Whether you are starting a new job, negotiating an exit, or facing a dispute with your employer, knowing your rights under UAE labour law makes an enormous difference. The law was completely overhauled in 2021, and amended again in 2024. This guide explains where you stand as a private-sector employee in the UAE.
This is general legal information, not advice on your specific case. For a confidential assessment, speak to our employment and litigation lawyers in Dubai.
The law that governs your job
Private-sector employment across the UAE mainland is governed by Federal Decree-Law No. 33 of 2021 (in force since February 2022), which replaced the decades-old previous law, together with its 2024 amendments (Federal Decree-Law No. 9 of 2024). The Ministry of Human Resources and Emiratisation (MOHRE) oversees and enforces it. Note that financial free zones such as the DIFC and ADGM have their own separate employment rules.
Contracts are now fixed-term only
One of the biggest changes in 2021 was the abolition of unlimited (indefinite) contracts. All private-sector contracts are now fixed-term, for a defined duration, and must be registered with MOHRE. Existing unlimited contracts were required to convert to the new format.
Notice periods
Either side ending the employment must generally give at least 30 days’ notice (the parties can agree on a longer period, up to 90 days). This applies to both resignation and termination, and your salary and benefits continue through the notice period.
End-of-service gratuity
If you complete at least one year of continuous service, you are entitled to an end-of-service gratuity calculated on your basic salary: broadly 21 days’ pay for each of the first five years, and 30 days’ pay for each year after that, with the total capped at two years’ wages. Unpaid or miscalculated gratuity is one of the most common employment disputes.
Protection against unfair dismissal
You cannot lawfully be dismissed for an arbitrary or invalid reason — for example, in retaliation for filing a legitimate complaint. If a termination is found to be unfair, a worker may be awarded compensation (commonly up to three months’ wages), in addition to their other entitlements.
Leave and other entitlements
The law sets minimum entitlements including annual leave (30 days a year after a year of service), sick leave, and maternity leave, along with rules on working hours, overtime and the timely payment of wages through the Wages Protection System.
If something goes wrong: MOHRE first
Employment disputes usually start with a complaint to MOHRE rather than going straight to court. Following the 2024 amendments, MOHRE can now decide certain individual disputes (up to a set value) directly, with unresolved or larger matters referred to the Labour Court. The 2024 changes also sharply increased employer penalties for violations, into the hundreds of thousands of dirhams.
Frequently asked questions
What notice period am I entitled to?
At least 30 days, and up to 90 days if agreed in the contract — for both resignation and termination.
How is my end-of-service gratuity calculated?
On your basic salary: about 21 days’ pay per year for the first five years and 30 days’ pay per year afterwards, once you have completed a year of service, capped at two years’ wages.
Can I be fired without a reason?
Not for an arbitrary or unlawful reason. If you are, you may be able to claim compensation for unfair dismissal on top of your notice and gratuity.
Where do I file an employment complaint in the UAE?
With MOHRE first. Many disputes are now resolved there; others are referred to the Labour Court.
If you are facing a dismissal, an unpaid entitlement, or any employment dispute — as an employee or an employer — we can review your contract and protect your position. Speak to our employment lawyers in Dubai for a confidential consultation.
Reviewed by Ms. Amal Khamis, Advocate & Legal Consultant. This article is general information about UAE law and not a substitute for tailored legal advice.
Related reading: Contract Disputes & Breach of Contract in the UAE.