Summary
Dubai private-sector employment is primarily governed by UAE Federal Decree-Law No. 33 of 2021 and its amendments. Employees generally work up to 8 hours per day or 48 hours per week, fixed-term contracts are required, probation cannot exceed six months, normal notice periods range from 30 to 90 days, and expatriate gratuity is calculated using basic salary. Important 2026 updates include an AED 6,000 minimum monthly wage for Emiratis in the private sector and updated Wage Protection System rules. DIFC follows a separate employment-law framework.
Employment and labour law affects almost every company operating in Dubai, from the way an employment contract is written to how salaries, overtime, leave, termination and end-of-service benefits are handled.
For employers, mistakes can lead to labour complaints, work-permit restrictions, financial liabilities and employee disputes. For workers, understanding the rules helps clarify what is actually guaranteed by law and what depends on the employment contract.
This guide explains the current Dubai labour-law framework, including probation, salary structure, working hours, overtime, annual and sick leave, maternity and parental leave, notice periods, dismissal, gratuity, WPS, labour complaints and Emiratisation.
For companies still establishing their operations, our business setup in Dubai resources cover the company-formation side separately.
Which Labour Law Applies in Dubai?
Most private-sector employment in Dubai is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, commonly referred to as the UAE Labour Law, together with its Executive Regulations and subsequent amendments.
The law has applied since February 2022 and replaced the earlier Federal Law No. 8 of 1980.
The Ministry of Human Resources and Emiratisation regulates most private-sector employment relationships falling within the federal framework, including employment contracts, wages, work permits, labour complaints and many workforce-compliance requirements.
However, not every employee working geographically in Dubai follows exactly the same framework.
| Workplace or Employee Category | Main Employment Framework |
|---|---|
| Dubai mainland private sector | UAE Federal Labour Law |
| Most Dubai free zones | UAE Federal Labour Law plus free-zone administrative procedures |
| Dubai International Financial Centre | Separate DIFC Employment Law |
| Domestic workers | Separate federal domestic-worker legislation |
| Dubai government employees | Applicable Dubai government HR legislation |
| Federal government employees | Federal government human-resources legislation |
The most important exception for a Dubai-focused article is DIFC. Companies and employees inside the Dubai International Financial Centre should refer to the DIFC employment-law framework rather than assuming every federal private-sector rule applies in exactly the same way.
Employment Contracts in Dubai
Private-sector employment contracts under the federal framework are now fixed-term contracts. An employment contract can generally run for a fixed period of up to three years and may be extended or renewed by agreement between the employer and employee.
This means businesses should no longer structure new private-sector employment around the old distinction between limited and unlimited contracts. The employment contract should clearly state matters such as the employee’s job, workplace, start date, salary, contract duration and relevant terms and conditions.
MOHRE employment documents are generally issued in Arabic and English, with approved additional language options available in qualifying cases. Companies should make sure the final employment contract reflects the job offer accepted by the employee. For more detail on employment documentation, see our UAE labour contract guide.
Types of Work Arrangements Allowed
The modern UAE Labour Law is more flexible than the old framework. Private-sector work can be structured through models including full-time, part-time, temporary, flexible, remote and job-sharing arrangements. The employment model affects issues such as working hours and, in some cases, how end-of-service benefits are calculated. A business should therefore choose the work pattern that reflects how the employee will actually work rather than using a standard full-time template for every role.
Probation Period Under UAE Labour Law
Probation is one of the most frequently misunderstood areas of Dubai employment law. The probation period cannot exceed six months, and an employee cannot simply be placed on another new probation period with the same employer after completing it. If the employee continues working after probation, the probationary period forms part of the employee’s service.
Employer Termination During Probation
If the employer wants to terminate employment during probation, the employee must generally receive at least 14 days’ written notice.
Employee Changing Employers During Probation
If an employee wants to leave during probation to join another UAE employer, the employee generally needs to provide at least one month’s written notice. Recruitment-cost compensation rules can also apply between the new and previous employers unless otherwise agreed.
