The UAE Labour Law 2026 is a crucial piece of legislation to be familiar with, whether you are a new employee, negotiating a contract, or simply looking up your rights as an employee in the UAE. The Regulation of Employment Relationships (governing the private sector) was brought into full effect on 2 February, 2022, and implemented by the Ministry of Human Resources and Emiratisation (MOHRE) as amended by Federal Decree-Law No. 20 of 2023 and Federal Decree-Law No. 9 of 2024.
This Guide provides employers and employees with everything they need to know about employment contracts, hours worked, leave entitlement, calculation of gratuity, termination of employment, and the most important changes for the year in all of these areas.
Quick Facts: UAE Labour Law 2026
| Metric | Details |
|---|---|
| Governing law | Federal Decree-Law No. 33 of 2021 (as amended 2023, 2024) |
| Enforcing authority | Ministry of Human Resources and Emiratisation (MOHRE) |
| Contract type | Fixed-term contracts only — unlimited contracts abolished |
| Standard working week | 48 hours (8-hour workdays) |
| Annual leave | 30 calendar days/year after 1 year of service |
| Sick leave | Up to 90 days/year (15 full pay, 30 half pay, 45 unpaid) |
| Maternity leave | 60 days (45 full pay + 15 half pay) |
| Maximum probation period | 6 months |
| Minimum notice period | 30 calendar days (Article 43) |
| Gratuity basis | 21–30 days’ pay per year of service (basic salary) |
| Emirati private-sector minimum wage | AED 6,000/month (effective Jan 2026) |
| Non-compliance penalties | Up to AED 1 million per violation |
Who Does UAE Labour Law Apply To?
UAE Labour Law applies to all employees in the UAE (excluding government service employees) whose contract is registered by MOHRE and both the employer and employee have their citizenship, residence, employment, nationality, and registration with MOHRE in either the UAE or the state where the employer is registered. It applies to people who have not been employed by the government (public sector), or to domestic workers who are also subject to a separate Federal Law No. 9 of 2022 on domestic workers, but these workers have their own rights and entitlements, including provision of accommodation, meals, and a return air ticket twice in two years.
Normally, the employment law that governs the free zone worker law differs from that of the mainland UAE on specific aspects, while the basic principles remain very similar to the regulations of the respective free zone authority (DIFC, ADGM).
Employment Contracts: Fixed-Term Is Now Mandatory
The abolition of unlimited-term contracts was one of the most important changes brought about by the 2021 Law. Maximum duration for employment has been removed from private sector contracts in the UAE. As of 2022, all contracts in the private sector must include a defined duration period.
All UAE contracts of employment should include the following:
- The name of the profession, its description, and the location of the job
- Basic salary + allowances
- Please note that working hours and work model (full-time/part-time, flexible, remote) are part of the job description and are covered by the contract.
- Please note that if applicable,e there is a probation period, usually for no more than 6 months.
All contracts must be written in Arabic (simultaneous translations are acceptable), and they must be registered with MOHRE electronically. Digital contracts are being actively encouraged for greater transparency and easy recall to look back upon.
Probation Period Rules
The maximum period of probation is 6 months under Article 9. If the employer desires to end the probation period while a person is under probation, they must provide written notification to the person 14 days before the end of the probation period. In the event the employee desires to leave and cease employment with the employer in order to seek employment with another employer within the UAE, the employer is required to provide 30 days’ notice. Employers are not required to grant paid annual leave or sickness benefits to the employee during the probation period only.
Working Hours and Overtime
The standard working week is 48 hours (normally 8 hours per day), and the legislation has recently introduced the concept of flexible and remote working. Overtime pay must be provided where employees work those hours as per the contractual requirement, and employers must make sure they are scheduled fairly and always provide suitable overtime working rest periods (this includes those employees in flexible work situations).
Leave Entitlements Under UAE Labour Law 2026
Annual Leave
Staff work for 12 consecutive months and are entitled to 30 calendar days of paid annual leave per year. Employees with one year to six months of service shall be given a minimum of five working days of paid leave pro rata. Leave must be arranged, at least one month ahead, by the employee, er and if the leave is not taken when the employee’s employment ceases,,ses then the leave is paid out as compensation.
An important rule to remember about annual leave: it is unsuitable for employees to work for another employer during their annual leave period. It can appropriately end the employment relationship without warning if violated.
Sick Leave
Employees can take up to 90 days of sick leave per year, structured as:
| Period | Pay |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Final 45 days | Unpaid |
Employees should inform their employer within 3 days of falling sick and provide them with a valid medical certificate from an authorised medical institution in the UAE. No Sick leave is paid during the Period of Probation.
