence at work. [LAW] Art. 4, Art. 14.
UAE mainland law has no separate redundancy procedure and no statutory redundancy pay. A redundancy is handled in one of two ways.
| Route | When it applies | What you receive |
|---|---|---|
| Termination with notice | The employer restructures or cuts roles and relies on a "legitimate reason" | Notice or pay in lieu, gratuity, unused leave, repatriation ticket |
| Termination for economic reasons | A court has declared the employer bankrupt or insolvent, or the authorities have decided it cannot continue for exceptional economic reasons beyond its control | The same entitlements, claimed in the insolvency if the company cannot pay |
Sources: [LAW] Art. 42(8), Art. 43; ER Art. 25.
If you are made redundant, this is what the law gives you:
Any enhanced redundancy package is a matter of negotiation or company policy.
You will usually be asked to sign a final settlement or release when you are paid. A waiver of rights the Labour Law gives you is void. [LAW] Art. 65(3). Even so, do not sign that you have received money before it reaches your account, and take advice if the figures look wrong.
Once your contract has ended lawfully, by expiry or by notice, you are free to move to another employer. [LAW] Art. 49, ER Art. 27. The new employer applies for a new work permit, and the old one is cancelled. You do not need to leave the country if this is done within your grace period.
The steps for a mainland employee:
Do I need a no objection certificate (NOC)? The Labour Law does not require your employer's consent to move once the contract has ended in line with the law. [LAW] Art. 49. Some free zones and regulated professions have their own transfer procedures, so ask the new employer's HR team what applies.
| Situation | Consequence | Source |
|---|---|---|
| Leaving the UAE during probation without the required notice | No new work permit for one year from departure | LAW Art. 9(6) |
| Stopping work without a legitimate reason before your contract ends | No new work permit for one year from the absence | LAW Art. 50 |
| Being absent for more than seven days in a row with your employer unable to reach you | The employer can report your absence to MOHRE | LAW ER Art. 28(1) |
People sponsored by family, Golden Visa holders, workers with skills the country needs and anyone returning to the same employer are exempt from the one-year bar. [LAW] ER Art. 28(2). The safest course is never to stop turning up. Resign in writing, or file a MOHRE complaint and follow the process.
When your residence visa is cancelled you get a grace period to find a new sponsor or leave. It ranges from 30 to 180 days depending on your visa category and skill level. [REPORTED] The exact date is printed on your cancellation document, and you can check it on the ICP smart services portal. Do not rely on a figure from a website, including this one. Self-sponsored visas such as the Golden Visa and Green Visa are not cancelled when you lose a job. See our visa guide for the routes open to you.
The Involuntary Loss of Employment scheme is the UAE's compulsory unemployment insurance, created by Federal Decree-Law No. 13 of 2022 and in force since 1 January 2023. It pays a monthly cash benefit to employees who lose their job for reasons other than resignation or disciplinary dismissal. [OFFICIAL]
| Category A | Category B | |
|---|---|---|
| Basic salary | AED 16,000 or less | Above AED 16,000 |
| Premium | AED 5 a month plus VAT | AED 10 a month plus VAT |
| Benefit | 60% of average basic salary over the last six months | 60% of average basic salary over the last six months |
| Monthly cap | AED 10,000 | AED 20,000 |
| Length of each claim | Up to 3 months | Up to 3 months |
| Lifetime limit | 12 monthly benefits | 12 monthly benefits |
Source: [OFFICIAL] iloe.ae.
Example. On a basic salary of AED 12,000 you pay AED 5 a month and would receive AED 7,200 a month for up to three months. On a basic salary of AED 40,000 you pay AED 10 a month, and 60% would be AED 24,000, so you receive the cap of AED 20,000.
Emiratis and residents working in the private sector and the federal government must subscribe. Exempt groups are investors who own the business they work in, domestic workers, workers on temporary contracts, juveniles under 18 and retirees drawing a pension who have taken a new job. [OFFICIAL] Subscribing is your responsibility, not your employer's, and you pay the premium yourself. [REPORTED] MOHRE has said that employees whose work permits were issued after 1 October 2023 must subscribe within four months. [REPORTED]
All of the following must be true. [OFFICIAL] iloe.ae.
Payments stop if you start a new job during the benefit period. [OFFICIAL] u.ae.
The ILOE portal (iloe.ae) and the ILOE mobile app are free. Exchange houses, business service centres, telecom bills, kiosks and bank apps are also available and may add a service charge. Policies run for one or two years and can be paid monthly, quarterly, half-yearly or annually. [OFFICIAL]
| Breach | Fine | Source |
|---|---|---|
| Not subscribing | AED 400 | OFFICIAL u.ae |
| Not paying premiums for more than three months | Policy cancelled, plus a fine quoted as AED 400 on u.ae and AED 200 in MOHRE statements | VERIFY |
MOHRE has said unpaid fines can block new work permits and be deducted from salary or gratuity. [REPORTED]
ILOE and gratuity are separate. Claiming one does not reduce the other. ILOE is calculated on basic salary, so a package built on a low basic and high allowances produces a small benefit. Whether employees of DIFC and ADGM entities must subscribe is described inconsistently by commentators. Check your status on the ILOE portal with your Emirates ID. [VERIFY]
Your employer must bear the cost of your medical care under the legislation in force. [LAW] Art. 13(8). Since 1 January 2025 employer-paid health insurance has been a condition of issuing or renewing a residence permit in every emirate, with a basic package from AED 320 a year for the northern emirates. [OFFICIAL] Dubai and Abu Dhabi have their own longer-standing schemes, and Abu Dhabi's extends to dependants. Our UAE Healthcare and Health Insurance Guide explains what each minimum plan covers.
| Step | What happens | Source |
|---|---|---|
| 1. Register | File through 80084, the MOHRE website or the MOHRE UAE app. You need your work permit or passport number. It is free | OFFICIAL |
| 2. Mediation | A Ministry representative contacts both sides, normally within 14 days, to seek an amicable settlement | OFFICIAL |
| 3a. Claims up to AED 50,000 | MOHRE issues a binding decision that can be enforced like a court judgment | LAW Art. 54(2) |
| 3b. Claims above AED 50,000 | If mediation fails, MOHRE refers the dispute to the labour court with its recommendation | LAW Art. 54(4) |
| 4. Challenging a MOHRE decision | Either side can file a case at the Court of First Instance within 15 working days. The court rules within 30 working days and its judgment is final | LAW Art. 54(3) |
Points that catch people out:
In doubt? If your claim is above AED 50,000, involves a non-compete or a senior role, or your employer is in DIFC or ADGM, get advice before you file. Davidson & Co., our legal partner, can advise on your specific case.
