UAE Labour Law 2025: Essential Updates Every Employee Must Know

The United Arab Emirates has introduced groundbreaking amendments to its labour legislation in 2025, establishing a new standard for employee rights and workplace practices. Whether you're an expatriate professional, local employee, or business owner, understanding these changes is crucial for navigating your career and ensuring compliance with the latest regulations.

Understanding the New UAE Labour Framework

The updated labour law, governed by Federal Decree-Law No. 33 of 2021 and further amended by Federal Decree-Law No. 9 of 2024, came into full effect on August 31, 2024. This comprehensive reform modernizes employment standards, balances employer-employee relationships, and positions the UAE as a leading global destination for talent.

Game-Changing Provisions in the 2025 Labour Law

Salary Continuation During Employment Disputes

One of the most significant protections introduced is the mandatory salary continuation for up to 2 months during employment disputes. This provision ensures financial stability for employees while disputes are being resolved through the Ministry of Human Resources and Emiratisation (MOHRE). If parties cannot reach a settlement within 14 days, MOHRE can escalate the matter to competent courts.

Enhanced Probation Period Regulations

The new law introduces stricter probation period guidelines. Employers must now provide a minimum 14-day notice period before terminating an employee during probation. If an employee resigns to join another UAE employer during probation, they must provide 30 days' notice, and the former employer can claim recruitment costs from the new employer.

Revolutionary Flexible Work Arrangements

The UAE has officially embraced the future of work by recognizing multiple employment models including full-time, part-time, temporary, flexible, remote work, and job-sharing arrangements. This flexibility allows employees to negotiate work schedules that promote better work-life balance while maintaining competitive productivity standards.

Working Hours and Overtime Standards

The standard working week is capped at 48 hours (8 hours per day), with special provisions during Ramadan reducing daily hours to 6. Employees are entitled to at least one rest day per week, typically Friday. Overtime is limited to 2 hours daily with compensation at:

• +25% for regular overtime hours
• +50% for night shifts (10 PM to 4 AM)
• +50% or substitute rest day for public holiday work

Comprehensive Leave Entitlements

Sick Leave Provisions

Employees are entitled to 90 days of sick leave annually, structured as follows: the first 15 days at full pay, the next 30 days at half pay, and subsequent days unpaid. A medical certificate must be submitted within 48 hours to validate the leave.

Maternity and Paternity Benefits

Female employees now receive 60 days of maternity leave (45 days full pay, 15 days half pay), with an additional 60 days (30 paid, 30 unpaid) if the newborn has special needs. Male employees are granted 5 days of paid paternity leave within six months of childbirth.

Study Leave for Professional Development

Employees with two years of service are entitled to 10 days of study leave annually when enrolled in accredited UAE institutions, promoting continuous learning and skill enhancement.

Workplace Protection and Anti-Discrimination Measures

The 2025 amendments establish robust protections against discrimination and harassment. Employers must maintain zero-tolerance policies for discrimination based on race, color, sex, religion, nationality, or disability. Violations can result in fines up to AED 1,000,000, with harassment cases potentially leading to imprisonment and penalties starting at AED 10,000.

Termination and End-of-Service Gratuity

Notice periods now range from 30 to 90 days based on service duration, with unlawful termination compensation up to three months' salary. End-of-service gratuity is calculated at 21 days' salary for the first five years and 30 days for each subsequent year, capped at two years' total salary.

Mandatory Unemployment Insurance

A revolutionary addition is the unemployment insurance scheme, providing financial support (60% of salary for up to 3 months) to employees who lose their jobs involuntarily. Monthly premiums are AED 5 for salaries below AED 16,000 and AED 10 for higher earners.

Frequently Asked Questions

What is the maximum probation period in UAE 2025?

The maximum probation period is 6 months, with mandatory 14-day notice required for termination during this period.

How is end-of-service gratuity calculated?

Employees receive 21 days' basic salary for each of the first five years of service and 30 days' salary for each additional year, with a maximum cap of two years' total salary.

Are unlimited contracts still valid in UAE?

No, unlimited contracts have been abolished. All employment agreements must be fixed-term contracts with a maximum duration of 3 years, renewable by mutual agreement.

What are the maternity leave entitlements in 2025?

Female employees receive 60 days of maternity leave: 45 days at full pay and 15 days at half pay. An additional 60 days (30 paid, 30 unpaid) is granted if the newborn has special needs.

Can employers enforce non-compete clauses?

Non-compete clauses must be reasonable in scope, duration, and geographic area. They become unenforceable if the employer unlawfully terminates the employee or if the employee is dismissed during probation.

Key Takeaways for 2025

The UAE Labour Law 2025 represents a transformative shift toward employee protection, workplace flexibility, and international standards alignment. These amendments create a more balanced employment ecosystem that benefits both employers seeking talent retention and employees seeking career security. Staying informed about these changes is essential for all stakeholders in the UAE labor market.

Pro Tip: Always ensure your employment contract reflects the latest 2025 amendments. Consult with MOHRE or qualified legal professionals if you have questions about your rights and obligations under the new law.