Employee Leaving the UAE During Probation
If an employee resigns during probation specifically to leave the UAE, at least 14 days’ written notice is generally required. Probation rules therefore should not be confused with the normal 30-to-90-day notice rules that apply after probation.
Basic Salary Percentage in UAE Labour Law
UAE Labour Law does not require basic salary to equal a fixed percentage of the employee’s total salary. There is no general rule requiring basic salary to be exactly 50%, 60% or any other universal percentage of gross pay. An employee’s salary may consist of:
Basic wage + contractual allowances = total wage
Allowances can include housing, transport or other contractual benefits.The distinction matters because several employment entitlements use the basic wage rather than total gross salary.
For example, end-of-service gratuity is calculated using the employee’s last basic salary. Eligible overtime calculations also use basic wage as the calculation base. Cash compensation for unused annual leave when employment ends is also calculated with reference to basic wage. Employers should therefore avoid treating the basic-salary figure as an insignificant payroll detail. Employees should also understand the basic-versus-allowance split before signing an employment contract.
Working Hours in Dubai
Normal working hours for most private-sector employees are:
8 hours per day or 48 hours per week.
Certain sectors or categories of workers can be subject to different arrangements under the Executive Regulations.During Ramadan, normal private-sector working hours are reduced by two hours per day. This reduction is part of the private-sector working-hours framework rather than simply being an informal company benefit.
Rest Breaks During the Working Day
Employees generally should not work for more than five consecutive hours without receiving one or more breaks. The total break time should be at least one hour. These rest periods are normally not counted as working hours. Different arrangements can apply to shift operations or particular categories of work where the nature of the job requires a different structure.
Overtime Rules in Dubai
An employer may require overtime within the limits allowed by law. Ordinary overtime should generally not exceed two hours per day, except where legally permitted exceptions apply. The overall working-time framework also limits total working hours to 144 hours over three weeks.
Normal Overtime Rate
Where an employee works beyond normal hours and qualifies for overtime, the employee receives the ordinary wage for those hours based on the basic wage plus an additional amount of at least 25% of the basic hourly wage.
In simplified terms:
Overtime = normal basic hourly wage + at least 25%
Night Overtime
Where qualifying overtime is performed between 10 PM and 4 AM, the employee generally receives the ordinary overtime wage based on basic salary plus an additional amount of at least 50%. The night-overtime rule does not apply in the same way to employees working under qualifying shift arrangements.
Working on a Weekly Rest Day
If an employee is required to work on the weekly rest day specified in the contract or company regulations, the employer should provide either another rest day or the applicable pay for the day plus an additional amount of at least 50% of the basic wage for that day.
This is why it is inaccurate to describe every Friday as automatically attracting a particular overtime rate. The legally relevant issue is the employee’s designated rest day.
For detailed formulas and examples, see our guide on how to calculate overtime in the UAE.
Public Holiday Pay
Private-sector employees are entitled to paid leave on official UAE public holidays. If an employee is required to work during an official holiday, the employee should generally receive either a substitute rest day or the applicable wage for that day plus an additional amount of at least 50% of the basic wage.
Companies should distinguish public-holiday compensation from ordinary overtime rather than applying one payroll formula to every extra hour worked.
Annual Leave Entitlement
Employees who have completed at least one year of service are generally entitled to 30 days of paid annual leave. Where service exceeds six months but is less than one year, the employee is generally entitled to two days of annual leave for each month of service. Part-time employees receive annual leave based on their working arrangements and applicable rules.
Employees should ordinarily use annual leave during the year in which it becomes due, although carry-forward and cash-compensation rules can apply in accordance with the law and company policies.
If employment ends before accrued annual leave is used, the employee is generally entitled to payment for unused entitlement, calculated according to the applicable basic-wage rules.
Sick Leave in Dubai
After completing probation, an employee can be entitled to up to 90 days of sick leave per year of service, whether continuous or intermittent.
The statutory structure is:
| Sick Leave Period | Pay |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Remaining 45 days | Unpaid |
An employee is not automatically entitled to paid sick leave during probation. However, an employer may grant unpaid sick leave during probation based on a medical report from a recognised medical authority.
