Updated on: 2025/03/11 04:48 (UTC)
Overview
Private sector employment in the UAE generally is governed by the country’s Labor Law, although many free zones have issued their own employment regulations. Some free zones have employment laws that entirely supersede the Labor Law, including the Dubai International Financial Center (DIFC) and the Abu Dhabi Global Market (ADGM).
Hiring
Employment Contracts
Employment contracts are required to be written in Arabic with a copy provided to the employee.
The contract must specify:
- the date it was entered into,
- the date on which work is to begin,
- the type and location of the work,
- the duration of the contract (if for a definite term), and
- the amount of the wage.
An employment contract may be for a definite or an indefinite term. A definite-term contract may not exceed four years, but may be renewed by mutual agreement for an equal or shorter term.
Note: Under the new UAE Labor Law, which took effect on February 1, 2022, employment contracts may not exceed three years and are renewable for the same period or less upon agreement of both parties. Employers must convert existing unlimited contracts to limited contracts prior to February 1, 2023.
An employee may be hired for a probationary period of not longer than six months, during which the employer may terminate the employee without notice or severance.
An employee may not be required to work more than one probationary period for the same employer. If the employee successfully completes probation and continues in employment, the probationary period is included in calculating the employee’s years of service.
In the ADGM, the employer or the employee may terminate the employment contract during the probationary period without cause on one weeks’ notice or for cause without notice.
Restrictions on Hiring
The minimum age for employment in the UAE is 15 years (except in the DIFC where the minimum age is 16 years). Employment of children age 15 and older is subject to the following restrictions:
- The employer must obtain and keep copies of the child’s birth certificate, a certificate of medical fitness for the required work and written consent from the child’s guardian.
- The employer must keep a special register of child employees, showing each child’s name and age, the full name of the child’s guardian, the child’s residence and date of employment, and the child’s job.
- No child may be required to work at night in an industrial enterprise. “Night” is defined to refer to a period of not less than 12 consecutive hours, which must include the period from 8 p.m. to 6 a.m.
- No child may be employed on any job that is hazardous or detrimental to health.
- Children are limited to a maximum workday of six hours, interrupted by a break or breaks totalling at least one hour. No child may work more than four hours without a break and no child may remain at the workplace for more than seven consecutive hours.
- Children may not be required to work overtime, to remain at the workplace after their working hours or to work on a rest day.
Employment of women is subject to the following restrictions:
- Women may not be employed in any job that is hazardous, arduous, or physically or morally detrimental.
- Women generally may not be required to work at night, defined as a period of not less than 11 consecutive hours that must include the period from 10 p.m. to 7 a.m. The prohibition on night work does not apply to women working as executive, managerial or technical staff; women performing health services work that does not normally involve manual labor; or in cases of force majeure.
The labor law prescribes that work is a right for UAE nationals. Others may not be employed in the UAE except as provided for by the labor law. In the event of non-availability of national workers, preference must be given to:
- 1. Arab workers who are nationals of an Arab Country.
- 2. Workers of other nationalities.
Companies with over 100 employees must hire a UAE or GCC national as their public relations officer. Construction and industrial companies with 500 or more employees must hire a UAE national as their health and safety officer. All companies with over 1,000 employees must hire two UAE national employees for the purpose of data entry.
Recordkeeping
Employers with five or more employees must keep the following employment records:
- a file for each employee, showing the employee’s:
name,
job,
age,
nationality,
place of residence,
marital status,
date of employment,
wage,
penalties imposed,
occupational injuries and diseases sustained,
reasons for termination, and
- a leave card for each employee, showing all annual, sick, and other leave taken.
Employers with 15 or more employees must keep the following additional employment records:
- a wage register, listing all employees by date of employment and showing each employee’s:
daily, weekly or monthly pay;
fringe benefits;
piecework or commission pay;
days of work,
date of termination, and
- an occupational injuries register showing all work-related injuries and occupational diseases sustained by employees.
Basic work rules specifying work hours and weekly rest days, official holidays, and the necessary measures and precautions to be taken to prevent work-related injuries and fire hazards must be conspicuously displayed in the workplace, as must rules specifying the disciplinary actions that may be taken against employees and the conditions and circumstances under which discipline will be imposed. Work rules, disciplinary rules, and any amendments to them do not become effective unless they are endorsed by the Labor Ministry, which has 30 days following submission to reach a decision.
Arabic must be used in all employment records, contracts, files or data, as well as in any instructions or circulars issued to employees. Where an employer uses a foreign language in addition to Arabic, the Arabic version prevails over any inconsistent terms in the foreign language.