If you are employed by an entity licensed in DIFC or ADGM, the federal Labour Law does not apply to your contract. The table below is a summary drawn from law firm commentary, not from our own reading of the two laws, so treat every DIFC and ADGM figure as [REPORTED] and confirm it against your contract.
| Topic | Mainland | DIFC | ADGM |
|---|---|---|---|
| Law | Federal Decree-Law 33 of 2021 | Employment Law No. 2 of 2019, as amended | Employment Regulations 2024 (from 1 April 2025) |
| Annual leave | 30 calendar days | 20 working days | 20 working days |
| Sick leave | 90 days: 15 full, 30 half, 45 unpaid | 60 working days: 10 full, 20 half, 30 unpaid | 60 working days on a similar scale |
| Maternity leave | 60 days: 45 full, 15 half | 65 working days: 33 full, 32 half, after 12 months' service | 65 working days, with a qualifying period for pay |
| Paternity leave | 5 working days | 5 working days | 5 working days |
| Minimum notice | 30 to 90 days by contract | 7 days under 3 months' service, 30 days up to 5 years, 90 days after 5 years | 7 days under 3 months' service, 30 days after |
| End of service | Gratuity, capped at two years' wage | Monthly employer contributions of 5.83% or 8.33% of basic to a savings plan | Gratuity with no two-year cap, or an optional savings scheme |
| Overtime | Statutory rates | Set by the law and contract | No statutory overtime rate; left to the contract |
| Disputes | MOHRE, then labour courts | DIFC Courts | ADGM Courts |
Two differences matter most to professionals. Annual leave is counted in working days, so 20 working days is about four weeks, close to the mainland's 30 calendar days. And in DIFC your end-of-service money is paid into a fund in your name every month, which protects it if your employer fails.
| Date | Change | Source |
|---|---|---|
| 1 January 2025 | Employer-paid health insurance became compulsory in all seven emirates | OFFICIAL |
| 1 April 2025 | ADGM Employment Regulations 2024 replaced the 2019 regulations | REPORTED |
| 1 January 2026 | AED 6,000 minimum monthly wage for Emiratis in the private sector | REPORTED |
| 27 January 2026 | Six months of bank statements required for the remote work visa | REPORTED |
| 1 June 2026 | New WPS resolution: salaries due on the 1st, 85% threshold, faster penalties | REPORTED |
Has the UAE labour law changed in 2026? The main Labour Law has not been amended in 2025 or 2026 as far as we can find. The UAE Legislation platform shows the last update to its text as 29 July 2024. [LAW] Headlines about a "new UAE labour law 2026" are describing ministerial resolutions and tougher enforcement, mainly the WPS rules above.
The amendments that are already in the consolidated text:
| What you may have read | What the law says | Source |
|---|---|---|
| "UAE contracts last three years at most" | The current text sets no maximum term | LAW Art. 8(3) |
| "You lose part of your gratuity if you resign" | Not under the 2021 law. The formula is the same however the job ends | LAW Art. 51 |
| "Employers can sack you on the spot in probation" | They must give 14 days' written notice | LAW Art. 9(1) |
| "Salaries can be paid up to the 15th" | Since 1 June 2026 they are due on the 1st | REPORTED |
| "You get 30 days' Hajj leave" | Not a statutory leave under the current law | LAW Art. 32 |
| "You have one year to bring a claim" | Two years from the end of employment | LAW Art. 54(9) |
| "Gratuity is based on your full salary" | Basic wage only | LAW Art. 51(2) |
More arrival tasks are in Your First 30 Days in the UAE.
The toolkit that accompanies this guide works out your gratuity, estimates a full final settlement, shows your ILOE cost and payout, and tells you the notice you owe if you leave during probation. It runs in your browser and stores nothing.
For expatriate full-time employees. Uses your last basic salary and a 30-day month.
Some employers work out the daily rate as basic x 12 / 365, which gives a slightly lower figure. Your employer may deduct amounts you owe. Emirati employees receive a pension instead of gratuity.
Adds notice pay, unused leave and unpaid salary to the gratuity from the first tab. Everything is due within 14 days of your contract ending.
Notice pay and unpaid salary use your total monthly salary. Unused leave on exit uses basic salary. If you are the one leaving without notice, the notice pay is owed by you, not to you.
What the compulsory scheme costs you, and what it would pay if you lost your job.
Benefits stop if you start a new job. Lifetime limit: 12 monthly benefits. Subscribe free at iloe.ae.
Notice during probation depends on who ends the contract and what happens next.
Rules checked on 11 October 2026 against Federal Decree-Law No. 33 of 2021, Cabinet Resolution No. 1 of 2022 and iloe.ae. Estimates only, not legal advice. Nothing you enter leaves your browser.
Primary sources read for this guide on 11 October 2026:
Secondary sources, used for points tagged [REPORTED]:
Relocate2UAE is an independent information platform, not a law firm, an employment adviser or a government body. This guide is general information only and is not legal advice. It reflects our reading of UAE law and official guidance on 11 October 2026. Laws, ministerial resolutions and official procedures change, sometimes without notice, and the Arabic text of any UAE law prevails over the English translations we have used.
We make no warranty that the guide is complete, accurate or current, and to the fullest extent permitted by law Relocate2UAE accepts no liability for any loss arising from reliance on it. MOHRE, the relevant free zone authority and the courts have the final word on any individual case. Calculator results are estimates for guidance, not a statement of what you are owed.
Davidson & Co. is a UAE law firm and Relocate2UAE's legal partner for immigration and employment questions. Any advice they give you is their own, under their own terms of engagement. Nothing on this page is an offer to provide legal services.
Probation in the UAE can last up to six months from your start date, and an employer can put you on probation only once. If you pass, the probation months count as part of your service. [LAW] Art. 9.
Notice during probation is not the same in each direction.
| Who ends the contract, and why | Written notice | What else applies |
|---|---|---|
| Employer dismisses you | At least 14 days | None [LAW] Art. 9(1) |
| You resign to join another UAE employer | At least one month | Your new employer compensates the old one for recruitment costs unless agreed otherwise [LAW] Art. 9(3) |
| You resign to leave the UAE | At least 14 days | If you return on a new work permit within three months, the new employer pays that compensation unless agreed otherwise [LAW] Art. 9(4) |
Whoever skips the notice owes the other side pay for the notice period, or for the part not worked. [LAW] Art. 9(5).
An expatriate who leaves the country during probation without following these rules will not be given a new work permit for one year from the date of leaving. [LAW] Art. 9(6). The Ministry can exempt people sponsored by family, Golden Visa holders and workers with skills the country needs. [LAW] ER Art. 11.
The normal maximum is 8 hours a day or 48 hours a week. [LAW] Art. 17. You may not work more than five hours in a row without breaks adding up to at least one hour. [LAW] Art. 18. Commuting time is not working time, apart from narrow exceptions such as breakdowns of employer transport. [LAW] ER Art. 15(1).
| Situation | What you are owed | Source |
|---|---|---|
| Hours beyond normal working hours | Normal pay for the hour, calculated on basic wage, plus at least 25% | LAW Art. 19(2) |
| Overtime between 10pm and 4am | Normal pay on basic wage plus at least 50% (shift workers excluded) | LAW Art. 19(3) |
| Working on your rest day | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 19(4) |
| Working on a public holiday | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 28(2) |
Overtime is limited to two hours a day unless the work is needed to prevent a serious loss or accident, and total hours may not exceed 144 in any three weeks. You cannot be made to work more than two rest days in a row. [LAW] Art. 19, ER Art. 15(3).
Board chairs and members, people in supervisory roles who hold the powers of the employer, ship crews, and shift-based work averaging no more than 56 hours a week are exempt from the maximum hours rules. [LAW] ER Art. 15(4). In practice many senior managers fall into the second group and have no legal claim to overtime.
Normal working hours are reduced by two hours a day during Ramadan. [LAW] ER Art. 15(2). The law does not limit this to employees who are fasting.
The Labour Law guarantees at least one paid rest day a week and leaves the day to the contract or company rules. [LAW] Art. 21. Government offices moved to a Saturday and Sunday weekend with a half day on Friday in 2022, and most private employers follow a Saturday and Sunday pattern, but that is a choice, not a legal requirement. [REPORTED]
MOHRE bans outdoor work in direct sun from 12:30pm to 3pm between 15 June and 15 September each year. [REPORTED] The dates are announced annually.
