The UAE Labor Law plays a vital role in safeguarding employee rights and ensuring fair labor practices across industries. It regulates employment contracts, working hours, wages, leave entitlements, and dispute resolution mechanisms. By aligning with international labor standards, the UAE strengthens its commitment to promoting a secure and productive work environment for employees and employers alike.
Key Provisions Ensuring Employee Welfare
Employment Contracts in UAE
The UAE mandates written employment contracts that clearly define terms and conditions, ensuring transparency between employers and employees.
Types of Employment Contracts
- Limited Contracts: Have a fixed end date and require employer-employee agreement for renewal.
- Unlimited Contracts: Flexible contracts that allow termination with a notice period.
2. Working Hours and Overtime in UAE
The UAE Labor Law regulates standard working hours to maintain work-life balance and prevent employee exploitation.
- Standard Working Hours: 8 hours per day (48 hours per week), reduced to 6 hours during Ramadan.
- Overtime Compensation: Employees working beyond standard hours must receive overtime pay at 125% of regular pay (or 150% for night shifts).
3. Leave Entitlements Under UAE Labor Law
Annual Leave
- Employees are entitled to 30 calendar days of paid leave per year.
- Leave balance must be utilized within the service period.
Sick Leave
- Employees receive 90 days of sick leave (15 days fully paid, 30 days half paid, and 45 days unpaid).
Maternity and Paternity Leave
- Female employees are entitled to 60 days of maternity leave (45 fully paid, 15 half paid).
- Fathers receive 5 days of paid paternity leave.
4. Wage Protection System (WPS) and Timely Payment
The Wage Protection System (WPS) ensures timely salary payments through approved banks. Employers must adhere to:
- Salary Payment Deadline: Wages must be paid within 10 days of the due date.
- Non-Compliance Penalties: Employers failing to pay wages on time may face MOHRE penalties and business restrictions.
5. Health and Safety Regulations in UAE
Employers are required to provide a safe and healthy work environment, including:
- Protective Equipment & Training: Ensuring workers have safety gear and are trained for hazardous tasks.
- Workplace Inspections: Regular audits to maintain compliance with labor safety standards.
6. Termination and End-of-Service Benefits in UAE
Notice Periods for Termination
- Employees must serve a 30-90 day notice period before resignation or termination.
- Termination without notice is allowed in cases of serious misconduct.
UAE Gratuity Law
- Employees with 1+ years of service are entitled to end-of-service gratuity.
- Gratuity is calculated as:
- 21 days’ salary per year for the first 5 years.
- 30 days’ salary per year beyond 5 years.
7. Anti-Discrimination and Workplace Harassment Protections
The UAE prohibits workplace discrimination based on:
- Gender, nationality, religion, or disability.
- Employers must enforce anti-harassment policies to maintain a safe work environment.
8. Labor Dispute Resolution in UAE
Employees can file complaints with MOHRE for unfair dismissals, unpaid wages, or contract violations.
- Legal Recourse: If mediation fails, cases are referred to the UAE Labor Court.
Conclusion
The UAE Labor Law is designed to protect employee rights and promote fair, safe, and transparent workplace practices. From employment contracts and working hours to gratuity, leave policies, and Wage Protection System (WPS) requirements — every employer needs to stay aligned with the legal framework to build a compliant and productive workforce.
At Gulf Portal, we don’t provide labour law services directly; instead, we connect you with verified legal professionals and HR consultants across the UAE. Whether you're looking to draft legally compliant contracts, resolve disputes, or ensure smooth payroll and WPS compliance, BRS helps you find the right experts for your needs.
