Everything You Need to Know Before Working in Dubai!
Dubai is one of the fastest-growing global business hubs, attracting a vast number of expatriate workers. However, not being familiar with UAE labor laws can lead to unexpected challenges.
The “Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationships” aims to enhance employee rights, improve flexibility in employment relationships, and boost labor market competitiveness.
In this blog post, we will break down the key aspects of Dubai labor law in a simple and easy-to-understand manner.
Scope and Objectives of UAE Labor Law
✅ Who Does It Apply To?
- All private sector companies and employees in the UAE.
- Government entities, military/police/security personnel, and domestic workers are excluded from this law.
✅ Key Objectives of the Law
- Protect employee rights and enhance labor market efficiency.
- Clarify employment contract terms and improve working conditions.
- Increase flexibility in employment relationships.
Employee Rights and Obligations
✅ Non-Discrimination and Equal Pay (Article 4)
- Discrimination based on race, gender, religion, nationality, or disability is prohibited.
- Equal pay for men and women performing the same work.
✅ Employment Contracts & Work Models (Articles 7-8)
- Employment contracts must be fixed-term (renewable).
- Various work models allowed:
- Full-time
- Part-time
- Temporary work
- Flexible work
✅ Probation Period Regulations (Article 9)
- Maximum 6 months.
- During probation, employees must provide 1-month notice before switching jobs.
- If leaving the UAE during probation, returning within 3 months requires compensation to the previous employer.
Work Conditions and Leave Policies
✅ Working Hours and Overtime (Articles 17-19)
- Maximum 8 hours per day, 48 hours per week.
- Overtime pay:
- Minimum 25% extra for normal overtime.
- 50% extra for night shifts (10 PM – 4 AM).
- Public holiday work must be compensated with extra pay or a substitute day off.
✅ Annual and Other Leaves (Articles 29-32)
- 30 days of paid annual leave after 1 year of service.
- Employees with 6 months to 1 year of service get 2 days per month.
- Maternity Leave:
- 60 days (45 days full pay + 15 days half pay).
- 6 months of daily breastfeeding breaks (up to 1 hour per day) after returning to work.
- Extra 30 days paid leave + 30 days unpaid leave for mothers of children with disabilities.
- Sick Leave:
- After probation: up to 90 days per year.
- First 15 days full pay, next 30 days half pay, last 45 days unpaid.
- Bereavement Leave:
- 5 days for spouse’s death, 3 days for the death of a parent, child, sibling, or grandparent.
Contract Termination and Dismissal Rules
✅ Reasons for Contract Termination (Article 42)
- End of contract or mutual agreement.
- Company closure or bankruptcy.
- Resignation with prior notice (30-90 days).
✅ Grounds for Immediate Dismissal (Article 44)
- Forgery of documents or false identity.
- Causing major financial losses to the company.
- Leaking confidential company information.
- Workplace violence, harassment, or misconduct.
- Unauthorized absence for 7 consecutive days or 20 non-consecutive days in a year.
✅ Employee’s Right to Resign Without Notice (Article 45)
- Employer breaches contract obligations.
- Workplace violence or harassment.
- Unsafe working conditions.
✅ End-of-Service Gratuity (Article 51)
- Employees with at least 1 year of service are entitled to gratuity.
- 21 days’ basic salary per year for the first 5 years.
- 30 days’ basic salary per year after 5 years.
- Total gratuity cannot exceed 2 years’ basic salary.
Labor Disputes and Legal Protection
✅ Labor Dispute Resolution (Article 54)
- Disputes must be reported to MOHRE (Ministry of Human Resources & Emiratisation).
- If dispute value is below AED 50,000, MOHRE’s decision is final.
- Employees can file lawsuits, and up to 2 months’ salary may be paid during case proceedings.
✅ Court Fee Exemptions (Article 55)
- Employees filing for claims up to AED 100,000 (approx. $27,000) are exempt from legal fees.
Additional Key Regulations
✅ Minimum Wage (Article 27)
- The UAE government may introduce a minimum wage in the future.
✅ Work Permits & Visa Regulations (Articles 6, 50)
- Employees must have a valid work permit to work in the UAE.
- Illegal employment can result in a 1-year work ban.
✅ Ban on Forced Labor & Workplace Harassment (Article 14)
- Forced labor, harassment, and workplace violence are strictly prohibited.
- Employers violating this may face severe penalties.
✅ Employer Responsibilities (Article 13)
- Employers cannot confiscate employees’ passports.
- Final salary and end-of-service payments must be settled within 14 days of contract termination.
Conclusion - Know Your Rights Before Working in the UAE!
The 2021 amended UAE labor law significantly strengthens employee rights, improves flexibility in employment, and enhances workplace protections. It also introduces stricter penalties for illegal employment and workplace misconduct.
Premia TNC Dubai Team
Author
Premia TNC Dubai is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Dubai specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