Background Checks
The labor code does not address background checks.
Noncompetition Agreements
If an employee’s work involves access to client information or business secrets, the employer may require the employee to agree not to compete with the employer or to participate in any business that competes with the employer for a period of up to two years after termination of the employment contract. A noncompetition agreement will be valid if the agreement is limited in time, place, and coverage to the terms necessary to safeguard the employer’s legitimate interests.
Effective Feb. 2, 2022, non-compete clauses are no longer valid if the termination of employment is attributable to the employer or its breach of any legal or contractual obligations. Employees also are exempt from noncompete clauses if:
- they are terminated during their probationary period; or
- they or their new employer pay a specified sum to the former employer, subject to the previous employer’s written consent.
Both parties can also agree in writing not to apply the noncompete clause after termination of the employment contract.
Reference Citations
Employment Contracts: Law No. 33 of 2021; Implementing Regulations 2021; ADGM Employment Regulations, 2019, art. 9
Restrictions on Hiring: Law No. 33 of 2021; Implementing Regulations 2021
Recordkeeping: Law No. 33 of 2021; Implementing Regulations 2021
Noncompetition Agreements: Law No. 33 of 2021; Implementing Regulations 2021
Immigration and Work Permits
In General
Prior to beginning any work in the UAE, all non-UAE nationals must obtain a work permit and residency visa which enable them to live and work in the country. The prospective employee must receive prior approval from the Labor Ministry, which will not be given until the ministry is satisfied that there are no unemployed UAE nationals registered with the employment section capable of performing the requisite work.
Visas and Work Permits
Prior to beginning any work in the UAE, all non-UAE nationals must obtain a work permit (employment visa) and residency visa which enable them to live and work in the country. The prospective employee must receive prior approval from the Labor Ministry, which will not be given until the ministry is satisfied that there are no unemployed UAE nationals registered with the employment section capable of performing the requisite work. When UAE workers are not available, preference in employment must be given to workers of other Arab nationalities.
In order to be approved for a work permit nonnationals also must:
- possess professional skills or educational qualifications the UAE needs and
- have lawfully entered the country and satisfied applicable residence requirements.
A foreign employer must establish a branch office or other formal corporate presence in the UAE and register with the Ministry of Labor before it can hire any workers.
When an employment contract expires or is terminated, the employer must pay to repatriate the employee to the place of hire or to any other mutually agreed-upon location if the employee was hired outside the UAE.
The approved visa will be sent to the authorities at the Dubai airport, which will allow the prospective employee to enter the UAE with permission to work.
After obtaining the employment visa, the next step for the prospective employee is obtaining a residency visa. The residency visa application must be submitted to the immigration authorities on behalf of the prospective employee within 60 days of his or her arrival in the UAE.
Before getting a residency permit, the prospective employee must pass a health check, which includes testing for HIV/AIDS. The residency visa is issued for two years and is renewable.
Foreign nationals applying for a new work visa or renewing an existing visa will have to obtain a Good Conduct and Behavior Certificate. Good-conduct certificates must be issued from the applicant’s home country or the country where the applicant resided for the previous five years and certified by UAE missions. For those applicants already resident in the emirates, certificates must be obtained from the local police.
Employees with a monthly salary of less than 4,000 dirhams (or 3,000 dirhams plus accommodation) are not permitted to sponsor UAE residence visas for their spouses and children. To sponsor parents, employees must have a minimum salary of 20,000 dirhams.
A work permit granted to a non-national may be canceled by the ministry if:
- the worker is unemployed for more than three consecutive months,
- the worker no longer meets one or more of the conditions that were the basis for granting the permit, or
- the ministry determines that a particular national is qualified to replace the non-national worker, in which case the non-national will remain in the job only until the expiration date of the employment contract or the employment permit, whichever occurs first.
Expatriates also can enter the country on temporary work permits to take up an assignment or complete a project. This visa is valid for 90 days and can be extended for a similar duration.
In 2019, the UAE implemented a new system for long-term “golden” residence visa that enables certain expatriates to live, work, and study in the UAE without the need of a national sponsor and with 100 percent ownership of their business in the country. These visas are for 5 or 10 years in duration and are renewed automatically.
The golden visas are designed for employees with specialized talents and researchers in the fields of science and knowledge such as doctors, specialists, scientists, inventors, as well as creative individuals in the field of culture and art. The visa also extends to the employee’s spouse and children. All categories are required to have a valid employment contract in a specialized field of a priority in the UAE.
