September 2026 ยท Labor & Employment Law ยท 13 min read ยท Basim Zain Shah
For most mainland private-sector jobs in Dubai, the starting point is Federal Decree-Law No. 33 of 2021, as amended, together with Cabinet Resolution No. 1 of 2022. These rules govern recruitment, contracts, pay, leave, termination and employment claims. DIFC and ADGM employment require separate analysis.
A useful employment-law review follows the relationship from the job offer to the final settlement. It asks who employs the worker, which rules apply, what the documents actually say, and whether the employer followed the required procedure. Those questions often determine the outcome of a dispute more clearly than a contract label or an informal HR assurance.
Identify the employer named in the contract and the jurisdiction in which the employment falls. A Dubai address alone does not answer the question. The federal private-sector law excludes government employment, armed forces and security personnel, and domestic workers.
ADGM expressly confirms that its 2024 regulations replaced the 2019 regime, so a guide referring only to the old ADGM regulations needs updating. The federal rules below should be applied only after that jurisdiction check โ do not transplant mainland leave calculations, dispute deadlines or benefit formulas into a DIFC or ADGM contract.
Obtain the appropriate work authorisation before the employee starts work. Recruitment and employment fees cannot be charged to the worker, directly or indirectly, and the law also prohibits withholding the worker's official documents.
Background screening must comply with the relevant privacy and data-protection regime. Before requesting a criminal-record check, references or sensitive personal information, establish a lawful basis, a defined purpose and appropriate access controls. Consent should not be treated as a universal substitute for analysing the applicable law.
As a practical matter, align the offer, registered contract and any supplementary terms. State the role, location, salary components, benefits, start date and conditions clearly, and account for applicable Emiratisation requirements, pension or social-security obligations, health cover and salary conditions for the employee category.
Federal-law employment contracts are for a definite term and may be renewed by agreement. The original three-year maximum was removed by Federal Decree-Law No. 14 of 2022. Renewals count towards continuous service, and continued performance after expiry can result in an implied extension.
Full-time, part-time, temporary and flexible arrangements are recognised, and the executive regulations also address remote work and job sharing. Record the actual hours, pay, reporting arrangements and leave method, and check the required permits. Changing a job title or moving an employee to a materially different role is not merely an administrative exercise โ outside a narrow statutory exception, fundamentally different work requires the employee's written agreement.
Probation can last up to six months and cannot be repeated with the same employer. The notice rule depends on the situation.
The law contains separate recruitment-cost reimbursement rules for the new employer, including specified return-to-UAE situations. These provisions should not be presented as a general right to deduct recruitment costs from the worker.
The normal federal limit is eight hours a day or 48 hours a week, subject to exceptions, and employees must receive at least one paid weekly rest day. Normal working hours are reduced by two hours during Ramadan. Qualifying overtime generally attracts the basic hourly wage plus at least 25%, rising to at least 50% for overtime between 10pm and 4am, subject to the shift-worker exception. Registered establishments must pay wages on the due date through the Wage Protection System or another Ministry-approved system, as applicable.
These are core entitlements, not an exhaustive leave policy โ the law also addresses bereavement and study leave. Unused annual leave should not simply be erased: the regulations allow carrying forward up to half the annual leave to the following year, or agreeing a cash allowance, and payment for outstanding statutory leave on termination is based on basic wage.
Federal law prohibits discrimination on specified grounds, requires equal pay for women performing the same work or work of equal value, and prohibits sexual harassment, bullying and verbal, physical or psychological violence. Pregnancy and maternity leave have specific protection against termination on those grounds.
Establishments with 50 or more workers must put work regulations in place covering instructions, penalties, promotions and termination procedures, communicated in a language workers understand. Employees must protect confidential information and trade secrets, and employers must retain employee files for at least two years after service ends.
A non-compete clause is not automatically enforceable because an employee signed it. Article 10 permits restrictions where the work gives access to clients or business secrets, but the clause must be limited by time, place and type of work to what is necessary to protect legitimate business interests, and the maximum period is two years.
The executive regulations place the burden of proving damage on the employer and contain exclusions and waiver mechanisms โ probation termination is one express exception. The reason employment ended also matters, so the restriction and the termination documents should be reviewed together. Even a narrowly drafted restriction remains subject to the statutory conditions; enforceability should never be promised in advance.
Separate a change in ownership from a transfer to a different employing entity. Article 48 preserves existing contracts when the establishment's form or legal status changes and places responsibility for their implementation on the new employer โ it is therefore unsafe to assume that every sale requires dismissing the workforce.
For an asset sale, group transfer or other restructuring, identify the legal employer before and after the transaction, address employee consent where required, permit changes, continuity of service, accrued leave and responsibility for benefits. The transaction documents and the employment documents need to tell the same story.
Ordinary termination under Article 43 requires a legitimate reason and written notice. The agreed notice period must be between 30 and 90 days, full wage is payable during notice, and a failure to give the required notice can create a payment-in-lieu obligation.
Dismissal without notice is limited to the grounds in Article 44 and requires the prescribed process, including a written investigation and a written, reasoned decision. Article 47 addresses retaliatory dismissal linked to a serious complaint to MOHRE or a proven claim against the employer, and the court can award compensation up to three months' last wage โ this is not automatic for every dismissal. An employee considering leaving without notice should check Article 45's grounds and procedural requirements carefully.
Under the standard federal gratuity scheme, an eligible foreign full-time employee needs at least one year of continuous service. The formula uses 21 days of basic wage for each of the first five years and 30 days for each later year. Fractions of a year are proportionate after the qualifying year, while unpaid absence is excluded.
Example: five complete qualifying years and a final monthly basic salary of AED 8,000 produce an illustrative gratuity of 5 × 21 × (AED 8,000 ÷ 30) = AED 28,000. This assumes the standard scheme, no excluded absence and no lawful deductions. Article 53 requires payment of employment entitlements within 14 days after the contract ends, and Article 65 invalidates releases or waivers that conflict with the law.
For disputes within the federal procedure, MOHRE is normally the first step, and it can determine claims not exceeding AED 50,000 and disputes over non-compliance with a previous Ministry-mediated settlement, regardless of value. A challenge to a qualifying MOHRE decision must be brought before the competent Court of First Instance within 15 working days of notification, and employment-rights claims are separately not heard after two years from termination โ the two-year period does not extend the 15-working-day challenge deadline.
For a contract review, proposed dismissal, restrictive covenant or business transfer in Dubai, obtain advice on the actual documents before committing to a course of action. Our Labor & Employment team advises employers and employees on contracts, terminations and MOHRE disputes across the UAE โ read more about our Labor & Employment Law practice.
This article is general legal information. Advice on an individual matter depends on its facts, jurisdiction and the legislation in force.