Federal Decree-Law 33 of 2021 On Regulation of Labour Relations (as amended) (the Labour Law) only recognizes one category of employment status (an "employee" or “worker”). There are special provisions relating to the employment of women and of juveniles. (It is also possible for individuals to become licensed freelancers, and to provide services to clients on that basis, but such freelancers are not protected by the Labour Law.) Moreover, within the category of an employee, there are certain distinctions drawn between employees with Different work patterns include:

(a)   “full-time” meaning an employee who works for one employer for the full daily working hours;

(b)   “part-time” meaning an employee who works for one or more employers for a specified number of working hours or days designated for work;

(c)   “temporary work” whereby the nature of such work is required for a specific period of time or is focused on a specific work task which shall end upon its completion;

(d)   “flexible work” which relates to work in which the working hours or days change according to the volume of work and the economic and operational variables of the employer. The employee may work for the employer at vairable times according to the work conditions and requirements. 

The Labour Law does not apply to individuals employed by governmental organizations, members of the armed forces, police and security, domestic servants and certain types of agrigultural workers.

The Labour Law has eliminated the use of unlimited-term contracts in the UAE. The Labour Law states that “the employment contract shall be concluded for a fixed term that shall be renewable as agreed by the parties.”At the outset, the Labour Law required a fixed term of no more than three years. However, this was amended by Federal Decree-Law 14 of 2022 which removed the reference to a maximum three-year term and replaced the language such that there may only be fixed-term contracts with a duration agreed upon by both employer and employee. Be ware that the Labour Law allows for notice periods plus automatic renewal, thus blurring the distinction between fixed and unlimited contracts. It also notable that the Labour Law does not apply to employers and employees in the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Markets Freezones (ADGM) both of which have their own specific employment regulations.

The Labour Law read together Cabinet Decision 1 of 2022 On the Implementing Regulation of the Federal Decree-Law 33 of 2021 (the Implementing Regulations) outlines the validty requirments of a written employment contract in the UAE. An employer must conclude an employment contract with the employee according to the agreed upon work pattern and ensure that there are two copies, one for the employee and the other for the employer executed in accordance with the Implementing Regulations. Additonally, the employment contract must specify a fixed term. The Implementing Regulations outlines the essential elements of an employment contract which must include:

(a)   the name and address of the employer;

(b)   the name, nationality and date of birth of the employee;

(c)   proof of the employee’s identity and qualification;

(d)   the specific job title or occupation;

(e)   the date of commencement of the employees work;

(f)    the workplace;

(g)   working hours;

(h)   desigated rest days;

(i)     probationary period (if any);

(j)     the term of the contract;

(k)   the agreed upon salary (which shall include the benefits and allowances);

(l)     annual leave entitlements;

(m)  the notice period;

(n)   the procedures for terminating the employment contract; and

(o)   any other data determined by the Ministry of Human Resources and Emiratisation (the Ministry) as required to regulate the relationship between both parties. 

In order to add new clauses to the contract, both the employer and the employee must be in agreement and the employer and employee must contract for the work pattern they have agreed upon using the outlined contract forms in the Ministry system.

The Labour Law does not fully address the difference between the rights afforded to a part-time employee and those afforded to a full-time employee.

It is  understood that all employers are required to obtain health insurance for all sponsored employees and that this is a standing obligation regardless of whether the employee is a full-time or part-time employee.

The Labour Law details that “part-time employees annual leave rights are calculated differently, particularly that the part-time employee shall be entitled to annual leave according to the actual working hours spent by the employee with the employer, the duration of which shall be determined in the employment contract, and in accordance with the Implementing Regulation.” The Implementing Regulations specify that the duration of the annual leave shall be determined “on the basis of the total working hours after converting them into working days, divided by the number of working days in the year, multiplied by the legally prescribed leaves, with a minimum of five working days per year for annual leaves, and a fraction of a day considered as a full day in calculating these leave entitlements”.

The issue of part time employees is also addressed under Federal Ministerial Resolution 31 of 2018 Introducing Part-Time Employment Contract System (the Part-Time Resolution), though these regulations specifically focus on employees simultaneously working for more than one employer.

While it is not a common practice in the UAE,  employment contracts can be assigned with the consent and cooperation of the employee.

If the company is transferred by way of a business or direct share sale (i.e. where the legal form of the business does not change), there exists no legal right for employees to object or take any other action. There also exists no obligation to consult employees in the transfer unless there will be a change to the employer detailed in the employment contract in which case the employee’s consent will be requied  to transfer of their employment to the new buyer.

