United Arab Emirates – Employment Terms and Conditions

What are the standard working hours in the UAE, and how is overtime regulated?

Article 17 of Federal Decree-Law No. 33 of 2021 establishes a standard working day of 8 hours, or 48 hours across the working week, for private sector employees. This is broadly in line with the 48-hour weekly ceiling set by the EU Working Time Directive, though the UAE’s rules apply exclusively to the private sector and carry their own specific provisions for overtime.

Any employee who works five consecutive hours is entitled to one or more breaks totalling no less than one hour in aggregate. These rest intervals do not count towards working time. Under Ministerial Resolution No. 44 of 2022, outdoor work performed directly under the sun is prohibited between 12:30pm and 3:00pm from 15 June to 15 September each year.

To safeguard employee health, overtime is capped at two additional hours per day, and total working time inclusive of overtime must not surpass 144 hours within any three-week period. Where the nature of the work demands that an employee exceed standard hours, they are entitled to compensation equivalent to their normal hourly rate — calculated on basic salary — plus an additional 25 per cent. This premium rises to 50 per cent when the overtime falls between 10pm and 4am.

Should an employee be required to work on their designated rest day, they are owed either a replacement rest day or pay at the standard hourly rate plus a 50 per cent supplement. Certain categories of employees, such as those in senior managerial roles, may be exempt from standard overtime entitlements.

Special economic zones including the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) operate under their own separate employment legislation. The DIFC Employment Law caps the working week at 48 hours unless an employee provides written consent to exceed this, but it does not prescribe the same overtime pay multiples as federal law — such arrangements are typically governed by company policy or individual contracts. It is essential to confirm which legal jurisdiction covers your employment before entering into any agreement.

During Ramadan, daily working hours are reduced across the board, and the Midday Break regulations continue to apply throughout this period. Employers are required to adjust their scheduling accordingly, and this typically translates to a reduction of two hours from the standard daily working time during the holy month.

What employment rights and benefits are workers entitled to in the UAE?

Once an employee has completed one full year of uninterrupted service with the same organisation, they are entitled to 30 calendar days of paid annual leave each year. This entitlement applies to all employees, including those on fixed-term contracts, provided the one-year service threshold has been reached. Workers who have completed at least six months of service may begin accruing partial leave at a rate of two days per month until the full year is achieved.

Following the conclusion of the probationary period, an employee may take up to 90 consecutive or intermittent days of sick leave per year. The first 15 days are paid at the full rate, the subsequent 30 days at half pay, and any days beyond that are unpaid. The employee is required to notify the employer within three working days of falling ill and to provide a medical certificate.

Female employees are entitled to 60 days of maternity leave in total: 45 days at full pay followed by 15 days at half pay. Where medical complications arise from the pregnancy or childbirth, an additional period of up to 45 days of unpaid leave may be granted upon production of a medical report. It is unlawful for an employer to terminate a female employee’s contract or serve her with notice on the grounds of pregnancy or the taking of maternity leave.

Male employees are entitled to five days of paid paternity leave, which may be taken at any point within the six months following the birth of the child. A further five days of parental leave is also available to either parent within six months of the birth, which is distinct from the specific maternity and paternity entitlements described above.

Recognised public holidays — including Eid Al Fitr, Arafah Day, New Year’s Day, Eid Al Adha, Hijri New Year, Prophet Mohammed’s Birthday, Commemoration Day, and National Day — are paid days off. Any employee who is asked to work on a public holiday must receive 150% of their standard base pay for the time worked.

UAE law prohibits discrimination on the basis of race, religion, gender, nationality, social origin, or disability, and mandates equal remuneration for men and women carrying out equivalent work. Female employees cannot be dismissed during pregnancy or while on maternity leave. These protections extend in full to foreign nationals employed under mainland UAE employment legislation.

What are the rules around minimum wage and pay in the UAE?

As of 2025, the UAE does not prescribe a statutory minimum wage for expatriate workers in the private sector. There is likewise no requirement under UAE Labour Law for basic salary to constitute a defined proportion of gross pay. This stands in notable contrast to systems such as France’s SMIC or Australia’s National Minimum Wage, where a legislated pay floor applies universally to private sector employees.

