UAE Labour Law 2026: Complete Guide for Employees (2026 Guide)

By the UAE Gratuity Calculator Editorial Team | Reviewed for accuracy against UAE Federal Decree-Law No. 33 of 2021 | Last updated: October 2026

Federal Decree-Law No. 33 of 2021 has governed private-sector jobs in the UAE since 2 February 2022. It replaced the 1980 law that most online guides still describe. If you work in the Emirates in 2026 — or plan to — this is the only version that matters. Below are the rules that actually affect your pay, hours, leave, and job security, with the exact numbers MOHRE enforces. MOHRE is the Ministry of Human Resources and Emiratisation, the government body behind these rules.

UAE Labour Law 2026 at a Glance

1. Employment Contracts: Fixed-Term Is Now the Only Model

The 2021 law removed the old "unlimited contract." Every new private-sector contract must be fixed-term, with a maximum length of 3 years. It can be renewed by mutual agreement for the same period or a shorter one. When a fixed-term contract expires and both sides keep working with no new written contract, it is treated as renewed on the same terms.

What this means for you:

• Your contract must state its length, job title, workplace, pay, and notice terms in writing. Verbal contracts do not count.
• Either side can end the contract during its term with 30–90 days' written notice (Article 43).
• If your employer asks you to sign a new contract with worse terms at renewal, you can refuse. But refusal may mean the job ends at expiry, with full end-of-service dues.

Part-time, temporary, and flexible work models are formally recognised. MOHRE issues permits for each type. If you work for two employers, each job needs its own permit and contract.

2. Working Hours and Overtime

Standard hours are 8 per day / 48 per week. During Ramadan they drop to 36 per week for all employees, whatever their religion. Friday is the official weekly rest day, though the employer may pick another day. Some roles (managerial, supervisory) may be excused from overtime rules by a ministerial decision.

Overtime rates under the law:

• Day overtime: hourly pay + 25% (that is, 125% of normal)
• Night overtime (9 PM–4 AM): hourly pay + 50% (150%)
• Maximum overtime: 2 hours per day, except for essential works set by MOHRE

Worked example: overtime pay

Khalid's basic salary is AED 6,000. His hourly pay = 6,000 ÷ 30 ÷ 8 = AED 25/hour. In one month he works 10 daytime overtime hours and 4 night overtime hours:

• Day overtime: 10 × 25 × 1.25 = AED 312.50
• Night overtime: 4 × 25 × 1.50 = AED 150
• Total overtime due: AED 462.50

Employers sometimes offer time off instead of overtime pay. This is only lawful if you agree to it. You can insist on cash.

3. Annual Leave: 30 Days and How It Builds Up

• After 1 year of service: 30 calendar days of paid annual leave per year
• 6–12 months of service: 2 days of paid leave per month
• Under 6 months: no legal annual leave (the employer may still grant it as a favour)

Your employer plans leave based on work needs. But they must let you use your leave at least once every two years. Official public holidays that fall inside your annual leave do not count against it — those days are added back to you.

Carry-over and cash payout: you can carry unused leave forward if both sides agree. When you leave the job, every unused day is paid in cash on basic pay. Example: AED 9,000 basic with 8 unused days = 8 × (9,000 ÷ 30) = AED 2,400 owed.

4. Sick Leave: 90 Days of Protection

After finishing probation (up to 6 months), employees get 90 days of sick leave per year of service:

• First 15 days: full pay
• Next 30 days: half pay
• Final 45 days: unpaid

You need a medical report from a licensed hospital or clinic. Firing an employee during sick leave is tightly restricted — a termination while you are on certified sick leave is viewed with heavy suspicion by MOHRE and the courts.

5. Maternity, Parental, and Other Leave

Maternity leave (Article 30): 60 days in total — 45 days at full pay, 15 days at half pay. It can start before the delivery date. After returning to work, nursing mothers get two daily 30-minute breaks (or one combined hour) for the first 6 months. Firing a woman because of pregnancy or maternity leave is clearly unlawful.

Parental leave: 5 working days for each parent, to be used within 6 months of the child's birth. Fathers and mothers get this equally.

Bereavement leave: 5 days for the death of a spouse; 3 days for the death of a parent, child, sibling, grandchild, or grandparent.

Study leave: 10 working days per year for employees studying at approved institutions, after 2 years of service.

National service leave: UAE nationals called for military service get leave with defined pay protections.