Remote work is a recognised work model. The regulations define it as work done wholly or partly outside the workplace, with contact between employer and employee by electronic means, on a full-time or part-time basis. [LAW] ER Art. 5. There is a dedicated remote employment contract template. [LAW] ER Art. 10(4).
What the law does and does not give you:
This is a different situation. If your employer is outside the UAE, you are not covered by the Labour Law. The usual route is the one-year virtual work residence visa, which requires proof of employment outside the UAE and a monthly income of at least USD 3,500. [OFFICIAL] The Abu Dhabi Residents Office asks for six months of bank statements. Details are in our visa guide.
The law separates two terms. Basic wage is the pay set in your contract, excluding all allowances. Wage is the basic wage plus cash allowances and benefits in kind such as housing, transport or cost-of-living allowances. [LAW] Art. 1.
| Calculated on basic wage only | Calculated on full wage |
|---|---|
| End-of-service gratuity | Pay during annual leave |
| Overtime | Pay during your notice period, and pay in lieu of notice |
| Unused leave paid out when you leave | Compensation for unlawful termination |
| Unemployment insurance payout |
Sources: LAW Art. 19, 29, 43, 47, 51; ER Art. 19(2); OFFICIAL ILOE.
There is no minimum wage for expatriate employees. The Labour Law allows the Cabinet to set one but no general figure has been issued. [LAW] Art. 27. Emirati nationals in the private sector must be paid at least AED 6,000 a month under work permits issued, renewed or amended from 1 January 2026. [REPORTED] Pay must be equal for men and women doing the same work or work of equal value. [LAW] Art. 4(4).
The WPS is the electronic system through which every establishment registered with MOHRE must pay wages, using approved banks and exchange houses, so that the Ministry can see whether staff were paid in full and on time. [LAW] ER Art. 16.
MOHRE replaced the WPS framework with Ministerial Resolution No. 340 of 2026, in force from 1 June 2026. We have relied on law firm and press summaries of the resolution, so every point in this table is tagged [REPORTED].
| Rule | Detail |
|---|---|
| Pay day | Wages for the previous calendar month are due on the 1st of each month. Anything later counts as delayed |
| Compliance threshold | An employer is compliant if at least 85% of total wages due are paid on time, up from 80% |
| Individual threshold | You count as paid if you receive at least 85% of your wage and the shortfall is a lawful deduction |
| New starters | The old 30-day exemption for new employees has gone. You are inside WPS from your first payroll |
| Day 2 onwards | MOHRE may send warnings |
| Day 5 | MOHRE may suspend new work permits for the employer |
| Day 11 | Repeat offenders within six months may be fined and downgraded |
| Day 16 | For employers of 25 or more in targeted sectors, a labour dispute may be registered automatically |
| Day 21 | Asset attachment, travel bans on responsible individuals and referral to the Public Prosecutor are possible |
| Free zones | Whether free zones that run their own WPS will follow the same dates was not confirmed when the resolution was issued |
Older articles say salaries must be paid "within 15 days of the due date" or "by the 14th of the following month". Those describe the previous resolution. If your mainland employer still pays mid-month for the month before, it is late under the 2026 rule.
Deductions are allowed only for a closed list of reasons, each with its own cap. [LAW] Art. 25.
| Reason | Limit |
|---|---|
| Repaying a loan from your employer, with your written consent, no interest | Within the overall monthly cap |
| Recovering an overpayment | 20% of wage |
| Pension, social security and insurance contributions required by law | As the law requires |
| Disciplinary fines under approved company rules | 5% of wage |
| Court-ordered debts | A quarter of wage (maintenance debts can be more) |
| Damage you caused through fault or breach of instructions | Five days' wage a month |
| All deductions together | 50% of wage |
Because WPS now treats you as unpaid below 85%, deductions above 15% in a month are likely to flag your employer even where the Labour Law would allow them. [REPORTED]
Your employer must let you do your job or pay you regardless. [LAW] Art. 26. If wages stop, file a complaint with MOHRE (section 16). During a dispute the Ministry can order the employer to keep paying you for up to two months. [LAW] Art. 54(5).
| Length of service | Paid annual leave | Source |
|---|---|---|
| Under six months | No statutory entitlement to take leave | LAW Art. 29 |
| Six to twelve months | Two days for each month | LAW Art. 29(1)(b) |
| One year or more | At least 30 days for each year | LAW Art. 29(1)(a) |
| Part time | Pro rata to hours worked, with a floor of five working days a year | LAW ER Art. 18 |
How the rules work in practice:
You are entitled to full pay on official public holidays set by the Cabinet. [LAW] Art. 28. The list is the same for the public and private sectors under Cabinet Resolution No. 27 of 2024. [REPORTED]
| Holiday | Date |
|---|---|
| New Year's Day | 1 January |
| Eid Al Fitr | 1 to 3 Shawwal (expected 9 to 11 March 2027) ESTIMATE |
| Arafah Day and Eid Al Adha | 9 to 12 Dhu Al Hijjah (expected 15 to 18 May 2027) ESTIMATE |
| Islamic New Year | 1 Muharram, set by moon sighting |
| Prophet's Birthday | 12 Rabi Al Awwal, set by moon sighting |
| Eid Al Etihad (National Day) | 2 and 3 December |
Islamic holidays depend on the moon sighting and are confirmed shortly beforehand. Extra days that an emirate grants to its own government staff do not automatically apply to private employers. [REPORTED] For term dates and long weekends see our UAE School Holiday Calendar 2026 to 2027.
After probation you can take up to 90 days of sick leave a year, in one block or in separate periods. [LAW] Art. 31(3).
| Days of sick leave in the year | Pay |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Remaining 45 days | Unpaid |
The conditions:
Work injuries are separate. If you are injured at work or develop an occupational illness, your employer pays for treatment and pays your full wage for up to six months, then half wage for up to a further six months. [LAW] Art. 37.
A female employee is entitled to 60 days of maternity leave: the first 45 days on full pay and the next 15 days on half pay. [LAW] Art. 30(1). The law sets no minimum period of service.
| Situation | Entitlement | Source |
|---|---|---|
| Standard maternity leave | 60 days: 45 full pay, 15 half pay | LAW Art. 30(1) |
| When it can start | Any time from the last day of the month before the expected month of birth, with a medical certificate | LAW Art. 30(5) |
| Illness of mother or baby linked to pregnancy or birth | Up to 45 further days, unpaid, with a medical certificate | LAW Art. 30(2) |
| Baby born sick or with a disability needing constant care | 30 more days on full pay, extendable by 30 days unpaid | LAW Art. 30(4) |
| Stillbirth or death of the baby after six months of pregnancy | Full maternity leave still applies | LAW Art. 30(3) |
| Nursing breaks | One or two breaks a day totalling no more than one hour, for six months from the birth | LAW Art. 30(9) |
| Protection from dismissal | You cannot be dismissed or given notice because of pregnancy or maternity leave | LAW Art. 30(8) |
Maternity leave does not reduce your other leave. [LAW] Art. 30(6). The 45 days of unpaid illness-related absence do not count towards gratuity. [LAW] Art. 30(2).
Some guides quote two hours of nursing breaks a day, or 90 or 98 days of maternity leave. Two hours is not in the current law. Ninety days is the government sector entitlement, and longer leave has been discussed for government staff in the Federal National Council. [REPORTED] None of that has changed the 60 days that apply to private sector employees.
