The principal private-sector employment law: fixed-term contracts, work permits, probation, working hours, leave, wages, termination, end-of-service gratuity, non-compete limits, labour dispute procedure and fines of AED 50,000 to 200,000 for employing workers without permits. It replaced Federal Law No. 8 of 1980 and took effect on 2 February 2022; the portal records three amendments.
Federal Decree-Law No. 33 of 2021 is the UAE's principal private-sector employment law. It took effect on 2 February 2022 (Article 74), repealed Federal Law No. 8 of 1980 (Article 73) and has since been amended, including by Federal Decree-Law No. 14 of 2022, which rewrote Article 8(3) on contract terms.
Article 3 applies the law to every establishment, employer and worker in the private sector; federal and local government employees, the armed forces, police and security staff and domestic workers are excluded. Article 6 bars an employer from recruiting or employing a worker without a Ministry work permit and prohibits charging workers recruitment fees. Article 7 recognises full-time, part-time, temporary and flexible work, and Article 8 requires a written contract for a definite, renewable term. Probation may not exceed six months and may be used once with the same employer (Article 9); 14 days' written notice is needed to end service during probation. A non-compete clause is valid only where the worker had access to clients or trade secrets and may not exceed two years (Article 10).
Normal working hours are eight a day or 48 a week (Article 17), with overtime capped at two hours a day and paid at a premium of at least 25% of basic wage (Article 19). Annual leave is 30 days a year (Article 29), maternity leave 60 days, 45 at full pay and 15 at half pay (Article 30), and sick leave after probation up to 90 days a year, 15 at full pay, 30 at half pay and the rest unpaid (Article 31). Article 25 caps wage deductions at 50% and Article 27 lets the Cabinet set a minimum wage.
Termination requires a notice period of 30 to 90 days (Article 43); the party that fails to give notice pays an allowance equal to the wage for that period. Article 44 lists the grounds for dismissal without notice and Article 45 the grounds on which a worker may leave without notice. End-of-service gratuity for foreign full-time workers with a year's service is 21 days' basic wage for each of the first five years and 30 days for each year after, capped at two years' wages (Article 51). Disputes go first to the Ministry, which decides claims up to AED 50,000 subject to appeal to the Court of Appeal within 15 business days; claims expire one year after the right falls due (Article 54). Article 65 makes the law a floor: more favourable contractual terms survive. Article 68 required existing unlimited contracts to be converted to fixed terms within one year of commencement.
Every establishment, employer and worker in the UAE private sector, including non-financial free zones, on full-time, part-time, temporary or flexible contracts. Excluded under Article 3: federal and local government employees, armed forces, police and security personnel, and domestic workers, who fall under their own law. DIFC and ADGM apply their own employment laws.
| Article 3 | Applies the law to all private-sector establishments, employers and workers and excludes government employees, armed forces, police and security staff and domestic workers; the Cabinet may exclude further categories. |
| Article 6 | No employer may recruit or employ a worker without a work permit from the Ministry, and workers may not be charged recruitment fees. |
| Article 8 | Employment contracts must be written in two copies and concluded for a definite, renewable term; continued work after expiry extends the contract on the same terms. |
| Article 9 | Probation may not exceed six months, may be used only once with the same employer, and ending service during probation needs at least 14 days' written notice. |
| Article 10 | A non-compete clause is allowed only where the worker had access to clients or trade secrets, may not exceed two years, and is void if the employer terminates in breach of the law. |
| Articles 17–19 | Normal hours are eight a day or 48 a week; no more than five consecutive hours without a break; overtime is capped at two hours a day and paid at a premium of at least 25% of basic wage. |
| Articles 29–31 | Annual leave of 30 days a year; maternity leave of 60 days (45 at full pay, 15 at half pay); sick leave after probation of up to 90 days a year, 15 at full pay, 30 at half pay and the rest unpaid. |
| Article 43 | Either party may terminate on written notice of not less than 30 and not more than 90 days; failure to give notice costs an allowance equal to the wage for the notice period. |
| Articles 44–45 | Lists the grounds for dismissal without notice after a written investigation, such as fraud or absence of more than 20 non-consecutive or seven consecutive days, and the grounds on which a worker may leave without notice. |
| Article 51 | Foreign full-time workers with at least one year's service receive gratuity of 21 days' basic wage per year for the first five years and 30 days per year thereafter, capped at two years' wages. |
| Article 54 | Labour disputes go first to the Ministry, which issues a final decision on claims up to AED 50,000 subject to appeal within 15 business days; lawsuits must be filed within one year of the right falling due. |
| Articles 59–64 | Sets the fine bands for employing without a permit, false recruitment information, misuse of Ministry systems and other breaches, multiplied per worker up to AED 10,000,000 and doubled for repeat offences within a year. |
Article 59: AED 20,000 to 100,000 for giving false information to recruit a foreign worker, obstructing officials or disclosing work secrets. Article 60: AED 50,000 to 200,000 for employing a worker without a permit or unlawfully employing a juvenile. Article 61: imprisonment of at least one year and/or AED 200,000 to 1,000,000 for misusing the Ministry's electronic systems. Article 62 multiplies employer fines by the number of workers affected, capped at AED 10,000,000; Article 63 sets AED 5,000 to 1,000,000 for other breaches; Article 64 allows imprisonment and doubles the fine for a repeat within one year.
Every mainland and non-financial free zone company we form becomes an employer under this law the moment it sponsors its first employee, so our PRO and payroll teams work to its rules daily. We draft MoHRE-form contracts for client staff on fixed terms that match the visa period, set probation at or below six months, and diarise the 30 to 90 day notice window when a client plans a termination. When clients ask about restrictive covenants we hold them to the two-year, legitimate-interest test in Article 10. On exit we calculate gratuity on basic wage at 21 and 30 days per year and check the two-year cap. The fines in Articles 59 to 64 are per worker, so we treat permit-less staff as an urgent problem rather than a paperwork gap. For DIFC and ADGM employers we apply those centres' own employment laws instead.
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