UAE Labour Law: Working Hours, Overtime, Leave, Probation and Employee Rights

Last reviewed: July 2026. Checked monthly against MOHRE and UAE Legislation portal updates.

Most UAE labour law guides copy the same summary table and go stale within months, missing amendments or quoting the old 1980 law by mistake. This guide covers the current legal framework, Federal Decree-Law No. 33 of 2021, in plain language: who it actually covers, how probation and contracts work now that unlimited contracts no longer exist, exact leave and overtime entitlements, and where to file a real complaint if something goes wrong.

Quick Answer: Who the UAE Labour Law Applies To

• Federal Decree-Law No. 33 of 2021, effective 2 February 2022, is the current governing law for private-sector employment across the UAE mainland
• DIFC and ADGM operate their own separate employment frameworks, not this federal law, even though they sit within the UAE
• All employment contracts are now fixed-term, capped at 3 years and renewable, since unlimited contracts were abolished
• The law applies regardless of nationality or skill level, covering full-time, part-time, temporary, flexible, remote and job-sharing arrangements
• MOHRE (Ministry of Human Resources and Emiratisation) administers and enforces the law, backed by Cabinet Resolution No. 1 of 2022’s executive regulations

Employment Contracts and Probation

Contract Types

• Every private-sector contract must now be a fixed-term contract, with a maximum duration of 3 years at signing or renewal
• Contracts can be renewed indefinitely, provided each renewal does not exceed the 3-year cap
• Six recognised work models exist under the law: full-time, part-time, temporary, flexible, remote and job-sharing
• Contractual terms can offer more than the legal minimum, but cannot reduce or remove statutory rights

Probation Rules

• The maximum probation period is 6 months, and it cannot be extended or repeated for the same role with the same employer
• An employee resigning during probation to leave the UAE entirely must give 14 days’ written notice
• An employee resigning during probation to join another UAE employer must give 1 month’s notice, and the new employer may need to compensate the original employer for recruitment costs
• No end-of-service gratuity is payable if employment ends during probation, regardless of which party ends it

Normal Working Hours and Ramadan Hours

• Standard working hours are 8 hours a day or 48 hours a week, though up to 9 hours a day is permitted in certain sectors
• Employees should not work more than 5 consecutive hours without a break
• During Ramadan, working hours are reduced by 2 hours a day for all employees, regardless of religion or nationality
• Different limits can apply under approved shift systems and flexible-working arrangements, provided the weekly average stays within legal limits

Overtime, Rest Days and Public Holidays

• Standard overtime is paid at 125% of the basic hourly wage for extra hours worked beyond normal shift limits
• Overtime worked between 9pm and 4am, or on a scheduled rest day, is generally compensated at a higher rate, commonly 150% of the basic hourly wage
• Employees required to work on a public holiday are typically entitled to a substitute day off plus basic pay, or a higher premium rate if no substitute day is given
• Overtime is generally capped at 2 hours a day, beyond which further hours require specific justification
• Employees in certain senior management or supervisory roles may fall outside standard overtime entitlements, depending on their contract terms

Annual, Sick, Parental and Other Leave

Unused annual leave is generally paid out from basic salary when employment ends, and employees are expected to take at least two consecutive weeks of leave each year even where carryover is permitted with employer agreement.

Worked Examples: Overtime and Gratuity in Practice

Numbers are easier to apply with a real calculation behind them.

Overtime example: An employee earning AED 6,000 basic monthly salary works 10 extra hours in a month during normal weekdays. The basic hourly rate is roughly AED 6,000 divided by 30 days and 8 hours, about AED 25 an hour. At 125%, each overtime hour pays approximately AED 31.25, giving AED 312.50 for the 10 hours, on top of the normal monthly salary.

Gratuity example: An employee with a basic salary of AED 10,000 a month completes exactly 7 years of service before resigning with proper notice. The first 5 years are calculated at 21 days of basic salary per year, and the remaining 2 years at 30 days per year. This works out to roughly AED 35,000 for the first 5 years and AED 20,000 for the following 2 years, a total gratuity of approximately AED 55,000, calculated on basic salary alone.

