This Decree-Law aims to strengthen the UAE labour market by attracting and retaining skilled talent while creating a business-friendly environment for employers, all in line with the country’s national development goals. It establishes clear and balanced rights and responsibilities for both employees and employers, promoting fairness in their relationship. The law also ensures flexibility and sustainability by protecting both parties during changes or exceptional circumstances. Additionally, it focuses on enhancing the skills and productivity of private sector workers and guarantees legal protection, helping both sides secure their rights effectively. 

This law strictly prohibits any form of discrimination in employment based on race, color, sex, religion, national or social origin, or disability, especially if it affects equal opportunities or fair treatment in hiring, job retention, or benefits. Employers must treat workers equally when performing similar tasks. Efforts to promote the inclusion of UAE nationals in the workforce are not considered discriminatory. All anti-discrimination provisions apply equally to women, in addition to the specific rights granted to them. Women are entitled to equal pay as men when performing the same or equivalent work, and the criteria for evaluating equal value work will be defined by a Cabinet resolution based on the Minister’s proposal. 

In the UAE, no one is allowed to work or be employed without first obtaining a work permit from the Ministry, as required by this Decree-Law and its Implementing Regulation. This regulation also outlines the conditions, types, and procedures for issuing, renewing, or cancelling work permits. Only those licensed by the Ministry can legally carry out employment or recruitment services. Employers are strictly prohibited from charging workers any fees or costs related to their recruitment, whether directly or indirectly. Additionally, the Minister, in coordination with relevant authorities, will issue specific rules and resolutions to regulate and prohibit employment in certain jobs where necessary. 

Employers in the UAE must sign an official employment contract with each worker based on the agreed work pattern, using the approved forms. Two copies of the contract must be made—one for the employer and one for the worker. Workers or their representatives can use any form of evidence to prove the contract’s terms, wages, or their legal entitlements. Contracts must be for a fixed term, with the option to renew upon mutual agreement. Any renewal or extension is added to the original contract duration when calculating continuous service. If the contract continues after expiry without a new agreement, it is considered automatically extended under the same terms. The Implementing Regulation will define the approved contract formats based on skill levels and outline rules for changing work patterns and registering contracts with the Ministry. 

An employer in the UAE can place a worker on a probationary period of up to six months from the start of employment. During this time, the employer may terminate the contract with at least 14 days’ written notice. A worker cannot be placed on probation more than once with the same employer. If the worker successfully completes the probation, the contract becomes fully valid, and the probation period counts toward their total service duration. If a worker wants to switch jobs during probation, they must give the current employer at least one month’s written notice, and the new employer must compensate the original employer for recruitment costs unless otherwise agreed. If a foreign worker decides to leave the UAE during probation, they must give 14 days' written notice. If they return within three months for a new job, the new employer must cover the original recruitment costs unless an alternative agreement exists. Any party that ends the contract without following the proper notice terms must pay compensation equal to the wage for the notice period or the remaining portion. A foreign worker who leaves the UAE without following these rules may be barred from obtaining a work permit for one year. However, the Ministry can exempt certain job categories or skill levels from this restriction, as defined by the Implementing Regulation. 

If a worker’s job gives them access to an employer’s clients or confidential business information, the employer may include a non-compete clause in the employment contract. This clause can restrict the worker from working in or starting a competing business in the same sector after the contract ends, but it must clearly define the time, location, and type of restricted work, and cannot exceed two years. However, this restriction becomes invalid if the employer unlawfully terminates the contract. Employers must file any claim related to a breach of this clause within one year of discovering the violation. The Implementing Regulation will outline additional rules, including which jobs or skill levels may be exempt from this non-compete requirement. 

Employers in the UAE are required to follow several key obligations to ensure fair treatment and protection of workers. They must maintain workers’ files for at least two years after employment ends and are not allowed to withhold official documents or force a worker to leave the country. Employers must establish clear internal rules for work conduct, promotions, and penalties, and either provide proper licensed accommodation or compensate for it. They are also responsible for developing workers’ skills through training and must ensure health and safety by offering protective measures, training, and regular assessments. Workers must be informed of their rights and duties, and employers must cover medical care, insurance, and statutory contributions. Employers cannot let workers work for others unless legally permitted. Upon request and after contract expiry, they must issue a free experience certificate without any negative content. Additionally, employers must cover repatriation costs unless the worker has joined another employer or is responsible for the contract’s termination. A safe and respectful work environment must be ensured, along with compliance with all other legal obligations under UAE law and regulations. 

In the UAE, the standard working hours are limited to 8 hours per day or 48 hours per week. However, the Cabinet, upon the Minister's proposal and in coordination with relevant authorities, may adjust these hours—either increasing or reducing them—for specific sectors or worker categories. Commute time is generally not counted as working hours, except for certain workers as defined in the Implementing Regulation. Working hours during Ramadan are also specifically regulated. For workers under non-full-time arrangements, employers cannot require additional hours beyond the contract unless the worker provides written consent. Additionally, if remote work is approved by the employer, they may set specific working hours for the employee, whether they are working inside or outside the UAE. 

