Comprehensive UAE Labour Law Guide

Everything you need to know about the UAE Federal Decree-Law No. 33 of 2021 governing employment relationships in the private sector.

Overview of UAE Labour Law

The UAE labour law, officially known as Federal Decree-Law No. 33 of 2021, governs employment relationships in the private sector across the United Arab Emirates. This comprehensive legislation replaced the previous Federal Law No. 8 of 1980 and introduced significant reforms to align with international labour standards and the evolving needs of the UAE workforce.

The law applies to all employers and employees in the private sector throughout the UAE, including mainland and free zone companies (unless the free zone has its own employment regulations, such as DIFC and ADGM). Government sector employees are governed by separate regulations.

Key Features of the New Labour Law

• Fixed-Term Contracts: All employment contracts must now be limited-term (fixed-term), with a maximum duration of 3 years, renewable by mutual agreement.
• Flexible Work Arrangements: Introduction of part-time, temporary, and flexible working models to accommodate modern work practices.
• Enhanced Leave Entitlements: Comprehensive provisions for annual leave, sick leave, maternity leave, parental leave, and study leave.
• Anti-Discrimination Provisions: Prohibition of discrimination based on race, colour, sex, religion, national origin, or disability.
• Non-Compete Clauses: Regulated restrictions on post-employment competition with clear limitations.

Employee Rights Under UAE Labour Law

UAE labour law provides comprehensive protection for employees, including the right to receive wages on time through the Wage Protection System (WPS), entitlement to annual leave of 30 days after one year of service, sick leave of up to 90 days, and end-of-service gratuity calculated based on years of service.

Workers are protected against arbitrary dismissal, with specific procedures required for termination. The law also guarantees overtime pay at 125% of normal wages for additional hours worked, and 150% for work performed between 10 PM and 4 AM or on rest days.

Employer Obligations

Employers must register all employment contracts with the Ministry of Human Resources and Emiratisation (MOHRE), pay salaries through approved banking channels, provide health insurance coverage, ensure workplace safety, and maintain accurate employment records. Violations can result in significant fines and penalties.