These are simplified illustrations; actual payroll calculations should always use your employer’s exact basic salary breakdown and MOHRE’s current calculation methodology.

Salary, WPS and End-of-Service Basics

Wage Protection System

• There is no federal minimum wage for most private-sector roles, but salaries must be clearly stated in the contract and paid on time
• All private-sector salaries must be paid through the Wage Protection System (WPS), MOHRE’s electronic salary transfer monitoring system
• Persistent late salary payment can result in a company being blocked from issuing new work permits and facing MOHRE penalties
• Certain skilled-role visa categories set their own minimum salary thresholds tied to qualification level, separate from the general wage rules

End-of-Service Gratuity

• Payable to any employee who completes at least 1 year of continuous service, regardless of nationality or contract type
• Calculated at 21 days of basic salary per year for the first 5 years of service, and 30 days of basic salary per year for service beyond that
• Calculated on basic salary only, excluding housing, transport or other allowances
• Must generally be paid within 14 days of the employment relationship ending
• Can be forfeited only in specific gross misconduct dismissals under Article 44 of the law, not for ordinary resignation or standard termination

Resignation, Termination and Notice Periods

• Notice periods generally range from 30 to 90 days, as agreed in the contract, and apply to both employer and employee
• Either party can end the contract for a legitimate reason with proper notice; ending it without notice or valid cause can expose the terminating party to compensation liability, commonly calculated as pay equivalent to the unserved notice period
• Arbitrary dismissal protections apply where termination is linked to an employee’s complaint, a discrimination claim, or another status the law specifically protects, and an employee who believes their dismissal was arbitrary can seek compensation through MOHRE and the labour courts
• Employees dismissed for gross misconduct under Article 44 can, in narrow and specific circumstances, be dismissed without notice and without gratuity, though the employer must be able to demonstrate the grounds clearly, and this provision is applied narrowly rather than as a general dismissal shortcut

How to Raise a Complaint and Where to Verify Updates

• Employees can file a complaint through MOHRE’s hotline, its mobile app, or its online portal, which triggers a free conciliation process before any formal escalation
• Unresolved disputes are referred to the UAE’s labour courts under a simplified, fast-track process introduced specifically to speed up employment cases
• Employer violations, including WPS non-compliance and unlawful termination, can trigger MOHRE penalties ranging from AED 5,000 up to AED 1,000,000 depending on severity, alongside potential licence suspension
• Always verify current figures and procedures directly through MOHRE’s official labour law page or theUAE Legislation portal’s full text of Federal Decree-Law No. 33 of 2021, since secondary summaries, including this one, can lag behind amendments

This legal framework underpins Dubai’s broader commitment to a safe and fair judiciary and to fair treatment across the workforce. Understanding your rights under it pairs naturally with building the skills that keep you competitive within it; our guides on essential workplace skills for career success in Dubai and the most in-demand skills in the UAE job market cover the career side of this same picture, and our guide to professional certifications most valued by UAE employers is worth reading if you are negotiating your position from a position of strength.

Frequently Asked Questions

What is the current UAE labour law?

Federal Decree-Law No. 33 of 2021, effective since 2 February 2022, governs private-sector employment across the UAE mainland, replacing the previous 1980 law.

Do DIFC and ADGM employees fall under this labour law?

No. DIFC and ADGM, along with several other free zones, operate their own separate employment regulations, though the core structure of employee rights remains broadly aligned with MOHRE’s federal framework.

What is the maximum probation period in the UAE?

Six months, and it cannot be extended or repeated for the same role with the same employer under current law.

How is end-of-service gratuity calculated?

21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each year beyond that, calculated on basic salary only, excluding allowances.

How many days of annual leave am I entitled to in the UAE?

30 calendar days after completing one year of service, with a pro-rated entitlement of 2 days per month for employees with 6 to 12 months of service.

Where can I file a labour complaint in the UAE?

Through MOHRE’s hotline, mobile app, or online portal, which starts with a free conciliation process before any case proceeds to the UAE’s labour courts.