Maternity Leave
A female private-sector employee is entitled to 60 days of maternity leave.
The standard payment structure is:
| Period | Maternity Pay |
|---|---|
| First 45 days | Full pay |
| Following 15 days | Half pay |
Additional protections can apply.
Where an employee cannot return to work because of illness resulting from pregnancy or childbirth, an additional period of up to 45 days without pay may be available subject to the required medical evidence. If the child is sick or has a disability requiring the mother’s accompaniment, an additional 30 days of fully paid leave can be available, with the possibility of a further 30 days without pay where the conditions are met. After returning to work, nursing breaks can also apply for six months following delivery, subject to the statutory conditions.
Parental Leave
The UAE uses the broader concept of parental leave, not simply paternity leave. Both the mother and father can be entitled to five paid working days of parental leave. The leave can be taken from the child’s birth until six months after the birth. This is separate from maternity leave.
Bereavement Leave
Private-sector employees can receive paid bereavement leave. A worker is generally entitled to five days following the death of a spouse and three days following the death of a parent, child, sibling, grandchild or grandparent. The entitlement begins from the date of death.
Study Leave
An employee studying at an accredited UAE educational institution can be entitled to 10 paid working days of study leave per year to sit examinations, provided the employee has completed at least two years of service with the employer.
This entitlement is often omitted from general Dubai labour-law guides but can be important for employees combining work and education.
Minimum Wage in Dubai in 2026
The UAE Labour Law does not establish one universal statutory minimum salary applying identically to every expatriate private-sector worker. Salary is generally determined through the employment relationship, subject to applicable laws and regulatory requirements.
However, there is an important 2026 development for Emirati employees. From 1 January 2026, MOHRE set a minimum monthly wage of AED 6,000 for UAE nationals working in the private sector.
This means content that simply says “the UAE has no minimum wage” is now incomplete. For more background, see our UAE minimum wage guide.
Wage Protection System Rules in 2026
The Wage Protection System, commonly called WPS, allows MOHRE to monitor whether qualifying private-sector establishments pay employee wages properly and on time.
Ministerial Resolution No. 340 of 2026 introduced the current WPS framework. Establishments registered with MOHRE are generally required to pay employees through WPS on the applicable due dates, subject to specific statutory exclusions. WPS transfers are processed through approved banks, exchange houses and financial institutions.
Failure to comply with wage-payment requirements can result in administrative consequences, including restrictions affecting Ministry services and work permits. Employers should therefore ensure that the salary shown in the employment contract, payroll file and WPS payment record remain consistent. Employees with unpaid or delayed salaries can contact MOHRE or submit a wage complaint.
Notice Period in Dubai: 30 to 90 Days
After probation, an employment contract can generally be terminated by either party for a legitimate reason subject to written notice. The contractual notice period must normally be:
not less than 30 days and not more than 90 days.
During the notice period, the employment relationship continues and the worker remains entitled to full wage. If either party fails to serve the required notice, notice-period compensation can become payable to the other party. The notice period may be reduced or waived by mutual agreement where this does not improperly affect statutory rights.
When the employer terminates the contract, the employee is also entitled to one unpaid day per week during the notice period to look for another job, subject to the required advance notice to the employer.
Can an Employer Dismiss an Employee Without Notice?
Yes, but only in the specific circumstances set out under Article 44 of the UAE Labour Law. Examples include use of forged documents, serious workplace-safety violations, repeated failure to perform basic contractual duties after the required warnings, misuse of confidential information, certain forms of assault, serious unauthorised absence and other specifically defined violations. Importantly, dismissal without notice requires the proper procedure. The employer must conduct a written investigation, and the dismissal decision must be written, justified and properly communicated to the employee.
Dismissal without notice does not automatically mean the employee loses all end-of-service gratuity.
This is an important correction to older UAE labour-law content.
Can an Employee Leave Without Notice?
In certain situations, an employee may terminate employment without serving normal notice while retaining statutory end-of-service rights. Examples can include serious employer breaches that remain uncorrected after the required MOHRE notification, workplace assault or harassment, being ordered to perform fundamentally different work without consent outside permitted circumstances, or the employer failing to address a serious workplace danger.