Either parent is entitled to five working days of paid parental leave, taken together or separately within six months of the child's birth. [LAW] Art. 32(1)(b). For fathers this is the only statutory leave on the birth of a child. Mothers receive it in addition to maternity leave.
| Leave | Entitlement | Source |
|---|---|---|
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent | LAW Art. 32(1)(a) |
| Study leave | 10 working days a year to sit exams at a UAE-accredited institution, after two years' service | LAW Art. 32(2) |
| National service | Paid leave for Emirati employees | LAW Art. 32(3) |
| Unpaid leave | By agreement with your employer; not counted as service | LAW Art. 33 |
Hajj leave. The current Labour Law does not list a separate Hajj leave. Articles describing a 30-day statutory Hajj leave are describing the repealed 1980 law. Today it is a matter for your contract, company policy or unpaid leave by agreement. [LAW] Art. 32, Art. 33.
End-of-service gratuity is a lump sum your employer pays when your job ends, in place of a pension. Expatriate employees who work full time qualify once they complete one year of continuous service. [LAW] Art. 51(2).
| Period of service | Gratuity earned |
|---|---|
| Less than one year | Nothing |
| Each of the first five years | 21 days' basic wage |
| Each year after the fifth | 30 days' basic wage |
| Part years, once you have passed one year | Pro rata |
The rules that sit around the formula:
Basic salary AED 10,000 a month, seven years' service, no unpaid leave. The law treats a month as 30 days. [LAW] Art. 67.
| Step | Working | Amount |
|---|---|---|
| Daily basic wage | 10,000 divided by 30 | AED 333.33 |
| Years one to five | 21 days x 5 years x 333.33 | AED 35,000 |
| Years six and seven | 30 days x 2 years x 333.33 | AED 20,000 |
| Gratuity | AED 55,000 |
Some payroll teams calculate the daily rate as basic salary x 12 divided by 365, which gives a slightly lower figure. Ask which method your employer uses. Our free calculator at the end of this guide uses the 30-day month.
Gratuity is an unfunded promise from your employer, not money held in your name. If the company fails, you are a creditor. Workers' entitlements rank ahead of most other debts, after sums owed to the public treasury and court-ordered family maintenance. [LAW] Art. 65(7). Treat gratuity as a bonus when you plan your savings, not as your pension. Our UAE Wealth Management guide covers how expats build long-term savings here.
| Group | What applies | Source |
|---|---|---|
| Emirati employees | Pension and social security instead of gratuity | LAW Art. 51(1) |
| Part time and job sharing | Gratuity scaled by contracted hours against full-time hours | LAW ER Art. 30(1) |
| Temporary work, or service under one year | No gratuity | LAW ER Art. 30(2) |
| Employer joined the Savings Scheme | Monthly employer contributions to an investment fund replace future gratuity accrual | REPORTED |
| DIFC employees | A funded workplace savings plan (DEWS or another qualifying scheme) replaced gratuity from 1 February 2020 | REPORTED |
| ADGM employees | Gratuity, with the option of a pension or savings scheme instead | REPORTED |
Cabinet Resolution No. 96 of 2023 created a voluntary alternative to gratuity for mainland and most free zone employers. An employer that opts in pays a monthly contribution into a licensed investment fund: 5.83% of basic salary for employees with under five years' service and 8.33% after that. Gratuity earned before the switch is preserved and paid when you leave. The scheme remains voluntary. [REPORTED]
A UAE employer may include a non-compete clause only if your job gives you knowledge of its clients or access to its business secrets. To be valid the clause must be limited in time, place and type of work to what is needed to protect a legitimate business interest, and it cannot run for more than two years after the contract ends. [LAW] Art. 10(1).
| Question | Answer | Source |
|---|---|---|
| Maximum length | Two years from the end of the contract | LAW Art. 10(1) |
| What the clause must specify | Geographical scope, duration and the nature of the work that would harm the employer | LAW ER Art. 12(1) |
| Who has to prove harm | The employer, in court | LAW ER Art. 12(2) |
| If the employer ends the contract unlawfully | The clause is void | LAW Art. 10(2) |
| If the contract ends during probation | You are exempt | LAW ER Art. 12(5)(b) |
| Can it be bought out? | Yes. You or your new employer may pay the old employer up to three months of your wage, with its written agreement | LAW ER Art. 12(5)(a) |
| Can it be waived? | Yes, by written agreement | LAW ER Art. 12(4) |
| Time limit for the employer to sue | One year from discovering the breach | LAW Art. 10(3) |
The regulations also say the clause "shall not be applicable if the cause of terminating the contract is due to the employer's will" or the employer's breach. [LAW] ER Art. 12(3). Read literally, that would release anyone whose employer chose to end the contract. The wording comes from the official English translation, and how far courts apply it is a point for a lawyer. [VERIFY]
In doubt? A non-compete is the clause most worth paying a lawyer to read before you resign, not after. Davidson & Co., our legal partner, can advise on your specific contract.
Either side may end the contract for a legitimate reason by giving written notice and working the notice period in the contract, which must be between 30 and 90 days. [LAW] Art. 43(1).
| Rule | Detail | Source |
|---|---|---|
| Length | 30 to 90 days, as the contract says | LAW Art. 43(1) |
| Same for both sides | Unless the difference favours the employee | LAW Art. 43(2) |
| Pay during notice | Full wage, based on your last pay | LAW Art. 43(2) |
| Leaving without notice | You owe the other side pay for the whole notice period or the part not worked. This applies to employers too | LAW Art. 43(3) |
| Notice given while you are on leave | Starts the day after you are due back, unless agreed otherwise | LAW Art. 35 |
| Job-hunting time | If the employer gave notice, one unpaid day off a week to look for work, with three days' warning to the employer | LAW Art. 43(5) |
You may walk away without notice and keep all your end-of-service rights in four situations. [LAW] Art. 45.
Each has conditions. Leaving first and arguing later risks an absconding report (see section 14).
The law lists nine ways a contract ends: written agreement, expiry of the term, notice by either side, death of the employer where the contract was personal to them, death or permanent total disability of the employee, a final prison sentence of three months or more, permanent closure of the business, bankruptcy or insolvency or exceptional economic reasons, and failure to meet work permit renewal conditions for reasons outside the employer's control. [LAW] Art. 42.
An employer can end the contract for a legitimate reason by giving the contractual notice in writing. [LAW] Art. 43. The law does not define "legitimate reason". Poor performance and business restructuring are the usual grounds.
An employer may dismiss without notice only on one of ten grounds, only after a written investigation, and only by a written decision that gives reasons. [LAW] Art. 44.
Disciplinary action has its own time limits. An employee cannot be accused of an offence more than 30 days after it was discovered, and a sanction cannot be imposed more than 60 days after the investigation ends. [LAW] ER Art. 24(4). Even after summary dismissal you are still owed gratuity, unpaid wages and unused leave.
The Labour Law treats a dismissal as unlawful when it is made because you filed a serious complaint with MOHRE or brought a claim against your employer that proved to be true. A court can then award compensation of up to three months' wage, on top of your notice pay and gratuity. [LAW] Art. 47. That is narrower than the unfair dismissal rules in the UK, Ireland or Australia. There is no general right to challenge a dismissal as unreasonable, and no reinstatement. Other specific protections do apply: you cannot be dismissed because of pregnancy or maternity leave, or for ill health before your sick leave is used. [LAW] Art. 30(8), Art. 46. Discrimination on grounds of race, colour, sex, religion, nationality, social origin or disability is prohibited, as are harassment, bullying and violence at work. [LAW] Art. 4, Art. 14.
UAE mainland law has no separate redundancy procedure and no statutory redundancy pay. A redundancy is handled in one of two ways.
| Route | When it applies | What you receive |
|---|---|---|
| Termination with notice | The employer restructures or cuts roles and relies on a "legitimate reason" | Notice or pay in lieu, gratuity, unused leave, repatriation ticket |
| Termination for economic reasons | A court has declared the employer bankrupt or insolvent, or the authorities have decided it cannot continue for exceptional economic reasons beyond its control | The same entitlements, claimed in the insolvency if the company cannot pay |
Sources: LAW Art. 42(8), Art. 43; ER Art. 25.
