The UAE government announced a new decree-law to protect the rights of employees in the private sector within the post-pandemic setting. If you’re working in the UAE, you should be aware of the new employment laws and regulations that offer a host of benefits to workers, including paternity leave and exemption of legal fees. Let’s find out more about what amendments were made in the new UAE Labour Law of 2021/2022.
DISCLAIMER: The information relayed below is based on the provisions of the the Federal Decree-Law no. 33 of 2021. However, there might be certain subjects that still await further clarity on law.
NEW UAE LABOUR LAW 2021: AN OVERVIEW
The President of the UAE and Ruler of Abu Dhabi, His Highness Sheikh Khalifa bin Zayed Al Nahyan, issued the Federal Decree-Law no. 33 of 2021 to regulate the labour laws in the private sector.
This new legislation took effect on 2nd February 2022. The post-COVID-19 workplace regulations include the following:
- Flexible work hours.
- Different work models.
- New regulations for part-time/temporary work safeguarding employee rights.
- Introducing new leaves policy.
- Termination rules during probation.
- Condensed work weeks.
- Equal pay for men and women.
According to the Ministry of Human Resource and Emiratisation (MOHRE), the UAE Labour Laws 2021 will pave the way for the future growth and prosperity of the ever-evolving workforce in the country. Besides attracting new talent, the new laws put emphasis on gender equality at work.
PROVISIONS UNDER THE NEW UAE LABOUR LAW 2021
COERCION IN THE WORKPLACE

Article 74 of the new decree prohibits employers from all forms of coercion in the workplace. An employer may not threaten the worker with a penalty or force them to provide a service against their will.
In addition, the employers cannot force employees to work overtime exceeding two hours per day. In case the nature of the job requires additional hours, the employer must compensate with an hourly pay which is 125% of the employee’s regular hourly income.
WORKPLACE HARASSMENT
Under the new law, all forms of workplace harassment against an employee is strictly prohibited. That includes sexual harassment, bullying and any form of verbal, physical or psychological violence against a worker by the employer, their superiors or colleagues.
DISCRIMINATION AND PREJUDICE
The legislation outlaws all types of discrimination based on gender, religion, national origin, socioeconomic status, handicap, colour or race that may limit equal opportunities or obstruct deliverance of equal rights.
The law also prohibits the termination of female employees on the basis of her pregnancy or maternity leave.
EQUAL PAY FOR MEN AND WOMEN
In addition, the amendments in the new UAE Labour law accentuates the equal pay provision for men and women as defined under the old law. The recent changes stress that all provisions governing the employment of workers shall apply to working women in the UAE, without any discrimination or violation of the prescribed rights of working women.
The new UAE labour law also grants women the same wage as men if they are doing the same work or work of equal value, as established by the Council of Members.
EASE OF BUSINESS AND LABOUR MARKET FLEXIBILITY
The new labour law divides the employment market into six different work models that include:
- Full-time Employment
- Part-time Employment
- Temporary Employment
- Flexible Employment
- Remote Employment
- Job-sharing Employment
Under the regulations of the Decree, terms related to annual leaves and severance pay are to be decided based on the employment model to ensure the protection of rights of the employer and the employee.
DEFINING PART-TIME, TEMPORARY AND FLEXIBLE WORK MODELS

Under the new law, each of the work models are described as follows:
- Full-time work: employment with a single employer for entirety of daily working shifts.
- Part-time work: working under one or more employment contracts for specific working hours/days.
- Temporary work: employment that ends upon the completion of specified contractual hours or project(s).
- Flexible work: employment that allows for working days and hours to change based on operational workload and requirements.
- Remote work: employee can fully or partially work from outside the office, city and/or country.
- Job-sharing work: employment duties and tasks are divided among more than one employee to cater to mutually agreed business needs and/or projects.
MAXIMUM WORK HOURS
It’s also essential to note that the maximum work hours are 48 hours per week and 8 hours per day, (9 hours including lunch break) under Article 17 (1) of the Federal Decree-Law No (33) of 2021 on the Regulation of Labour Relations (the “New Employment Law”).
The rule for work also comes under Article 7 clause 1 of the Federal Decree-Law No (47) of 2021 On the Standard General Rules of Work in the United Arab Emirates (the “New Employment Rules”).
However, Article 7(2) of the New Employment Law also suggests that the Cabinet may increase or decrease the daily work hours for certain economic sectors or categories or workers with the proposal of the minister and in coordination with the concerned company.
EMPLOYMENT CONTRACTS

