Understanding UAE employment law protects you as an employee. Whether you're considering a job offer, negotiating a contract, or facing workplace issues, this guide covers everything from contract types to gratuity calculations, termination rules, and dispute resolution.
This knowledge is valuable whether you're employed, considering starting a business, or planning for Golden Visa eligibility through employment.
UAE Employment Law Quick Facts
Probation: Max 6 months. Notice: 30-90 days. Gratuity: 21 days/year. Annual Leave: 30 days. Working Hours: 48/week max.
Employment Contract Types
UAE law recognizes specific contract types:
Limited (Fixed-Term) Contract
- Duration: Specified end date (max 3 years, renewable)
- Termination: Penalty if broken early by either party
- End: Automatically ends on specified date unless renewed
- Common For: Project-based work, short-term assignments
Unlimited Contract
- Duration: No end date specified
- Termination: Either party can terminate with notice
- Most Common: Standard employment arrangement
- Flexibility: More flexibility for both parties
Probation Period
- Maximum: 6 months
- Notice During Probation: 14 days if employer terminates
- Employee Resignation: 30 days notice (or 14 days if new job in UAE)
- No Gratuity: Gratuity only starts after 1 year of service
- Performance Review: Employer should assess before probation ends
Working Hours & Overtime
- Standard Hours: 8 hours/day or 48 hours/week
- Ramadan: Reduced by 2 hours daily
- Overtime: Paid at 125% of hourly rate (normal hours)
- Night/Holiday Overtime: Paid at 150% of hourly rate
- Maximum Overtime: 2 hours per day
- Rest Day: At least 1 day off per week (usually Friday)
Leave Entitlements
Annual Leave
- After 6 months: 2 days per month (prorated)
- After 1 year: 30 calendar days per year
- Carry Forward: Employer can restrict; use or lose policies vary
- On Termination: Unused leave paid out
Other Leave Types
- Sick Leave: 90 days total (15 full pay, 30 half pay, 45 unpaid)
- Maternity: 60 days (45 full pay, 15 half pay)
- Paternity: 5 working days
- Bereavement: 3-5 days depending on relation
- Hajj Leave: 30 days unpaid (once during employment)
- Public Holidays: ~10 days annually (paid)
Termination & Notice Period
Notice Periods
- During Probation: 14 days (employer), 30 days (employee)
- After Probation: 30-90 days as per contract (common: 30 days)
- Payment in Lieu: Notice can be paid out instead of worked
Grounds for Termination
- With Notice: Either party can terminate with proper notice
- Gross Misconduct: Immediate termination without notice (specific grounds in law)
- Redundancy: Business reasons — still requires notice and gratuity
- Contract End: Limited contracts end naturally
End of Service Gratuity
One of the most important benefits:
Calculation
- Years 1-5: 21 days basic salary per year
- Years 5+: 30 days basic salary per year
- Maximum: Cannot exceed 2 years total salary
- Basis: Last basic salary (excludes allowances)
Eligibility
- Minimum: 1 year of service required
- Resignation (1-3 years): Reduced to 1/3 of entitlement
- Resignation (3-5 years): 2/3 of entitlement
- Resignation (5+ years): Full entitlement
- Termination: Full entitlement regardless of service length
Gratuity Calculation Example
Employee with 7 years service, AED 15,000 basic salary:
- First 5 years: 21 days × 5 = 105 days
- Next 2 years: 30 days × 2 = 60 days
- Total: 165 days
- Daily rate: AED 15,000 ÷ 30 = AED 500
- Gratuity: 165 × AED 500 = AED 82,500
Wage Protection System (WPS)
- What: Electronic salary transfer system mandated by MOHRE
- Purpose: Ensures timely salary payment and creates records
- Compliance: Employers must pay via bank transfer to registered account
- Protection: Government monitors; non-payment triggers alerts
- Employee Right: Report non-payment to MOHRE
Dispute Resolution
If you have workplace issues:
Steps to Resolve
- Step 1: Internal HR complaint first
- Step 2: MOHRE complaint (online or in-person)
- Step 3: MOHRE mediation attempt
- Step 4: Labor court if mediation fails
- Timeline: Raise complaints within 1 year of issue
Common Issues
- Unpaid Salary: Report to MOHRE immediately
- Gratuity Disputes: Calculate yourself and compare
- Visa Cancellation Delays: Employer must cancel within 14 days
- Contract Disputes: Keep all documentation
Golden Visa Through Employment
High earners can qualify for Golden Visa:
- Executive Directors: AED 50,000/month salary + bachelor's degree
- Specialized Talent: Specific professions with recognized achievements
- Scientists/Researchers: With UAE institution affiliation
- Benefit: 10-year visa, family sponsorship, job flexibility
Know Your Rights in UAE
Check Golden Visa eligibility for executive-level employees. Considering self-employment? Explore Free Zone options. Investing gratuity? Check property ROI.