The statutory procedures and reporting deadlines matter, so employees should avoid simply abandoning employment without determining whether the legal requirements have been met.
Unlawful or Arbitrary Dismissal
Under the current law, unlawful termination is more specifically defined than older descriptions of “arbitrary dismissal.” Termination can be unlawful where an employee is dismissed because the employee submitted a serious complaint to MOHRE or filed a valid lawsuit against the employer. Where unlawful dismissal is proven, the competent court can award compensation.
The compensation is assessed according to factors such as the employee’s work, damage suffered and length of service, but it cannot exceed three months of the employee’s last wage. That compensation is separate from other amounts that may still be payable, such as notice-period dues or end-of-service benefits.
End-of-Service Gratuity in Dubai
Expatriate full-time private-sector employees who complete at least one year of continuous service are generally entitled to end-of-service gratuity when employment ends. The calculation is based on the employee’s last basic salary, not housing allowance, transport allowance or other normal allowances.
The standard formula is:
| Length of Service | Gratuity |
|---|---|
| First 5 years | 21 days of basic wage for each year |
| Each year after 5 years | 30 days of basic wage for each year |
Fractions of a year are calculated proportionally once the employee has completed at least one year of continuous service. The total gratuity cannot exceed the equivalent of two years’ wage. Periods of unpaid absence are excluded from the service period used for the gratuity calculation.
When Must Final Dues Be Paid?
The employer must generally pay wages and other end-of-service entitlements within 14 days after the employment contract ends. This can include outstanding salary, statutory gratuity and other amounts properly due to the worker.
Alternative End-of-Service Savings Scheme
Employers may also participate in the UAE’s voluntary alternative end-of-service benefits system, commonly referred to as the Savings Scheme. Under this system, participating employers make contributions to approved investment funds instead of relying entirely on the traditional gratuity accrual model. The scheme does not mean every UAE employer has automatically moved away from traditional gratuity. It is an alternative framework for participating employers and eligible employees.
Equality, Discrimination and Workplace Protection
UAE Labour Law prohibits discrimination based on specified protected grounds including gender, race, colour, sex, religion, national or social origin and disability. The law also contains workplace protections dealing with harassment, bullying, physical violence and psychological abuse. Women are entitled to equal pay with men when performing the same work or work of equal value. This should not be paraphrased as a universal rule that every employee must receive identical pay regardless of every possible difference in role, responsibilities, experience or performance. The legal requirement is more specific.
Workplace Health and Safety
Employers have obligations to provide a safe working environment and comply with applicable occupational-health and safety requirements. These responsibilities are particularly important in sectors such as construction, manufacturing, logistics and other higher-risk activities. Dubai and the wider UAE also apply seasonal requirements such as the summer midday-break rules for qualifying outdoor work. Employment-law compliance should therefore be considered alongside industry-specific safety obligations.
Dubai Mainland vs Free Zone Employment Law
A common misconception is that every Dubai free zone has its own separate labour law. That is not generally correct. Most Dubai free-zone employers operate within the federal employment framework while also complying with administrative procedures and rules imposed by the relevant free-zone authority.
The major Dubai exception is DIFC. DIFC has its own employment-law framework and should be analysed separately. Businesses operating in DIFC should not automatically use a federal Labour Law calculation or policy without checking the applicable DIFC rule first. Likewise, ADGM should not be treated as a Dubai free zone because it is located in Abu Dhabi.
Labour Complaints and Disputes
For employees and employers covered by the federal private-sector framework, labour complaints generally begin with MOHRE. MOHRE first examines the dispute and attempts an amicable settlement. If an amicable resolution is not achieved within the statutory process, different procedures can apply depending on the claim.
Under the current system, MOHRE can issue a final executable decision in an individual labour dispute where the claim is below AED 50,000, or where the parties reach an amicable settlement regardless of the value. A party challenging such a Ministry decision can take the dispute to the competent Court of Appeal within the applicable 15-working-day period.