On April 18, 2022, the government expanded the golden visa to attract more highly skilled workers in a wider range of professions such as engineering, information technology, and law. Applicants must have a valid employment contract, a bachelor’s degree or equivalent, and a minimum salary of 30,000 dirhams.
Digital Nomad Visa. The government also offers a remote work visa for foreign nationals who are seeking to work remotely in UAE (Dubai). The visa allows individuals to live in country for one year while working for a company registered abroad. The applicant must meet specified income and provide proof of health insurance. The visa is for one year and renewable.
Reference Citations
Visas and Work Permits: Law No. 33 of 2021; Implementing Regulations 2021
Nondiscrimination
In General
The UAE Constitution provides that all persons are equal before the law without distinction between citizens in regard to race, nationality, religious belief, or social status, and that female and male employees performing the same work are entitled to equal wages. In the DIFC, additional protections are provided for age, pregnancy, and maternity.
Effective February 1, 2022, employers may not engage in any sexual harassment, bullying, or any verbal, physical or psychological violence against workers. The new Labour Law also prohibits discrimination on the basis of race, color, sex, religion, nationality or disability.
The employment laws in the DIFC and ADGM require employers to provide and maintain a workplace that is free from harassment. In the event of a finding of discrimination, DIFC courts can award compensation of up to one years’ wage which can include an award relating to injury of feelings.
Reference Citations
Nondiscrimination: UAE Constitution, 1971, art. 25
Employee Privacy
Employee Data
On September 26, 2021, the UAE government issued a sweeping data protection law (Law No. 45 of 2021) that applies to all businesses that are processing personal data in the UAE regardless of whether the personal data relates to data subjects inside the UAE or not. The law also applies to companies outside the UAE who are processing personal data relating to data subjects who live or work in the country. The PDPL does not apply to companies located in free zones (such as the DIFC and ADGM) which have their own data protection laws.
Under the PDPL, personal data can only be processed with the consent of the data subject except in limited circumstances, such as when the processing is needed to fulfill a contractual obligation with a data subject or to protect the public’s interests. Consent must be freely given, specific, informed and unambiguous. Data subjects are entitled to withdraw their consent at any time.
DIFC. The DIFC enacted a data protection law that came into force on July 1, 2020. The law allows employers in the DIFC to collect employees’ personal data when:
- employees have given their written consent;
- the processing is required in relation to a contract or legal obligation;
- the processing is required by the DIFC; or
- the processing is necessary for the employer’s legitimate business interests, except when it is overridden by the legitimate interests of the employee.
Employers in the DIFC may collect and process sensitive personal information when employees have given their consent or the processing is required to fulfill the vital interests of the employer.
Employers may transfer data out of the DIFC only when the recipient is in a jurisdiction that has laws that ensure at least the same level of data protection or employees have given their written consent to the transfer.
ADGM. On Feb. 14, 2021, the Abu Dhabi Global Market (ADGM) issued the ADGM Data Protection Regulations 2021 (DPR 2021), which replaced the ADGM Data Protection Regulations 2015 (as amended). The DPR 2021 became fully enforceable on Feb. 14, 2022. The DPR 2021 is modeled after the General Data Protection Regulation (GDPR) and contains many of the same principles relating to the processing of personal data.
Employee Monitoring and Surveillance
Employers have the right to monitor their property, including computers, phones, and other electronic devices. Monitoring of employees’ e-mail is permitted if they have been notified in advance and have given their consent.
Employers must ensure that the information they collect does not encroach on employees’ private or family life.
Reference Citations
Employee Data: Personal Data Protection Law; DIFC Data Protection Law No. 5 0f 2020; ADGM Data Protection Regulations 2021
Compensation
Hours of Work
Working hours for adult employees cannot exceed eight per day or 48 per week over a six-day week. The workday may be increased to nine hours for commercial establishments, hotels, cafeterias, security services and other businesses designated by the minister of labor and social affairs. Daily work hours are reduced by two hours per day during Ramadan.
No employee may work more than five consecutive hours without breaks for rest, meals and prayers amounting in aggregate to not less than one hour. These breaks are not included as part of the employee’s working hours.
The minister of labor and social affairs may specify different methods of taking breaks in factories and workshops where work is organized in continuous day and night shifts and in processes where technical and economic reasons require work to continue uninterrupted.
The UAE government has a five-day workweek with its weekend on Saturday and Sunday. Private-sector businesses are free to set their own schedules.
