Categories: Blog

UAE Labor Laws: A Comprehensive Guide to Employees

The legal and regulatory frameworks of the United Arab Emirates, or UAE, are constantly evolving. In this scenario, the new UAE labor law 2024 incorporates advancements that benefit both businesses and employees.

The UAE Labor Law 2025 has undergone several changes in the interim to safeguard employee rights and ensure adherence to contemporary work standards. Generally speaking, being aware of UAE labor laws encourages healthy employer-employee relations, assures legal compliance, and aids the establishment of a harmonious workplace.

Recent Updates in UAE Labor Law 2025

A growing emphasis on flexible work options, employee rights, and more stringent employer obligations is highlighted by recent revisions to UAE labor laws:

Labour prototypes: Several work trends, such as full-time, part-time, temporary, and flexible schedules, were enacted by the UAE labor law in 2025.

Leave schemes : Despite the absence of precise changes in the UAE’s 2025 leaves edicts, labor legislation preserved their emphasis on the value of paid leave, including maternity, sick, and yearly leave

End-of-service allowances: End-of-service allowances are still a cornerstone of UAE labor legislation, particularly for foreign employees. Employers also must ensure that other benefits, such as end-of-service gratuities, are computed and paid per the most recent legal modifications.

Employment Contracts in UAE Labor Law 2025

Working without an employment contract can harm businesses and employees in the UAE. The employee’s right to remain in the nation may be revoked. Companies that hire people without contracts risk penalties and may lose their business licenses. It covers the joining date, designation, payment, length of service, notice period, and termination. Employees might also differ based on the scope of the job and the work atmosphere. The provisions of your employment contract differ based on whether you work for the public or the private sector.

1. Public sector employment contracts

Full-time employment contracts: Employees on full-time employment contracts get a fixed amount of work for each week, typically 40 to 48 hours. Additionally, trades are required by UAE labor law to provide a long-term contract with certain incentives and wages. The employee is paid the entire salary and benefits associated with the employment under this contract, and they work in the full-time role. Both parties must adhere to their mutually accepted working hours, notification time frame of 30 to 90 days, and termination.

Part-time employment contracts : An employee on part-time contracts is expected to work limited hours of the total working hours or days. An employee who works part-time is entitled to benefits that are consistent with their hours worked. Part-time employees are protected by law with regard to wage payments, leave, and end-of-service gratuities. On the employer’s request, the Part-time contract can shift to a full-time contract provided there are no changes in the financial allowances

Temporary contract: Temporary contracts are usually for short-term or seasonal projects that can be renewed as converted to full-time and terminated after the completion of the project. Provided a fixed-term contract, the working length and early termination policies must be drafted by the employer priorly based on the employee’s qualifications and skills.

Freelancers: Freelancers operate independently and aren’t bound by any agreements. Meanwhile, contracts should adhere to the Labor Law 2025 in order to guarantee fair conduct and payment security. Moreover, freelancers have explicit agreements, deliverables, and terms of payment.

2. Public sector employment contracts

The UAE Labour Law No. 8 of 1980 defines the clauses of contracts of employment within the private sector. Three categories of employment contracts are described.

Limited employment contract : Limited contracts can be renewed for a comparable length after they expire, with a maximum duration of two years. The limited-term contract must outline the start and end dates, the compensation and benefits, the type of employment, the location, and the length of the deal according to UAE labor law

Unlimited employment contract : This contract specifies the details of the employment, like date of joining, salary, probationary and notice periods, benefits and allowances, working hours, and leave cycle. It can be terminated with mutual consent.

Part-time employment contract: These contracts were last laid into effect in 2018. Part-time contract workers are permitted to work several part-time jobs through a MoHRE permit without the consent of their first or secondary employer.

Leave rights in UAE Labor law

Annual leave : After a year, Employees are eligible for 30 calendar days of paid annual leave

Sick leave : has worked for a year Employees are entitled to up to 90 days of paid sick leave annually, which can be engaged in portions or in full.

Maternity leave : Female employees are entitled to a motherhood leave of 60 days, of which the first 45 are paid in full and half are paid for the final 15 days.

Paternity leave: Male employees have the right to avail 05 days of paid paternity leave from the first month to the sixth month of childbirth

Compassionate leave: This is typically granted in cases of personal emergency and is at the discretion of the employer. In addition, workers who lose their spouses are entitled to five days of paid mourning leave.

Hajj leave: Workers may request special leave to undertake the Hajj, but the leave must be unpaid and last no longer than 30 days.

Umrah leave : There are no provisions in the UAE Labor Legislation 2025 that permit workers to take Umrah leave. Nonetheless, the employer must agree and take that amount out of the worker’s yearly leave.

Conclusion

The UAE’s commitment to modernizing labor regulations is demonstrated by the notable amendments made to the UAE Labor Law 2025. Furthermore, maintaining a productive workplace for both employers and workers without distressing the Dubai business culture.

COMINC consultancy is a full-service legal consultancy that works closely with clients to understand their objectives and goals in the UAE, providing services in dispute resolution in all corporate and commercial matters. We also have a network of trusted external advisers allowing us to provide clients with multi-jurisdictional legal advice, ensuring a cohesive and simplified outcome.

Contact us for a fast-track and seamless hiring process.