UAE Labour Law 2026: Complete Guide for Employers and Employees

Last updated: July 2026

The current UAE labour law is Federal Decree-Law No. 33 of 2021, effective since February 2022. It sets working hours at 8 per day or 48 per week, annual leave at 30 days, maternity leave at 60 days, and a maximum probation period of 6 months. The law applies to the private sector and is administered by the Ministry of Human Resources and Emiratisation (MOHRE), which handles dispute resolution and compliance.

What Is the UAE Labour Law?

Federal Decree-Law No. 33 of 2021 is the primary legislation governing employment relations in the UAE private sector. It replaced the old Federal Law No. 8 of 1985, introducing major changes: abolition of unlimited contracts (all are now fixed-term, maximum 2 years), improved worker protections, updated working hours regulations, and a modernized leave system.

The law applies to all private-sector workers in the UAE, with exceptions for certain free zones with their own employment frameworks (DIFC and ADGM). The Ministry of Human Resources and Emiratisation (MOHRE) oversees implementation, receives complaints, and resolves disputes.

Why This Matters in 2026

UAE labour law is not static. In 2025-2026, several important updates took effect: the new investment-based end-of-service gratuity system, strengthened anti-discrimination provisions, and updated corporate compliance requirements. Understanding the current framework is essential for HR managers ensuring compliance and employees protecting their rights.

Employment Contracts Under the New Law

Major Shift: Unlimited Contracts Abolished

The new law eliminated the "unlimited contract" category entirely.

All employment contracts are now:
- Fixed-term contracts: Maximum 2 years, renewable
- The transition from unlimited to fixed-term was completed during a grace period ending February 2023

Mandatory Contract Contents:

• Start date and duration
• Workplace and nature of work
• Basic salary and allowances
• Probation period (maximum 6 months)
• Notice period (minimum 30 days)

Working Hours and Leave

Working Hours:

• Maximum: 8 hours/day or 48 hours/week
• Ramadan: 6 hours/day for Muslim workers (without pay reduction)
• Overtime: 125% of regular pay; 150% for overtime between 10 PM and 4 AM

Annual Leave:

• After 1 full year: 30 days paid
• Less than 1 year: 2 days per month of service
• Public holidays: Per Cabinet decision (typically 13-14 days/year)

Sick Leave:

• Maximum 90 days, split as:
• 15 days full pay
• 30 days half pay
• 45 days unpaid

Maternity Leave:

• 60 days total:
• 45 days full pay
• 15 days half pay

Parental Leave:

• 5 days for both parents within the first 6 months of a child's birth

End-of-Service Gratuity

Gratuity is calculated on basic salary only (not total salary):

Example: Employee with basic salary of AED 10,000, worked 7 years:
- First 5 years: 5 x 21 x 10,000 / 30 = AED 35,000
- Additional 2 years: 2 x 30 x 10,000 / 30 = AED 20,000
- Total: AED 55,000

A new investment-based end-of-service system is being phased in during 2026.

Termination and Notice

Notice Period:

• Minimum: 30 days (may extend to 90 days per contract)
• Must be in writing and addressed to the other party

Arbitrary Dismissal:

If an employee is dismissed without valid cause or without notice:
- Compensation: Up to 3 months of total wages (basic + allowances)
- Plus accrued gratuity and notice pay

Probation:

• Maximum: 6 months
• Either party can terminate during probation with 14 days written notice

Non-Compete Clause:

• Maximum: 2 years post-employment
• Restricted to same sector and geographic region
• Can be waived in writing by the employer

Resolving Labour Disputes Through MOHRE

Steps:

1. Initial Complaint: File via the MOHRE app, website (mohre.gov.ae), or call 80060
2. Amicable Settlement: Mandatory mediation attempt by MOHRE
3. Court Referral: If unresolved, MOHRE refers the case to the Labour Court
4. Appeal: Can appeal to the Court of Cassation (for employees earning above AED 50,000/month)
5. Final Decision: For salaries under AED 50,000/month, MOHRE's judgment is final and binding

Processing Times:

• Initial complaint: 14 days
• Mediation: Up to 30 days
• Labour Court: 3-6 months

Free Zone vs. Mainland Labour Law

Additional Rights You Should Know

1. Anti-discrimination: The law prohibits discrimination based on race, colour, sex, religion, national origin, or disability. Equal pay for equal work is mandated regardless of gender.
2. Anti-harassment: Including sexual harassment. An employee can terminate without notice if subjected to harassment.
3. Whistleblower protection: Workers who report employer violations are legally protected from retaliation.
4. Weekly rest: At least one rest day per week (typically Friday).
5. Transfer of sponsorship: Workers can move to a new employer without the previous employer's permission after completing the contract period.

Maria's Story: Winning a Labour Dispute from Manila to Dubai

Maria, a 34-year-old accountant from Manila, worked for 4 years at a company in Dubai with a basic salary of AED 7,000. The company terminated her without notice and refused gratuity. She filed a complaint through the MOHRE app. Within 14 days, a mediation session was scheduled. The company failed to attend. The case was referred to the Labour Court, which ruled in her favour: gratuity (4 x 21 x 7,000 / 30 = AED 19,600) + arbitrary dismissal compensation (3 x 14,000 = AED 42,000) + notice period pay (AED 14,000). Total: AED 75,600, received within 3 months of the judgment.

FAQ

What are the working hours under UAE labour law 2026?

8 hours per day or 48 hours per week maximum. During Ramadan, Muslim workers work 6 hours per day without pay reduction.

How is end-of-service gratuity calculated in the UAE?

21 days of basic salary for each year in the first 5 years, and 30 days for each year after. Calculated on basic salary only, with a maximum of 2 years' total basic salary.

What is the notice period for termination under UAE labour law?

Minimum 30 days, though contracts may specify up to 90 days. Notice must be in writing.

Are unlimited contracts still valid in the UAE?

No. All contracts are now fixed-term (maximum 2 years, renewable). The transition from unlimited to fixed-term was completed in February 2023.

How many days of maternity leave are guaranteed by UAE law?

60 days total: 45 days full pay and 15 days half pay. Both parents also get 5 days of parental leave.

What is arbitrary dismissal compensation in the UAE?

Up to 3 months of total wages (basic + allowances), in addition to accrued gratuity and notice period pay.

How do I file a labour complaint with MOHRE?

Through the MOHRE mobile app, website (mohre.gov.ae), or by calling 80060. Amicable settlement via mediation is mandatory as a first step.

Does UAE labour law apply in free zones?

Yes, for most free zones. However, DIFC and ADGM in Dubai and Abu Dhabi have their own employment frameworks.

Conclusion

UAE labour law provides balanced protection for both employers and employees. Understanding your rights and obligations is the key to a healthy working relationship. Whether you're an employer seeking compliance or an employee protecting your rights, this guide covers the essential framework.

For employment compliance consultation, connect with Truescho's consultants.

Sources

• MOHRE - Ministry of Human Resources — Official UAE ministry
• UAE Government Portal — Official government gateway
• Federal Decree-Law No. 33 of 2021 — Official law text