In the DIFC, the following work hour rules apply:
- weekly working hours cannot exceed, on average, 48 hours over a seven-day period, unless the employer obtains the employee’s prior written consent to work longer hours,
- employees whose work time is more than six hours are entitled to a one-hour break for rest and/or prayer,
- employees are entitled to an uninterrupted rest period of not less than 24 hours rest in each seven-day work period, and
- reduced Ramadan hours apply only to fasting employees in these two free zones.
In the ADGM, employees may not work in excess of 48 hours per each seven day period unless they have given prior written consent. Also, employees are entitled to overtime compensation (or time in lieu) where they are required to work in excess of 832 hours over a period of four months. The overtime compensation is 25 percent of total salary (or time in lieu) and 50 percent of total salary where the overtime hours worked fall between 21:00 and 04:00 (or time in lieu). The minimum notice period is seven days if the period of continuous employment is less than three months and 30 days if the period of continuous employment is three months or more.
Minimum Wage
The labor law does not set a specific minimum wage.
Overtime
An employee who works more than the normal number of hours is entitled to overtime pay of time-and-one-quarter. The overtime rate for work performed between 9 p.m. and 4 a.m. is time-and-one-half. Overtime work is limited to two hours per day unless such work is essential to prevent a substantial loss or serious accident or to alleviate the impact of a serious accident. Overtime requirements do not apply to managerial or supervisory positions.
Overtime is capped at 144 hours for every three-week period and is calculated according to basic salary only.
An employee who works on a day of rest is entitled to either a substitute rest day or overtime pay of time-and-one-half, while an employee who works on a paid holiday or during annual leave is entitled to substitute leave plus overtime pay of time-and-one-half.
Except for workers who are paid daily, no employee may be required to work more than two successive Fridays.
Wage Payment
Wages may be paid on a monthly, weekly or daily basis. Payment must be in legal tender, on a working day, at the place of work and in the official national currency.
Employers are required to pay their employees through a national Wage Protection System. Employers with more than 100 employees receive a warning from the ministry if payment of wages is 10 days late. After 16 days of nonpayment, the ministry will refuse to issue new work permits to the delinquent employer. After 30 days without payment, the ministry can impose “refusal penalties,” including:
- cautioning judicial and any other relevant authorities in their dealings with the employer;
- refusing to issue new licenses to the employer;
- downgrading the employer’s commercial classification, which also reduces the scope of business it may conduct;
- extending the work permit ban to other companies owned by the same employer, and
- forbidding the transfer of affected employees to other employers.
- After 60 days, the employer will be subject to administrative fines. The penalties will only be applied to businesses with fewer than 100 employees if the violation is repeated at least twice in the same calendar year.
- Late payment penalties will be removed immediately upon the employer’s payment of outstanding wages. Refusal penalties will remain in effect for two months following the employer’s payment and may be extended should the employer repeatedly fail to pay salaries.
Only the following deductions from wages are authorized:
- repayment of loans or advances on wages paid to the employee (limited to 10 percent of any single pay period’s wages);
- contributions to social security and insurance that employees are required by law to make from their wages;
- contributions to a provident fund or repayment of loans due to a provident fund;
- contributions towards any welfare scheme or for any other privileges or services provided by the employer and approved by the Labor Ministry;
- payment of fines imposed for any offense committed by the employee;
- repayment of any debt imposed by court order (limited to 25 percent of any single pay period’s wages, 50 percent in cases of multiple debts); and
- payment for any loss, damage or destruction of tools, machines, products or materials owned by or in the custody of the employer if caused by fault of the employee or as a result of violating the employer’s instructions (limited to five days’ wages per month unless a greater deduction is authorized by court order).
In the DIFC, late penalties will only take effect when the amount due and not paid to an employee is held by the DIFC court to be in excess of an employee’s weekly wage. The penalty is capped at six months’ daily wage and will be waived if the late payment is due to the employees’ unreasonable conduct.
Mandatory Bonuses
Employers are not mandated to provide bonus payments to employees but it is customary to provide a bonus to employees at year-end.
Reference Citations
Hours of Work: Labor Law, 1980, No. 8, arts. 65-66, 70; DIFC Employment Law, No. 4 of 2005, arts. 19-24; ADGM Employment Regulations, 2019, arts. 16-21
Overtime: Labor Law, 1980, No. 8, arts. 67, 71
Wage Payment: Labor Law, 1980, No. 8, arts. 55-57, 60
Mandatory Bonuses: Labor Law, 1980, No. 8, arts. 134-135
Benefits
Vacation
Employees who have completed at least one year of continuous service with their employers are entitled to 30 days’ paid annual leave. Employees with more than six months of continuous service but less than one year are entitled to two days’ annual leave per month of employment.
