UAE Labor Law 2025: Your Essential Guide to Workplace Rights

The UAE’s new labor law, which came into effect on January 1, 2024, introduces substantial changes to the country’s employment landscape. This new legislation enhances the rights of employees while clarifying the responsibilities of employers. In this blog, I will detail all the critical aspects of UAE Labour Law 2024, and how these changes impact the workplace in the UAE.

Let’s dive into the key changes and how they affect employment contracts, working hours, wages, and other important factors.

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: All new employment contracts in the UAE must now be fixed-term, meaning they must have a clear start and end date.
Clarity and transparency: Fixed-term contracts ensure transparency between the employer and the employee, setting specific expectations.
Employee protection: This type of contract ensures that employees have job security for a designated period and clarity on when their contract will be renewed or terminated.

Contract Duration

Duration of contract: The typical duration for a fixed-term contract must align with the employee’s residence visa, which generally ranges from two to three years.
Renewal options: After the contract ends, the employer can either renew it or let it expire, but they must give sufficient notice before any action 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.

Working Hours

The UAE’s new labour law sets limits on daily and weekly working hours, with provisions for rest breaks and special rules for Ramadan.

Maximum Working Hours

Working hours limit: Employees in the private sector can work up to 8 hours per day and 48 hours per week.
Flexibility in schedules: Employers can arrange shifts according to their business needs as long as they stay within these limits.

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 must ensure that employees are given these reduced hours without any reduction in pay.

Leaves and Holidays

The UAE’s new labor law outlines clear guidelines for maternity leave, paternity leave, annual leave, and sick leave, providing employees with more comprehensive 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 leave reflects the importance of fathers in early childcare and strengthens the work-life balance for families.

Annual Leave

Paid leave entitlement: After completing one year of service, employees are entitled to 30 days of paid annual leave.
Proportional leave: If an employee has worked less than a year, they are entitled to proportional annual leave based on the months worked.

Sick Leave

Sick leave policy: Employees are entitled to paid sick leave, though the exact amount and terms depend on the employer’s policies.
Employer’s discretion: Companies may offer more generous sick leave policies, but they must provide at least the basic entitlements specified by law.

Wages and Benefits

The new labor law introduces a minimum wage, clear overtime provisions, and protections around end-of-service gratuity.

Minimum Wage

Basic wage implementation: The law has introduced a minimum wage of AED 1,600 per month for private sector employees.
Wage security: This guarantees a basic standard of living for workers and ensures that they are not exploited with unfair pay.

Overtime Pay

Overtime calculation: Employees who work beyond their regular hours are entitled to overtime pay.
Pay rate: Overtime is usually paid at 125% of the regular hourly rate, but if the overtime falls between 10 p.m. and 4 a.m., the rate increases to 150%.

End-of-Service Gratuity

Gratuity entitlement: Employees are entitled to an end-of-service gratuity upon termination, calculated based on their length of service and final salary.
Calculation: The gratuity is calculated as 21 days’ wages for each of the first five years of service and 30 days’ wages for each additional year.

Other Changes

In addition to core employment aspects, the new labour law also introduces provisions around flexible working, protection from harassment, and changes to termination rules.

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 allows employees to have more control over their schedules and employers to adapt to modern work trends.
Remote work provisions: Remote work has become more common, and employers must now ensure that employees working from home are treated with the same rights as those on-site.

Harassment and Discrimination Protections

Zero tolerance policy: Employees are protected from harassment, bullying, and discrimination in the workplace.
Workplace safety: Employers are required to ensure a safe and respectful working environment, and violations could result in penalties or legal action.

Termination of Employment

Notice period: Employers must provide a notice period when terminating an employee’s contract, usually ranging from one month to three months, depending on 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: This ensures that employees are not unfairly dismissed and have time to seek alternative employment.

Conclusion

The UAE’s labor law changes for 2024 offer numerous protections for employees and clarify the obligations of employers. From fixed-term contracts to clear rules on working hours, leave entitlements, and wages, this comprehensive reform ensures a balanced workplace for all parties.

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.