The UAE is a promising location that is constantly updating its laws and regulations. In this regard, the new labor law in UAE 2025 has been modified to include updates that are both beneficial for employers and employees.
In this article, you will understand what has changed in the new labor law in UAE 2025. Additionally, you will see why it is important for an employer to take into account the regulations that oversee employment in the UAE.
Understanding the New Labour Law in UAE 2025: Key Changes Unveiled
Whether an employee earns the minimum wage in the UAE or holds an executive role with a high salary, the UAE labor law applies equally to all private sector workers.
In the UAE, MOHRE (Ministry of Human Resources and Emiratisation) oversees employment regulations for the private sector. The cornerstone of this framework is Federal Decree-Law No. (33) of 2021, which officially came into effect in February 2022. It introduced major reforms covering areas such as contract types, leave entitlements, working hours, and more.
Throughout 2023 and 2024, several ministerial resolutions were issued to clarify and amend certain provisions, including those related to labor disputes and contractual obligations.
As of 2025, employers must ensure continued compliance with all applicable updates to avoid penalties and maintain fair, lawful practices in their workplaces.
New Labour Law for Limited Contracts in UAE: What Employers Have to Know
One of the most impactful changes introduced by the UAE labor law reform is the elimination of unlimited-term employment contracts.
Previously, employers could choose between limited and unlimited-term contracts. Unlimited contracts had no fixed end date, whereas limited contracts had a defined duration. However, as per the updated legislation, unlimited-term contracts are no longer valid.
Since 1 January 2024, all employment contracts in the UAE must be fixed-term. This shift aims to improve clarity and legal alignment between employers and employees.
Key points about the current contract rules:
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All contracts must include a clear end date.
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The duration of fixed-term contracts typically aligns with the employee’s residence visa validity — generally between 2 to 3 years.
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Both start and end dates must be explicitly stated.
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Each employment contract must clearly outline essential details, including:
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Job title and role
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Compensation and benefits
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Work location
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Duration of employment
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Any other relevant terms and conditions
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This change ensures greater transparency, legal compliance, and predictability in employment relationships.
Navigating 2025: What the New Labour Law Stands for Employees
The new labor law is a major change for employees. First of all the main modification regarding labour complaints allows both parties to get support from the Ministry until they reach an amicable settlement decision.
As an employee, it is positive to see developments and evolutions in labor and employment regulations that could benefit them.
Particularly foreign workers in the private sector are the most benefited from these new rules. They can feel more protected at their workplace as the Ministry supports them.
Therefore, the following are some of the benefits that employees gain with the issuance of solid employment laws like those established in the UAE:
- Protection of their rights.
- Prevention of discrimination and harassment.
- Ensure compliance.
- Support with conflict resolution.
- Guarantee that every employee gets an equal treatment.
Exploring Notice Periods: Undertones of the New Labour Law in UAE
The notice period should be specified in the contract and both parties must agree on it. In case the employee or the employer wants to terminate the contract they must follow the regulations established regarding this period.
The change this new law introduced is regarding the notice period during the probationary period. The following are the new provisions regarding the notice period:
- If the employee wants to terminate the employment relationship during the probationary period they should comply with a 14-day notice period. In addition, they should notify the employer about this.
- The notice period should be established in the contract and both parties must agree.
- Either party may terminate the employment relationship as long as they comply with a notice period that should not be less than 30 days and no longer than 90 days.
Clarifying the New Labour Law: FAQs and What You Should Know
Understanding the new labor law in UAE 2025 may not be easy for foreign employers or workers. Therefore, it is important to learn everything about it by looking for the answer to the most common doubts.
As you may already know, the Ministry of Labor UAE, currently renamed MOHRE, is in charge of overseeing employment. Thus, on its website, there are many answers you can check.
For this reason, here we have a consistent overview and an in-depth analysis of the most significant aspects of this new law.
Interpreting the New Labour Law in UAE 2025: A Concise Overview
Overall, the new labor law includes benefits for both employees and employers. For instance, the following are the most crucial changes of this new law:
- The introduction of limited or fixed-term contracts is beneficial for employers as they can dismiss employees who have low performance.
- With the new provisions regarding discrimination, all employees are protected against verbal, psychological, and physical abuse, as well as sexual harassment by their coworkers, managers, or supervisors.
- Regarding the new notice period for dismissal during the probation period, both parties have to be notified in advance.
- With the new work patterns introduced, employees can opt for flexible employment options so they can increase their earnings.
In-Depth Breakdown: The Significance of Basic Salary in UAE Labour Law
According to the new labor law in UAE 2025, the basic salary, which is defined as “basic wage”, is the wage that should be stated in the employment contract. This basic salary must be paid to the employee under a specified arrangement such as monthly, biweekly, weekly, hourly or other. Moreover, the basic salary does not include allowances.
Thus, the new law makes a distinction between the wage and the basic wage. The wage is the basic wage plus benefits in kinds, allocations, and any other allowances the worker may receive.
The basic wage is highly important in the new law as it is the basis for calculating the following:
- Overtime calculations
- The calculation for the compensation of an employee who works on a weekend or holiday.
- The calculation for the compensation for the annual leave.
- Compensation in the case of a work injury or an occupational disease.
- It is also the basis for calculating the end-of-service benefit for a full-time worker.
Dubai Labour Office Perspectives: How the New Law Affects Business Operations
Without a doubt, private sector companies are the ones who must learn about the new provisions as they have a great impact on their business operations.
The following are some of the recommendations for companies who want to stay in compliance to ensure ongoing operations:
- Build a solid HR team that can be well-versed in the changes and updates to regulations. This is to ensure total compliance with your employment contracts.
- Instruct and inform your employees regarding their rights and duties. If possible distribute the policies to every employee so they can be all aware of the new provisions.
