The UAE Labour Law has undergone significant reforms in 2025, and if you’re working or hiring in the UAE, you need to know what’s changed.
These updates are not just minor tweaks; they redefine employee rights, restructure work models, and modernize how contracts and benefits are handled across sectors.
In this blog, we’ll walk you through 10 of the most important changes to the UAE Labour Law, including updates on working hours, sick leave, termination rules, flexible contracts, employee protections, and more.
Whether you’re an employer, employee, or HR manager, this guide will help you stay compliant and informed about your rights and responsibilities in 2025.
1. Standardization of Working Hours
Under the revised UAE Labour Law, the standard working hours are set at 8 hours per day or 48 hours per week. During the holy month of Ramadan, working hours are reduced to 6 hours per day. Employees are entitled to a minimum of one rest day per week, typically Friday, though this can vary based on the employment contract. Overtime work is permissible but must not exceed two hours per day, and employees are entitled to additional compensation for such hours.
2. Enhanced Sick Leave Provisions
Employees are entitled to a sick leave of up to 90 days per year, structured as follows: the first 15 days are fully paid, the next 30 days are at half pay, and any subsequent days are unpaid. To avail of sick leave, employees must notify their employer within 48 hours and provide a medical certificate. This structured approach ensures employees can recover without undue financial stress while maintaining workplace productivity.
3. Revised Termination and Notice Periods
The updated law stipulates that either party may terminate the employment contract by providing a notice period ranging from 30 to 90 days, depending on the contract terms. During the probation period, a 14-day notice is required. Unlawful termination, such as dismissal without valid reason or due process, can result in the employer being liable to compensate the employee with up to three months’ salary.
4. Introduction of Flexible Work Models
Recognizing the evolving nature of work, the UAE Labour Law now accommodates various work models, including full-time, part-time, temporary, and flexible working arrangements. Employers and employees can agree on work schedules that suit both parties, promoting a better work-life balance and catering to diverse workforce needs.
5. Comprehensive Maternity and Paternity Leave
Female employees are entitled to 60 days of maternity leave, with the first 45 days at full pay and the remaining 15 days at half pay. Additionally, if the newborn has a disability, the mother is entitled to an extra 30 days of paid leave and 30 days of unpaid leave. Male employees are granted 5 days of paid paternity leave, to be taken within six months of the child’s birth.
6. Protection Against Workplace Discrimination and Harassment
The law explicitly prohibits discrimination based on race, color, sex, religion, nationality, or disability. It also safeguards employees against harassment, bullying, or any form of verbal, physical, or psychological abuse in the workplace. Employers are mandated to establish clear policies and take immediate action against any reported incidents, ensuring a safe and respectful work environment for all.
7. Clarification on Employment Contracts
All employment contracts must be in writing and clearly define the terms of employment, including job responsibilities, remuneration, working hours, and termination conditions. The law has phased out unlimited-term contracts, requiring all contracts to be of a fixed term, not exceeding three years, renewable upon mutual agreement.
8. Introduction of Study Leave
Employees who have completed two years of service with their employer are now entitled to a 10-day study leave annually, provided they are enrolled in an accredited institution within the UAE. This provision encourages continuous learning and skill development among the workforce.
9. End-of-Service Gratuity Adjustments
Upon termination of employment, employees who have completed at least one year of continuous service are entitled to an end-of-service gratuity. The calculation is based on 21 days’ basic salary for each of the first five years of service and 30 days’ salary for each additional year. The total gratuity should not exceed two years’ salary.
10. Implementation of Unemployment Insurance
A notable addition to the UAE Labour Law is the introduction of an unemployment insurance scheme. This system provides financial support to employees who lose their jobs due to reasons beyond their control, ensuring a safety net while they seek new employment opportunities. Eligibility and compensation details are governed by specific regulations under this scheme.
Navigating UAE Labour Law with Trusted Legal Guidance
At Ayesha Aljaziri Lawyers & Legal Consultants, we specialize in all matters related to UAE labour law, ensuring our clients are fully informed and protected under the latest 2025 regulations. From understanding updated sick leave entitlements to addressing complex termination disputes or flexible work arrangements, our team is always up to date with current legislation.
Whether you’re an employee facing challenges or an employer seeking compliance, we apply this legal insight to provide tailored, effective solutions. With a strong reputation in Dubai labour law service, we’re proud to serve our clients with clarity, dedication, and results.
Need Legal Assistance with UAE Labour Law?
Navigating the complexities of the UAE Labour Law can be challenging. For expert legal advice and assistance, feel free to contact Ayesha Aljaziri Lawyers & Legal Consultants at +971 5594 83605 or email info@aljaziriadvocates.com. Contact Us today for personalized support.
Frequently Asked Questions
Can unused annual leave be carried forward to the next year?
What are the provisions for compassionate leave?
Are there specific regulations for part-time employees?
How does the law address workplace safety?
Employers are obligated to provide a safe working environment, including necessary health and safety measures. Employees have the right to report unsafe conditions, and employers must address such concerns promptly to prevent workplace accidents and illnesses.