Employers in the UAE can require employees to work overtime beyond the standard hours, but it must not exceed two extra hours per day, and total working hours must not surpass 144 hours over any three-week period. Overtime must be compensated at a rate of at least 25% above the regular wage based on the basic salary. If overtime falls between 10 PM and 4 AM, the compensation increases to at least 50% above the regular wage—this excludes shift workers. If an employee works on their designated weekend, they must either be given a compensatory day off or paid their regular wage plus at least 50% extra. Additionally, workers cannot be required to work more than two consecutive weekends, except for day workers. 

An employer in the UAE can only deduct from a worker’s wage under specific conditions, such as loan repayments (with the worker’s written consent and no interest), overpaid wages (up to 20%), pension and insurance contributions, savings fund contributions, social projects (with written consent), penalties for workplace violations (up to 5%), court-ordered debts (up to 25%, except for alimony which can exceed this), and compensation for damages caused by the worker’s mistakes (limited to 5 days’ wage per month unless court-approved). Regardless of the reasons, total deductions from a worker’s wage must not exceed 50% of their monthly salary. 

Workers in the UAE are entitled to paid public holidays as declared by the Cabinet. If a worker is required to work on any of these holidays, the employer must either grant a compensatory day off or pay the worker for that day along with at least 50% extra of their basic wage in addition to their regular pay. 

Workers in the UAE are entitled to fully paid annual leave: 30 days for each year of service, and 2 days per month if employed for more than 6 months but less than a year. If a worker leaves before using their full leave, they are entitled to payment for the unused portion. Part-time workers receive leave based on actual working hours, as specified in their contract. Employers may grant annual leave during the probation period, and workers retain the right to compensation if they don't complete it. Leave dates are decided based on business needs and mutual agreement, with at least one month’s prior notice. Workers can carry forward unused leave with employer approval. Public holidays falling during leave are counted within the leave unless company policies offer better terms. Employers cannot withhold unused leave beyond two years unless the worker chooses to carry it forward or cash it out. Upon termination, workers are entitled to pay for any unused leave based on their basic wage. The detailed conditions and compensation are governed by the Implementing Regulation. 

Female workers in the UAE are entitled to 60 days of maternity leave—45 days with full pay and 15 days with half pay. After this, they can take up to 45 additional unpaid days if they or their child suffer from health issues related to childbirth, supported by a medical certificate. Maternity leave is also granted if the birth occurs after six months of pregnancy, even if the baby is stillborn or dies shortly after. If the child is sick or of determination and needs constant care, the mother can take an extra 30 days of paid leave and an additional 30 days unpaid, supported by a medical report. Maternity leave can begin from the last day of the month before the expected delivery date, confirmed by a medical certificate. This leave does not affect the worker's right to other leaves or benefits. If the worker takes up another job during maternity leave, the employer may withhold or reclaim her wages. Employers are prohibited from terminating or notifying termination due to pregnancy, maternity leave, or related absences. Upon returning, the mother is entitled to one or two daily breaks for breastfeeding within the first six months post-delivery, not exceeding one hour total. 

If a worker falls sick due to a non-work-related illness, they must inform their employer within three working days and provide a medical report. During the probation period, workers are not entitled to paid sick leave, though employers may grant unpaid sick leave based on a medical report. After probation, workers are entitled to up to 90 days of sick leave per year: the first 15 days with full pay, the next 30 days with half pay, and the remaining period without pay. However, if the illness is caused by the worker’s own misconduct, they are not entitled to sick leave pay. If the worker cannot return to work after the sick leave ends, the employer may terminate their service, but the worker must still receive all due financial entitlements as per the law. 

Workers are entitled to paid leave in several specific cases: bereavement leave of 5 days for the death of a spouse and 3 days for the death of close relatives such as parents, children, siblings, or grandparents; parental leave of 5 working days, for either parent, to care for a newborn child, to be used continuously or intermittently within 6 months of birth; and any other leave as determined by the Cabinet. Additionally, workers who have completed at least two years of service may receive up to 10 working days of study leave per year to take exams at approved educational institutions. Emirati nationals are entitled to paid sabbatical leave for national service as per applicable laws. All such leaves require valid proof from relevant authorities, and the conditions for granting them are outlined in the Implementing Regulation. 

An employer or their representative has the right to impose disciplinary penalties on a worker who violates the UAE Labour Law, its Implementing Regulation, or related decisions. These penalties include: a written notice, a written warning, wage deduction of up to 5 days per month, suspension from work for up to 14 days without pay, denial of periodic bonuses for up to one year (if applicable), delay in promotion for up to two years (if the company has a promotion system), or termination of service with full entitlement to end-of-service benefits. The detailed conditions, procedures for imposing these penalties, and the process for filing grievances are outlined in the Implementing Regulation. A worker cannot be subjected to disciplinary action for any behavior that occurs outside the workplace unless it is directly related to their job. Additionally, only one disciplinary sanction can be imposed for a single violation, in line with the provisions of Article 39 of the UAE Labour Law. 

