All You Need to Know About UAE Labour Law

If you’re new to working in this country, knowing the basics of UAE employment laws is quite essential. Oftentimes, knowing employment laws could be all it takes to avoid some sticky situations.

Moreover, it’s literally impossible to ask for your rights when you don’t know what they are! To help you navigate the legal jargon, we’ve put together this simplified guide that will walk you through your basic rights as an employee in the UAE as defined by the labour law.

1. What Is the UAE Employment Law?

The UAE Labor Law is a set of rules and regulations that govern the working relationship between employees and employers. Their aim is to facilitate the course of business and guarantee the rights and duties of both parties.

In practice, these laws regulate wages, vacations, incentives, and work environments. Furthermore, the labour law aims to ensure the efficiency of the labour market, which in turn attracts the highest competencies and skills from workers at all levels.

2. What Are the Articles Covered by the UAE Labor Law?

The UAE Labor Law covers many work-related issues, including:

Working hours
Employee rights
Employment contracts
Settling labour disputes
Overtime
Leave
Official holidays
Employee records
Safety standards and work-related injuries
Minimum wage
Termination of service and end-of-service benefits.

3. Types of Work Arrangements in UAE

The UAE Labor Law recognises a set of work arrangements. Furthermore, the state is continuously working to improve and develop these arrangements to keep up with the ever-changing labour market requirements.

The work arrangements currently admitted under UAE labour law include the following:

Full-time: Under this arrangement, the employee works full-time for one employer
Part-time: The employee is employed by one or more employers for a set number of hours or days stated in the employment contract in the UAE
Temporary work: In this setup, the employee completes a specific assignment, and the contract ends when it is complete
Flexible working: This one allows this employer to adjust working hours or days based on business requirements
Remote work: Under this scheme, some or all of the job is conducted outside of the workplace
Job sharing: Under such a contract, the tasks and responsibilities are allocated to the employees in accordance with a prior arrangement. On the job-sharing arrangements, the same regulations that apply to part-time employment apply.

4. What Terms Should an Employment Contract Abide by?

In order to guarantee the rights of both the employer and employee, the employment contract should fulfil the following conditions:

There should be two copies of the contract only; one for the employer and the other for the employee
The contract allows the employee or their representative to prove the amount of wages and rights they are entitled to in accordance with the labour law
The contract is valid for a maximum of 3 years, after which it can be renewed under a new contract
If the contract is renewed, the period afterwards is considered an extension of the original working period. Accordingly, it is added to the employee’s total length of service

5. What Should Employment Contracts Include Under UAE Labor Law?

Before signing any employment contract, you need to make sure that certain information is included. This helps avoid any future disputes between employees and employers when all critical information is detailed within the contract.

According to UAE labour law, it’s compulsory that the following information is included:

Employer’s name
Employer’s address
Employee’s name
Employee’s nationality
Date of birth of the employee
Proof of identity and qualifications of the employee
Joining date
Workplace address
Working hours
Rest days
Length of probation period
The duration of the trial period
Duration of the contract
The agreed salary with all increments and allowances
Annual leave and its duration
Procedure for the termination of employment

6. What Is the Minimum Wage in the UAE?

There is no monthly minimum wage specified in the UAE Labour Law

7. What is the Legal Age to Work in the UAE?

The legal working age in the UAE is 18. However, those older than 15 but younger than 18 (i.e. Juveniles) are allowed to work under certain conditions, which we will detail below. It’s illegal for someone to hire someone below the age of 15.

Besides, if you’re between the ages of 15 and 18 and would like to gain some experience at an internship or any other form of work, make sure the following conditions apply:

You must have written consent from your guardian or custodian
A certificate from a medical organisation needs to verify your health allows you to do the job at hand
Your working hours must be less than 6 hours per day, with a 1-hour brea
You can not work between 7 pm and 7 am
The nature of the work must not be hazardous, physically demanding, or likely to compromise your health, safety, or morals
You are neither allowed to work overtime nor on weekends or official holidays.

8. What Is the Probationary Period in the UAE?

The probation period can be considered a trial period for recently hired employees. During the probation period, the employee is not considered a permanent employee, yet they still have many rights, which you can see below.

The new UAE Labor Law included some rules to regulate the probationary period, which are:

The probation period should not exceed 6 months from the joining date
The worker may not be appointed more than once under the probationary period
If the employee successfully completes the probationary period and keeps working, the contract will take effect in line with the terms decided upon. Additionally, the probationary period will be included in the period of employment.

9. What Are the Types of Leave in the UAE?

The labour law in the UAE outlines in detail various types of leaves that workers can take throughout their period of service. We will detail below each type of leave and the requirements to be eligible for each.

These are the types of leave you are entitled to as an employee in the UAE. Annual leave

Maternity leave
Paternal leave
Sick leave
Annual leave
Bereavement
National service leave
Study leave

1. Maternity Leave

The UAE has extensive maternity leave policies and laws that ease the journey for new mothers and protect both employers and employees from exploitation.

The law details multiple types of paid and unpaid maternity leave options, which we will break down below:

A woman who gives birth is entitled to 60 days of leave, which is divided as follows:
- 45 days with full pay
- 15 days with half pay
The mother can also extend maternity leave past these 60 days for another 45 days without pay.
According to the UAE labour law, an employee who is pregnant for at least 6 months is granted maternity leave allowances, whether the fetus is born alive or dead.
Employers must grant maternity leave upon request, and it is effective from the last day of the month before the month in which she is expected to give birth. This date can be confirmed by a certificate issued by the medical entity
Note that, while on maternity leave, if the mother works for another employer, the original employer is allowed to no longer pay her wages during the maternity leave
Furthermore, after returning from maternity leave, the mother is entitled to one or two breastfeeding breaks of up to one hour
Employers are not allowed to deny mothers other leaves due to maternity leave
Employee termination due to pregnancy or maternity leave is illegal under UAE labour law.