While UAE Labour Law contains no specific minimum salary figure, it does indicate that remuneration should be sufficient to meet an employee’s fundamental needs. In practice, salary levels vary considerably across industries, job levels, and employers. For up-to-date guidance on wage expectations, the Ministry of Human Resources and Emiratisation (MOHRE) is the authoritative source.

All private companies operating in mainland UAE and the Jebel Ali Free Zone are required to disburse salaries via the Wage Protection System (WPS). This involves submitting a Salary Information File (SIF) to an authorised WPS agent, who then verifies the details with MOHRE. This electronic framework offers meaningful protection for workers by generating an auditable payment record and helping to enforce salary punctuality.

Wages are due from the first day of the month following the period stipulated in the employment contract. Where no payment period is specified, the employee must receive pay at least once monthly. If payment has not been made within 15 days of the due date, the employer is considered to be in default. Workers experiencing unpaid salary issues may submit a formal complaint directly to MOHRE.

How does the employment contract system work in the UAE?

UAE Labour Law has eliminated open-ended employment contracts entirely. All employment arrangements must now be documented under fixed-term contracts with a maximum duration of three years, though these may be renewed for a comparable or shorter period upon expiry. This reform is intended to bring greater transparency and predictability to the employment relationship, giving both employers and employees a clear understanding of contract length and renewal conditions.

Every employment relationship must be underpinned by a written contract, produced in two copies — one retained by the employer and one provided to the employee. The contract ceiling is three years, and agreements may be renewed on the same or reduced terms. Where employment continues beyond the expiry date without explicit renewal, the contract is generally treated as having been extended automatically.

The UAE has formally recognised flexible, part-time, and temporary employment structures, enabling employers to engage staff on temporary, flexible, remote, and job-sharing arrangements. All such arrangements carry the same entitlements and statutory protections as conventional full-time employment.

The probationary period may not exceed six months. During this time, employees are not entitled to paid sick leave, though an employer may grant unpaid sick leave on receipt of a medical certificate. Ending employment during probation typically requires shorter notice periods and is subject to conditions that differ from those governing post-probation termination.

MOHRE has introduced a requirement for employers to continue salary payments for up to two months while an employment dispute is being resolved. This provision offers financial security during what can be protracted dispute processes. If a dispute remains unresolved within 14 days, MOHRE refers the matter to the competent court for adjudication.

The following is a step-by-step overview of the typical employment contract process in the UAE:

1. Job offer and contract issuance: The employer issues a written fixed-term contract (maximum 3 years) in duplicate, covering role, salary, working hours, and benefits.
2. Work permit application: The employer applies to MOHRE for a work permit on behalf of the employee. A work permit is mandatory before employment begins.
3. Residency visa sponsorship: The employer sponsors the employee’s UAE residency visa, which is typically tied to the employment contract.
4. Probationary period: The employee may serve a probationary period of up to six months, during which special termination rules apply.
5. WPS registration: The employer registers the employment relationship with the Wage Protection System to ensure timely, auditable salary payments.
6. Contract renewal or termination: At the end of the fixed term, the contract is renewed or terminated. On termination, end-of-service gratuity must be paid within 14 days.

How does the workplace pension system work in the UAE?

The UAE operates a dual-track system for end-of-employment benefits, drawing a clear distinction between UAE and GCC nationals on the one hand and expatriate workers on the other. For expats, the primary benefit takes the form of a lump-sum gratuity payment at the close of employment, whereas UAE and GCC citizens are enrolled in mandatory pension arrangements administered by the General Pensions and Social Security Authority (GPSSA) in Dubai or the Abu Dhabi Pension Fund (ADPF) in Abu Dhabi.

Expatriate employees who have completed at least one year of continuous service in mainland UAE or certain free zones automatically qualify for a lump-sum End of Service Gratuity (EOSG) upon leaving their employment. Employers are obliged to settle all EOSG payments within 14 days of the contract’s end.

The gratuity calculation is based on 21 days’ wages for each of the first five years of service, rising to 30 days’ wages for every subsequent year. The total gratuity payment is subject to an overall ceiling equivalent to two years’ wages. This contrasts with systems such as Australia’s superannuation, where employer contributions accumulate progressively in an individual fund throughout the employment relationship — the UAE’s traditional EOSG is instead paid as a single sum at the point of departure.