If you are made redundant, this is what the law gives you:
Any enhanced redundancy package is a matter of negotiation or company policy.
You will usually be asked to sign a final settlement or release when you are paid. A waiver of rights the Labour Law gives you is void. [LAW] Art. 65(3). Even so, do not sign that you have received money before it reaches your account, and take advice if the figures look wrong.
Once your contract has ended lawfully, by expiry or by notice, you are free to move to another employer. [LAW] Art. 49, ER Art. 27. The new employer applies for a new work permit, and the old one is cancelled. You do not need to leave the country if this is done within your grace period.
The steps for a mainland employee:
Do I need a no objection certificate (NOC)? The Labour Law does not require your employer's consent to move once the contract has ended in line with the law. [LAW] Art. 49. Some free zones and regulated professions have their own transfer procedures, so ask the new employer's HR team what applies.
| Situation | Consequence | Source |
|---|---|---|
| Leaving the UAE during probation without the required notice | No new work permit for one year from departure | LAW Art. 9(6) |
| Stopping work without a legitimate reason before your contract ends | No new work permit for one year from the absence | LAW Art. 50 |
| Being absent for more than seven days in a row with your employer unable to reach you | The employer can report your absence to MOHRE | LAW ER Art. 28(1) |
People sponsored by family, Golden Visa holders, workers with skills the country needs and anyone returning to the same employer are exempt from the one-year bar. [LAW] ER Art. 28(2). The safest course is never to stop turning up. Resign in writing, or file a MOHRE complaint and follow the process.
When your residence visa is cancelled you get a grace period to find a new sponsor or leave. It ranges from 30 to 180 days depending on your visa category and skill level. [REPORTED] The exact date is printed on your cancellation document, and you can check it on the ICP smart services portal. Do not rely on a figure from a website, including this one. Self-sponsored visas such as the Golden Visa and Green Visa are not cancelled when you lose a job. See our visa guide for the routes open to you.
The Involuntary Loss of Employment scheme is the UAE's compulsory unemployment insurance, created by Federal Decree-Law No. 13 of 2022 and in force since 1 January 2023. It pays a monthly cash benefit to employees who lose their job for reasons other than resignation or disciplinary dismissal. [OFFICIAL]
| Category A | Category B | |
|---|---|---|
| Basic salary | AED 16,000 or less | Above AED 16,000 |
| Premium | AED 5 a month plus VAT | AED 10 a month plus VAT |
| Benefit | 60% of average basic salary over the last six months | |
| Monthly cap | AED 10,000 | AED 20,000 |
| Length of each claim | Up to 3 months | Up to 3 months |
| Lifetime limit | 12 monthly benefits across your whole working life in the UAE | |
Source: OFFICIAL iloe.ae.
Example. On a basic salary of AED 12,000 you pay AED 5 a month and would receive AED 7,200 a month for up to three months. On a basic salary of AED 40,000 you pay AED 10 a month, and 60% would be AED 24,000, so you receive the cap of AED 20,000.
Emiratis and residents working in the private sector and the federal government must subscribe. Exempt groups are investors who own the business they work in, domestic workers, workers on temporary contracts, juveniles under 18 and retirees drawing a pension who have taken a new job. [OFFICIAL] Subscribing is your responsibility, not your employer's, and you pay the premium yourself. [REPORTED] MOHRE has said that employees whose work permits were issued after 1 October 2023 must subscribe within four months. [REPORTED]
All of the following must be true. [OFFICIAL] iloe.ae.
Payments stop if you start a new job during the benefit period. [OFFICIAL] u.ae.
The ILOE portal (iloe.ae) and the ILOE mobile app are free. Exchange houses, business service centres, telecom bills, kiosks and bank apps are also available and may add a service charge. Policies run for one or two years and can be paid monthly, quarterly, half-yearly or annually. [OFFICIAL]
| Breach | Fine | Source |
|---|---|---|
| Not subscribing | AED 400 | OFFICIAL u.ae |
| Not paying premiums for more than three months | Policy cancelled, plus a fine quoted as AED 400 on u.ae and AED 200 in MOHRE statements | VERIFY |
MOHRE has said unpaid fines can block new work permits and be deducted from salary or gratuity. [REPORTED]
ILOE and gratuity are separate. Claiming one does not reduce the other. ILOE is calculated on basic salary, so a package built on a low basic and high allowances produces a small benefit. Whether employees of DIFC and ADGM entities must subscribe is described inconsistently by commentators. Check your status on the ILOE portal with your Emirates ID. [VERIFY]
Your employer must bear the cost of your medical care under the legislation in force. [LAW] Art. 13(8). Since 1 January 2025 employer-paid health insurance has been a condition of issuing or renewing a residence permit in every emirate, with a basic package from AED 320 a year for the northern emirates. [OFFICIAL] Dubai and Abu Dhabi have their own longer-standing schemes, and Abu Dhabi's extends to dependants. Our UAE Healthcare and Health Insurance Guide explains what each minimum plan covers.
| Step | What happens | Source |
|---|---|---|
| 1. Register | File through 80084, the MOHRE website or the MOHRE UAE app. You need your work permit or passport number. It is free | OFFICIAL |
| 2. Mediation | A Ministry representative contacts both sides, normally within 14 days, to seek an amicable settlement | OFFICIAL |
| 3a. Claims up to AED 50,000 | MOHRE issues a binding decision that can be enforced like a court judgment | LAW Art. 54(2) |
| 3b. Claims above AED 50,000 | If mediation fails, MOHRE refers the dispute to the labour court with its recommendation | LAW Art. 54(4) |
| 4. Challenging a MOHRE decision | Either side can file a case at the Court of First Instance within 15 working days. The court rules within 30 working days and its judgment is final | LAW Art. 54(3) |
Points that catch people out:
In doubt? If your claim is above AED 50,000, involves a non-compete or a senior role, or your employer is in DIFC or ADGM, get advice before you file. Davidson & Co., our legal partner, can advise on your specific case.
If you are employed by an entity licensed in DIFC or ADGM, the federal Labour Law does not apply to your contract. The table below is a summary drawn from law firm commentary, not from our own reading of the two laws, so treat every DIFC and ADGM figure as [REPORTED] and confirm it against your contract.
| Topic | Mainland | DIFC | ADGM |
|---|---|---|---|
| Law | Federal Decree-Law 33 of 2021 | Employment Law No. 2 of 2019, as amended | Employment Regulations 2024 (from 1 April 2025) |
| Annual leave | 30 calendar days | 20 working days | 20 working days |
| Sick leave | 90 days: 15 full, 30 half, 45 unpaid | 60 working days: 10 full, 20 half, 30 unpaid | 60 working days on a similar scale |
| Maternity leave | 60 days: 45 full, 15 half | 65 working days: 33 full, 32 half, after 12 months' service | 65 working days, with a qualifying period for pay |
| Paternity leave | 5 working days | 5 working days | 5 working days |
| Minimum notice | 30 to 90 days by contract | 7 days under 3 months' service, 30 days up to 5 years, 90 days after 5 years | 7 days under 3 months' service, 30 days after |
| End of service | Gratuity, capped at two years' wage | Monthly employer contributions of 5.83% or 8.33% of basic to a savings plan | Gratuity with no two-year cap, or an optional savings scheme |
| Overtime | Statutory rates | Set by the law and contract | No statutory overtime rate; left to the contract |
| Disputes | MOHRE, then labour courts | DIFC Courts | ADGM Courts |
Two differences matter most to professionals. Annual leave is counted in working days, so 20 working days is about four weeks, close to the mainland's 30 calendar days. And in DIFC your end-of-service money is paid into a fund in your name every month, which protects it if your employer fails.