If the transfer is done by way of an asset sale of the business then the consent and cooperation of the employees will be necessary.

The employer does not have an obligation to obtain consent or consult employees where there is or will be a change of control. However, in such case the employees’ rights under their contract are protected as the employment contract shall continue to be valid upon a change in the establishment’s form or legal status.

The terms of employment may only be changed where an agreement to that effect is reached between the employer and the employee. The Labour Law states that it is not permissible to assign an employee work which is found to be fundamentally different from the work agreed upon in their employment contract unless the change is necessary or done with the aim of preventing the occurance of an accident or correcting an accident. A unilateral change of terms by the employer may be seen to constitute a breach of their contractual obligations thus entitling the employee to treat the situation as one of constructive dismissal.

As a matter of law, the UAE is not an employment-at-will jurisdiction. In practice, employment agreements may be terminated by the expiry of their fixed term, or by giving proper notice of a valid reason for the termination. The Labour Law stipulate that an employer may terminate an employment contract in the following cases:

a)      When the fixed-period stipulated in the contract has expired;

b)      When both parties agree to the termination;

c)      At the request of either party, provided that the termination is not illegal as specified in Article 47 and all notice periods are observed;

d)      Upon the death of the employer if the subject of the contract is related to them;

e)      Upon the death or permanent total disability of the employee;

f)       Where the employee is sentenced by a final judgement with a freedom-restricting penality of three months or more;

g)      Due to the bankruptcy or insolvency of the employer; or

h)      Failure of the employee to meet the conditions for renewing their work permit.

The Labour Law stipulate also that an employer may terminate an employment contract wihtout notice in the following cases:

a)      Where the employee impersonated another person, or submitted forged certificates or documents;

b)      Where the employee committed a mistake that resulted in a serious material loss to the employer, or the employee deliberately damaged the property of the employer and acknowledged the same, provided that the employer informs the Ministry of the accident within seven business days from the time of the employer’s knowledge of the occurrence of the accident;

c)      The employee violated the instructions of the employer’s bylaws related to the safety of work and employees or the workplace, provided that such instructions are written and posted in a conspicuous place, and that the employee has been informed of them;

d)      The employee’s failure to perform their basic duties according to the employment contract, and the continuation of breaching such duties despite the employer having conducted a written investigation with the employee for this reason, and warning the employee twice of dismissal if this is repeated;

e)      Disclosure by the employee of a “work secret” related to industrial or intellectual property, which resulted in losses to the employer, or loss of an opportunity, or brought a personal benefit to the employee;

f)       The employee being in a state of intoxication during working hours, or under the influence of a narcotic or psychotropic substance, or committing an act against public morals in the workplace;

g)      In case of any assault committed by the employee during work  (verbally, physically, or by any form of assault) punishable under the legislation in force in the UAE;

h)      The employee’s absence without a legitimate reason or excuse accepted by the employer for more than 20 intermittent days during one year, or more than seven consecutive days;

i)       The employee illegally exploiting their job position to obtain results and personal gains; or

j)       The employee working for another employer without complying with the rules and procedures prescribed in this regard.

Yes, where an employee believes they have been wrongfully dismissed they may file a claim with the Ministery.Should the matter fail to be amicably resolved,  the Ministry will direct the matter to the courts. The remedy for arbitrary termination is a monetary award. The amount of compensation is at the discretion of the court. However, there is a cap on the compensation, being an amount equal to the employee’s total compensation (basic pay plus allowances) for a period of three months.

If an employer dismisses an employee because the employee has filed a complaint with the Ministry or filed a valid lawsuit against their employer, that would be an illegal termination and the employee may be able to sue.

The UAE Labor Law does not address issues relating the employee privacy.

The Labour Law prohibits employers from engaging in discriminatory practices. It prohibits discrimination on the basis of race, colour, sex, religion, national origin, social origin or because of a disability, which would impair equal opportunities or prejudice equality in obtaining or continuing a job and enjoying the rights. Moreover, it also notes that the employer shall be prohibited from discrimination in jobs with single tasks. There are further protections for women in the workplace: female employees shall be granted renumeration equal to make employees where they perform the same work or work of equal value. While pregnancy has not been stipulated as a protected group. There are protections to pregnant employees stating that obtaining maternity leave shall not prejudice the right of a female employee to obtain other types of leave and a female employee may not be threatened with termination due to pregnancy, because she obtained maternity leave or because of her absence from work in accordance with the Article’s provisions. There are post-pregnancy protections: after returning from maternity leave for a period not exceeding six months from the date of delivery, a female employee shall be entitled to one or two rest periods per day to breastfeed her child provided that both periods do not exceed the duration of an hour.