MOHRE has also launched a voluntary alternative end-of-service arrangement — the Savings Scheme — under which the funds earmarked for gratuity are channelled into approved investment vehicles. This scheme operates as an optional substitute for the conventional EOSG mechanism. Employers who elect to participate are required to make monthly contributions to an authorised investment fund on behalf of enrolled employees.

Monthly contribution rates under this scheme are set at 5.83 per cent of the employee’s basic monthly salary for those with fewer than five years of service, and 8.33 per cent for employees with more than five years. Beyond the mandatory employer contribution, participating employees may voluntarily contribute an additional percentage of their salary or a fixed supplementary amount, deducted by the employer at source.

What types of pension arrangements are available to expats in the UAE?

Emirati nationals do not qualify for EOSG and are instead required to participate in a pension scheme operated by either GPSSA in Dubai or the ADPF in Abu Dhabi. GCC nationals employed in the UAE must similarly be registered under a GPSSA pension scheme, regardless of which emirate they work in. Non-GCC expatriates are excluded from these state-run schemes and instead receive the EOSG lump sum as their primary UAE-sourced end-of-employment benefit.

The UAE has introduced a voluntary end-of-service savings scheme approved by the Securities and Commodities Authority (SCA), with the aim of strengthening the financial security of private sector employees. This initiative enables employees to have their end-of-service entitlements invested in authorised funds, providing the potential for growth and offering a degree of protection against inflation and employer insolvency risks.

Under rules introduced in 2024, the previous system that reduced gratuity for employees who resigned before completing five years of service has been abolished. All eligible employees are now entitled to receive their full pro-rated gratuity irrespective of whether they resigned or were made redundant. This change is particularly beneficial for expatriates who switch roles or relocate before building lengthy tenure with a single employer.

Many expats based in the UAE elect to continue contributing to pension arrangements in their home country or maintain private international pension products alongside their UAE gratuity entitlement. The UAE places no restrictions on such arrangements, and it is common practice among internationally mobile professionals. Given the intricacies of cross-border pension planning, it is strongly recommended to seek advice from a qualified financial adviser with expertise in both UAE regulations and the tax and pension rules of your home country. The General Pensions and Social Security Authority (GPSSA) and the Abu Dhabi Pension Fund (ADPF) are the relevant official bodies for UAE nationals and GCC nationals respectively.

From April 2025, under ADGM regulations, employees may choose between the standard gratuity system or a savings/pension-plan alternative. If the savings plan is chosen, the lump-sum gratuity does not apply. Expats working in ADGM should review their options carefully with their employer and an independent adviser.

What is the retirement age in the UAE, and how does the pension eligibility system work?

Statutory retirement age provisions in the UAE are primarily relevant to UAE and GCC nationals enrolled in the state pension system and do not apply in the same way to the expatriate workforce, who instead receive gratuity payments. For Emirati nationals, the standard retirement age under the GPSSA framework is generally 60 for men and 55 for women, though early retirement provisions exist for those who have accumulated sufficient contribution years. The specific rules are established and periodically revised by GPSSA and ADPF — it is advisable to verify the current position directly with those authorities.

For expatriate employees, the concept of a statutorily defined “pension retirement age” does not apply in the conventional sense. End-of-service gratuity represents a mandatory financial entitlement for expat workers who have completed at least one year of service, and it becomes payable at the point of leaving employment — whether that departure is due to retirement, resignation, or termination. Unlike UAE and GCC nationals, expatriates are not covered by state-run pension schemes.

Employers are required to register entitled employees with the GPSSA pension schemes within 30 days of the commencement of employment — this obligation applies to UAE and GCC nationals only. For expatriate employees, the employer’s key responsibility is to ensure that EOSG is correctly calculated and disbursed at the appropriate time. Expats planning to retire in the UAE over the long term should seek guidance from a registered financial adviser and consult the GPSSA or ADPF for current information on contribution requirements and retirement age criteria.

What taxes and social contributions are deducted from wages in the UAE?