| Date | Change | Source |
|---|---|---|
| 1 January 2025 | Employer-paid health insurance became compulsory in all seven emirates | OFFICIAL |
| 1 April 2025 | ADGM Employment Regulations 2024 replaced the 2019 regulations | REPORTED |
| 1 January 2026 | AED 6,000 minimum monthly wage for Emiratis in the private sector | REPORTED |
| 27 January 2026 | Six months of bank statements required for the remote work visa | REPORTED |
| 1 June 2026 | New WPS resolution: salaries due on the 1st, 85% threshold, faster penalties | REPORTED |
Has the UAE labour law changed in 2026? The main Labour Law has not been amended in 2025 or 2026 as far as we can find. The UAE Legislation platform shows the last update to its text as 29 July 2024. [LAW] Headlines about a "new UAE labour law 2026" are describing ministerial resolutions and tougher enforcement, mainly the WPS rules above.
The amendments that are already in the consolidated text:
| What you may have read | What the law says | Source |
|---|---|---|
| "UAE contracts last three years at most" | The current text sets no maximum term | LAW Art. 8(3) |
| "You lose part of your gratuity if you resign" | Not under the 2021 law. The formula is the same however the job ends | LAW Art. 51 |
| "Employers can sack you on the spot in probation" | They must give 14 days' written notice | LAW Art. 9(1) |
| "Salaries can be paid up to the 15th" | Since 1 June 2026 they are due on the 1st | REPORTED |
| "You get 30 days' Hajj leave" | Not a statutory leave under the current law | LAW Art. 32 |
| "You have one year to bring a claim" | Two years from the end of employment | LAW Art. 54(9) |
| "Gratuity is based on your full salary" | Basic wage only | LAW Art. 51(2) |
More arrival tasks are in Your First 30 Days in the UAE.
Probation in the UAE can last up to six months from your start date, and an employer can put you on probation only once. If you pass, the probation months count as part of your service. [LAW] Art. 9.
Notice during probation is not the same in each direction.
| Who ends the contract, and why | Written notice | What else applies |
|---|---|---|
| Employer dismisses you | At least 14 days | None [LAW] Art. 9(1) |
| You resign to join another UAE employer | At least one month | Your new employer compensates the old one for recruitment costs unless agreed otherwise [LAW] Art. 9(3) |
| You resign to leave the UAE | At least 14 days | If you return on a new work permit within three months, the new employer pays that compensation unless agreed otherwise [LAW] Art. 9(4) |
Whoever skips the notice owes the other side pay for the notice period, or for the part not worked. [LAW] Art. 9(5).
The one-year work permit bar. An expatriate who leaves the country during probation without following these rules will not be given a new work permit for one year from the date of leaving. [LAW] Art. 9(6). The Ministry can exempt people sponsored by family, Golden Visa holders and workers with skills the country needs. [LAW] ER Art. 11.
The normal maximum is 8 hours a day or 48 hours a week. [LAW] Art. 17. You may not work more than five hours in a row without breaks adding up to at least one hour. [LAW] Art. 18. Commuting time is not working time, apart from narrow exceptions such as breakdowns of employer transport. [LAW] ER Art. 15(1).
| Situation | What you are owed | Source |
|---|---|---|
| Hours beyond normal working hours | Normal pay for the hour, calculated on basic wage, plus at least 25% | LAW Art. 19(2) |
| Overtime between 10pm and 4am | Normal pay on basic wage plus at least 50% (shift workers excluded) | LAW Art. 19(3) |
| Working on your rest day | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 19(4) |
| Working on a public holiday | Another day off, or the day's pay plus at least 50% of basic wage | LAW Art. 28(2) |
Overtime is limited to two hours a day unless the work is needed to prevent a serious loss or accident, and total hours may not exceed 144 in any three weeks. You cannot be made to work more than two rest days in a row. [LAW] Art. 19, ER Art. 15(3).
Who is not covered by the hours limits. Board chairs and members, people in supervisory roles who hold the powers of the employer, ship crews, and shift-based work averaging no more than 56 hours a week are exempt from the maximum hours rules. [LAW] ER Art. 15(4). In practice many senior managers fall into the second group and have no legal claim to overtime.
Normal working hours are reduced by two hours a day during Ramadan. [LAW] ER Art. 15(2). The law does not limit this to employees who are fasting.
The Labour Law guarantees at least one paid rest day a week and leaves the day to the contract or company rules. [LAW] Art. 21. Government offices moved to a Saturday and Sunday weekend with a half day on Friday in 2022, and most private employers follow a Saturday and Sunday pattern, but that is a choice, not a legal requirement. [REPORTED]
MOHRE bans outdoor work in direct sun from 12:30pm to 3pm between 15 June and 15 September each year. [REPORTED] The dates are announced annually.
Remote work is a recognised work model. The regulations define it as work done wholly or partly outside the workplace, with contact between employer and employee by electronic means, on a full-time or part-time basis. [LAW] ER Art. 5. There is a dedicated remote employment contract template. [LAW] ER Art. 10(4).
What the law does and does not give you:
This is a different situation. If your employer is outside the UAE, you are not covered by the Labour Law. The usual route is the one-year virtual work residence visa, which requires proof of employment outside the UAE and a monthly income of at least USD 3,500. [OFFICIAL] The Abu Dhabi Residents Office asks for six months of bank statements. Details are in our visa guide.
The law separates two terms. Basic wage is the pay set in your contract, excluding all allowances. Wage is the basic wage plus cash allowances and benefits in kind such as housing, transport or cost-of-living allowances. [LAW] Art. 1.
The distinction decides how much you receive when it matters:
| Calculated on basic wage only | Calculated on full wage |
|---|---|
| End-of-service gratuity | Pay during annual leave |
| Overtime | Pay during your notice period, and pay in lieu of notice |
| Unused leave paid out when you leave | Compensation for unlawful termination |
| Unemployment insurance payout |
Sources: [LAW] Art. 19, 29, 43, 47, 51; ER Art. 19(2); [OFFICIAL] ILOE.
There is no minimum wage for expatriate employees. The Labour Law allows the Cabinet to set one but no general figure has been issued. [LAW] Art. 27. Emirati nationals in the private sector must be paid at least AED 6,000 a month under work permits issued, renewed or amended from 1 January 2026. [REPORTED]
Pay must be equal for men and women doing the same work or work of equal value. [LAW] Art. 4(4).
The WPS is the electronic system through which every establishment registered with MOHRE must pay wages, using approved banks and exchange houses, so that the Ministry can see whether staff were paid in full and on time. [LAW] ER Art. 16.