6. Wages and the Wage Protection System (WPS)

Salaries must be paid through the Wage Protection System — an electronic transfer through MOHRE-approved banks and payroll companies. Cash or informal payments do not count as legal salary payment.

• Wages are due at least once a month, on the agreed payday
• Late WPS payment is one of the most common MOHRE violations. It can lead to fines and licence blocks against the employer
• Deductions from wages are limited: a maximum of 10% per month for most deductions, and total deductions cannot cross 50% of pay without special approval
• Your wage includes basic salary plus allowances (housing, transport, and so on) — but gratuity is calculated on basic pay only

Minimum wage: the law lets the Cabinet set one, and MOHRE watches market salary rates. But as of 2026, no universal private-sector minimum wage has been fixed — your contract rate governs.

7. Non-Compete Clauses: Enforceable but Limited

Article 10 allows non-compete clauses, but with strict limits:

• Maximum length: 2 years after the contract ends
• Must state the place, type of work, and scope — a blanket "you can't work in the UAE" clause cannot be enforced
• Must be needed to protect a real business interest
• Does not apply if the employer ends your contract in breach of the law

Courts regularly throw out vague or excessive non-competes. If your contract says you cannot work "anywhere in the GCC for 2 years," that clause is unlikely to survive a legal challenge.

8. Anti-Discrimination and Equal Pay

Article 4 bans discrimination based on race, colour, sex, religion, national origin, social origin, or disability. Article 13 gives women equal pay for work of equal value — a pay gap for the same role is unlawful, no matter what the contract says.

Harassment — including sexual harassment and bullying — is banned. Employers must keep the workplace safe. Complaints can go to MOHRE or, for serious cases, to the police and public prosecution.

9. End of Service: The Essentials

• Gratuity: 21 days' basic pay per year for years 1–5, 30 days per year after that; capped at 2 years' pay; nothing for under 1 year of service
• Notice: 30–90 days as per your contract, equal for both sides
• Settlement deadline: all dues within 14 days of the contract ending
• Arbitrary dismissal: pay of up to 3 months' wages
• Experience certificate: must be given on request

Our [UAE gratuity calculator](https://uaegratuitycalc.org/) applies the exact legal formula to your basic salary and service length.

Probation Period Rules

Probation can last up to 6 months from your joining date. During it:

• Either side can end the contract with 14 days' written notice
• The employer can dismiss without notice only if the employee fails to meet probation standards — and should write down the reason
• If you pass probation and stay on, the probation months count toward your total service for gratuity and leave
• An employee who resigns during probation to join another UAE employer must give 14 days' notice; in some cases set by MOHRE, the new employer must pay the old one back for hiring costs

No gratuity builds up for service under one year, so resigning at month 5 earns nothing. But those 5 months are not wasted if you stay and pass the one-year mark.

Free Zones vs Mainland: Which Law Applies

Decree-Law No. 33 of 2021 covers the mainland and most free zones — JAFZA, DMCC, DIFC's non-financial firms, and others apply it directly or through matching rules. Two major exceptions run their own job laws:

• DIFC: has its own Employment Law with the DEWS savings scheme instead of the normal gratuity — employers pay a percentage of salary each month into a regulated fund
• ADGM: uses a similar approach with its own employment rules

If you work in DIFC or ADGM, ask HR for your DEWS/savings statements — your end-of-service money builds up monthly, not as one lump sum at exit. For every other free zone, the mainland rules in this guide apply.

Public Holidays: Work and Pay Rules

The UAE Cabinet declares around 12–15 public holidays per year (New Year, Eid Al Fitr, Eid Al Adha, National Day, and others). The rules:

• Holidays are paid — your salary continues as normal
• If you must work on a holiday, you are owed either a substitute rest day or cash at 150% of your daily pay
• Holidays that fall during annual leave do not use up leave days — they are added back

Worked example: holiday work pay

Huda earns AED 8,000 basic and works two public holidays in a year, with no substitute days off:

• Daily pay: 8,000 ÷ 30 = AED 266.67
• Holiday extra: 2 × 266.67 × 1.5 = AED 800 owed on top of her normal salary

Remote Work and Flexible Arrangements

The 2021 law formally recognises remote and flexible work. If your contract lists you as remote:

• Working-hour and overtime rules still apply — "working from home" does not mean endless hours
• The employer must put availability expectations in writing, clearly
• You stay covered by WPS, leave, and end-of-service rules exactly the same

For flexible or part-time arrangements, the contract must state working days, hours, and the pay basis. Disputes usually come from vague contracts — insist on clear specifics before you sign.