Among the most attractive financial features of working in the UAE is the complete absence of personal income tax. Earnings of any kind — including gratuity payments — are not subject to income tax, meaning that employees retain their full salary. This differs fundamentally from most European or North American employment markets, where tax is withheld from wages throughout the year by the employer.

UAE and GCC nationals are subject to mandatory social security contributions, made to either GPSSA or ADPF, with contribution rates determined by those respective bodies. Expatriate workers, however, are not enrolled in these national schemes and therefore have no social security deductions taken from their earnings. The employer’s sole statutory financial obligation to expat employees at the conclusion of employment is the EOSG payment.

Although personal income tax does not exist in the UAE, a 9% corporate tax on business profits exceeding AED 375,000 came into effect in June 2023. This affects businesses rather than employees directly and does not reduce take-home pay. A Value Added Tax (VAT) rate of 5% is also applied to most goods and services in the UAE, which has an indirect effect on purchasing power. For authoritative guidance on tax matters, consult the UAE Federal Tax Authority (FTA).

Expatriates who retain tax residency obligations in their country of origin should be mindful that the UAE’s tax-free environment does not necessarily release them from filing requirements at home. Tax treaties between the UAE and an expanding list of countries may determine how UAE-sourced income is treated in the home jurisdiction. A qualified international tax adviser should be consulted to address individual circumstances.

What are the rules around trade unions and collective bargaining in the UAE?

Independent trade unions of the kind found in many other countries do not exist in the UAE. Unlike nations such as Germany or Sweden — where collective bargaining is a cornerstone of wage-setting and working condition negotiations — the UAE’s employment framework is built on statutory legislation and individually negotiated employment contracts rather than union-driven agreements. There is no formal collective bargaining mechanism operating across the private sector.

Workplace disputes between employees and employers are channelled through MOHRE, which serves as the primary point of contact and a mediation body. Workers may report violations and seek redress via MOHRE and the labour courts. Employers found to have breached workplace rights face fines of up to AED 10,000 or potential imprisonment in serious cases. Dismissing a worker for lodging a complaint is classified as unlawful termination.

MOHRE rulings are now directly enforceable without the need for extended legal proceedings, having been granted the status of a “writ of execution.” This development enables the Ministry to implement its decisions swiftly, considerably improving the efficiency of the labour dispute process and strengthening workers’ practical ability to enforce their entitlements.

Foreign nationals — in common with all workers in the UAE — are fully entitled to bring workplace grievances before MOHRE, and no formal restrictions prevent expats from using the official dispute resolution channels. The MOHRE website provides detailed guidance on lodging complaints, accessing mediation services, and understanding your statutory rights.

Are there any particular employment protections or challenges that expats should be aware of in the UAE?

The most structurally significant aspect of expatriate employment in the UAE is the visa sponsorship model. An employment visa is tied to a particular employer, meaning that if employment comes to an end — through resignation, redundancy, or dismissal — the holder’s residency status is directly affected. A grace period is generally available following the termination of employment, during which the individual may secure new sponsorship, transfer their visa, or make arrangements to depart. This degree of dependency on the employer is not a feature of most other labour markets.

UAE Labour Law enforces firm prohibitions on workplace discrimination and harassment. Differential treatment on the grounds of race, gender, religion, nationality, or disability is unlawful. Employers carry a legal obligation to maintain a working environment that is safe, respectful, and free from harassment, bullying, and violence. These protections apply universally, regardless of the nationality of the worker concerned.

The updated legislation expressly prohibits forced labour in all forms. Employers may not compel employees to perform work against their will, and terminating a female worker’s contract on account of pregnancy is explicitly forbidden. These statutory protections are robust, though workers should be aware that enforcing them in practice may require active engagement with MOHRE.

Employment contracts in the UAE are frequently drafted in Arabic, which is the country’s official language. Expats should ensure they obtain a full and accurate translation of any contract before appending their signature. In the event of a legal dispute, discrepancies between an Arabic original and a version in another language are typically resolved in favour of the Arabic text. Independent legal advice is strongly recommended if you have any uncertainty about the terms of your contract.