MOHRE replaced the WPS framework with Ministerial Resolution No. 340 of 2026, in force from 1 June 2026. We have relied on law firm and press summaries of the resolution, so every point in this table is tagged [REPORTED].
| Rule | Detail |
|---|---|
| Pay day | Wages for the previous calendar month are due on the 1st of each month. Anything later counts as delayed |
| Compliance threshold | An employer is compliant if at least 85% of total wages due are paid on time, up from 80% |
| Individual threshold | You count as paid if you receive at least 85% of your wage and the shortfall is a lawful deduction |
| New starters | The old 30-day exemption for new employees has gone. You are inside WPS from your first payroll |
| Day 2 onwards | MOHRE may send warnings |
| Day 5 | MOHRE may suspend new work permits for the employer |
| Day 11 | Repeat offenders within six months may be fined and downgraded |
| Day 16 | For employers of 25 or more in targeted sectors, a labour dispute may be registered automatically |
| Day 21 | Asset attachment, travel bans on responsible individuals and referral to the Public Prosecutor are possible |
| Free zones | Whether free zones that run their own WPS will follow the same dates was not confirmed when the resolution was issued |
Check before you rely on this. Older articles say salaries must be paid "within 15 days of the due date" or "by the 14th of the following month". Those describe the previous resolution. If your mainland employer still pays mid-month for the month before, it is late under the 2026 rule.
Deductions are allowed only for a closed list of reasons, each with its own cap. [LAW] Art. 25.
| Reason | Limit |
|---|---|
| Repaying a loan from your employer, with your written consent, no interest | Within the overall monthly cap |
| Recovering an overpayment | 20% of wage |
| Pension, social security and insurance contributions required by law | As the law requires |
| Disciplinary fines under approved company rules | 5% of wage |
| Court-ordered debts | A quarter of wage (maintenance debts can be more) |
| Damage you caused through fault or breach of instructions | Five days' wage a month |
| All deductions together | 50% of wage |
Because WPS now treats you as unpaid below 85%, deductions above 15% in a month are likely to flag your employer even where the Labour Law would allow them. [REPORTED]
Your employer must let you do your job or pay you regardless. [LAW] Art. 26. If wages stop, file a complaint with MOHRE (section 16). During a dispute the Ministry can order the employer to keep paying you for up to two months. [LAW] Art. 54(5).
| Length of service | Paid annual leave | Source |
|---|---|---|
| Under six months | No statutory entitlement to take leave | LAW Art. 29 |
| Six to twelve months | Two days for each month | LAW Art. 29(1)(b) |
| One year or more | At least 30 days for each year | LAW Art. 29(1)(a) |
| Part time | Pro rata to hours worked, with a floor of five working days a year | LAW ER Art. 18 |
How the rules work in practice:
You are entitled to full pay on official public holidays set by the Cabinet. [LAW] Art. 28. The list is the same for the public and private sectors under Cabinet Resolution No. 27 of 2024. [REPORTED]
| Holiday | Date |
|---|---|
| New Year's Day | 1 January |
| Eid Al Fitr | 1 to 3 Shawwal (expected 9 to 11 March 2027) ESTIMATE |
| Arafah Day and Eid Al Adha | 9 to 12 Dhu Al Hijjah (expected 15 to 18 May 2027) ESTIMATE |
| Islamic New Year | 1 Muharram, set by moon sighting |
| Prophet's Birthday | 12 Rabi Al Awwal, set by moon sighting |
| Eid Al Etihad (National Day) | 2 and 3 December |
Islamic holidays depend on the moon sighting and are confirmed shortly beforehand. Extra days that an emirate grants to its own government staff do not automatically apply to private employers. [REPORTED] For term dates and long weekends see our UAE School Holiday Calendar 2026 to 2027.
After probation you can take up to 90 days of sick leave a year, in one block or in separate periods. [LAW] Art. 31(3).
| Days of sick leave in the year | Pay |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Remaining 45 days | Unpaid |
The conditions:
Work injuries are separate. If you are injured at work or develop an occupational illness, your employer pays for treatment and pays your full wage for up to six months, then half wage for up to a further six months. [LAW] Art. 37.
A female employee is entitled to 60 days of maternity leave: the first 45 days on full pay and the next 15 days on half pay. [LAW] Art. 30(1). The law sets no minimum period of service.
| Situation | Entitlement | Source |
|---|---|---|
| Standard maternity leave | 60 days: 45 full pay, 15 half pay | LAW Art. 30(1) |
| When it can start | Any time from the last day of the month before the expected month of birth, with a medical certificate | LAW Art. 30(5) |
| Illness of mother or baby linked to pregnancy or birth | Up to 45 further days, unpaid, with a medical certificate | LAW Art. 30(2) |
| Baby born sick or with a disability needing constant care | 30 more days on full pay, extendable by 30 days unpaid | LAW Art. 30(4) |
| Stillbirth or death of the baby after six months of pregnancy | Full maternity leave still applies | LAW Art. 30(3) |
| Nursing breaks | One or two breaks a day totalling no more than one hour, for six months from the birth | LAW Art. 30(9) |
| Protection from dismissal | You cannot be dismissed or given notice because of pregnancy or maternity leave | LAW Art. 30(8) |
Maternity leave does not reduce your other leave. [LAW] Art. 30(6). The 45 days of unpaid illness-related absence do not count towards gratuity. [LAW] Art. 30(2).
Check before you rely on this. Some guides quote two hours of nursing breaks a day, or 90 or 98 days of maternity leave. Two hours is not in the current law. Ninety days is the government sector entitlement, and longer leave has been discussed for government staff in the Federal National Council. [REPORTED] None of that has changed the 60 days that apply to private sector employees.
Either parent is entitled to five working days of paid parental leave, taken together or separately within six months of the child's birth. [LAW] Art. 32(1)(b). For fathers this is the only statutory leave on the birth of a child. Mothers receive it in addition to maternity leave.
| Leave | Entitlement | Source |
|---|---|---|
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent | LAW Art. 32(1)(a) |
| Study leave | 10 working days a year to sit exams at a UAE-accredited institution, after two years' service | LAW Art. 32(2) |
| National service | Paid leave for Emirati employees | LAW Art. 32(3) |
| Unpaid leave | By agreement with your employer; not counted as service | LAW Art. 33 |
Hajj leave. The current Labour Law does not list a separate Hajj leave. Articles describing a 30-day statutory Hajj leave are describing the repealed 1980 law. Today it is a matter for your contract, company policy or unpaid leave by agreement. [LAW] Art. 32, Art. 33.
End-of-service gratuity is a lump sum your employer pays when your job ends, in place of a pension. Expatriate employees who work full time qualify once they complete one year of continuous service. [LAW] Art. 51(2).
| Period of service | Gratuity earned |
|---|---|
| Less than one year | Nothing |
| Each of the first five years | 21 days' basic wage |
| Each year after the fifth | 30 days' basic wage |
| Part years, once you have passed one year | Pro rata |
The rules that sit around the formula:
Basic salary AED 10,000 a month, seven years' service, no unpaid leave. The law treats a month as 30 days. [LAW] Art. 67.
| Step | Working | Amount |
|---|---|---|
| Daily basic wage | 10,000 divided by 30 | AED 333.33 |
| Years one to five | 21 days x 5 years x 333.33 | AED 35,000 |
| Years six and seven | 30 days x 2 years x 333.33 | AED 20,000 |
| Gratuity | AED 55,000 |
Some payroll teams calculate the daily rate as basic salary x 12 divided by 365, which gives a slightly lower figure. Ask which method your employer uses. Our free calculator at the end of this guide uses the 30-day month.