The new order stipulates that a fixed-term contract (limited) should not last longer than three years. If both parties agree, the contract can be renewed or extended for a similar or shorter amount of time.
The provisions of the decree-law apply to employment contracts of indefinite duration concluded under Federal Law No (8) of 1980.
Unlimited employment contracts are to be converted into fixed-term employment contracts according to the amendments. Within one year of the existing agreement’s effective date, these contracts must comply with the restrictions, controls and processes outlined in the new decree by law. They may be extended for longer durations by the Council of Ministers if necessary in the public interest.
PROBATION
The new labour law implements the following rulings on probation:
- The worker’s probationary period in the UAE must not exceed six months.
- On account of termination during probation, the employer must give a two week notice to the employee.
- Employees who wish to quit during probation have to serve a 30-day notice period.
- A 14-day notice period has to be served if the employee decides to leave the country during probation.
NOTICE PERIOD
- Notice periods in any case must not exceed a period of three months.
- Employers can now serve a termination notice during the employee’s leave period. However, the notice period will only begin once the employee returns to work after the leaves.
CONTRACT TERMINATION
- Employment contracts can now be terminated by the employer without prior notice for the 10 reasons listed under article 120 of the original labour law. However, even under these circumstances, the employer is bound to pay, where due, the end of service benefits to the employee.
- Employees can terminate their employment contract without notice under specific conditions, including a significant change in job responsibilities without written consent from the employee.
NON-DISCLOSURE AND NON-COMPETITIVE CLAUSE
According to the new UAE Labour Law 2021, an employer has the right to add a non-compete clause in the employment contract. Notably, the provision only applies if the work entrusted to the worker allows them to gain sensitive information about the employer’s clients or trade secrets.
Unless a condition as such is specified in terms of time, place and type of work to the extent necessary to protect legitimate business interests, the period of non-competition shall not exceed two years from the date of contract expiry.
WORK PERMITS
The MoHRE will now issue 12 different types of work permits, depending on the nature of work and work model an employee is recruited for. These work permits include:
- A standard permit for bringing overseas workers into the country for employment.
- The work permit to transfer a non-national (expat) worker between Ministry-registered establishments.
- A work permit for people living in the country on their relatives’ residence.
- The temporary work permit for those employed on a temporary work model.
- A project work permit for Ministry-registered establishments who wish to recruit overseas worker(s) for a specific, fixed-period project.
- The part-time work permit for those on the part-time work model. The permit allows employees to work for more than one employer.
- The juvenile work permit will allow youngsters aged between 15 and 18 to work at a Ministry-registered facility in accordance with the legal regulations and controls.
- The training and employment permit for students will allow Ministry-registered establishments to train and/or employ a UAE student aged 15 and above in accordance with the legal regulations and controls.
- A work permit for GCC citizens/children to allow them to employed at Ministry-registered establishments.
- A work permit for golden residence holders to be issued on the request a Ministry-registered entity.
- A national trainees work permit for Ministry-registered institutions that want to train citizens based on scientific qualifications.
- The self-employment permit allows individuals to work independently without a sponsor.
WORKER WELFARE UNDER THE NEW LABOUR LAW IN THE UAE 2021
Worker welfare sits at the core of the new amendments to the UAE Labour Law. The new decree includes clauses associated with worker welfare. It also ensures health and safety measures for all workers in the private sector. Here are some of the provisions related to employee welfare.
LEAVE AND REST DAYS DEFINED

According to the new labour laws and regulations, all employees are entitled to the following leaves.
BEREAVEMENT LEAVE
- 5 days on the death of a spouse.
- 3 days on the death of close family (mother, father, siblings, child, grandparents).
PATERNITY LEAVES
- Up to 5 days of paternity leaves to be taken intermittently or concurrently over a 6 month period after child birth.
MATERNITY LEAVES
- 45-day fully paid maternity leave.
- Extended 15-day half paid leave.
- Additional 45-day unpaid leave allowed in case of illness (mother and/or child) – supporting documents are required.
- Mothers with babies born with disabilities can take a further 30-day leave, fully paid. This can be extended to 30 additional days without pay.
EXAMINATION LEAVES
- 10-day study leave for employees studying in state-approved educational facilities, given their service tenure for the current employer is more than two years.
NATIONAL DUTY LEAVES
- UAE nationals working for private companies are entitled to full-time leave for national service. Proof of service is required.
There were no changes made to the sick leaves law in the UAE in the new employment laws.
EMPLOYEE’S EASE OF MOVEMENT
The law deems it illegal and prohibits employers from withholding employees’ official documents such as passports, subsequently forcing workers to leave the country at the end of an employment contract.
The law also allows the worker to have the right to obtain their wages on the due date in accordance with the regulations approved by the Ministry and according to the procedures and conditions issued by the Executive Regulations of the Federal Decree-Law no. 33 of 2021.
In addition, the employees are now allowed to stay in the country for 180 days after termination of employment without incurring overstay fines on their visa. This period was previously limited to 30 days.
END OF SERVICE BENEFITS
According to the new UAE Labour Law 2021, the workers’ right to receive end of service benefits, including gratuity has been further secured with the following changes:
- Employees cannot be terminated without end of service benefits (EOSB) payment.
- Where EOSB are due, the employer cannot reduce or deduct the gratuity amount based on the employee’s contract type and/or resignation date.
- All end of service benefits of an employee are to be paid within 14 days of the end of employment.
- In case of end of employment on account of the death of an employee, the entitlements must be paid to the deceased’s family after deduction of body repatriation costs (where applicable).
- In the event of an employee living in employer-paid accommodation, the employee is allowed a 30-day period from the end of contract to vacate it.
The calculation of gratuity in the UAE remains unchanged, to be calculated in accordance with legislation that regulates pensions and social security. However, payments for end of service benefits in the UAE can now be paid in any currency chosen by the employee, as long as it is mutually agreed in the employment contract.
EXEMPTION OF LITIGATION FEES
Based on the new law, any labour cases or petitions filed against the employer by the employee and/or their legal heirs are exempt from judicial fees in all stages of litigation and execution and requests, as long as the the value of the claim does not exceed AED 100,000.
FREQUENTLY ASKED QUESTIONS
WHEN WILL THE NEW LABOUR LAWS 2021 COME INTO EFFECT?
The new UAE Labour Laws 2021 became effective from 2nd February 2022.
WHAT IS THE LEGAL AGE TO WORK IN DUBAI?
The labour law stipulates that the minimum legal age for working in Dubai for full-time employment is 18-years and above. Students in Dubai between the ages of 15 to 18 may get a temporary work permit known as a Juvenile Work Permit, which can only be valid for a maximum time of one year.
That concludes our guide to the new UAE Labour Law. Please note that, whilst our guide covers the major new changes to the Labour Law, it is not a complete run through. For more comprehensive information, please visit the official MOHRE website.
If you’re interested in working in Dubai, look for opportunities on the best job sites in the UAE or contact any recruitment agencies in Dubai.