Where a claim exceeds AED 50,000 and an amicable settlement is not achieved, the matter can be referred to the judiciary. The labour-law framework also provides for disputes that cannot be settled amicably to be referred after the Ministry’s dispute-resolution stage, which generally operates within a 14-day period.
Workers can contact MOHRE’s Labour Claims and Advisory Centre on 80084 for labour-related assistance. For checking contracts, permits and other employment records, see our MOHRE enquiry services guide.
Work Permits and Legal Employment
A foreign employee should not simply begin working because an employment agreement has been signed. The employer must obtain the applicable work permit or employment authorization before the worker legally performs employment under the relevant structure. For mainland companies, MOHRE plays the central role in private-sector work permits. Free-zone companies generally process employment permissions through the relevant zone and immigration framework. Our UAE work permit guide explains the permit process in more detail.
Emiratisation Rules in 2026
Emiratisation is now a major workforce-compliance issue rather than a general policy encouraging companies to hire UAE nationals.
Companies With 50 or More Employees
Private-sector establishments with 50 or more workers are subject to Emiratisation targets for skilled positions. The policy increases the Emiratisation rate by 2% annually, with the framework targeting an overall 10% growth rate by 2026.
The targets are also monitored on a semiannual basis, with qualifying companies required to achieve the applicable growth during each half of the year.
Companies With 20 to 49 Employees
Selected companies employing 20 to 49 workers across specified economic sectors were brought into the Emiratisation framework. The targeted sectors include areas such as information and communications, finance and insurance, real estate, professional services, administration, education, healthcare, arts and entertainment, mining, manufacturing, construction, wholesale and retail, transport and warehousing, and hospitality. Targeted businesses were required to hire at least one Emirati during 2024 and another during 2025. Non-compliance can result in financial contributions, including the applicable 2026 contribution for businesses that failed to meet the previous year’s requirement. Because the exact obligation depends on workforce size, business activity and the company’s existing Emirati workforce, employers should confirm their target through MOHRE rather than applying a generic percentage to every company.
Employer Compliance Priorities
For a Dubai business employing staff, the practical compliance priorities are straightforward:
- Use the correct employment contract and work model.
- Keep probation within the six-month limit.
- Structure salary clearly into basic wage and allowances.
- Pay wages properly through WPS where applicable.
- Track working hours, breaks and eligible overtime accurately.
- Maintain complete annual, sick, maternity, parental and other leave records.
- Use 30-to-90-day notice clauses after probation.
- Follow Article 44 procedures before any dismissal without notice.
- Calculate gratuity using the correct basic wage.
- Pay final statutory entitlements within the required timeframe.
- Maintain valid work permits and employee records.
- Monitor Emiratisation obligations based on workforce size and activity.
For companies building their HR structure alongside incorporation, our Dubai company formation team can help coordinate employment setup with broader licensing and government-registration requirements.
Frequently Asked Questions
What is the main labour law in Dubai?
Most Dubai private-sector employment is governed by Federal Decree-Law No. 33 of 2021 and its amendments. DIFC is a major exception because it has its own employment law.
Are unlimited employment contracts still allowed in Dubai?
New private-sector contracts under the federal framework are fixed-term contracts. The old unlimited-contract structure was replaced under the current Labour Law framework.
How long can an employment contract last?
A fixed-term employment contract can generally run for up to three years and can be renewed or extended by agreement.
What is the maximum probation period in Dubai?
Probation cannot exceed six months.
How much notice is required during probation?
An employer terminating during probation generally gives at least 14 days’ written notice. An employee moving to another UAE employer generally gives at least one month’s notice, while an employee leaving the UAE during probation generally gives at least 14 days’ notice.
What is the normal notice period after probation?
The contractual notice period must generally be between 30 and 90 days.
What percentage of salary must be basic salary?
UAE Labour Law does not prescribe a universal basic-salary percentage. The basic salary amount should be clearly stated in the employment contract because it affects calculations such as gratuity and overtime.
What are the normal working hours in Dubai?
For most private-sector employees, normal working hours are eight hours per day or 48 hours per week.