- Look for a trustworthy partner who can provide consultancy or advisory on employment matters to ensure compliance.
Labour Law in UAE: A Full Look at Working Hours and Regulations
Working hours are highly important for employees and employers in the UAE. If you want to stay in compliance while operating, you need to follow the new labor law in UAE 2025 regarding working hours.
As an employer following the established working hours is a must. You should adhere to the provisions established in Article 17 of the new labor law. Similarly, as an employee, you should know your rights regarding the working hours per week and the consecutive working hours.
Labour Law UAE Working Hours: Essential Boundaries in the New Landscape
The following are the provisions regarding this matter:
- The maximum working hours for employees in the private sector should be 8 hours per day for a total of 48 hours per week.
- Some economic sectors may have a reduction or increase in the total working hours per day depending on the sector where they work.
- Employees cannot work more than 5 consecutive hours without having a break for lunch, rest, or to pray. Thus, this rest should not be less than one hour in total. Nevertheless, the rest is not part of the total working hours.
- During Ramadan, the working hours are reduced to two hours per day which means that employees have to work six hours per day.
Labour Law in UAE: Employee Rights and Labour Rules
the UAE is a place that welcomes foreign labor. Therefore, the authorities have issued many laws and initiatives to protect workers. This is with the aim that everyone in the workplace gets a fair and equal treatment.
Some of the rights that employees have are the following:
- Employees across sectors and industries have the right to request a transfer from another employer.
- Employers have to comply with the wage protection system which ensures timely and accurate compensation to workers.
- Employers cannot retain or withhold their employee’s passports as it is illegal.
- Every employee in the UAE must have signed an employment contract which establishes all the rights regarding salary, working hours, healthcare, and others.
Employment Law Dubai: Exploring the New Norms of Employee Benefits
In the UAE, employees have several benefits that employers should grant them. All of the changes made to the rules regarding employment are made to consider the rights and duties of both employees and employers.
The following are the benefits employees have to get:
- Maternity leave in the UAE: female employees can get a 60-day maternity leave, where the first 45 days are fully paid and the other 15 days are with half pay.
- New leave categories: the new law contains new leaves that have been included. For instance, there is compassionate leave which grants five days for the employee in the case of the death of a spouse or a first-degree relative. In addition, there is also the paternal leave which is five days that the employee can use following the birth of their child.
- Unemployment insurance in the UAE is a new benefit for employees in the UAE, and it is in the new labor law.
Exploring Labour Law UAE 2025: Impacts and Considerations for Businesses
Businesses must be very aware of all the changes in the new labor law in UAE 2025. It is essential to adapt to the new regulations to build a solid workplace and ensure full compliance.
Labour Office Dubai: Familiarizing with the New Labour Law Landscape
Understanding the new UAE labor law is the first step for ensuring a successful business. However, you should know how to adapt their provisions to your workplace to ensure you create an environment where every employee thrives.
Some of the tips you can consider are the following:
- Promote awareness: Encourage every member of your workforce to read all the provisions of the labor law.
- Stay Informed: Instruct your HR team to stay informed about all the ministerial decisions, cabinet resolutions and regulations that the Ministry issues. Ask them to regularly review and educate themselves about the relevant legislation.
- Assess the impact on your organization: Check which provisions can have an important impact on your HR. Practices such as benefits, compensation, hiring, recruitment, and work schedules, to name a few. Make the necessary modifications to ensure all of your processes are aligned with the current regulations.
In case your employee does not want to continue working for the company, you need to know how to cancel the UAE Visa, as it is important if the employee wants to leave the Emirates.
Embracing Change: How Employers Can Adhere to the New Labour Law
The following are some of the recommendations you can consider to comply with the new labor law in UAE 2025:
- Promote diversity and non-discrimination within the company.
- Provide equal pay to your employees in the same position regardless of their race, sex, and ethnicity.
- Ensure to hire a diverse workforce, including Emiratis To comply with The policies.
- Follow occupational safety standards established by Marie, such as providing all the equipment and tools. Necessary for the employees to perform their jobs.
- Include all the details regarding employment in your contract and ensure to follow the fixed-term provisions.
Labour Laws in UAE 2022 vs. 2025: Progress and evolution in Employment Regulations
Employment regulations are constantly changing in the UAE. Since change is positive, it is important to understand how the rules have evolved to see the benefits that both employees and employers will get.
Some of the most significant changes are the following:
- Changes in maternity leave: In the previous law female employees could enjoy a 45-day maternity leave. However, in the new law female employees can enjoy a 60-day maternity leave.
- Inclusion of new work patterns: The new law includes new work modes for employers to hire employees. In addition to full-time workers, which means those who work full daily working hours, there will also be part-time workers, which are those who work for a number of working hours or days, temporary workers, which are those who work for a specific period or project, and flexible workers, who work depending on the workload.
- Protection against discrimination: This new law includes provisions regarding discrimination in the workplace. Given that the UAE is a place that encourages diversity in the workplace, Employees cannot be discriminated against based on race sex, origin, religion, disability or any other.
- Emiratisation policies: According to the new updates and regulations there is an increased scope for private companies regarding the Emiratisation policy. Private companies with a workforce of 20 to 49 employees must hire at least one Emirati. This number will increase to two in 2025.
- Disputes: Another change that we will see in 2024 is regarding the dispute of rights that may arise from the employment relationship. Currently, employees and employers may start a dispute regarding employment rights to the ministry.
Conclusion
Understanding the new labor law in UAE 2025 as a foreign employer can be complex. In this regard, it is helpful to get the support of a specialized team to get assistance with your journey in the UAE.
Contact us now to get support to start your business, to solve your hiring needs and even to get help to apply for a UAE Residence Visa. We can be your go-to solution for every requirement you may have in the UAE.