Your Employment File: Documents to Keep

Keep a personal file (a digital one is fine) from day one:

• Signed labour contract and any changes to it
• Monthly pay slips and WPS transfer records
• Leave approvals and balances
• Performance reviews and any warnings
• Medical reports for sick leave
• Resignation or termination letters and messages

MOHRE cases are won on documents. The employees who recover their full dues are almost always the ones who kept records. The ones who "trusted HR" become the cautionary tales. Start the file on your first day, not when a dispute begins.

Wage Deductions: What's Allowed

Not every deduction is legal. Allowed deductions include:

• Notice pay owed by you (if you skipped notice when resigning)
• Written advances or loans you agreed to in writing
• Court-ordered deductions (for example, alimony enforcement)
• Disciplinary fines under a MOHRE-approved penalty schedule — and even these have caps

General caps: no more than 10% of monthly pay per deduction type in most cases, and total monthly deductions cannot cross 50% of your pay. An employer who deducts "damages" on its own — for a broken laptop, a client complaint, a missed target — without your written agreement or a court order is breaking the law. Challenge it through MOHRE, with your pay slips as proof.

Common Scenarios

Your employer delays salaries by 2 months. File a WPS complaint with MOHRE (800-60 or the app). Continued non-payment through WPS leads to fines, work-permit blocks, and possible licence suspension for the company.

You're asked to work 10-hour days regularly with no overtime. Standard hours are 8 per day. A regular 10-hour schedule means 2 overtime hours daily at 125%. That is roughly 44 extra hours a month. At AED 25/hour, that is AED 1,375/month your employer owes you. Write down your hours and raise it in writing.

Your contract is "renewed" with a pay cut. You are not forced to accept worse terms. If you refuse and the employer ends the job, that counts as termination — full notice, gratuity, and leave pay apply.

You're a woman paid less than a male colleague in the same role. Article 13 gives you an equal-pay claim. Gather proof (job descriptions, pay slips if you can access them) and file with MOHRE.

Your Rights and Remedies: The MOHRE Complaint Process

1. Write everything down. Contracts, pay slips, WPS records, emails, attendance logs, medical reports.
2. Raise it in writing with your employer first and set a deadline (7–14 days is reasonable).
3. File with MOHRE — call 800-60, use the MOHRE smart app, or visit Tasheel/Tadbeer. It is free.
4. MOHRE mediation — a labour officer tries to settle the matter between you and the employer.
5. Labour court — if mediation fails, the case is sent to court. Claims under AED 50,000 use a fast-track process.
6. Enforcement — court judgments can be enforced against the company and its owner.

Deadline: file within one year of the date your right became due.

Frequently Asked Questions

1. Is there a minimum wage in the UAE private sector in 2026?

The 2021 law allows the Cabinet to set one, but no universal private-sector minimum wage has been fixed as of 2026. Your contract pay governs. MOHRE does watch salary benchmarks by job type, and extremely low wages can draw scrutiny.

2. Can my employer make me work on a public holiday?

Yes, if the work needs it — but then you must get either a substitute rest day or cash pay of at least 150% of your pay for that day (a 50% premium on top of the day's pay). The choice between time off and cash should be agreed, not forced on you alone. If your employer regularly forces holiday work with no compensation at all, note the dates and raise it with MOHRE.

3. How is my hourly pay calculated for overtime?

Gross monthly pay ÷ 30 ÷ 8. Note this uses gross pay (basic + allowances), unlike gratuity which uses basic only. At AED 12,000 gross, your daytime overtime hour is 50 × 1.25 = AED 62.50.

4. Can I take all 30 annual leave days at once?

You can ask for it, but the final schedule is the employer's call based on work needs. They cannot, however, refuse leave entirely — you must be allowed to use it at least once every two years.

5. My employer says my role is "exempt" from overtime. Is that valid?

Only for groups MOHRE excuses by decision — usually senior management and supervisory roles with real authority. A "supervisor" title alone, without real managerial power, does not make the exemption valid. If in doubt, ask MOHRE.

6. What happens to my visa when I resign?

Your employer cancels your work permit after the final settlement. You usually get a grace period (up to 90 days, based on your classification) to find a new job or leave the country. Never let an employer hold your passport — that is illegal in all cases.

Know Your Number

The law only helps you if you can apply it to your own pay. Start with the figure most employees get wrong: run your basic salary and service dates through our free [UAE gratuity calculator](https://uaegratuitycalc.org/) and see exactly what the 2021 law says you are owed.