UAE Labor Law 2026: New Rules & Rights You Must Know

The new labor law of the UAE, which came into effect on January 1, 2024, brings major changes to the employment landscape of the country. This legislation adds value to the rights of employees, besides the duties of the employers.

In this blog, I will detail all the critical aspects of the UAE Labour Law 2024 and how these changes impact the workplace in the UAE.

Employment Contracts

The new UAE labor law focuses on clear employment terms, especially around fixed-term contracts, contract details, and the rights and obligations of both parties.

Fixed-term Contracts

• Mandatory fixed-term contracts: New employment contracts in the UAE are now required to be fixed-term, that is, they must have a definite starting and finishing point.
• Clarity and transparency: Fixed-term agreements bring in transparency between the employer and the employee, and give them certain expectations.
• Employee protection: This kind of contract is used to guarantee the employees that they are secure in their jobs over a specified period of time and they are also informed about when their contracts are to be renewed, or their contracts will be terminated.

Contract Duration

• Duration of contract: The general term of the contract under a fixed-term contract should be within the residence visa of the employee, which is normally between two years to three years.
• Renewal options: Once the contract is over, the employer may renew it or allow it to lapse, but they must give enough time before any move is taken.

Contract Details

• Information required: Every employment contract must include specific details such as:
• Job position and responsibilities
• Compensation (salary and benefits)
• Work location
• Contract start and end dates
• Importance of detailed contracts: This detailed approach ensures both parties are clear on the job expectations, pay, and conditions from the outset.

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Working Hours

Significance of elaborate contracts: The elaborate strategy will mean that the job requirements, compensation, and terms are well established by both parties from the start.

Maximum Working Hours

• Working hours limit: In the private sector, employees are subject to 8 working hours per day and 48 working hours per week.
• Flexibility in schedules: The employers are free to schedule the shifts at their own convenience as long as they do not exceed these boundaries.

Rest Breaks

• Break time requirement: Employees must receive at least a one-hour break after working five consecutive hours.
• Importance of rest: This break is essential for maintaining productivity and ensuring that workers are not overexerted.

Ramadan Hours

• Reduced working hours: During the holy month of Ramadan, working hours are reduced to six hours per day for both Muslim and non-Muslim employees.
• Employee rights during Ramadan: Employers should make sure that they are provided the reduced hours without any form of deductions.

Leaves and Holidays

The new labor law of the UAE has well-defined the provisions of maternity leave, paternity leave, annual leave, as well as sick leave, and offers employees detailed rights.

Maternity Leave

• Extended maternity leave: Female employees are entitled to 60 days of paid maternity leave.
• Additional unpaid leave: After this period, they can take an additional 30 days of unpaid leave if needed.
• Maternity benefits: This new provision supports women in balancing work and family life, with more time to recover and care for their newborns.

Paternity Leave

• Paternity leave for fathers: Male employees are entitled to five days of paid paternity leave, enabling them to assist in the early days of childcare.
• Fathers’ role in parenting: This is a new benefit that is in favor of women to be able to balance work and family life, as they have more time to recover and take care of their newborns.

Annual Leave

• Paid leave entitlement: Men will get five days of paid paternity leave so that they can have the time to help in those initial stages of childcare.
• Proportional leave: The role of fathers in parenting is crucial in early childhood care, and this leave enhances the work-life balance of families.

Sick Leave

• Sick leave policy: The employees have the right to paid sick leave, the duration or the conditions of which are subject to the policies of the employer.
• Employer’s discretion: Employers have the freedom to come up with more favorable sick leave policies; however, they need to offer at least the minimum of what the law spells out.

Wages and Benefits

The new labor law brings in the minimum wage, explicit overtime compensation, and the safeguarding of end-of-service gratuity.

Minimum Wage

• Basic wage implementation: The legislation has come up with a minimum wage of AED 1,600 every month in relation to employees of the private sector.
• Wage security: This would ensure a minimum standard of living amongst the workers, and they are not be exploited through unfair remuneration.

Overtime Pay

• Overtime calculation: Workers who work outside their working hours must receive overtime.
• Pay rate: The overtime is generally paid at 125 percent the normal hourly salary, although when the overtime is between 10 p.m. and 4 a.m., then it is paid at 150 percent.

End-of-Service Gratuity

• Gratuity entitlement: Workers are allowed to receive end-of-service gratuity which is determined by the period of their service and final salary.
• Calculation: The amount of the gratuity is computed as 21 days of all the first five years of service and 30 days of all the other years of service.

Other Changes

Besides the employment core issues, the new labour law also incorporates new practices such as flexible working, protection against harassment, and the termination regulations.

Part-time and Flexible Work

• Introduction of flexible work arrangements: The law now permits part-time, flexible, remote, and job-sharing arrangements.
• New opportunities: This benefits employees to enjoy greater control over their schedule and employers to adjust to new working trends.s.
• Remote work provisions: This has increase in remote work provisions, where it is now the responsibility of the employer to make sure that employees working at home receive similar rights to those working at the office.

Harassment and Discrimination Protections

• Zero tolerance policy: The staff members are not exposed to harassment, bullying, or discrimination in the workplace.
• Workplace safety: The employers must provide a safe and respectful working environment, and any offenses may lead to fines or lawsuits.

Termination of Employment

• Notice period: When an employer is ending the contract of an employee, a notice period should be given, which is normally one month to three months as per the contract.
• Severance pay: If an employer terminates the contract without sufficient notice or justification, they must provide severance pay to the employee.
• Employee rights: In case an employer ends the contract without adequate notice or reason, he or she will have to pay the employee severance.

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Conclusion

The 2024 changes in the labor law in the UAE provide many rights to the employees and explain the employer’s responsibilities. Since it has fixed-term contracts and declares about working hours, leave allowances, and wages, this all-round reform guarantees a balanced workplace for all of it.

If you are an employee or employer in the UAE, it’s crucial to stay informed about these new laws to ensure compliance and take full advantage of the protections provided. I highly recommend consulting with legal professionals or government resources to get further clarity on specific cases.