The UAE’s employment landscape underwent a major overhaul with the introduction of Federal Decree Law No. 33 of 2021 (the “New UAE Labour Law”), enforced from 2 February 2022.
This decree fully replaces the previous system and aligns workplace regulations with global standards, offering clarity on contracts, worker protection, and employer obligations. Employers and HR teams should fully grasp the UAE new labour law to adapt policies and maintain compliance.
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Table of Contents
UAE New Labour Law: What Are the Big Changes?
Here’s a quick overview of the most impactful modifications brought by the new regulations:
- Employment contracts now limited-term only – “unlimited” type abolished; fixed-term for up to 3 years is standard.
- Multiple work models introduced – such as part-time, flexible, and temporary options.
- Employee protection boosted – enhanced rights against harassment, discrimination, bullying, and forced labour.
- End-of-service and gratuity rules updated – new timelines, calculation on working days, penalties for delayed pay (within 14 days).
- New notice periods and termination protocols – clear grounds for lawful/unlawful dismissal with appeal rights.
- Increased penalties for non-compliance – fines now range between AED 100,000 and AED 1,000,000.
Employment Contracts: From Unlimited to Fixed-Term
This section explains the contract changes and employment duration rules under the new UAE labour law.
All private-sector employment now operates on fixed-term contracts—not exceeding 3 years—effective 2 Feb 2022. Post-expiry, continued work without renewal constitutes automatic extension. Employers had until Feb 2023 to convert existing open-ended agreements.
Fresh Work Models & New Visa Categories
An overview of the flexibility introduced by the new UAE labour law in working arrangements and permits:
- Part-time, temporary, and flexible work options formalized, offering new models for employers and employees.
- Unspecified: flexible categories allow variable hours/days depending on economic needs .
- Multiple visa types introduced to align with the diversified work models.
Termination Rules & Employee Rights
Here’s how termination and employee protections have evolved under the new UAE labour law.
- Clear lawful termination causes and termination procedures established.
- Employees gain right to appeal disciplinary decisions within 30 days.
- Unlawful termination protections: firing for raising complaints or lawful grievances now prohibited .
- Redundancy rules formalized: due to insolvency or economic factors .
Gratuity, Leave, and Wage Protection
This section covers employee entitlements under the new UAE labour law:
- End-of-service payments now based on working days; must be paid within 14 days post-termination or face fines.
- Annual/maternity/parental leave entitlements updated: maternity leave extended to 60 days and added parental leave rights.
- Minimum rest and sick leave protections upheld—90-day sick leave with provisions for extended leave under serious illness .
Workplace Safety, Anti-Discrimination & Midday Breaks
The new UAE labour law introduces firm protections for workers:
- Workplace protections now explicitly bar forced labour, bullying, harassment, and discrimination based on race, gender, and disability.
- Heat stress protections: MOHRE mandates a midday work ban (12:30–15:00) from June 15 to Sept 15 to protect outdoor workers.
Penalties & Enforcement
Here are key compliance risks under the new UAE labour law:
- Non-compliance fines begin at AED 100,000 and may rise to AED 1 million.
- Delays in gratuity payments, unauthorised contracts, and unpermitted workplace practices all carry heavy penalties—enforcement has ramped up via MOHRE and inspections .
How Our Lawyers Support You with the UAE New Labour Law
Navigating new regulations requires legal precision. Our law firm ensures that your company adapts swiftly and safely to the new employment framework.
- Contract assessment & drafting – Ensuring all agreements are compliant.
- Policy updates – Revising workplace regulations, anti-harassment, and heat-safety protocols.
- Termination support – Advising lawful grounds, drafting notices, preparing for appeals.
- Dispute resolution & MOHRE representation – Handling complaints, inspections, and fines.
- Leave & grievance management – Guiding employer handling of leaves, appeals, and extended sick leave.
Frequently Asked Questions
The UAE new labour law marks a turning point in employment regulation—standardising contracts, enhancing worker rights, and elevating workplace standards. Whether you’re an employer or HR professional, staying ahead of these changes is essential for legal compliance and organisational success.
Need help navigating this reform? Our employment lawyers in dubai are ready to support your compliance efforts, connect with us via WhatsApp today.
Read more about Collective Labor Law UAE.
