UAE Labour Law for Employers: 2026 Guide to the Key Rules
UAE employer guide · Updated November 2026
Federal Decree-Law No. 33 of 2021 sets the rules for private-sector employment in the UAE. This guide gives HR teams the numbers that matter, with the article for each one. It covers contracts, probation, hours, leave, wages, termination and end-of-service pay.
Short answer: UAE private-sector employment is governed by Federal Decree-Law No. 33 of 2021. Key rules include probation of up to six months, notice of 30 to 90 days, 30 days’ annual leave and gratuity after one year.
UAE Labour Law: Key Numbers for Employers
| Topic | Rule | Article |
|---|---|---|
| Probation | Up to 6 months, once per employer | 9 |
| Ending probation | Employer gives at least 14 days’ notice | 9 |
| Non-compete | Up to 2 years after the contract ends | 10 |
| Working hours | Up to 8 hours a day or 48 a week | 17 |
| Overtime | Max 2 hours a day; at least 25% extra, or 50% from 10pm to 4am | 19 |
| Annual leave | 30 days a year; 2 days a month after 6 months | 29 |
| Maternity leave | 60 days: 45 on full pay, 15 on half pay | 30 |
| Sick leave | Up to 90 days: 15 full pay, 30 half pay, then unpaid | 31 |
| Notice period | 30 to 90 days, as agreed | 43 |
| End-of-service gratuity | 21 days’ basic wage a year for 5 years, then 30 days | 51 |
All articles are from Federal Decree-Law No. 33 of 2021. Check the official text, or ask MOHRE or a lawyer, before you act on a specific case.
Employment Contracts
Every private-sector employee needs a written contract registered with MOHRE. All contracts are fixed-term, and Federal Decree-Law No. 14 of 2022 removed the three-year maximum.
The contract must match the offer and the work permit. It should state the job, salary, working hours, leave, notice period and probation.
Recruitment costs
The employer pays recruitment and employment costs, including visas, work permits and medical tests. Workers must not be charged. See our guide to recruitment agency fees.
Probation
- Probation can last up to six months and can be used only once with the same employer.
- The employer must give at least 14 days’ written notice to end employment during probation.
- An employee leaving to join another UAE employer must give at least one month’s notice.
- An expat employee leaving the UAE must give at least 14 days’ notice.
Working Hours and Overtime
Normal hours are up to 8 hours a day or 48 hours a week. Overtime is limited to 2 hours a day and paid at least 25% extra.
Work from 10pm to 4am earns at least 50% extra, except for shift workers. Use our UAE overtime calculator to check pay.
Leave Entitlements
| Leave | Entitlement |
|---|---|
| Annual leave | 30 days a year after one year; 2 days a month after six months |
| Sick leave | Up to 90 days a year: 15 full pay, 30 half pay, the rest unpaid |
| Maternity leave | 60 days: 45 on full pay and 15 on half pay |
| Parental leave | 5 working days, taken within six months of the birth |
| Bereavement leave | 5 days for a spouse; 3 days for a parent, child, sibling, grandparent or grandchild |
| Public holidays | Paid days off as announced by the government |
The employer cannot stop an employee using leave accrued for more than two years.
Wages and the Wage Protection System
Salaries must be paid through the Wage Protection System (WPS). From 1 June 2026, salary for a month is due by the first day of the following month.
Read our UAE WPS rules guide for the 85% threshold and the penalties for late pay.
Ending Employment
Notice
Either side can end the contract with the notice agreed in it, between 30 and 90 days. The reason must be lawful.
Dismissal without notice
Article 44 lists the limited grounds for dismissal without notice, such as serious misconduct. Termination for other reasons, or without a lawful reason, can lead to compensation claims.
Final dues
Wages and end-of-service dues must be paid within 14 days of the contract ending. Calculate gratuity with our UAE gratuity calculator.
Other Employer Obligations
- Health insurance: provide mandatory health insurance for employees.
- Records: keep each employee’s file for at least two years after they leave.
- Unemployment insurance: employees must subscribe to the ILOE scheme. Remind new staff when they join.
- Emiratisation: companies with 50 or more employees must meet Emirati hiring targets. See our Emiratisation guide.
- Equal treatment: the law bans discrimination on grounds such as race, colour, sex, religion and nationality.
Hiring in the UAE Without Your Own Entity
If you do not have a UAE entity, an Employer of Record can employ staff for you under these rules. Staffenza’s EOR service costs AED 899 per employee per month, plus government costs at actual cost.
For permanent hires on your own payroll, our IT recruitment team in Dubai charges 15–20% of the first-year package, with a 3-month replacement guarantee.
Related Guides and Tools
UAE Labour Law FAQs
What is the main labour law in the UAE?
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations governs private-sector employment. It took effect in February 2022, with Executive Regulations in Cabinet Resolution No. 1 of 2022.
How long can probation be in the UAE?
Up to six months, and only once with the same employer. The employer must give at least 14 days’ notice to end employment during probation.
What is the notice period under UAE labour law?
The notice period is agreed in the contract, between 30 and 90 days.
How much annual leave do UAE employees get?
Thirty days a year after one year of service. Between six months and one year, employees earn two days a month.
Are UAE employment contracts still limited to three years?
No. Federal Decree-Law No. 14 of 2022 removed the three-year cap, so fixed-term contracts can run for any agreed period.
How much sick leave is there in the UAE?
Up to 90 days a year after probation: 15 days on full pay, 30 days on half pay and the rest unpaid.
Can a UAE employer use a non-compete clause?
Yes, within limits. Article 10 allows a non-compete of up to two years after the contract ends, restricted by place, time and type of work.