UAE Labor Law – What Every Employee and Employer Should Know

If you’re working or hiring in the UAE, the labor law is the rulebook that keeps things fair. It tells you how many hours you can work, what pay you should get, and what happens when a contract ends. Ignoring it can lead to penalties, unpaid wages, or legal battles, so a quick grasp is worth the time.

Key Provisions You Must Know

First up, contracts. The law requires a written agreement that spells out job duties, salary, and duration. If it’s a limited‑term contract, it must state the end date. For unlimited contracts, either party can end it with proper notice – typically 30 days for the employee and 90 days for the employer.

Working hours are capped at eight per day or 48 per week. During Ramadan, hours drop to six for Muslim employees. Overtime is paid at 125% of the normal rate, and double pay kicks in after two overtime hours in a day.

Leave is another must‑know area. You’re entitled to 30 calendar days of annual leave after completing a year of service. Sick leave is up to 90 days – the first 15 days paid at full salary, the next 30 at half, and the rest unpaid. Maternity leave gives women 45 days full pay, followed by 15 days half pay.

Wages must be paid at least once a month, on a fixed date. Deductions are only allowed for lawful reasons, like taxes or employee‑approved savings plans. The law also bans any wage reduction without mutual consent.

When a contract ends, the end‑of‑service gratuity is calculated on the basis of 21 days’ basic salary for each year of the first five years, and 30 days for each additional year. This payment is a safety net for employees leaving the job.

How to Protect Your Rights

Know your contract inside out. If any clause seems vague, ask for clarification before signing. Keep copies of pay slips, leave requests, and any communication with your employer – they’re vital if a dispute arises.

If you think your rights are being ignored, start with the company’s HR department. Most issues get resolved there. If not, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The process is online, and you’ll receive a case number to track progress.

Employers should also stay updated. Regular training on labor law changes helps avoid accidental breaches. Conduct internal audits of contracts and payroll to catch errors before they become legal problems.

Finally, remember that the UAE labor law applies to both nationals and expatriates, but some sectors have specific regulations. Whether you’re in construction, hospitality, or tech, double‑check if additional rules affect you.

Staying informed keeps your workplace smooth and protects you from costly disputes. Bookmark this guide, and refer back whenever you sign a new contract or notice a change at work. The law may sound dry, but knowing the basics gives you confidence and peace of mind.