Maternity and Paternity Leave
Working mothers can avail of a 60-day maternity leave – 45 days of it are paid at a full rate, the latter 15 days are paid at 50%. The 2026 changes have also clarified and added to the framework of paternity and parental leave, as well as added leave opportunities for childcare and broader, more structured opportunities for study leave; all of this represents more family-centred policies in the workplace.
End-of-Service Gratuity: How It’s Calculated
Anyone who has served for more than one year is eligible for gratuity. As of 2026, MOHRE has taken action against employers who calculate salaries to reduce the amount of gratuity pay, for instance, by increasing Allowances and decreasing the basic salary significantly.
| Years of Service | Gratuity Calculation |
|---|---|
| 1–5 years | 21 days’ basic pay per year of service |
| More than 5 years | 30 days’ basic pay per year (for years beyond the 5th) |
| Maximum cap | Total gratuity capped at 2 years’ total wage |
Now, the employees have a formal means to question this structure on the online dispute resolution platform of MOHRE. Recently, the term “wage” for the purpose of calculating gratuity was also expanded a bit to allow certain regular allowances that previously were not included.
Termination Rules and Notice Periods
Article 43: The minimum notice period is 30 calendar days (contracts can have shorter or longer periods, frequently agreed to in the contract). The employer needs to give timely and appropriate notice, and ensure there is a valid and legitimate reason to end the contract of employment; if there is no valid reason, the termination can be seen as an arbitrary dismissal.
It has also enhanced the calculation of an arbitrary dismissal compensation, giving unfairly terminated employees up to 3 months’ full salary in compensation, in addition to what they have earned in terms of gratuity.
Wage Protection and Payroll Compliance
The UAE private sector salary processing system (WPS) is an MOHRE-monitored system for processing salaries. All Employers from the private sector are required to use the Wage Protection System (WPS). As of the 1st of each month from the 1st of June 2026, all companies shall comply with Ministerial Resolution No. 340 of 2026, and it presumes that all payments shall be processed, in respect of WPS. Electronic warnings start on the second day of a salary’s delay by the MOHRE, and on the fifth day, there will be no new services for working permits for that employer. If 85% or more of the payroll is processed on time, this is technically compliant.
Key UAE Labour Law Changes for 2026
| Area | 2026 Update |
|---|---|
| Digital working hours records | Employers must maintain digital time records, available for inspection within 24 hours |
| Arbitrary dismissal compensation | Increased up to 3 months’ full wage |
| Probation termination notice | 14 days’ written notice is now required (previously less defined) |
| Gratuity wage definition | Expanded to include certain previously excluded allowances |
| WPS payment deadline | Must process by the 1st of each month from June 2026 |
| Labour claim limitation period | Extended, giving employees more time to file disputes |
| Compliance penalties | Fines increased to up to AED 1 million per violation |
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Final Thoughts
When compared to the previous UAE Labour Law of 1983, it is possible to see a clear trend towards a more structured set of laws, increased employee protections, and greater requirements for employers to comply. It’s not just a matter of staying legally compliant with the WPS, contract registration, and digital documentation requirements, but it’s also a must for employee leave, gratuity, and termination rights.
Make sure to always have a copy of your employment contract, salary certificate, and pay slips; these are all necessary in the event of a dispute. Official up-to-date guidance goes to MOHRE, which is responsible for registration, dispute resolution, nd compliance enforcement in the UAE: mohre.gov.ae.
Frequently Asked Questions (FAQs)
1. What is the current UAE Labour Law in 2026?
Federal Decree-Law No. 33 of 2021 (amended in 2023 and 2024) on the Rights of Workers in the Private Sector in the United Arab Emirates (UAE).
2. How much annual leave do UAE employees get?
Leave on a 1-year service basis = 30 calendar days per year (before = pro rata).
3. How is gratuity calculated in the UAE?
Based on basic salary: 21 days per year for the first 5 years and 30 days per year thereafter, up to 2 years’ amount of basic salary.
4. What is the notice period for resignation in the UAE?
At least 30 calendar days (or as otherwise provided in the contract).
5. Can an employer fire an employee without notice in the UAE?
In instances of severe misconduct outlined under the law, otherwise, it could be deemed an arbitrary dismissal.
6. How many sick leave days are UAE employees entitled to?
Up to 90 days/year: 15 full pay, 30 half pay, 45 unpaid.
7. Does the UAE Labour Law apply to free zone employees?
Not necessarily, many free zones (such as DIFC, ADGM) have employment laws of their own.
8. What is the maximum probation period in the UAE?
If the employer is willing to terminate during this period, it will be done with at least 14 days’ notice, or else 6 months’ notice.
9. Is gratuity paid if I resign before one year?
No — need a year or longer of continuous service to be eligible for gratuity.
10. What is the maternity leave duration in the UAE?
Sixty days total (45 paid, 15 half pay).