The Labour Law states that sexual harassment, bullying, or any verbal, physical or psychological violence against the employee by the employer, superiors, colleagues or those working with the employee is prohibited.

Yes, there are statutory rights to vacation, medical leave and parental leave. The UAE provides for a number of annual public holidays. Employees are entitled to annual leave with full pay of not less than:

a)      30 days for each year of their extended service;

b)      two days for each month, if the employees service period is between six months and a year;

c)      leave for fractions of the last year the employee spent at work, in case their service ends before their annual leave balance.

Following the end of their probationary period, employees can take up to 90 days sick leave per year with the first 15 days of sick leave being fully paid, the next 30 days being half-pay and the remaining 45 days being without pay. If the employee’s illness is caused by their own misconduct (substance abuse or the like) there is no entitlement to paid sick leave.

All employees are entitled to five days of paid parental leave and shall be entitled to this leave within a period of six months from the date of the child’s birth.

Restrictive covenants are recognized. The Labour Law states that  they must be limited in geography, scope and duration “to what is necessary to protect the legal interests of the work”. However, the term of the covenant cannot exceed two years from the contract expiry date. As a practical matter, it is extremely difficult to enforce restrictive covenants.

No. Restrictive covenant’s are provided for in the Labour Law but are nortoriously difficult to enforce as the burden of proving damages falls on the employer. As a practical matter, an employee is obligated to abide by a restrictive covenant only if it is outlined in the employment contract.Therefore, if a restrictive covenant is introduced after the employment contract has been signed, an employee should be allowed to refuse to sign it and must be afforded consideration if such provisions are introduced following the execution of the original contract. The UAE Labour Law does not provide guidance on what may consitute adequate consideration.

Pension contributions are required in respect of all employees who are GCC nationals. Non-GCC nationals are generally entitled to an end-of-service gratuity. This is paid at the time the employment relationship terminates. It is calculated by reference to length of service and final pay.

In addition to paid vacation, sick leave and maternity leave, the principal other benefits for qualifying employees is the mandatory provision of health insurance by the employer.

Yes. While the Labour Law does not expressly outline an official retirement age for employees, it does make provision for the application of regulations and resolutions implemented prior to its coming into effect, so long as they do not conflict with its provisions. Therefore,  attention must be paid to Ministerial Decision 52 of 1989 which states that the maximum age limit for recruitement into the work force for non-nationals is 60 years old. However, this may be waived where the employee is found to have extensive and rare experience in thier field and if their work is found to be of great economic importance by the Ministery.

 As a matter of practice, the Ministry has been routinely processing work permit requests from individuals aged 65 and below and this age limit may also be extended on a case-by-case basis based on the individuals job, expertise and qualifications.

 With respect to UAE national employees (i.e, Emirati citizens), the Federal Pension Scheme notes that for the employer to regsiter an employee and contribute to the scheme, the employee must be no more than 60 years old. This would indicate that, as of February 2024, the recorded age of retirement in the UAE for its citizens is 60 years old. However, given the Ministerys approach to retirement of expats as outlined above, it could also be understood that this age is open to exceptions and extensions.

No, it is not possible to contract out of these employment benefits. The Labour Law, for example,  stipulates that a employee shall always be entitled to an end-of-service gratuity upon the end of their service and does not outline retirement age as the cap.

As of February 2024, The UAE’s approach to Covid-19 in the work place has not deviated from its stance in 2021.While Article 22(1) of Federal Law 14 of 2014 On the Control of Communicable Diseases states that the Minister of Health is empowered to compel any persons to be vaccinated for the prevention of communicable diseases like Covid-19, this has not been enforced in the UAE and so Employers cannot make the vaccine mandatory for employees. Therefore, an employee terminated for refusal to be vaccinated may file a claim for compensation arising from arbitrary termination.

Yes, as capacity restrictions were fully lifted in 2021, employees can  be required to be present to the office. While the topic still lacks clear consensus, it has been found that where an employee refuses to return to work without a reasonable reason, this can be found to be an unauthorised absence running contrary to the employees contractual obligations and so employment could be terminated.