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UAE Labor Law 101: What You Need to Know

As an employee in the United Arab Emirates, you have your rights, and the respective employer also has some responsibilities under the UAE Labor Law. Take a closer look below for an informative guide on employee handbook uae.

 A comprehensive guide on UAE Labour Law will walk you through the complications of being employed inside the UAE so that you can confidently prepare yourself to face any challenge from the workplace.

Understanding UAE Labor Law

The UAE Labor Law is developed basically to govern the private sector in respect of the relationship between employers and employees under Federal Law No. 8 On the Organisation of Labour Relations. In addition to a number of decrees and resolutions, the law forms the backbone of employment rights within the UAE.

How to Protect Your Rights as an Employee

How to Protect Your Rights as an Employee

1. Employment Contracts

Your contract of employment is probably the most critical document between you and your employer. Under the revised Labour Law that came into effect in 2022, all private sector contracts must be fixed-term. Things to note:

  • Full-time or part-time contracts
  • Maximum six months probationary period
  • During probation, the employer must provide 14 days’ notice if terminating

2. Dubai Working Hours law and Overtime

Knowing your Dubai working hours law and overtime entitlement is quite fundamental to understanding:

  • Working Hours Standard: 8 hours a day or 48 hours a week 
  • Ramadhan: Reduction of working hours by 2 hours every day 
  • Overtime: Maximum 2 hours a day at 125% of normal pay (150% for night work) 

3. Leaves and Holidays Various types of leave under the UAE Labor Law are as follows:

  • Annual leave: 30 days, after completing at least one year in service. 
  • Sick leave rules in UAE: The employee is entitled to an amount of up to 90 days a year after completing his or her probation period.
  • Maternity leave: 60 days, of which 45 are fully paid and 15 half paid
  • Parental leave: 5 working days
  • Compassionate leave in UAE: bereavement leave of 3-5 days
  • 2024 Dubai public holidays include New Year’s Day, Eid Al Fitr, Eid Al Adha, and National Day.

4. Wages and Benefits Protecting your financial rights:

  • Wages are to be paid by the WPS system
  • No legal minimum wage exists, but salaries are to be such that adequate coverage of essential needs of the employee is possible
  • Health insurance to be provided by the employer is compulsory
  • Gratuity at termination- 21 days’ salary every year for 1 to 5 years of service, 30 days salary for every year after 5 years.

5. WorkPlace Health and Safety

Your employer shall be responsible for providing a safe working environment. You report any on-work injury or any unsafe mental harassment at the workplace to the MoHRE.

6. Protection against discrimination

The UAE Labor Law protects the right to equality and prohibits discrimination against any employee based on an individual’s race, color, sex, religion, national origin, social origin, or disability. Workers of both sexes are entitled to equal remuneration in return for work of equal value.

7. Employment termination law in UAE

Know your rights in case of the termination of contract:

  • Notice period: 30 to 90 days
  • Arbitrary dismissal: You can complain if dismissed without a valid reason
  • Resignation: you have to observe the notice period of your contract on absence of which you need to pay penalties

Understand Your Employer’s Responsibilities

Understand Your Employer’s Responsibilities

1. Safe Working Environment

Employers’ role in safe and healthy working environment include:

  • Complying with standards related to occupation safety
  • Providing protection means
  • Adhering to midday break rules concerning outdoor workers during summer

2. Payment of Remunerations Within Specified Time

Employers shall:

  • Pay remunerations by WPS
  • Ensure timely payment, which is within 15 days from its due date
  • Assure full end-of-service benefits within 14 days of the end of contract

3. Working Hours and Extra Time Limitations

Employers shall:

  • Abide by the normal working hours
  • Pay for overtime accordingly
  • Avail all appropriate rest periods during the working day

4. Statutory Benefits/Provident Fund Payment

Every employer shall be required to:

  • Provide health insurance
  • Pay the cost of work permits and visas
  • Pay unemployment insurance fund for both Emiratis and expatriates

5. Maintain Proper Records

It is worth noting that every employer is obligated to maintain the following:

  • A letter of employment
  • The specific amount to be paid out as wages
  • Leave entitlement
  • Work injury and occupational illness

6. Principle of Non-Discrimination and Equal Opportunities

Every employer is obligated to:

  • Offer equal opportunities for everyone seeking to get employed despite his or her sex, race or nationality
  • Equal pay for equal work
  • Ensure Non- discriminatory Employment, Promotion and termination

7. Emiratisation Policies

Every private company in the UAE is supposed to

  • Aim to achieve 10 % Emiratis by 2025
  • Support programes towards UAE nationals’ training and employment

Conclusion

Your rights and your employer’s obligations under the UAE Labor Law serve as important gateways to a successful and satisfying work experience in the UAE. This will ensure, through better awareness and watchfulness on your part, that you are treated fairly, compensated correctly, and that your workplace is safe. If any issues or concerns trouble you, there is always the guiding and supporting role of the Ministry of Human Resources and Emiratisation.

“UAE Labor Law 101” outlines essential information about employment rights and regulations in the UAE. It covers key aspects like fixed-term employment contracts, working hours (8 hours daily/48 hours weekly), and various leave entitlements including annual (30 days), sick (90 days), and maternity leave (60 days). Employees are protected by laws ensuring workplace safety, non-discrimination, and mandatory benefits like health insurance. The law also details employer obligations, including timely wage payments through WPS and proper record-keeping. Recent updates to the UAE Labor Law in 2022 have introduced changes to contract types and employee benefits, with all private sector contracts now required to be fixed-term. This guide serves as a practical reference for both employees and employers to understand their rights and responsibilities in the UAE workplace.

Keep yourself updated with the latest job postings, career advice, and labor law news at GlobalJobUpdates.com. We would love to be able to guide you through your career path in the UAE with full confidence and success!

FAQS

  • What is the legal age of work in UAE? 

Ans. The age of employment is 15 years. In case of Employees between 15-18years, a juvenile work permit is required.

  • How does the final settlement take place? 

Ans. The final settlement means the total dues payable to an employee when he leaves the employment, which would include arrears of wages, gratuity, and leave salary.

  • What is the new rule related to gratuity in 2024? 

Ans. Employees are to be paid with 21 days salary every year for five years of continuous service and 30 days salary per year thereafter, total salary capping at two years.

  • Does the obligation to pay compensation, in case of resignation, exist upon the termination of a limited contract?

Ans. Yes, perhaps. Up to half of three months' remuneration or half of the remaining contract period, if that is less than three months.

  • What are the key changes that will be brought in by UAE Labour Law in 2024? 

Ans. The most salient changes include increased anti-discrimination laws, more entitlements for leave, and fixed-term contracts for all employees.