2. Parental Leave

Fathers are entitled to 5 consecutive or separate days over a period of 6 months from the birth of their child.

3. Sick Leave

After the end of the probationary period, according to the UAE sick leave law, the worker gets 90 separate or continuous days. The pay during these 90 days is as follows:

The first 15 days with full pay
the next 30 days at half pay
The rest of the period is without pay.

Noting that the worker must submit a medical report to the competent committee to assess his condition and approve the leave. Workers, however, are not entitled to sick leave if the illness is a direct result of the worker’s misconduct.

4. Annual Leave

As a full-time employee, you’re entitled to annual leave with a full salary. Here is the annual leave you are entitled to as an employee in the UAE:

30 days for each year of service.
2 days for every month if your service exceeds 6 months.

Additionally, if you quit work before you’ve used your annual leave allowance, you can receive leave wage instead. This means you can get monetary compensation that is calculated according to your base salary.

5. Bereavement Leave

The worker is entitled to a bereavement leave according to the UAE Labor Law in the event of the death of one of their family members. The length of the allowed leave varies according to the degree of kinship:

5 days in the event of the death of the husband or wife
3 days in the event of the death of the father, mother, child, brother, sister, grandchild, grandfather or grandmother.

6. National Service Leave

The Labor and Workers Law in the UAE grants leave to perform national service, provided the worker submits proof of that.

7. Study Leave

If your service period with your employer is more than two years, you are allowed 10 days/ year in order to sit for exams. This is only applicable in the case that you are enrolled in a state-approved educational institution.

10. What Are the Rules for Employment Termination in the UAE?

There are several rules that regulate redundancy and termination, according to UAE Labour Law. While losing a job can oftentimes be a stressful situation, knowing the rights you are entitled to as an employee if your contract is terminated can make a massive difference.

Here are the general rules regarding employment termination:

The contract may be terminated for any valid reason by you or your employer. However, either party must notify the other in writing within the notice period mentioned in the contract
The notice period has to be at least 30 days and not more than 90 days
During the notice period, the employment contract is still in effect, and you are still eligible to receive your entire salary
If either party does not abide by the notice period, they are required to compensate the other party. The compensation is equal to the employee’s wage for the full notice period or what remains of it
If your employer terminates your contract in the UAE, you have the right to be absent for 1 day/week without pay in order to search for another job.

1. What Are UAE’s Labour Laws Regarding Termination Under Probation Period?

The UAE Labour Law includes several laws to protect the interests of both employers and employees in the case of ending the employment contract:

The employer has the right to terminate the service during this period; however, they must notify the employee in writing 14 days before the date of termination.
Should the employee wish to transfer to another job within this period, then they must notify the employer at least 1 month in advance.
In the event that the employment contract is terminated without adhering to the aforementioned rules, either party shall give compensation equivalent to the worker’s salary for the notice period.

There are specific rules for foreign employees if they want to terminate while still under probation:

The foreign worker must notify the employer in writing of their desire to leave work due to moving out of the country with a notice period of no less than 14 days.
The UAE includes a rule if the foreign worker does not give notice within 14 days, they will be penalised with an employment visa ban, and they won’t be issued a work permit for a year from the date of departing the State.

2. What an Employee Is Entitled to in Cases of Unlawful Termination?

If you are unlawfully terminated due to for example filing a formal complaint to the ministry against your employer, you are entitled to compensation from your employer.

Moreover, compensation for unlawful termination under UAE law can be up to 3 months salary. The amount of compensation depends on the nature of your work and the degree of damage you suffered due to your service term.

3. When Can an Employer Fire an Employee Without Notice?

The labour law has made arbitrary termination of employment in the UAE (firing an employee without just cause or notice) illegal. Arbitrary dismissal under UAE labour law is only allowed in the following exceptional situation:

There is evidence the employee impersonated someone else or forged their documents
Despite warnings and performing a number of documented investigations with the employee, they still fail to perform their duties
The employee made an error that caused the employer to suffer significant losses
The worker violated regulations or compromised the safety of the workplace
If the employee is intoxicated or under the influence of illegal substances during work.
If the worker attacks an employer during working hours
Absenteeism of the employee without a justification for 20 scattered days or 7 straight days without any legitimate reason.

4. Can an Employee Quit Without Notice?

Yes, there are certain cases where an employee can quit without notice while retaining their end-of-service rights.

Here are the cases where that is applicable according to UAE Labour Law

The employer has breached the employment contract by not fulfilling their obligations as specified in the contract
There is proof that the employer has assaulted or harassed the employee.
If there is a significant risk to a worker’s health or safety at work, as long as the employer is conscious of it and doesn’t take any steps to eliminate it
If the employee is asked to carry out tasks that are different from those specified in the employment contract without getting written consent from the employee.

11. What Are an Employee’s Rights in Case of Death?

In the unfortunate event of a worker’s death, the UAE labour law still has laws to regulate and preserve their rights.

The employer must deliver all of the worker’s due financial wages, in addition to the end-of-service gratuity to the deceased worker’s family.

These must be given to the worker’s family no more than 10 days after the worker’s death.

Now you have all the essential information to make full use of your rights and benefits as an employee in the UAE!

To make sure you’ve got all your banking needs set up before starting a new job, take a look at our guide to opening a bank account in the UAE on Property Finder.

This article is based on the information provided in the Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationship