UAE New Labor Law 2025 Secrets You Should Know
The UAE labor law sets the rules for work in the country. It tells you what employers and employees can and cannot do. In 2025, the UAE updated this law to keep up with modern work needs. If you live or work in the UAE, understanding these updates helps you protect your rights and meet your duties.
Imagine the labor law as a map. Without it, you might take wrong turns or get stuck. The new law redraws some paths and adds signs to make work life clearer and fairer. It covers contracts, working hours, leave, wages, termination, and more. .
This guide explains the main points of the new UAE labor law in simple terms. It helps you grasp what changed, what stayed the same, and how these changes impact daily work life. By the end, you’ll know how to use the law to your advantage and avoid common problems.
What is the UAE Labor Law?
The UAE labor law is a set of rules that govern employment relationships. It protects both workers and employers by defining rights, duties, and processes. The latest law, Federal Decree Law No. 33 of 2021, replaces the old Federal Law No. 8 of 1980. It took effect in February 2022, with additional updates coming in 2025.
This law covers:
- Employment contracts
- Working hours and overtime
- Leave and holidays
- Wages and payment terms
- Safety and health
- Termination and end-of-service benefits
It applies to most workers in the UAE, except for some in free zones with separate rules. Understanding the law is important to avoid disputes and penalties.
Key Changes in the UAE Labor Law 2025
Employment Contracts
One big change is the variety of contracts available. The law now recognizes:
- Unlimited contracts
- Limited contracts (fixed term)
- Part-time contracts
- Temporary contracts
Each type has clear conditions. For example, limited contracts last up to three years and can be renewed once. After that, they turn into unlimited contracts unless both parties agree otherwise.
Employers must give workers a written contract with all terms. This protects workers from sudden changes and misunderstandings.
Working Hours and Overtime
The standard workweek is 48 hours or less, usually 8 hours a day, six days a week. The law allows some flexibility with shifts and part-time work.
Overtime pay is mandatory for hours worked beyond the standard. The rate is at least 125% of the normal hourly wage on regular days. If overtime is on a public holiday or rest day, pay rises to 150% or 200%.
The new law stresses that employers must track working hours accurately. This prevents unpaid work and helps workers claim their rightful pay.
Leave and Holidays
The UAE labor law grants various types of leave:
- Annual leave of at least 30 calendar days after one year of service
- Sick leave up to 90 days with medical proof, paid differently based on duratio
- Maternity leave of 60 days, with full pay for the first 45 days and half pay for the rest
- Paternity leave of 5 days
Public holidays are paid days off. Workers must get paid leave during these official holidays without deductions.
Wages and Payment
The law requires wages to be paid on time and through approved methods, like bank transfers or wage protection systems. It prohibits withholding wages except for specific reasons allowed by law.
Employers must pay full wages for work done, including overtime and bonuses if agreed in the contract. Late payment can result in fines.
Safety and Health
Employers must provide a safe workplace that meets health standards. This includes training workers on safety procedures and providing equipment.
If a worker gets injured on the job, the law ensures they receive medical care and compensation. Employers are responsible for maintaining insurance or funds for this.
Termination and End-of-Service Benefits
Termination rules changed to protect workers better. Employers need a valid reason to end contracts, such as poor performance or misconduct. In unlimited contracts, notice periods range from 30 to 90 days depending on the job.
End-of-service benefits (gratuity) remain a key right. Workers get a pay amount based on their length of service. The new law clarifies how to calculate this, including partial years.
The law also adds more clarity on resignations, layoffs, and contract expirations.
11 Important Points in the UAE New Labor Law
These 11 updated rules explain your basic rights and responsibilities at work—useful for new employees and those already working in the UAE.
1. Fixed-Term Contracts Required
All jobs must now be based on fixed-term contracts, up to 3 years. Unlimited contracts are no longer valid.
Employers had to switch to this system by February 2023. Renewals are allowed, but terms must be clearly written.
2. Work Hours and Rest Days
The maximum work time is 8 hours per day or 48 per week. During Ramadan, it’s reduced by 2 hours daily.
