Most employees in the UAE only open the labour law after something goes wrong: a delayed salary, a sudden termination, a gratuity figure that looks too small. By then, the details you agreed to in month one decide what you can claim.
The governing text is Federal Decree-Law No. 33 of 2021, in force since February 2022, and it covers almost every private-sector employee outside the DIFC and ADGM financial free zones. This guide is the map: the rights that matter most, with links to the detailed rules on each one.
Your contract: fixed-term only, probation capped
Since the 2021 law, all UAE employment contracts are fixed-term. Unlimited contracts no longer exist; old ones had to be converted. Contracts are renewable, and your service still counts continuously across renewals.
Three things to check before you sign:
- The basic salary split. Gratuity, and several other entitlements, are calculated on basic salary, not your total package. A low basic with high allowances quietly shrinks your end-of-service payout.
- Probation is capped at 6 months and cannot be extended. Leaving or being dismissed during probation has its own notice rules, covered in our probation rights guide.
- Notice period after probation must be between 30 and 90 days. What that means for switching jobs is in our notice period guide.
Hours, overtime and rest days
The standard limit is 8 hours a day and 48 hours a week, reduced by 2 hours a day during Ramadan. Overtime is capped at 2 extra hours a day in normal circumstances and must be paid at basic hourly rate plus 25%, rising to plus 50% for work between 10pm and 4am.
You are entitled to at least one paid rest day per week. If you work it, you get another day off or pay at a 50% premium. Public holidays follow similar compensation rules, explained in our guide to being made to work public holidays. Full detail: working hours and overtime pay.
Leave: annual, sick, maternity, paternity
The headline entitlements:
- Annual leave: 30 calendar days per year once you complete a year of service, and 2 days per month after your first 6 months.
- Sick leave: up to 90 days per year after probation: 15 days full pay, 30 days half pay, 45 days unpaid.
- Maternity leave: 60 days (45 at full pay, 15 at half pay), plus nursing breaks after returning.
- Parental leave: 5 working days for each parent within 6 months of the birth.
The fine print, including medical certificates and carry-over rules, is in annual and sick leave rights and maternity and paternity leave.
Gratuity: your end-of-service payout
After one year of service you earn end-of-service gratuity: 21 days of basic salary per year for your first 5 years, and 30 days per year after that, capped at two years' total pay. Under the current law you receive the full amount whether you resign or are terminated.
Someone on a 10,000 dirham basic salary who leaves after 3 years is owed roughly AED 20,700. Work through your own number in the gratuity calculation guide.
Termination and unfair dismissal
An employer needs a legitimate reason to terminate and must honour your notice period. Dismissing you for filing a complaint or a legitimate claim counts as arbitrary dismissal, with compensation of up to 3 months' pay on top of your normal entitlements. Your final settlement is due within 14 days of your last working day. The full breakdown is in terminated in the UAE: your rights and payouts.
Where to complain
Disputes start with a free complaint to MOHRE, which attempts mediation before referring the case to the labour courts. Court fees are waived for smaller claims; confirm the current threshold on the MOHRE portal. The step-by-step process, including salary delays and WPS evidence, is in our MOHRE salary dispute guide.
Key takeaway
Your basic salary, your notice period and your contract dates decide almost every entitlement you have in the UAE, so check them before signing, not after a dispute starts. The law is employee-friendly on paper; the employees who benefit are the ones who know the numbers.
FAQ
Does UAE labour law apply to free zone employees?
Yes, with two exceptions: DIFC and ADGM have their own employment laws. All other free zones follow Federal Decree-Law 33 of 2021, sometimes with extra zone-level rules layered on top.
Can my employer hold my passport?
No. Passport confiscation is unlawful. You can report it to MOHRE or the police, and it strengthens any wider claim you bring.
Is there income tax on my UAE salary?
No, the UAE has no personal income tax, so your gross salary is your net salary. Your home country may still tax you depending on your residency status there.
What happens to my visa if I lose my job?
Your work visa is cancelled by the employer, and you then have a grace period to find a new role or change status. Registering for ILOE unemployment insurance while employed gives you a temporary income if you are made redundant.