An employment contract can be legally terminated in several situations: by mutual written agreement between the employer and worker; when the contract term ends without renewal; or if either party chooses to terminate it while respecting notice period rules. It may also end due to the employer’s death (if the contract is tied to their identity), the worker’s death or permanent disability (proven medically), or a final court sentence against the worker with a jail term of at least three months. Termination can also occur if the business shuts down permanently, faces bankruptcy or exceptional circumstances, or if the worker is unable to renew their work permit for reasons beyond the employer’s control. 

Either the employer or the worker can terminate the employment contract for a legitimate reason by giving written notice, with a notice period between 30 and 90 days as agreed in the contract. During this period, the contract remains valid, and the worker is entitled to full pay based on their last received wage. The employer may require the worker to continue working during this time. Both parties can mutually agree to shorten or waive the notice period while still protecting the worker’s right to full pay for that period. If either party fails to respect the notice period, they must compensate the other with a payment equal to the wage for the full or remaining notice period. This compensation is calculated based on the worker's last wage or average daily wage for piecework. Additionally, if the employer terminates the contract, the worker is entitled to take one unpaid day off per week during the notice period to search for a new job, with at least three days’ prior notice to the employer. 

An employer can dismiss a worker without notice if a written investigation is conducted, the decision is justified in writing, and the dismissal letter is handed to the worker. This applies in the following cases: impersonating someone else or submitting forged documents; causing significant physical loss or damage to company property (and the employer reports it to the Ministry within 7 working days); violating safety instructions that are clearly posted and communicated; repeatedly failing to fulfill job duties despite warnings and investigations; disclosing work secrets that cause loss or personal gain; being intoxicated or behaving immorally at work; assaulting the employer, manager, or colleagues; being absent without valid reason for over 20 intermittent days in a year or more than 7 consecutive days; misusing the job position for personal gain; or joining another company without following legal procedures. 

A worker can resign without notice and still retain their end-of-service benefits in specific situations: if the employer breaches their obligations under the contract or the law and fails to correct the issue within 14 working days after being notified by the Ministry; if the employer or a legal representative assaults, harasses, or uses violence against the worker, and the worker reports it to the authorities and the Ministry within 5 working days; if a serious danger exists at the workplace that threatens the worker’s safety or health, and the employer does nothing to remove the risk; or if the employer assigns the worker tasks that are fundamentally different from the agreed-upon job without the worker’s written consent, except in urgent cases as allowed by law. 

An employer is not allowed to terminate a worker’s employment due to health-related unfitness unless the worker has first used all of their legally entitled leaves. Any agreement that contradicts this rule is considered invalid, even if it was made before this law came into effect. 

If an employer terminates a worker because the worker filed a valid serious complaint with the Ministry or a lawsuit against the employer, the dismissal is considered unlawful. In such cases, the worker is entitled to fair compensation decided by the court, based on the nature of the job, the harm suffered, and the worker’s length of service, with a maximum limit of three months' wage (based on the last salary received). This compensation is in addition to the worker’s right to receive notice period pay and end-of-service benefits as per the law. 

If a company changes its legal form or status, all existing employment contracts will still remain valid. The new employer (after the change) becomes responsible for honoring these contracts and must also comply with the provisions of the UAE Labour Law, its regulations, and related decisions, starting from the date the company’s updated details are registered with the relevant authorities. 

If a foreign worker leaves their job for an illegitimate reason before the end of their contract, they cannot be issued a new work permit to join another job in the UAE for one year from the date of their absence. During this period, no other employer who is aware of the situation is allowed to hire or retain the worker. However, the Ministry may grant exceptions for certain job categories, skill levels, or workers, based on the rules set out in the Implementing Regulation. Employers are also required to report such absences to the Ministry according to the specified procedures. 

At the end of service, national workers are entitled to benefits according to the UAE's pension and social security laws. Full-time foreign workers who have completed at least one year of continuous service are entitled to end of service benefits based on their basic wage: 21 days' wage per year for the first five years, and 30 days' wage per year thereafter. Partial years are calculated proportionally, but unpaid absence days are excluded. These benefits are based on the last basic wage (or average daily wage for piecework), and cannot exceed the equivalent of two years’ wages. Employers may deduct any lawful or court-ordered dues from the final amount. The Cabinet may introduce alternative schemes for end of service benefits, with detailed rules and mechanisms. Additionally, the law allows for separate benefit calculations for non-full-time work patterns to support labor market flexibility. Employers must settle all dues, including wages and entitlements, within 14 days of contract termination.