Labour Law

UAE Labour Law 2025 | Latest Updates and Employee Rights

Employers in both onshore and free zone areas must abide by the New UAE Labour Law 2022, issued under Federal Decree-Law No. 33 of 2021. While the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are exempt (they follow their employment frameworks), the legislation marks a significant evolution in labour relations across the UAE.

This comprehensive guide outlines the most important UAE labour laws and amendments as of 2024–2025. The government has implemented employee-focused reforms to increase workplace protection, enhance flexibility, and support economic competitiveness.

Here Are the UAE Labour Law Updates in 2025

1. Mandatory Employment Contracts (Article 8)

  • All employment relationships must be governed by a written contract.
  • Contracts are issued in two copies, one for the employer and one for the employee.
  • Maximum term: 3 years, renewable for the same or shorter period.
  • Contracts default to being extended if both parties continue employment post-expiry.
  • MOHRE provides templates tailored to different work models and skill levels.

2. Fixed-Term Contracts Only (Unlimited Contracts Abolished)

  • Unlimited contracts are no longer valid under the new law.
  • All employment agreements must be fixed-term.
  • Employers must convert old unlimited contracts to fixed-term ones.

3. Work Categories Recognized by Law

  • Full-time
  • Part-time
  • Temporary
  • Flexible
  • Remote work
  • Job-sharing

This classification helps companies structure HR policies with more flexibility.

4. Working Hours & Breaks (Article 17)

  • Maximum working hours: 48 hours per week (8 hours/day).
  • Employees must receive at least 1 hour of break after 5 hours of continuous work.
  • Time spent commuting is not included in working hours (unless specified).
  • Midday Break Rule (June–Sept): No work allowed outdoors between 12:30 PM and 3:00 PM.

5. Overtime & Compensation

  • Maximum overtime: 2 hours/day.
  • Overtime pay:
    • +25% for regular overtime
    • +50% for night hours (10 PM to 4 AM)
  • Working on rest days or public holidays earns:
    • Either a +50% salary increase or
    • A substitute rest day

6. Probation Period Rules

  • Max probation: 6 months.
  • If an employee resigns:
    • 14-day notice if leaving the country
    • 30-day notice if joining another UAE employer
  • Former employers can recover recruitment costs if a worker switches within 3 months.

7. Notice Period Structure (Post-Probation)

  • 30 days for < 5 years of service
  • 60 days for 5–10 years
  • 90 days for 10+ years

8. Equal Pay & Protection from Discrimination

  • No workplace discrimination based on race, religion, gender, nationality, social background, or disability.
  • Equal pay for men and women for the same role.
  • Women cannot be dismissed during pregnancy or maternity leave.

9. Harassment, Bullying, and Victimization Protections

  • Strong protections against physical, verbal, or psychological abuse.
  • Safe reporting mechanisms via MOHRE and labour courts.
  • Violations can result in fines up to AED 10,000 or even jail time.

10. Unlawful Termination (Article 47)

  • Dismissal for filing a complaint is considered unlawful termination.
  • Compensation: Up to 3 months’ salary.
  • Gratuity must be paid within 14 days of termination.

11. Maternity Leave & Nursing Breaks

  • 60 days maternity leave:
    • 45 days fully paid + 15 days half-paid
  • Up to 100 days of unpaid leave (with valid medical proof)
  • Two 30-minute nursing breaks daily for the first 6 months post-birth

12. Mandatory 30-Day Minimum Notice for Termination

  • A minimum 30-day notice applies even in cases of summary dismissal.

New Labour Law Additions (2024–2025)

13. Unemployment Insurance Scheme (Mandatory as of 2024)

  • Mandatory for all private and federal sector workers
  • Monthly cost:
    • AED 5 (if salary < AED 16,000)
    • AED 10 (if salary ≥ AED 16,000)
  • Provides 60% of salary for up to 3 months upon job loss
  • Non-compliance fine: AED 400 + visa/work ban risk

14. Workweek Restructuring (Government Only)

  • Public sector: 4.5-day workweek (Friday half-day)
  • Sharjah: 4-day workweek (Monday–Thursday)
  • Dubai (Summer 2025): Optional 4-day/hybrid schedules
  • Private sector: Optional but commonly adopted for alignment

15. Wage Protection System (WPS) Expansion

  • Mandatory WPS compliance extended to more free zones in 2024 (RAKEZ, Fujairah, etc.)
  • Non-compliance leads to fines and permit restrictions

16. MOHRE Work Bundle Integration

  • Combines labour card, visa, Emirates ID & WPS in one system
  • Mandatory in Dubai and Abu Dhabi from 2025
  • Speeds up onboarding to just 5 days

17. Domestic Worker Law (Federal Decree-Law No. 9 of 2022)

  • Applies to maids, drivers, cooks, etc.
  • Enforces contracts, working hour limits & rest days
  • Handled by a dedicated MOHRE unit

18. Emiratization

  • Companies with 50+ employees are required to increase their Emirati skilled workforce by 2% annually.
  • A 7% target is set for June 2025, with an 8% target by the end of 2025.

Final Thoughts

The UAE Labour Law of 2025 represents a forward-looking shift in employment protection, social support, and workplace flexibility. Both employers and workers need to stay compliant with these evolving rules.

Need Expert Labour Law Advice?

Payroll Middle East has helped businesses across the UAE since 1985 with:

  • MOHRE Compliance
  • Contract Drafting
  • Labour Dispute Resolution
  • Payroll & PRO Services