Qualifications obtained abroad are generally accepted by UAE employers across most professional fields. However, certain regulated professions — including medicine, law, and engineering — require formal accreditation from the appropriate UAE regulatory authority before practice is permitted. Prospective employees should confirm the status of their overseas credentials with their employer and the relevant sector regulator prior to accepting a position.

If an employee changes jobs within three months of being hired, a former employer may seek to recover recruitment costs. Expats should scrutinise any non-compete provisions or cost-recovery clauses in their contracts with care before making a career move.

Frequently asked questions

Will my overseas professional qualifications be recognised in the UAE?

The majority of private sector employers in the UAE assess international qualifications according to their own internal hiring standards. That said, for professions subject to regulatory oversight — such as healthcare, law, and engineering — formal accreditation with the relevant UAE regulatory authority is generally a prerequisite for practice. Before accepting a role, verify the requirements with the applicable body for your field, such as the Dubai Health Authority (DHA) or the Health Authority Abu Dhabi (HAAD) for medical practitioners.

Can I access my end-of-service gratuity if I leave the UAE?

Expatriate employees who have accumulated at least one year of uninterrupted service are automatically entitled to a lump-sum EOSG payment upon the conclusion of their employment. Employers must settle all EOSG amounts within 14 days of the contract ending. The payment is made directly to the employee and is transferable internationally. If your employer does not pay what is owed, you may file a formal complaint with MOHRE before departing the country.

What happens to my employment rights if my visa changes during employment?

Statutory entitlements under UAE Labour Law are anchored to your work permit and employment contract, not to the specific category of visa you hold. Changing visa type does not in itself extinguish any accrued rights, such as annual leave or gratuity entitlements. However, where a change involves moving to a new employer under a new contract, the service period for gratuity calculation purposes typically starts afresh. Whenever a visa or contractual amendment occurs, confirm in writing that your employment terms remain continuous, and contact MOHRE if you have any doubts.

Is there any state pension or retirement support for expats in the UAE?

Non-GCC expatriates are not included in the UAE’s state pension schemes — GPSSA and ADPF — which are reserved for UAE and GCC nationals. The primary retirement-related provision available to expats through the UAE system is the end-of-service gratuity lump sum, which becomes payable at the end of each employment relationship. Expats are strongly advised to build personal savings, maintain private pension arrangements, or continue contributing to pension schemes in their country of origin throughout their career in the UAE in order to ensure adequate financial provision in retirement.

Are employment contracts in the UAE always in Arabic?

Contracts are commonly issued in Arabic and may be accompanied by an English or other language version. Should a legal dispute arise, the Arabic version is generally regarded as the authoritative text. If you receive a bilingual contract, engage a qualified legal professional to review both versions and confirm their consistency before you sign. MOHRE oversees and registers employment contracts and can be approached for guidance on contractual issues.

What should I do if my employer does not pay my salary on time?

Wages become payable from the first day of the month following the period set out in the employment contract. Where no payment period is specified, salary must be paid at least monthly. An employer is deemed to have defaulted if payment has not been made within 15 days of the due date. You can submit a salary complaint to MOHRE via their website, mobile app, or service centres. The Wage Protection System also maintains a record of salary payment history that MOHRE can access when examining a complaint.

Can I work for more than one employer in the UAE?

Where an employee works for more than one employer, no employer — whether the primary or additional one — may require the employee to work beyond the hours specified in their respective employment contract without the employee’s written agreement. Part-time and flexible working arrangements have been formally recognised under the 2024 legislative reforms, making multi-employer working more straightforward. However, your principal work permit is usually linked to a single sponsoring employer, so any secondary employment should be properly documented and must not contravene your visa conditions.

What happens at the end of a fixed-term contract in the UAE?

Fixed-term contracts carry a maximum duration of three years and may be renewed for the same or a shorter period. If both parties continue the employment relationship after the original expiry date without formal renewal, the contract is generally treated as having been automatically extended. Where the contract concludes without renewal, the employee is entitled to their full end-of-service gratuity — provided at least one year of continuous service has been completed — along with any outstanding leave payments, all of which must be settled within 14 days. Steps to manage your residency visa — whether through transfer, cancellation, or renewal — should be initiated promptly following the end of employment.