Updated UAE Labour Law 2025: What Job Seekers and Employers Must Know
The UAE continues to be a magnet for global talent for a good reason. A booming economy, tax-free salaries, and a strong push toward innovation make it a dream destination for professionals but as the workplace evolves, so do the laws that govern it.
Whether you’re a job seeker or a business owner you need to understand The UAE labour law 2025. It brought an important update to everyone. These changes are designed to create a fairer, more flexible work environment while ensuring compliance across all sectors.
In this blog, we’ll explore what’s new in the UAE employment law update, how it affects your rights, and what businesses must do to stay compliant.
1. All Jobs Must Now Have a Fixed-Term Contract
If you’re working in the UAE, your job must have fixed-term contracts. They can be for up to three years and can be renewed when they expire
- No more “unlimited” or open-ended contracts.
- Employee or an employer both aware of contract period
- It's easier to understand your rights, end-of-service benefits, and notice periods.
If you’re already working on an old unlimited contract, your company should update it to follow the new rules. UAE employment law update makes things clearer and fairer for everyone.
2. Extremely robust anti-discrimination safeguards
UAE labour law 2025 emphasis on one of the stand out point, diversity and equality in the workplace by implementing the following rules
- Equal pay for equal work is now a legal requirement.
- Discrimination based on gender, race, nationality, or disability is strictly prohibited.
- Even part-time and freelance workers are protected.
These improved UAE worker rights are a reflection of the nation’s efforts to promote a more equitable and inclusive labour market.
3. Identifying Contemporary Work Models
Labour law UAE updates the contemporary work models which are no longer trends, now these are a permanent job which boosts UAE worker rights. The UAE employment law update recognizes:
- Full-time employment
- Part-time employment
- Temporary employment
- Flexible/remote work models
You are officially protected under the employment regulations in the UAE whether you’re working from a Dubai office or your home in another emirate.
4. More Leave, More Balance
The labour law UAE supports a better work-life balance by demanding fair overtime compensation and expanding the leave entitlements. Employers must implement these updates across all roles to stay compliant with employment regulations in the UAE.
- Maternity leave: 60 days (first 45 full pay, next 15 half pay)
- Parental leave: 5 days leave for parents
- Study leave: 10 days for employees enrolled in certified courses
- Mourning leave: Up to 5 days, depending on your relationship with the deceased
These reforms align with global practices and aim to boost UAE worker rights, satisfaction, and productivity.
5. Prompt payment of end-of-service dues.
The UAE labor legislation 2025 mandates that employers pay all outstanding debts within 14 days of the last day of a worker’s position. If you fail to comply, fines up to AED 20,000 per may be imposed.
6. Boosting Emiratisation with teeth
The UAE continues to prioritize employment opportunities for its citizens. Under the updated law:
- Companies with 50 or more staff must hire 2% more Emiratis each year.
- Penalties for non-compliance can reach up to AED 96,000 per vacant role.
While this doesn’t mean expats are being pushed out, it does mean businesses need to be more mindful of national workforce quotas.
7. Gratuity: What you’re really owed
A common pain point for many employees in the UAE is end-of-service gratuity. The UAE employment law updated rules making the calculation process clearer than earlier.
- 21 days of basic salary per year for less than 5 years employment
- 30 days per year for more than 5 years employment
Gratuity is calculated only on basic salary, not your full package. It’s one of the most important components of the UAE labour law 2025, and it helps prevent disputes down the line.
8. Safer, Healthier Workplaces
Creating a respectful and safe work culture is now a legal obligation.
- Prevent harassment, including verbal, physical, or psychological abuse
- Provide a safe and healthy environment
- Protect whistle blowers and victims of workplace abuse
The updated Labour Law UAE includes heavy fines and penalties for violations, reinforcing the government’s zero-tolerance stance on workplace misconduct and reserves UAE worker rights.
9. Everything Goes Digital
Managing paperwork can be a hassle. Thankfully, the UAE government is pushing for full digital integration.
- All contracts must be uploaded to the MOHRE digital platform
- Employees must be issued e-labour cards
- Employers can manage payroll, visas, and compliance online
This move improves transparency and speeds up procedures across the board, aligning with the evolving employment regulations in the UAE.
10. Heavier Penalties for Non-Compliance
Employers take note: the updated law doesn’t leave room for negligence. Penalties now apply for:
- Holding employees’ passports
- Hiring without proper documentation
- Late salary payments
- Working outside your registered activity
Some fines can go as high as AED 1 million. So if you’re running a business, staying compliant isn’t just smart it’s essential.
FAQs
They risk legal action and fines. All contracts must be converted to fixed-term under the new system.
Yes. Freelancers working under registered licenses are now officially recognized and protected.
No, as long as you’ve completed at least a year. The calculation is based on your basic salary and tenure.
Conclusion
The UAE labour law 2025 brings positive changes that support fairness, flexibility, and work-life balance. Staying informed is essential for both employers and job seekers.
Coming Consulting helps you stay compliant and confident by offering expert support in contract guidance, HR compliance, and employee onboarding, ensuring you’re fully prepared to navigate the updated employment regulations in the UAE.
Reach us to Stay informed, stay compliant, and work smarter in the UAE
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