The employer may set the date for commencement of an employee’s annual leave and may divide that leave into no more than two periods.
Annual leave for minors may not be divided.
An employee loses vacation pay for failing to report to work on the day immediately following vacation.
Employees are entitled to be paid for their annual leave before the leave begins and are not permitted to carry over unused leave.
In the DIFC and the ADGM, the minimum holiday entitlement is 20 working days for a worker employed for three months or more. Employees in the ADGM can carry over five days of annual leave each year, while DIFC workers can carry over five days of leave.
Holidays
Employees in the UAE are entitled to leave with full pay for the following 10 public holidays, the dates for most of which vary year to year according to the lunar calendar:
- Jan. 1: New Year’s Day
- Birthday of Prophet Mohammed
- Al Isra and Al Mi’raj (Ascension of the Prophet)
- Eid al–Fitr (2 days)
- Eid al-Adha (3 days)
- New Year’s Day (Islamic calendar)
- Dec. 2: UAE National Day
In the event an employee is required to work on a statutory holiday (and is entitled to receive full or partial salary), the employer must provide the employee with compensatory leave and a bonus equal to 50 percent of the employee’s salary. If the employer does not provide leave, it must pay a bonus equal to 150 percent of the employee’s base salary for each day worked.
There is no day in lieu if public holidays fall on a weekend.
Maternity Leave
Pregnant employees are entitled to 45 days of maternity leave at full pay, plus 15 days maternity leave at half pay. Employees are also entitled to maternity leave and pay in the case of stillborn babies and new-born deaths. Employees who suffer a pregnancy-related illness are entitled to additional unpaid leave of 45 days. Employees who have babies with disabilities may be entitled to an additional 60 days’ leave at full pay.
An employee who has exhausted her maternity leave may be absent from work without pay for an additional period of up to 100 consecutive or nonconsecutive days if the absence is due to illness resulting from pregnancy or delivery that prevents her from resuming work. The employee must provide a medical certificate confirming that her illness is a result of pregnancy or delivery.
During the first 18 months after delivery, a female worker is entitled to two additional breaks per day of no more than 30 minutes each for the purpose of nursing her child. The additional breaks are considered part of working hours and do not entail any reduction of pay.
In the DIFC and ADGM, female workers are entitled to 65 days of maternity leave following the birth or adoption of a child if the employee has been employed for 12 months or more and has complied with the requisite notification requirements. The leave will be paid in full for the first 33 days and at half pay for the remainder.
Employees in the free zones who are pregnant or on maternity leave cannot be terminated or have their positions changed without their consent. They also have the right to return to work at the end of the maternity leave to the same role or a suitable alternative on the same terms and conditions.
Paternity Leave
Employees are entitled to five paid working days of parental leave, to be taken within six months from the birth date of the child. Employees in the ADGM are entitled to five days of paternity leave within two months of the child’s birth. In DIFC, male employees may take up to five days of paternity leave if they have at least a year’s service and must notify the employer at least eight weeks in advance of the due date. Leave must be taken within the first month of the child’s birth. The right to paternity leave extends to fathers of adopted children who are under five years old.
Sick Leave
After completing three months of continuous service with an employer after the probationary period, an employee is entitled to annual sick leave not exceeding 90 days. The first 15 days of sick leave are with full pay, the next 30 days at half pay and any subsequent periods without pay.
Employees are not entitled to paid sick leave during the probationary period.
An employee who suffers a non-work-related illness or injury must report the event to the employer within two days. The employer may require the employee to submit to a medical examination for the purpose of verifying the illness or injury.
No paid sick leave is available for illnesses that are the direct result of the employee’s misconduct, such as consumption of alcohol or narcotic drugs.
If an employee resigns due to illness before the first 45 days of sick leave are exhausted and the government medical officer or the medical practitioner designated by the employer accepts a medical cause for the resignation, the employee is entitled to receive pay for the unused portion of the first 45 days of sick leave.
The labor law states that every employer must provide its employees with medical care coverage up to the standard determined by the Ministry of Labor and Social Affairs in consultation with the Ministry of Health. In Abu Dhabi, employers are obligated to provide health insurance coverage to employees and their dependents. In Dubai, employers must provide health insurance coverage to employees but not their dependents.