How many consecutive hours can an employee work without a break?
Employees generally should not work for more than five consecutive hours without break periods totalling at least one hour, subject to permitted exceptions.
How is overtime calculated?
Eligible ordinary overtime is calculated using the basic wage for the relevant hours plus at least 25%. Eligible overtime between 10 PM and 4 AM generally carries an increase of at least 50%, subject to the rules applying to shift workers.
Is Friday automatically an overtime day in Dubai?
No. The relevant rule concerns the employee’s designated weekly rest day. Friday is not automatically the statutory rest day for every private-sector employee.
How much annual leave does an employee receive?
Employees completing one year generally receive 30 days of paid annual leave. Those who have worked more than six months but less than one year generally receive two days for each month of service.
How much sick leave is allowed?
After probation, employees can generally receive up to 90 days of sick leave per year of service, consisting of 15 days at full pay, 30 days at half pay and 45 days unpaid.
How much maternity leave is available?
Private-sector maternity leave is generally 60 days, with 45 days at full pay and 15 days at half pay, plus possible additional leave in qualifying medical circumstances.
Is parental leave available to fathers?
Yes. Both mothers and fathers can qualify for five paid working days of parental leave within six months following the child’s birth.
Is there a minimum wage in Dubai?
There is no single universal minimum wage applying to all private-sector workers. However, Emiratis employed in the private sector have a minimum monthly wage of AED 6,000 from 1 January 2026.
Is WPS mandatory?
Establishments registered with MOHRE generally need to pay employee wages through the Wage Protection System, subject to specified statutory exclusions.
How is gratuity calculated?
For expatriate full-time employees who complete at least one year, gratuity is generally calculated using the last basic wage at 21 days per year for the first five years and 30 days per year thereafter, subject to the statutory cap.
Does dismissal for misconduct automatically cancel gratuity?
No. Dismissal without notice under Article 44 should not automatically be described as forfeiting all gratuity. The employer must follow the required disciplinary procedure, while end-of-service entitlements are determined under the current Labour Law.
When must final salary and gratuity be paid?
Employers generally need to settle wages and other end-of-service entitlements within 14 days after the employment contract ends.
Can an employee be compensated for unlawful dismissal?
Where termination is proven unlawful because it resulted from the worker filing a serious MOHRE complaint or valid lawsuit, a court can award compensation of up to three months of the employee’s last wage, without removing other lawful entitlements.
Are Dubai free-zone employees covered by the UAE Labour Law?
Most Dubai free zones operate against the federal employment framework along with their own administrative procedures. DIFC is the major exception and has its own employment law.
How do I file a labour complaint in Dubai?
Employees covered by the federal framework can file a complaint with MOHRE through its official channels. MOHRE first attempts resolution and can issue final decisions for qualifying individual disputes below AED 50,000.
How Incorpyfy Can Help Employers in Dubai
Employment compliance should be planned at the same time as company formation, not after staff have already been hired. Incorpyfy assists businesses with company formation in Dubai, licensing, government registrations and related corporate services so that the company has the correct structure before employees are onboarded. For employment-specific topics, you can also review our guides on UAE overtime calculation, MOHRE enquiry services and UAE work permits. Employers dealing with complex dismissals, labour litigation or legal interpretation should obtain advice from a qualified UAE employment-law professional rather than relying solely on general online guidance.
Final Thoughts
Dubai’s employment-law framework is considerably more detailed than a simple list of working hours and leave days. The rules governing probation, overtime, notice periods, WPS, gratuity, dismissal and labour complaints can directly affect both employee entitlements and employer liability.
The most important 2026 points are clear: contracts under the federal framework are fixed term, probation remains capped at six months, normal notice periods range from 30 to 90 days, gratuity is based on basic wage, final dues are generally payable within 14 days, WPS remains central to salary compliance, and the AED 6,000 minimum wage for Emirati private-sector employees now applies. Businesses should also keep federal Labour Law obligations separate from DIFC employment rules and check Emiratisation targets according to company size and activity. For broader support with licensing, company formation and workforce setup, visit Incorpyfy.
