The United Arab Emirates, and particularly Dubai, has long been recognised as a global business hub, attracting thousands of expatriate workers and international companies. A major reason for this business-friendly environment is the country’s strong legal framework, especially its evolving and dynamic Labour Law, which plays a critical role in ensuring balanced relationships between employers and employees.
With the latest reforms, including Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, the UAE has modernised its legal system to better align with global standards. This law, along with its executive regulations, came into force on February 2, 2022, replacing the previous labour law from 1980.
This guide provides a practical insight into the current Dubai Labour Law, highlighting its core principles, rights and obligations, dispute resolution mechanisms, and its intersection with other legal areas such as family law.
1. Key Features of Dubai Labour Law
Employment Contracts
Dubai law mandates that all employment relationships must be governed by a written employment contract. The new law requires that all contracts be limited-term (fixed), with a maximum duration of three years, renewable by mutual agreement. The shift away from unlimited-term contracts enhances transparency and protects both parties.
Working Hours and Overtime
The standard working hours are 8 hours per day or 48 hours per week, with Friday generally observed as the weekly day off. During Ramadan, working hours are reduced by two hours. Overtime is permitted but must be compensated at standard or increased rates depending on the time and day the work is performed.
Leave Entitlements
Employees are entitled to:
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Annual leave: Minimum of 30 calendar days after one year of service.
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Sick leave: Up to 90 days annually, with varying pay depending on duration.
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Maternity leave: 60 days, including 45 days with full pay and 15 days with half pay.
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Paternity leave: 5 days.
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Compassionate and study leave: Under certain conditions.
End-of-Service Benefits
Employees who complete at least one year of continuous service are entitled to an end-of-service gratuity upon termination, calculated based on the employee’s last basic wage. This is in addition to any other final settlement or dues.
2. Workers’ Rights and Protections
Dubai’s Labour Law includes several employee protections, including:
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Anti-discrimination provisions: Prohibiting discrimination based on gender, race, colour, religion, or disability.
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Equal pay for men and women for the same job.
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Protection against arbitrary dismissal, particularly for whistleblowers or workers who file complaints.
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Termination with notice: Employers must provide at least a 30-day notice (and up to 90 days in some cases) for termination, unless the dismissal is for a justified cause as defined by law.
3. Employer Responsibilities
Businesses operating in Dubai are required to:
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Register employees with the Ministry of Human Resources and Emiratisation (MOHRE).
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Maintain accurate records and issue payslips.
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Provide a safe working environment.
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Repatriate foreign employees upon contract termination unless they find new employment.
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Promote Emiratisation, the national policy encouraging the hiring of UAE nationals in the private sector.
Employers are also expected to handle disciplinary procedures fairly and transparently, and avoid any actions that may be considered constructive dismissal.
4. Dispute Resolution and Legal Recourse
In case of disputes, employees and employers can file complaints with the MOHRE. If the dispute cannot be resolved amicably, the case may be referred to the Labour Court. Labour cases are prioritised in Dubai’s judicial system, with fast-tracked timelines for resolution.
However, employment issues sometimes intersect with family matters, such as custody, alimony, or visa sponsorship. In such cases, it is advisable to consult with legal professionals who have a broad understanding of both employment and personal legal matters. This is where the best family lawyers in Dubai play an important role. Their expertise often extends beyond family law into adjacent areas such as employment law, immigration, and financial settlements. This makes them valuable allies in complex situations where family status and employment rights are closely connected.
5. Reforms Supporting Flexibility and Inclusion
Recent amendments have brought significant changes aimed at enhancing workforce flexibility:
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Introduction of part-time, temporary, and freelance work permits.
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Allowing workers to change jobs more easily without requiring a No Objection Certificate (NOC).
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Inclusion of remote working models helps companies reduce costs and increase employee satisfaction.
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Enhanced protection for domestic workers through a separate decree-law.
These reforms are particularly important for working families, especially expatriates, who need assurance that their employment conditions are secure and that they can navigate personal legal challenges with confidence.
6. Intersection with Family and Immigration Law
Dubai’s labour environment is closely tied to residency status, especially for expatriates. Loss of employment often affects visa sponsorship, impacting the entire family. In such cases, navigating visa transfers, dependent visa applications, or financial responsibilities like child support requires expertise in both labour and family law.
This is another area where consulting the best family lawyers in Dubai becomes critical. They can provide integrated legal solutions, ensuring that employment disputes do not lead to wider complications affecting one’s legal residency, parental rights, or family welfare.
Conclusion
Dubai’s Labour Law reflects a strong commitment to balancing business growth with employee welfare. For companies, understanding and complying with labour regulations is key to sustainable operations. For workers, knowing their rights and seeking timely legal advice ensures protection and fairness in the workplace.
In situations where employment issues intersect with family, immigration, or residency matters, the expertise of the best family lawyers in Dubai is invaluable. Their comprehensive legal knowledge ensures that clients receive holistic support, whether they are navigating job loss, family transitions, or cross-border legal challenges.
By staying informed and legally prepared, both businesses and workers can thrive in Dubai’s competitive, multicultural environment.
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