Check before you rely on this. Gratuity is an unfunded promise from your employer, not money held in your name. If the company fails, you are a creditor. Workers' entitlements rank ahead of most other debts, after sums owed to the public treasury and court-ordered family maintenance. [LAW] Art. 65(7). Treat gratuity as a bonus when you plan your savings, not as your pension. Our UAE Wealth Management guide covers how expats build long-term savings here.
| Group | What applies | Source |
|---|---|---|
| Emirati employees | Pension and social security instead of gratuity | LAW Art. 51(1) |
| Part time and job sharing | Gratuity scaled by contracted hours against full-time hours | LAW ER Art. 30(1) |
| Temporary work, or service under one year | No gratuity | LAW ER Art. 30(2) |
| Employees whose employer has joined the Savings Scheme | Monthly employer contributions to an investment fund replace future gratuity accrual | REPORTED |
| DIFC employees | A funded workplace savings plan (DEWS or another qualifying scheme) replaced gratuity from 1 February 2020 | REPORTED |
| ADGM employees | Gratuity, with the option of a pension or savings scheme instead | REPORTED |
Cabinet Resolution No. 96 of 2023 created a voluntary alternative to gratuity for mainland and most free zone employers. An employer that opts in pays a monthly contribution into a licensed investment fund: 5.83% of basic salary for employees with under five years' service and 8.33% after that. Gratuity earned before the switch is preserved and paid when you leave. The scheme remains voluntary. [REPORTED]
A UAE employer may include a non-compete clause only if your job gives you knowledge of its clients or access to its business secrets. To be valid the clause must be limited in time, place and type of work to what is needed to protect a legitimate business interest, and it cannot run for more than two years after the contract ends. [LAW] Art. 10(1).
| Question | Answer | Source |
|---|---|---|
| Maximum length | Two years from the end of the contract | LAW Art. 10(1) |
| What the clause must specify | Geographical scope, duration and the nature of the work that would harm the employer | LAW ER Art. 12(1) |
| Who has to prove harm | The employer, in court | LAW ER Art. 12(2) |
| If the employer ends the contract unlawfully | The clause is void | LAW Art. 10(2) |
| If the contract ends during probation | You are exempt | LAW ER Art. 12(5)(b) |
| Can it be bought out? | Yes. You or your new employer may pay the old employer up to three months of your wage, with its written agreement | LAW ER Art. 12(5)(a) |
| Can it be waived? | Yes, by written agreement | LAW ER Art. 12(4) |
| Time limit for the employer to sue | One year from discovering the breach | LAW Art. 10(3) |
The regulations also say the clause "shall not be applicable if the cause of terminating the contract is due to the employer's will" or the employer's breach. [LAW] ER Art. 12(3). Read literally, that would release anyone whose employer chose to end the contract. The wording comes from the official English translation, and how far courts apply it is a point for a lawyer. VERIFY
In doubt? A non-compete is the clause most worth paying a lawyer to read before you resign, not after. Davidson & Co., our legal partner, can advise on your specific contract.
Either side may end the contract for a legitimate reason by giving written notice and working the notice period in the contract, which must be between 30 and 90 days. [LAW] Art. 43(1).
| Rule | Detail | Source |
|---|---|---|
| Length | 30 to 90 days, as the contract says | LAW Art. 43(1) |
| Same for both sides | Unless the difference favours the employee | LAW Art. 43(2) |
| Pay during notice | Full wage, based on your last pay | LAW Art. 43(2) |
| Leaving without notice | You owe the other side pay for the whole notice period or the part not worked. This applies to employers too | LAW Art. 43(3) |
| Notice given while you are on leave | Starts the day after you are due back, unless agreed otherwise | LAW Art. 35 |
| Job-hunting time | If the employer gave notice, one unpaid day off a week to look for work, with three days' warning to the employer | LAW Art. 43(5) |
You may walk away without notice and keep all your end-of-service rights in four situations. [LAW] Art. 45.
Each has conditions. Leaving first and arguing later risks an absconding report (see section 14).
The law lists nine ways a contract ends: written agreement, expiry of the term, notice by either side, death of the employer where the contract was personal to them, death or permanent total disability of the employee, a final prison sentence of three months or more, permanent closure of the business, bankruptcy or insolvency or exceptional economic reasons, and failure to meet work permit renewal conditions for reasons outside the employer's control. [LAW] Art. 42.
An employer can end the contract for a legitimate reason by giving the contractual notice in writing. [LAW] Art. 43. The law does not define "legitimate reason". Poor performance and business restructuring are the usual grounds.
An employer may dismiss without notice only on one of ten grounds, only after a written investigation, and only by a written decision that gives reasons. [LAW] Art. 44.
Disciplinary action has its own time limits. An employee cannot be accused of an offence more than 30 days after it was discovered, and a sanction cannot be imposed more than 60 days after the investigation ends. [LAW] ER Art. 24(4). Even after summary dismissal you are still owed gratuity, unpaid wages and unused leave.
The Labour Law treats a dismissal as unlawful when it is made because you filed a serious complaint with MOHRE or brought a claim against your employer that proved to be true. A court can then award compensation of up to three months' wage, on top of your notice pay and gratuity. [LAW] Art. 47.
That is narrower than the unfair dismissal rules in the UK, Ireland or Australia. There is no general right to challenge a dismissal as unreasonable, and no reinstatement. Other specific protections do apply: you cannot be dismissed because of pregnancy or maternity leave, or for ill health before your sick leave is used. [LAW] Art. 30(8), Art. 46. Discrimination on grounds of race, colour, sex, religion, nationality, social origin or disability is prohibited, as are harassment, bullying and violence at work. [LAW] Art. 4, Art. 14.
UAE mainland law has no separate redundancy procedure and no statutory redundancy pay. A redundancy is handled in one of two ways.
| Route | When it applies | What you receive |
|---|---|---|
| Termination with notice | The employer restructures or cuts roles and relies on a "legitimate reason" | Notice or pay in lieu, gratuity, unused leave, repatriation ticket |
| Termination for economic reasons | A court has declared the employer bankrupt or insolvent, or the authorities have decided it cannot continue for exceptional economic reasons beyond its control | The same entitlements, claimed in the insolvency if the company cannot pay |
Sources: [LAW] Art. 42(8), Art. 43; ER Art. 25.
If you are made redundant, this is what the law gives you:
Any enhanced redundancy package is a matter of negotiation or company policy.
Check before you rely on this. You will usually be asked to sign a final settlement or release when you are paid. A waiver of rights the Labour Law gives you is void. [LAW] Art. 65(3). Even so, do not sign that you have received money before it reaches your account, and take advice if the figures look wrong.
Once your contract has ended lawfully, by expiry or by notice, you are free to move to another employer. [LAW] Art. 49, ER Art. 27. The new employer applies for a new work permit, and the old one is cancelled. You do not need to leave the country if this is done within your grace period.
The steps for a mainland employee:
Do I need a no objection certificate (NOC)? The Labour Law does not require your employer's consent to move once the contract has ended in line with the law. [LAW] Art. 49. Some free zones and regulated professions have their own transfer procedures, so ask the new employer's HR team what applies.
| Situation | Consequence | Source |
|---|---|---|
| Leaving the UAE during probation without the required notice | No new work permit for one year from departure | LAW Art. 9(6) |
| Stopping work without a legitimate reason before your contract ends | No new work permit for one year from the absence | LAW Art. 50 |
| Being absent for more than seven days in a row with your employer unable to reach you | The employer can report your absence to MOHRE | LAW ER Art. 28(1) |
People sponsored by family, Golden Visa holders, workers with skills the country needs and anyone returning to the same employer are exempt from the one-year bar. [LAW] ER Art. 28(2). The safest course is never to stop turning up. Resign in writing, or file a MOHRE complaint and follow the process.
When your residence visa is cancelled you get a grace period to find a new sponsor or leave. It ranges from 30 to 180 days depending on your visa category and skill level. [REPORTED] The exact date is printed on your cancellation document, and you can check it on the ICP smart services portal. Do not rely on a figure from a website, including this one. Self-sponsored visas such as the Golden Visa and Green Visa are not cancelled when you lose a job. See our visa guide for the routes open to you.