UAE Labour Law 2026: A Complete Guide for Employees

Most UAE employees are unaware of their rights. It pays to know the rules around your contract, notice period, annual leave, and gratuity — because UAE law gives employees strong protection.

This is a complete guide to what you need to know as a private-sector employee in 2026.

Understanding the employment law: Federal Decree-Law No. 33 of 2021

Most private-sector employees in the UAE are covered by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. This law replaced the old UAE Labour Law (Federal Law No. 8 of 1980) and came into effect on 2 February 2022. The detailed rules are set out in Cabinet Resolution No. 1 of 2022, which explains how the law applies in real work situations.

The main government authority for labour matters is MOHRE, the Ministry of Human Resources and Emiratisation, which is responsible for checking that employers follow the law. The law covers many important employment matters:

Employment contracts in the UAE

From February 2023, all UAE private-sector employees work under a limited contract, also called a fixed-term contract. Unlimited contracts are no longer used, and any old unlimited contract had to be converted to a limited contract by February 2023.

Working hours

Your normal working time should not exceed 8 hours a day or 48 hours a week, unless your job falls under an exception allowed by law. If you work extra hours, you are entitled to overtime pay.

Annual leave

Annual leave is your paid holiday from work. The number of days depends on how long you have worked for the company, or what your contract states. After one year of service, you are entitled to 30 calendar days of paid annual leave every year. Leave also continues to build up during your notice period, so any unused leave must be paid out in your final settlement.

Sick leave

After your probation period, you can take up to 90 days of sick leave in a year — some paid, some half-paid, and some unpaid. You may need to provide a medical certificate to support your sick leave.

Other leave types

The law also provides leave for specific situations. For maternity leave, the first 45 days are paid at full salary and the next 15 days at half salary.

End-of-service gratuity: the formula

Gratuity is one of the most important employee benefits in the UAE — the amount your employer pays when your job ends, provided you have completed at least one year of continuous service. It is calculated on your basic salary only, and does not include housing, transport, commission, bonus, or any other allowance. The formula is based on Article 51 of the UAE Labour Law.

You can run your own numbers in seconds with our UAE Gratuity Calculator.

Termination and notice period

Your job can end in different ways — you may resign, or your employer may terminate your contract. In most cases a notice period is required. Your exact notice period is usually written in your contract, but the law says it must be between 30 and 90 days.

Termination without notice

In some serious cases, an employer can terminate an employee without notice. These are listed under Article 44 of the UAE Labour Law and include:

• Fraud, impersonation, or false documents.
• Physical assault on a colleague, supervisor, or employer.
• Repeated intoxication at work.
• Disclosure of confidential business information.
• Theft or intentional damage to company property.
• Unauthorised absence for 7 or more consecutive days, or 20 days in a year.
• Violation of safety rules causing serious harm.

Even so, the employer must follow the proper process. In most cases they must carry out a written investigation before dismissing the employee, and if the issue involves serious loss or damage they must inform MOHRE within 7 working days.

Unfair dismissal

Unfair dismissal — also called arbitrary dismissal — happens when an employer terminates an employee without a valid legal reason. If the dismissal is unfair, the employee may receive compensation of up to 3 months’ basic salary. This compensation is separate from other payments, such as:

• Notice period pay.
• End-of-service gratuity.
• Unpaid salary.
• Unused annual leave payment.

Salary payments and WPS

Every UAE employer must pay salaries through the Wage Protection System (WPS), an electronic salary payment system that helps MOHRE check whether employers are paying on time. If an employer delays salary payments, MOHRE can take action. Keep your salary records, payslips, bank statements, and employment documents safe.

Final settlement

When your employment ends, your employer must pay your final settlement. Under Article 53, it should be paid within 14 calendar days of your last working day. Your final settlement may include:

• Unpaid salary.
• End-of-service gratuity.
• Payment for unused annual leave.
• Notice period pay, if applicable.
• Any other amount stated in your contract.

If your employer does not pay on time, you can file a complaint with MOHRE. Employers who delay final settlements may face complaints, labour court cases, and fines.

How to file a MOHRE complaint

If your employer does not follow the law, you can file a complaint with MOHRE through any of these channels:

• The MOHRE website.
• The MOHRE Smart App.
• The MOHRE call centre at 800-60.

After you file, MOHRE will contact your employer and try to resolve the issue. If it cannot be solved, the case may be sent to the Labour Court. Before filing, keep these documents ready:

• Employment contract.
• Salary slips.
• Bank statements.
• Emails or WhatsApp messages with your employer.
• Termination letter, if any.
• Resignation letter, if any.
• Any other proof related to your complaint — good records make your case stronger.

Some important legal references