Which rules apply to you
Most private-sector employers in the UAE fall under the federal labour law administered by the Ministry of Human Resources and Emiratisation (MOHRE). Several free zones — most notably the DIFC and ADGM — operate their own employment regimes with different rules on contracts, end-of-service and dispute resolution. Confirm which regime your entity sits in before drafting anything.
Contracts and probation
- Private-sector employment contracts under the federal law are fixed-term and registered with MOHRE.
- The MOHRE offer letter and the registered contract should match what was agreed with the candidate — mismatches are a common source of disputes.
- Probation is capped by law and must be stated in the contract, with specific notice rules for terminating during probation.
- Part-time, temporary, flexible and job-sharing work models are recognised and each has its own permit type.
Working hours, leave and pay
- Standard maximum working hours and overtime entitlements are set by law, with reduced hours during Ramadan.
- Annual leave, sick leave, maternity and parental leave entitlements are statutory minimums — contracts can be more generous, never less.
- Wages must be paid through the Wage Protection System (WPS) within the required period; WPS non-compliance blocks new work permits.
- Outdoor work is subject to the summer midday break rule during the announced period each year.
Ending employment
- Notice periods must be stated in the contract and applied consistently by both sides.
- Termination must fall within the grounds the law recognises; arbitrary dismissal exposes the employer to compensation claims.
- End-of-service gratuity is calculated on basic salary and length of service for employees who complete a year of continuous service.
- On exit, the employer must settle final dues and cancel the work permit and residence visa.
Practical compliance habits
- Keep the offer letter, MOHRE contract and internal HR record aligned.
- Run WPS on time, every month, without exception.
- Document performance issues before acting on them.
- Keep an auditable file for every employee: contract, passport copy, visa, Emirates ID, insurance, qualifications.
- Take local legal advice on any termination that is not straightforward.
This guide is general orientation, not legal advice. UAE employment rules are updated regularly by ministerial resolution — verify current requirements with MOHRE or a UAE-qualified employment lawyer before acting.
Frequently asked questions
- No. Private-sector employers under the federal labour law use fixed-term contracts registered with MOHRE. Legacy unlimited contracts were required to be converted.
