Dubai continues to attract global businesses and professionals thanks to its progressive economy, investor-friendly regulations, and world-class infrastructure. As the UAE’s workforce grows more diverse, understanding the Dubai Labour Law has become essential for both employers and employees. The latest updates under Federal Decree Law No. 33 of 2021—and subsequent amendments effective in 2025—ensure fairness, compliance, and transparency in all employment relationships.
This guide explains the major rules under the Dubai Labour Law, recent 2025 updates, and how businesses can stay compliant with the Ministry of Human Resources and Emiratisation (MoHRE).
Overview of the Dubai Labour Law
The Dubai Labour Law applies to all private sector companies and employees working within the UAE mainland and most free zones (except DIFC and ADGM, which have their own employment laws). The law defines employee rights, employer obligations, and working conditions for a healthy and balanced workplace environment.
The current framework, introduced in February 2022, replaced older employment models and made fixed-term contracts mandatory. It aims to streamline employment processes, reduce disputes, and align UAE labour practices with global standards.
a. Working Hours and Overtime
Standard working hours are 8 hours per day or 48 hours per week, with flexibility for specific industries like hospitality or trade.
During Ramadan, all employees receive a two-hour reduction in daily working time.
Overtime is compensated at 125% of the basic wage, and 150% for public holidays or night shifts.
b. Leave and Holidays
Employees are entitled to various forms of leave under the new Dubai Labour Law:
- Annual Leave: 30 days after one year of service, or 2 days per month for service between 6–12 months.
- Sick Leave: Up to 90 days per year (15 days full pay, 30 half pay, 45 unpaid).
- Maternity Leave: 60 days (45 full pay + 15 half pay).
- Paternity Leave: 5 days within 6 months of childbirth.
- Study Leave: Up to 10 days for employees enrolled in approved educational programs.
c. Probation and Notice Period
Probation cannot exceed 6 months.
If an employee resigns during probation:
- 14 days’ notice if leaving the UAE.
- 30 days’ notice if joining another UAE employer.
For permanent employees, the notice period ranges from 30–90 days, depending on contract terms.
d. End-of-Service Gratuity
Employees completing at least one year of continuous service are entitled to gratuity as follows:
- Up to 5 years: 21 days’ basic salary per year.
- Beyond 5 years: 30 days’ basic salary per year.
Total gratuity is capped at two years’ salary.
Latest Amendments in 2024–2025
The UAE continuously refines its employment regulations to match the evolving economy. The 2025 updates introduce major reforms that emphasize flexibility, Emiratisation, and employee welfare.
a. Flexible and Remote Work Models
MoHRE now formally recognizes part-time, remote, and flexible work arrangements, giving employers more hiring flexibility while maintaining legal protections for workers.
b. Emiratisation Expansion
Private companies with 50 or more employees must now meet enhanced Emiratisation quotas, or face administrative penalties. Employers are encouraged to hire UAE nationals through MoHRE’s Nafis platform.
c. End-of-Service Savings Scheme
A new voluntary savings scheme is being rolled out to allow employees to invest their end-of-service benefits into approved funds, providing better financial security than traditional gratuity payouts.
d. Enhanced Anti-Discrimination and Harassment Rules
The updated law reinforces strict penalties for workplace harassment, discrimination, or bullying based on race, gender, religion, or disability—aligning with global ESG (Environmental, Social, and Governance) standards.
Employer Obligations Under the Dubai Labour Law
To ensure full compliance, every UAE employer must adhere to MoHRE regulations and maintain transparent HR practices. Key obligations include:
- Written Employment Contracts: Every employee must have a fixed-term contract registered through MoHRE, in Arabic and a language understood by the employee.
- Wage Protection System (WPS): Salaries must be paid through the WPS to ensure timely and traceable payments.
- Employee Records: Maintain digital records of contracts, attendance, and payroll for at least two years.
- Health and Safety: Provide a safe workplace and adhere to occupational health standards.
- Non-Discrimination: Ensure fair treatment regardless of gender, nationality, or background.
- Termination Compliance: Follow lawful procedures and provide notice, end-of-service pay, and other benefits per the law.
Failure to comply can lead to financial penalties, suspension of business licenses, or MoHRE blacklisting.
Employee Rights and Protections
Employees under the Dubai Labour Law enjoy a range of rights ensuring fair treatment and work-life balance:
- Equal Pay for Equal Work
- Right to Paid Leave and Overtime Pay
- Protection Against Unlawful Termination
- Right to File Complaints through MoHRE
- Access to Training and Education Opportunities
The law ensures both UAE nationals and expatriates receive equitable treatment under private sector employment rules.
Dispute Resolution and Complaint Procedures
When workplace disputes arise—such as wrongful termination, unpaid wages, or contract violations—employees can file a complaint with MoHRE through its Tawafuq Centers, website, or mobile app.
The dispute resolution process includes:
- Mediation: MoHRE first attempts to resolve the issue amicably within 14 days.
- Referral to Labour Court: If unresolved, the case is forwarded to Dubai Labour Court.
- Judgment: Courts handle cases efficiently, with smaller claims (under AED 100,000) often resolved faster.
Employees are exempt from court fees for claims below AED 100,000, ensuring access to justice without financial burden.
Fixed-Term Contracts Explained
All employees in Dubai must now be hired under fixed-term contracts, which specify start and end dates (maximum three years) and can be renewed by mutual consent.
Key features include:
- Defined job responsibilities and compensation.
- Clear termination and renewal terms.
- Equal protection for both parties.
If discrepancies arise, the Arabic version of the contract is legally binding. Fixed-term contracts enhance clarity, reduce disputes, and align with global best practices.
Common Employer Mistakes to Avoid
Many business owners unintentionally violate the labour law due to poor HR systems or lack of awareness. Avoid these common errors:
- Hiring employees without formal MoHRE contracts.
- Delaying salary payments outside the WPS.
- Failing to calculate gratuity correctly.
- Ignoring updated Emiratisation requirements.
- Not documenting leave and attendance properly.
Implementing an internal HR audit and partnering with a business consultancy in Dubai like Business & Beyond can help prevent such compliance risks.
Dubai Labour Law Compliance Checklist
✅ Fixed-term employment contracts filed with MoHRE
✅ Payroll integrated with Wage Protection System
✅ Leave and overtime records maintained digitally
✅ Emiratisation targets monitored
✅ Employee handbook updated with 2025 amendments
✅ Regular HR compliance audits conducted
Why Labour Law Compliance Matters
Compliance is more than a legal requirement—it’s a foundation for business credibility and employee trust. Companies that adhere to the Dubai Labour Law:
- Minimize legal risks and penalties.
- Build strong employer branding.
- Retain top talent through ethical HR practices.
- Ensure smooth relations with government authorities.
As Dubai continues evolving into a global hub for innovation and investment, businesses that stay compliant will enjoy sustainable growth and long-term success.
Stay Compliant with Business & Beyond
At Business & Beyond Consulting LLC FZ, we help entrepreneurs, startups, and corporations navigate UAE labour regulations with ease. From drafting employment contracts to implementing HR policies and managing MoHRE compliance, our team ensures your business stays fully aligned with the Dubai Labour Law 2025.
💼 Our Expertise Includes:
- Labour and employment law advisory
- PRO and visa services
- Payroll and WPS setup
- Business licensing and renewal support
- HR compliance and documentation
📞 Contact us today for expert assistance on staying compliant with the latest Dubai Labour Law updates and focus on what truly matters — growing your business.
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