The UAE labour law governing your hiring is Federal Decree-Law No. 33 of 2021. It replaced the 1980 statute, abolished unlimited contracts, and introduced flexible work models with stronger employee protections. Every private sector employer on the mainland falls under it. Ignore it, and MOHRE can fine you up to AED 1 million per violation, multiplied by the number of workers affected. This guide covers the rules that matter most before you make your next hire: contracts, working hours, annual leave, resignation, domestic workers, gratuity, WPS, and the fines that catch employers off guard.
Key Takeaways
- All UAE employment contracts are now fixed-term, renewable, and up to 3 years.
- Standard working hours are 8 per day, 48 per week. Ramadan cuts two hours daily.
- Employees earn 30 days of paid annual leave after one year of service.
- The resignation notice period is 30 to 90 days. Probation is capped at six months.
- Domestic workers are subject to a separate law with different rules.
- Caliberly screens every candidate for UAE labor law compliance, including notice periods, visa status, and documentation, before their CV reaches you.
Contracts: Fixed-Term Only
Since February 2022, every new employment relationship requires a written, fixed-term contract registered with MOHRE. Unlimited contracts no longer exist. The maximum term is three years, renewable by agreement. If you are still running legacy unlimited contracts, they were automatically converted. Our how to hire in Dubai guide walks through the full contract-to-onboarding sequence.
Every contract must state the role, salary, notice period, and start date. Verbal agreements are unenforceable. MOHRE tracks contracts digitally, so non-registration is a compliance risk, not just a formality.
UAE Labour Law Working Hours
Standard UAE labour law working hours are 8 hours per day or 48 hours per week. During Ramadan, working hours are reduced by 2 hours daily for all employees, regardless of religion.
Employers can require overtime, but the law caps it. Overtime pay runs at 125% of the hourly wage for regular overtime and 150% for work between 10 pm and 4 am. Hotels, retail, and security may operate 9-hour days with MOHRE approval.
At Caliberly, we confirm the actual working-hours expectation with every candidate during screening, because a mismatch between the contract and reality is one of the fastest routes to an early resignation.
UAE Labour Law Annual Leave
Under Article 29 of the Decree-Law, UAE labour law annual leave entitlements are clear:
- After one year of service: 30 calendar days of fully paid annual leave.
- After six months but less than one year: 2 days per month.
- Under six months: no annual leave entitlement.
Employers cannot prevent an employee from using accrued leave for more than two consecutive years, unless the employee chooses to carry it forward or take cash compensation. If an employee leaves before taking their leave, they are entitled to payment for all unused days. Other leave types include maternity (60 days), parental (5 days), sick (90 days, tiered pay), and bereavement and study leave.
UAE Labour Law Resignation
UAE labour law resignation rules require a minimum of 30 calendar days’ written notice from either party. Contracts can extend this to 90 days, but anything beyond 90 days is unenforceable.
During probation (capped at six months), different rules apply. An employee resigning during probation must give 14 days’ notice if staying in the UAE, or 30 days if leaving the country. An employer terminating during probation must also give 14 days’ written notice.
After resignation, the employee keeps their full salary during the notice period and is entitled to one unpaid day per week to search for a new job. End-of-service gratuity, unused leave payout, and any outstanding salary must be settled within 14 days of the last working day.
Caliberly validates every candidate’s actual notice period during screening, not the contractual one, the real one after negotiation. A candidate who says “available immediately” often means “available in five weeks.” Getting this right protects your hiring timeline.
End-of-Service Gratuity
Every employee who completes at least one year is entitled to a gratuity on exit:
- Years 1 to 5: 21 days of basic salary per year.
- Year 6 onward: 30 days of basic salary per year.
- Cap: total gratuity cannot exceed two years’ basic salary.
Gratuity is calculated on basic salary only, not total package. Under the 2021 law, resignation and termination receive the same gratuity. The old reduction rules for resigned employees are abolished.
