Employee Rights and Employer Obligations in the UAE: What You Need to Know in 2025

The United Arab Emirates offers a dynamic and diverse work environment, supported by a robust legal framework that outlines the rights of employees and the responsibilities of employers. Whether you’re a new expat, a seasoned professional, or planning to hire staff, it’s essential to understand how UAE Labour Law protects workers and regulates business relationships.

In this article, we’ll explore the key employee rights and employer obligations in the UAE, based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021) and its 2022 updates, helping you stay informed and compliant.

Employee Rights

UAE Labour Law: A Quick Overview

The Federal Decree-Law No. 33 of 2021 (effective from February 2022) governs employment relations in the private sector across all emirates, except free zones with their own rules (e.g., DIFC, ADGM).

The law aims to:

• Enhance employee rights

• Increase flexibility in work arrangements

• Promote equality, transparency, and dispute resolution

It applies to full-time, part-time, temporary, and freelance contracts.

Employee Rights in the UAE (2025)

1. Written Employment Contract

Every employee must be issued a clear, written contract that outlines:

• Job title and duties

• Salary and allowances

• Working hours and leave entitlements

• Notice periods

• Type and duration of the contract

All contracts must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).

2. Working Hours and Overtime

• Standard working hours: 8 hours/day, 48 hours/week

• During Ramadan: Reduced to 6 hours/day

• Overtime: Payable at 125%–150% of basic wage (depending on time of day or holiday)

Employees are entitled to at least one rest day per week, which may vary by company.

3. Annual Leave

Employees who have completed 12 months of service are entitled to 30 calendar days of paid annual leave.

• If service is less than 1 year: Leave is calculated pro-rata

• Leave is paid based on basic salary + allowances

• Unused leave must be paid out upon resignation or termination

4. Sick Leave

Employees are entitled to 90 days of sick leave per year (after 3 months of service):

• First 15 days: Full pay

• Next 30 days: Half pay

• Remaining 45 days: Unpaid

Sick leave must be supported by a medical report from an approved healthcare provider.

5. Maternity and Parental Leave

• Maternity leave: 60 days total (45 days fully paid + 15 days half paid)

• Additional unpaid leave: Up to 45 days (if complications arise)

• Parental leave: 5 paid days (for fathers or secondary caregivers)

6. Termination and Notice Periods

• Minimum notice period: 30 days (can extend up to 90 days if mutually agreed)

• Unlawful termination entitles employees to compensation (up to 3 months’ salary)

• End-of-service benefits (gratuity) must be paid upon resignation or termination

7. Gratuity and End-of-Service Benefits

Employees who complete at least one year of service are entitled to end-of-service gratuity:

• 21 days’ basic salary per year for the first 5 years

• 30 days’ basic salary per year thereafter

Calculated based on final basic salary, not including allowances.

8. Protection from Discrimination and Harassment

• The UAE Labour Law prohibits discrimination based on race, gender, religion, or nationality

• Sexual harassment, bullying, and physical abuse at the workplace are strictly prohibited

• Equal pay for equal work is mandated, especially for gender equality

9. Non-Compete and Confidentiality Clauses

Employers may include non-compete clauses for up to 2 years post-employment, but these must be:

• Reasonable in scope and location

• Relevant to the nature of work

• Clearly outlined in the employment contract

10. Legal Recourse and Complaints

Employees can file complaints via:

• MOHRE Smart Services portal or mobile app

• TASHEEL centers

• Labour courts (if no amicable resolution is found)

All disputes are handled with confidentiality and without penalty for raising concerns.

Employer Obligations in the UAE

Employers in the UAE have specific legal obligations under the labour law:

Obligation	Details
Employment contract	Must be clear, written, and registered with MOHRE
Salary payment	Pay on time via Wages Protection System (WPS)
Work permit and visa sponsorship	Responsible for sponsoring employees’ residence visas
Health insurance	Must provide medical insurance to all employees
Leave entitlements	Ensure employees receive legal leave allowances
End-of-service gratuity	Pay gratuity upon resignation or termination
Occupational safety	Maintain a safe and harassment-free work environment
Dispute resolution	Cooperate with MOHRE during conflict resolution

Employers who violate labour law may face fines, bans, or business suspension.

Employee Obligations in the UAE

Just as employers have legal duties toward their employees, workers are also expected to uphold certain professional and legal responsibilities while employed in the UAE. Fulfilling these obligations helps ensure a respectful, safe, and productive work environment.

Key Responsibilities of Employees:

Obligation	Details
Adhere to employment contract	Follow job duties, working hours, and terms as agreed
Maintain confidentiality	Respect non-disclosure or confidentiality clauses
Respect UAE laws and customs	Act in accordance with UAE legal, cultural, and workplace norms
Perform duties with honesty	Carry out tasks diligently and professionally
Follow health and safety protocols	Adhere to company policies and report unsafe conditions
Observe non-compete clauses	If applicable, avoid working for competitors during restricted periods
Notice before resignation	Provide adequate notice (30–90 days) before leaving the role
Avoid misuse of company resources	Use workplace tools, data, and assets responsibly

Violations of these obligations can lead to disciplinary action, termination, or even legal consequences in serious cases.

Free Zone vs. Mainland: Are There Differences?

Yes. Free zones (like DIFC, DMCC, or ADGM) may operate under independent employment laws, but they still align with core federal principles, especially around:

• Employment contracts

• Gratuity

• Leave entitlements

• Termination procedures

Always check with your free zone authority for specific policies.

Employee Rights for Different Work Types

Work Type	Rights Eligibility
Full-time	Full employment rights, including leave and gratuity
Part-time	Pro-rated rights based on hours worked
Temporary/Contract	Rights based on contract terms and UAE Labour Law
Freelance	No employment benefits unless specified in contract
Domestic Workers	Covered by Federal Law No. 10 of 2017

Final Thoughts

The UAE has made significant strides in building a fair, transparent, and competitive labour market. Whether you’re an employee or employer, understanding your rights and responsibilities helps you navigate the work environment with confidence.

From clear contracts and fair pay to maternity leave and end-of-service benefits, the UAE Labour Law provides a strong foundation for professional stability and growth.