In the ADGM, employees who have completed at least one month of service are entitled to 60 days of paid sick leave per year. Employees whose sick leave exceeds 60 days can be dismissed immediately with written notice. In the DIFC, employees receive 100 percent sick pay for the first 10 days. Thereafter, sick pay is at 50 percent for the next 20 days, followed by no sick pay for the next 30 days.
Other Leave
Hajj leave. Every Muslim employee must be granted unpaid leave of up to 30 days for the purpose of making the Hajj pilgrimage to Mecca. Such leave may be taken only once during the course of employment and may not be deducted from any other period of leave to which the employee is entitled.
Bereavement leave. Employees are entitled to five days’ paid leave for the death of their spouse and three days’ paid leave for the death of a parent, child, sibling, grandchild or grandparent.
Study leave. Employees enrolled at one of the UAE’s certified educational institutions are entitled to up to 10 days of paid leave per year to take exams. Employees must complete two years of service to be eligible for this leave.
Pensions and Social Security
There are no provisions for pensions or social security for non-locals in the labor code. However, employers in the DIFC are required to enroll employees into a qualifying savings scheme and pay contributions to such scheme in place of the employee accruing end of service gratuity entitlements. Such scheme can be either the DIFC Employee Workplace Savings Plan established by the DIFC or an alternative qualifying scheme.
Workers’ Compensation
When an employee suffers a work-related injury or contracts an occupational illness, the employer must file a report with the police and the Labor Ministry and pay the cost of the employee’s treatment until the employee either recovers or is proven disabled. If the injury or illness prevents the employee from working, the employer also must pay the employee’s full salary for the period of treatment or for six months, whichever is shorter. Where treatment lasts longer than six months, the employer must pay half the employee’s wages for an additional six months or until the employee recovers, is declared disabled or dies, whichever occurs first.
If an employee suffers a partial disability but is capable of performing other work consistent with his or her state of health, the employer must, at the employee’s request, assign the employee to that other work, if available, and pay the employee the wage normally paid to persons who perform that work.
If an employee dies as a result of a work-related injury or illness, the employee’s family is entitled to compensation equal to 24 months of the deceased employee’s wages, subject to a minimum payment of 18,000 dirhams and a maximum payment of 35,000 dirhams. An employee who becomes permanently disabled as a result of a work-related injury or illness is entitled to the same amount of compensation his or her family would have received if the employee had died. Partial disability results in pro rata compensation according to a schedule set forth in the labor law.
No workers’ compensation will be paid if the employee:
- intentionally became injured or ill,
- was under the influence of a narcotic drug or alcohol at the time of injury,
- intentionally violated safety instructions posted conspicuously in the workplace,
- became injured or ill as a result of gross and deliberate misconduct or,
- refused for no good reason to submit to a medical examination or to undergo the treatment ordered.
Reference Citations
Vacation: Labor Law, 1980, No. 8, arts. 75-76, 80, 89; DIFC Employment Law, No. 4 of 2005, arts. 25-28; ADGM Employment Regulations, 2019, arts. 22-25
Holidays: Labor Law, 1980, No. 8, arts. 74-75, 81
Maternity Leave: Labor Law, 1980, No. 8, arts. 30-31; DIFC Employment Law, No. 4 of 2005, arts. 35-37; ADGM Employment Regulations, 2019, arts. 33-36
Sick Leave: Labor Law, 1980, No. 8, arts. 82-86; Abu Dhabi Decision No. 25 of 2006, art. 11; Dubai Law No. 11 of 2013, art. 10; DIFC Employment Law, No. 4 of 2005, arts. 32-34; ADGM Employment Regulations, 2019, arts. 29-31
Other Leave: Labor Law, 1980, No. 8, art. 87
Workers’ Compensation: Labor Law, 1980, No. 8, arts. 142-149
Labor Relations
In General
UAE law does not authorize trade unions or a right to collective bargaining, although the UAE Constitution does expressly guarantee “freedom of assembly and establishing associations.” When an employer is acquired by or merged into another company, employment contracts valid at the time of the change in ownership remain in force between the new employer and the employees.
Right to Organize
UAE law does not authorize trade unions or a right to collective bargaining, although the UAE Constitution does expressly guarantee “freedom of assembly and establishing associations.”
Dispute Resolution
All individual labor disputes must be submitted to the Labor Ministry, which will summon both parties and attempt to settle the dispute amicably. If the dispute cannot be settled, the ministry must, within two weeks, refer the dispute to the competent court with a memorandum containing a summary of the dispute, the arguments of the parties and the department’s comments. Within three days of receiving the case, the court must fix a hearing date and notify the parties.
