Everything You Need to Know About Dubai Labour Law

Dubai has rapidly become a global business destination with companies from across the world looking to set up a business in the Emirate. Its success depends heavily on a skilled and diverse workforce. To protect both employers and employees, the UAE has introduced clear labour regulations under the Dubai labour law.

Whether you are a new entrepreneur or an expat employee, it is essential to understand how Dubai labour law works. Knowing your rights and duties under the Dubai employment law helps avoid disputes, ensure compliance, and support a healthy work environment.

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What is Dubai Labour Law?

The Dubai labour law is a set of legal rules that apply to private sector employment in Dubai and across the UAE. It is part of Federal Decree Law No. 33 of 2021, which came into effect in February 2022.

The Dubai work law applies to most employers and employees, while financial free zones like DIFC and ADGM follow a separate Dubai free zone labour law. One important change under this law is the mandatory use of fixed-term contracts for all private sector employment.

Key areas covered by the Dubai new labour rules include:

• Working hours
• Contract types
• Termination rules
• Leaves and holidays
• Dispute resolution mechanisms

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What are the Features of the Dubai Labour Law for Employees?

The Dubai labour law covers a wide range of important workplace aspects to ensure fair treatment and clear regulations for both employers and employees. Below is an overview of the key features of the Dubai employment law, which you should be aware of:

Categories under the Dubai New Labour Law	Details of the Dubai Employment Rules
Working Hours	8 hours per day or 48 hours per week. ( 9 hours per day permitted in certain sectors (e.g., trade, hotels, restaurants). Working hours are reduced by 2 hours during Ramadan for all employees.
Overtime Pay	Additional pay required; higher rates may apply for night work or holidays. Overtime must be paid at 125 percent of the normal rate on regular days, and 150 percent on holidays or night shifts. Allowed up to 2 hours per day, with additional pay (basic wage + 25% at least, 50% for night shifts, 50 - 100% for Fridays/public holidays, depending on rest day arrangements).
Annual Leave	Dubai labour law annual leaves include 30 days of paid leave after 1 year of service 2 days/month accrual for 6 - 12 months of service ( Between 6 months and 1 year of service: 2 days of paid leave per month.)
Study Leave	Employees with more than two years of service are entitled to up to 10 calendar days of exam leave per year, provided they are enrolled in an approved educational institution in the UAE.
Sick Leave	Max 90 days per year. The first 15 days are paid at full pay, the next 30 days are paid at half pay, and the rest 45 days are unpaid.
Maternity Leave	60 days: 45 full pay + 15 half pay Optional unpaid leave beyond that
Paternity Leave	5 paid days within the first 6 months after the child’s birth.
Probation and Notice Period	The Dubai labour law probation period is set at a maximum of 6 months. Employer must give 14 days’ notice An employee must give 1 month's notice if changing jobs.
Contract Termination	The Dubai labour law for termination states that 30 - 90 days’ notice is required (based on the contract). According to the Dubai labour law, termination of a contract must have a valid reason and follow the proper legal steps. Arbitrary dismissal can lead to compensation claims, which are up to 3 months' gross salary For both resignation and termination, final settlements and end-of-service benefits must be handled according to the law.
Gratuity Pay	For service up to 5 years: 21 days’ basic salary for each year worked For service beyond 5 years: 30 days’ basic salary for each additional year Total gratuity pay is capped at a maximum of two years’ salary
Discrimination & Harassment	Harassment and bullying are strictly prohibited on the basis of race, gender, religion, disability, or any other protected characteristic.
Resignation	As per Dubai labour law for resignation, employees must give notice, typically between 30 and 90 days, depending on the terms outlined in their employment contract. Early resignation during probation requires: 14 days' notice if leaving the UAE.  One month if they are joining another employer within the UAE
Termination	Both the employer and employee may terminate the contract for a legitimate reason by giving written notice. Notice period: Minimum 30 days, maximum 90 days (as per employment contract) Termination Without Notice (Summary Dismissal): The employer can terminate immediately without notice if the employee commits misconduct

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Who Does the Dubai Labour Law Apply To?

The Dubai labour code applies to:

• All private sector employees (UAE nationals and expats)
• Mainland and most Dubai free zones

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What Is a Fixed-Term Contract in Dubai?

A fixed-term contract is a written agreement under the Dubai new rules for labour, which is between an employer and an employee that clearly defines the start and end dates of employment. It also outlines key terms such as job responsibilities, salary, working hours, and benefits.

Two copies of the labour contract in Dubai must be drafted, one for the employer and one for the employee. The Dubai work law states that employment contracts must be written in both Arabic and a language understood by the employee if they do not speak Arabic. If there is any difference between the two versions, the Arabic version will be considered correct.

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What Does the Fixed Term Contract in Dubai Consist Of?

According to the Dubai labour law, the fixed-term contract specifies the job title and main responsibilities, outlines the salary structure, and details working hours, leave entitlements, and other benefits. The maximum duration of this contract is three years, but it can be renewed or revised if both parties mutually agree.

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Why Are Only Fixed-Term Contracts Allowed Under the Dubai Labour Law?

The Dubai labour law mandates that all private sector employees must be hired on fixed-term contracts. This rule came into effect in February 2022, replacing the previous system of indefinite contracts.

The law aims to improve labour law compliance in the UAE, ensure clarity in employment terms, and support a more organised labour market.

By introducing fixed durations, the Dubai labour rules help reduce legal disputes and offer a clear framework for employment relationships. It also ensures that employees are aware of their rights and obligations from the start.

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What are the Benefits of Dubai Fixed-Term Contracts?

Fixed-term contracts offer several advantages for both employers and employees by establishing clear terms and promoting a fair and efficient working relationship. Let us have a look at the benefits of the contract under the Dubai labour law:

• The contract provides clear and transparent terms for both employers and employees, ensuring mutual understanding from the start.
• Reduces the risk of legal disputes related to contract duration, termination, and employment conditions.
• Enhances protection of employee rights in Dubai by clearly defining obligations and benefits.
• The Dubai employment rules simplify HR processes, making recruitment, contract renewal, and termination more efficient for employers.
• Supports the UAE’s economic reforms by promoting a modern, structured, and compliant labour market.
• Encourages fair treatment by setting clear expectations for job roles, salary, and working hours.
• The Dubai new rules for employees help businesses manage workforce planning effectively with fixed contract durations.
• Facilitates better record-keeping and auditing, improving overall corporate governance.

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How to Handle Dispute Resolution and Employee Rights in Dubai?

Employees facing workplace disputes, such as wrongful termination, unpaid wages, or contractual breaches, may initiate a formal complaint through the Ministry of Human Resources and Emiratisation (MoHRE).

MoHRE offers multiple channels for filing complaints, including dedicated service centers, a mobile application, and online portals. For employment-related claims under AED 100,000, employees are exempt from litigation fees.

Statutory Limitation: Legal claims must be initiated within one year from the date of the alleged violation.

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How Can Commitbiz Help?

At Commitbiz, we assist businesses in understanding and complying with the latest updates to the Dubai labour law, including the mandatory shift to fixed-term contracts. Our team provides expert support in drafting employment contracts and ensuring legal compliance.

We also help businesses navigate MoHRE requirements, manage employee documentation, and stay updated on evolving compliance standards. In addition to labour law support, we offer a wide range of post-incorporation services such as PRO services, visa services, payroll setup, and ongoing government liaison support.

These services are designed to help your business run smoothly after setup, so you can focus on growth while we handle the legal and administrative details. Contact us today for more information about the Dubai labour law.

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