Every employee gets at least one paid rest day each week, usually Friday or Sunday.
3. Overtime Pay Rules
Overtime must be paid at 125% of the normal rate. If it’s on a rest day or public holiday, it goes up to 150%.
Employers must track extra hours. Employees should also keep their own records.If you’re calculating your total salary including overtime and end-of-service benefits, tools like a UAE gratuity calculator help you understand your full earnings better.
4. Paid Annual Leave
After one year of work, employees get 30 calendar days of paid leave. If less than a year, it’s calculated monthly.
Unused leave must be paid if the employee leaves the job before using it.
5. Sick Leave Policy
Employees get up to 90 days of sick leave per year: 15 days full pay, 30 days half pay, 45 days unpaid.
A doctor’s note is needed. Misuse can lead to pay cuts or warnings.
6. Maternity and Paternity Leave
Mothers get 60 days off—45 with full pay, 15 with half. Extra unpaid leave is possible with a medical note.
Fathers get 5 days paid leave, which must be used within 6 months of the baby’s birth.
7. Notice Period Rules
Leaving a job requires 30–90 days’ notice in writing. This applies to both employer and employee.
Skipping notice means paying salary equal to that time as compensation.Leaving or ending a job requires a written notice of 30–90 days. You can learn how to write a gratuity application step-by-step if you want to claim your dues properly.
8. End-of-Service Gratuity
After 1 year of work, employees earn gratuity based on basic pay and years served.
Even if the worker resigns, gratuity must be paid unless there’s proven misconduct. For detailed help, check our UAE gratuity calculation formula and eligibility explained.
9. Flexible Work Options
The law supports part-time, freelance, temporary, and remote jobs.
This gives workers more choices and lets companies hire as needed.
10. Wage Protection System (WPS)
Salaries must be paid on time through the WPS. Delays can lead to fines or license suspension.
This protects workers and ensures employers meet payment rules.
11. Anti-Discrimination Law
No one can be treated unfairly due to race, gender, religion, or disability.
Women must receive equal pay for the same work as men, with no exceptions.
Who Does the UAE Labor Law Apply To?
The law covers most workers in the UAE mainland, including full-time, part-time, and temporary staff. However, some free zones like Dubai International Financial Centre (DIFC) have their own labor regulations.
Domestic workers and certain categories might have special rules under other laws.
How Does the New Labor Law Impact You?
If you’re an employee, the new law offers more protections. For example, written contracts reduce surprises. Overtime pay rules ensure fair wages for extra hours. Leave policies support health and family life.
For employers, the law sets clear duties, like tracking hours and timely payments. It encourages good management and avoids legal problems.
The law helps both sides understand expectations better, reducing conflicts.
Common Questions About the UAE Labor Law
Can I Have More Than One Job?
The law allows part-time contracts, so you can work for more than one employer if contracts don’t conflict. However, you must inform your employers and follow any rules about working hours.
What Happens if My Employer Doesn’t Pay on Time?
Late wage payments can lead to fines on the employer. You can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The ministry can investigate and order payments.
How Much Notice Do I Need to Give to Resign?
For unlimited contracts, notice is 30 days unless the contract says otherwise. For limited contracts, you must check your contract terms. Giving proper notice avoids fines.
Are There Penalties for Violating the Labor Law?
Yes, both employers and employees can face fines or legal action for violations like unpaid wages, unsafe workplaces, or contract breaches.
How to Stay Updated on the UAE Labor Law
Labor laws can change. It’s smart to check the official MOHRE website or consult a legal expert regularly. This keeps you informed of new rules or changes that affect your job or business.
Conclusion
The UAE labor law in 2025 offers clearer rules to protect both workers and employers. Knowing your rights and duties helps you work with confidence and avoid misunderstandings.
Whether you are signing a contract, working overtime, or planning a leave, the law has set the path. Treat it like a rulebook for your work life. Keep a copy of your contract, track your hours, and know when and how to raise concerns.
If you face problems, MOHRE is there to help. Use the law to make your work life fair and smooth