Wage Protection System
All salaries must be paid electronically through the Wage Protection System. Late payment triggers automatic flags in MOHRE’s system and can result in fines, work-permit suspension, and a downgrade in company classification. Salaries must be paid within 15 days of the due date. Since the 2024 amendments, an employer and an employee may agree to pay in a currency other than AED, but only in writing. If you are setting up payroll for the first time, our how to hire in Dubai guide covers the WPS registration step, as well as the visa and permit process.
Labour Law for Domestic Workers in UAE
Domestic workers fall outside the main labour law. The labour law for domestic workers in the UAE is Federal Decree-Law No. 9 of 2022, which replaced the older Federal Law No. 10 of 2017. Many online guides still cite the repealed law, so verify you are reading the current one. Domestic workers include maids, cooks, nannies, gardeners, drivers, cleaners, and private nurses. The key differences from the main law:
| Rule | Main Labour Law | Domestic Workers Law |
| Maximum daily hours | 8 hours | 12 hours (including rest) |
| Weekly rest | 1 day | 1 paid day |
| Annual leave | 30 days after 1 year | 30 days after 1 year |
| Sick leave | 90 days (tiered pay) | 30 days (tiered pay) |
| Probation | 6 months | 6 months |
| Governing law | Decree-Law 33/2021 | Decree-Law 9/2022 |
Employers must provide domestic workers with accommodation, meals, medical insurance, and a return ticket. Passport confiscation is illegal. Disputes go through MOHRE’s adjudication process, not the regular labour courts.
Termination and Arbitrary Dismissal
Employers must have a valid, documented reason to terminate. Invalid reasons, such as pregnancy, filing a complaint with MOHRE, or personal characteristics, constitute arbitrary dismissal. Compensation for arbitrary dismissal is up to three months’ total wage, determined by a labour court, and is paid on top of notice pay and gratuity.
Since the 2024 amendments, fines for serious violations (hiring without permits, fictitious employment, failing to settle workers’ rights) range from AED 100,000 to AED 1 million, multiplied by the number of affected workers, up to a maximum of AED 10 million. Repeat offenses within one year double the penalty. For context, the UAE Ministry of Foreign Affairs positions these enforcement measures as central to its commitment to international labour standards.
Emiratisation Obligations
Companies with 50 or more employees must meet Emiratisation targets by hiring UAE nationals into skilled roles. Missing the target incurs monthly fines for each unfilled position. Our Emiratisation fines guide covers the 2026 penalties. Our what is Emiratisation guide explains the full framework, and the Nafis programme guide shows how to offset the cost.
How Caliberly Keeps You Compliant From the First Hire
Every candidate Caliberly submits is screened for contract readiness, notice period, visa status, salary expectations, and documentation. We do not send you people who look right on paper but carry compliance problems underneath. Whether you need permanent staff, C-suite leadership, temporary contractors, or Emirati talent, Caliberly handles the search so your hires are compliant from day one. Get in touch, and we activate within 48 hours.
Frequently Asked Questions
What Is the Minimum Notice Period Under UAE Labour Law?
30 calendar days. Contracts can extend it to 90 days, but anything beyond 90 is unenforceable. During probation, the notice period is 14 days.
Can an Employer Deduct Visa Costs From an Employee’s Salary?
No. The employer pays all visa and work-permit costs. Deducting them from salary is illegal under the UAE labour law.
Is There a Minimum Wage in the UAE?
There is no universal minimum wage for private sector employees. However, Emirati nationals in the private sector must earn at least AED 6,000 per month, and MoHRE Skill Level 1 roles require at least AED 10,000.
Do Domestic Workers Get the Same Leave as Other Employees?
Domestic workers receive 30 days of annual leave after one year, the same as the main law. However, sick leave is capped at 30 days instead of 90, and working hours can extend to 12 hours including rest. The governing law is Federal Decree-Law No. 9 of 2022, not the main labour law.
What Happens if an Employer Does Not Pay Through WPS?
MOHRE flags the company automatically. Consequences include fines, work permit suspension, and a downgrade in company classification, which raises the cost of every future hire.
