UAE Labour Law 2026: Your Rights as an Employee
UAE private-sector employment is governed by Federal Decree-Law No. 33 of 2021, in force since February 2022. It gives employees 30 days of annual leave, an 8-hour working day, 90 days of sick leave, and end-of-service gratuity based on basic salary. All contracts are now fixed-term, and 2026 brought tougher penalties and new salary rules.
The law behind your rights
The UAE Labour Law, formally Federal Decree-Law No. 33 of 2021, is the biggest overhaul of employment rules the country has seen in decades. It took effect on 2 February 2022, has been amended since, and is enforced by the Ministry of Human Resources and Emiratisation (MOHRE). It covers private-sector employees, both Emirati and expatriate.
One headline change is that the old “unlimited” contract no longer exists: every contract is now a fixed-term contract, available in models such as full-time, part-time, temporary, flexible, and remote. The sections below summarise the rights that matter most, with links to the detailed how-to guides.
Your core entitlements at a glance
These are the baseline entitlements the law guarantees most full-time private-sector employees. Your contract can offer better, but not less.
| Entitlement | What the law gives you |
|---|---|
| Working hours | 8 hours a day, 48 hours a week |
| Overtime | Up to 2 extra hours a day, paid at 125% of the hourly rate |
| Annual leave | 30 days a year after one year of service |
| Sick leave | 90 days a year: 15 full pay, 30 half pay, 45 unpaid |
| Maternity leave | 60 days: 45 full pay, 15 half pay |
| Probation | Maximum of 6 months |
| Notice period | Usually 30 to 90 days |
| End-of-service gratuity | 21 days’ basic pay per year for the first 5 years, 30 days after |
End-of-service gratuity
Gratuity, officially the end-of-service benefit, is a lump sum you earn once you complete one full year of continuous service. It is calculated as 21 days’ pay for each of your first five years, and 30 days’ pay for each year after that, up to a cap of two years’ total wage. Crucially, it is based on your basic salary only, allowances and commission do not count, and your employer must pay it within 14 days of your last working day. To estimate your own figure, use our UAE gratuity calculator.
Leaving a job: notice, resignation and bans
When you resign, you generally serve a notice period of 30 to 90 days as set in your contract, and you keep your normal pay throughout it. Serving notice properly is also how you avoid a one-year work-permit ban; the old automatic six-month ban has been removed, so most job moves now carry no ban at all, the details are in our labour ban check guide.
The law also protects you when things go wrong. If your wages go unpaid, you have a clear route through a WPS salary-delay complaint, and dismissing an employee for raising a valid complaint counts as arbitrary dismissal, which carries compensation. Anything you cannot resolve directly can go to MOHRE through the formal complaint process.
What changed in 2026?
The core law is unchanged, but 2026 sharpened its enforcement in ways that matter to employees:
- From 1 June 2026, wages are due on the first of the month, and the old 15-day grace period for paying salaries has been removed.
- Penalties on employers rose sharply, many violations now carry fines of AED 100,000 to AED 1,000,000, multiplied by the number of workers affected.
- Tougher action targets unauthorised employment, unsettled employee dues, and failure to cancel visas correctly.
In short, the rules increasingly favour employees who know and use them. For the practical tasks that flow from these rights, checking your contract, status, and any fines, see our UAE work and labour guide.
Frequently asked questions
What is the UAE labour law called?
The main law is Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, in force since 2 February 2022 and amended since. It governs private-sector employment across the UAE and is enforced by MOHRE. It replaced the previous 1980 labour law and introduced fixed-term contracts, clearer leave rules, and stronger enforcement.
How is end-of-service gratuity calculated in 2026?
After one year of service, you earn 21 days of basic pay for each of your first five years, and 30 days of basic pay for each year beyond five, capped at two years’ total wage. It is based on basic salary only, not your full package, and must be paid within 14 days of your last working day.
How many days of annual and sick leave am I entitled to?
Full-time employees get 30 days of paid annual leave a year after completing one year of service. Sick leave is up to 90 days a year, paid in tiers: the first 15 days at full pay, the next 30 at half pay, and the final 45 unpaid. Maternity leave is 60 days, with 45 at full pay and 15 at half pay.
Are unlimited contracts still allowed in the UAE?
No. The 2021 law abolished unlimited contracts, and all employment contracts are now fixed-term. Existing unlimited contracts had to be converted to fixed-term contracts during the transition period. Fixed-term contracts can be renewed and come in several models, including full-time, part-time, temporary, flexible, and remote work.
Last verified: July 2026
Reviewed by: UAEexplained editorial team
Source: Ministry of Human Resources and Emiratisation (MOHRE); UAE Government Portal (u.ae)