When a collective labor dispute arises and the parties are unable to settle the matter amicably, the following procedures apply:
- The employees must submit their complaint to the employer in writing and forward a copy to the Labor Ministry.
- The employer must reply in writing within seven days and send a copy of the reply to the ministry.
- If the employer fails to reply or the reply does not lead to a settlement, the ministry must conduct mediation.
- If the employer is making the complaint, it must submit the complaint directly to the ministry, which will then proceed to mediation.
- If mediation does not result in a settlement within 10 days, the ministry must refer the matter to the competent conciliation committee for determination and notify the parties in writing that it has done so.
- If the parties do not settle the matter within two weeks after its referral to the conciliation committee, the committee will issue its decision by majority vote. The decision is binding if the parties have agreed to be bound by it. Otherwise, the parties have 30 days to appeal the committee’s decision to the Supreme Arbitration Board. Decisions of the Supreme Arbitration Board are final.
Strikes and Lockouts
Although the law sets forth a procedure for resolution of collective labor disputes, it does not authorize employees to go on strike while a dispute is being resolved.
Successorship Clauses
When an employer is acquired by or merged into another company, employment contracts valid at the time of the change in ownership remain in force between the new employer and the employees, and employee service is deemed to be continuous. Original and new employers remain jointly liable for six months for any obligations under existing employment contracts; after six months, the new employer bears sole liability.
Reference Citations
Right to Organize: UAE Constitution, 1971, art. 33
Dispute Resolution: Labor Law, 1980, No. 8, arts. 155-156
Successorship Clauses: Labor Law, 1980, No. 8, art. 126
Safety, Health and Security
In General
Employers are required to provide safety measures to protect employees against occupational injuries and diseases, provide workers in remote locations with suitable transportation and accommodations, and arrange for regular medical examinations of any employees exposed to occupational diseases.
Workplace Safety and Health
Employers are required to provide appropriate safety measures to protect employees against occupational injuries and diseases and against fire and other hazards that may result from the use of machines and other work tools. The employer is also required to ensure that each workplace is clean, well ventilated, and provided with adequate lighting, drinking water, and toilets.
The employer must also display instructions in an accessible location in the workplace detailing the protective measures necessary to prevent fire and protect the employees against hazards to which they may be exposed in the workplace. The instructions must be in Arabic and, if necessary, other languages understood by the employees.
Drug and Alcohol Use
Employees may be dismissed without notice if they are drunk during work hours.
Reference Citations
Workplace Safety and Health: Labor Law, 1980, No. 8, arts. 91-92
Drug and Alcohol Use: Labor Law, 1980, No. 8, art. 44
Termination
Termination by Employer
Effective Feb. 1, 2022, notice periods are capped at 3 months, and employees are entitled to one day off per week to search for new employment during the notice period. An employee may be terminated for cause without notice.
The employer may terminate a contract for a valid reason at any time upon giving 30 days’ written notice. Shorter notice periods apply to workers who are paid daily and who have been employed for less than five years. Notice of termination may not be given while the employee is on sick or annual leave.
An employer’s termination of an employee is deemed to be arbitrary if the reason for termination is irrelevant to the employee’s work. Termination is also considered arbitrary if it is prompted by a formal complaint filed by the employee with competent authorities or a legal action filed against the employer that proved to be valid.
If an employee is terminated arbitrarily, a court may order the employer to pay compensation, not to exceed three months’ wages, based on the nature of the work, the extent of damage sustained by the employee, the employee’s period of service, and the work circumstances.
Employers are also permitted to dismiss any employee without notice or compensation if:
- the employee has assumed a false identity or nationality or has submitted forged certificates or documents;
- the employee has committed a fault resulting in substantial material loss to the employer, provided that the employer notifies the Labor Ministry of the incident within 48 hours of becoming aware of it;
- the employee has disobeyed instructions on workplace safety, provided that such instructions were in writing and posted in a conspicuous place or communicated verbally if the employee is illiterate;
- the employee has defaulted on the basic duties of the employment contract and failed to redress the default despite a written warning that he or she will be dismissed unless performance improves;
- the employee has received a final conviction by a competent court of a crime against honor, honesty or public morals;
- the employee has revealed any confidential information of the employer;
- the employee has been found in a state of drunkenness or under the influence of a narcotic drug during working hours;
- the employee has assaulted the employer, the manager in charge or any co-workers during working hours;
- the employee has been absent from work without a valid reason for more than 20 nonconsecutive days in a single year or for more than seven consecutive days;
- the employer permanently closes its business;
- the employer declares bankruptcy; and
- the employee fails to satisfy the requisite immigration requirements.
Employers may dismiss employees during a probationary period by giving 14 days’ written notice.
If an employment contract is for a definite term and the employer terminates the agreement for any reason other than those mentioned above, the employee must be compensated for any damage he or she sustains up to three months’ wages or the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the employment contract.
In the ADGM, the notice period is as follows:
- seven days, if the period of continuous employment is less than three months;
- 30 days, if the period of continuous employment is at least three months but less than five years; and
- 90 days, if the period of continuous employment is five years or more.
In the DIFC, employment claims generally must be brought before the DIFC Court within six months of the employee’s termination date.
Whistleblowing. On April 7, 2022, The Dubai Financial Services Authority (DFSA) enacted a whistleblowing law that applies to all businesses regulated by the DFSA. The law defines a whistleblower as any person acting in good faith who makes a disclosure based on a reasonable suspicion that a regulated business has or might have violated a DFSA rule or engaged in money laundering, fraud, or any other financial crime. Covered businesses cannot dismiss or otherwise harm whistleblowers for making a disclosure. Whistleblowers have the right to remain anonymous and file suit with the DIFC court for any loss suffered because of the disclosure. To ensure compliance, covered entities must establish appropriate and effective policies and procedures to facilitate the reporting and assessment of regulatory concerns.
Termination by Employee
Under the labor law, an employee may terminate an indefinite-term contract for a valid reason at any time upon giving 30 days’ written notice. An employee may leave employment without notice if:
- the employer fails to honor its obligations to the employee under law or contract or
- the employee is assaulted by the employer or the employer’s legal representative.
Effective Jan. 1, 2022, an employee may resign without notice if his/her employer breaches its obligations and fails to address the breach within 14 days of the employee notifying the Ministry of Human Resources and Emiratization.
Plant Closings and Mass Layoffs
No provisions are included in the UAE’s labor code covering plant closings and mass layoffs.
Payment on Termination
Generally, an employee who has completed one or more years of continuous service is entitled to severance pay in the amount of 21 days’ pay for each of the first five years of service and 30 days’ pay for each additional year of service subject to a maximum total severance package of two years’ pay. An employee is entitled to pro rata severance pay for any partial year worked after the first year of continuous service.
An employee working under an indefinite contract who quits employment after continuous service of one to three years is entitled to one-third severance pay; after continuous service of three to five years, two-thirds severance pay and after five years of continuous service, full severance pay.
An employee who is terminated or otherwise leaves employment after the period of notice prescribed by law is entitled to be paid for any accrued annual leave.
Salary for the purposes of calculating severance pay is the employees’ base salary only and does not include overtime, in-kind-payments or allowances that offset some or all of the employees’ expenses for housing, education, transportation and similar obligations.
Employees are not entitled to an end of service gratuity payment if they are entitled to receive a company pension that meets the provisions of the labor law.
Employees who were hired from outside the UAE are entitled to a reimbursement of repatriation costs, including the purchase of a travel ticket for the employee and whatever else is provided for in the contract, such as travel tickets for the employee’s family and costs for shipping the employee’s luggage. There is no provision for the reimbursement of repatriation costs in the employment law of the ADGM free zone. In the DIFC, the reimbursement requirement only applies if the employee does not start another job in the UAE within 30 days of termination of employment.
Unemployment Insurance
Effective Jan. 1, 2023, an unemployment insurance scheme will provide terminated employees in the federal government and private sectors with 60 percent of their basic salary for a period of up to three months, to a maximum value of AED 20,000.
Reference Citations
Termination by Employer: Labor Law, 1980, No. 8, arts. 117-120; ADGM Employment Regulations, 2019, art. 56
Termination by Employee: Labor Law, 1980, No. 8, art. 121
Payment on Termination: Labor Law, 1980, No. 8, arts. 131-136; DIFC Employment Law, No. 4 of 2005, art. 60
Personal Taxes
Residency Requirements
There is no federal personal income tax in the UAE.
Taxable Income
There is no federal personal income tax in the UAE.
Tax Rates
There is no federal personal income tax in the UAE.
Reference Citations
Personal Taxes: UAE Tax Authority
Web References
In English.
Law and Regulation
Abu Dhabi Global Market Employment Regulations
Dubai International Finance Center Employment Law
UAE Constitution
UAE Labor Law