UAE Labour Law: In 2025, the UAE has rolled out major updates to its labour law, aiming to improve worker rights, support flexible employment, and strengthen legal protections for both employees and employers. Whether you’re working in the private sector or managing HR, understanding the UAE Labour Law 2025 changes is essential to stay compliant and protected.
New UAE Labour Law 2025 Key Changes for Workers and HR
Overview of the UAE Labour Law Reform
The new UAE labour law, under Federal Decree-Law No. 20 of 2024, builds upon the 2022 reforms and reflects:
Evolving work models (remote, hybrid)
Stricter worker protections
Incentives for small businesses
Digital transformation in HR and compliance
Key UAE Labour Law Changes in 2025
1. Flexible Employment Contracts Standardized
All work contracts (full-time, part-time, temporary) are now required to be digitally registered
Employers must state working hours, type of job, and benefits clearly
Contracts must be renewed every 2 years, replacing unlimited contracts permanently
MOHRE now provides standard templates through its e-portal
2. Shorter Working Hours for Some Job Sectors
Jobs with physical strain or heat exposure now have:
Maximum 40 hours/week
Mandatory midday break from 12:30 PM – 3:00 PM (June–September)
Applicable to:
Construction workers
Outdoor delivery drivers
Warehouse staff without cooling
3. Digital Salary System Enforcement
Companies with 10+ employees must now pay wages through WPS (Wage Protection System)
Employers must submit salary records within 10 days of payment
Delays beyond 15 days trigger automatic MOHRE alerts and fines
Employees can now view salary records via MOHRE mobile app
4. Extended Gratuity Options for Workers
Workers can now choose “end-of-service savings scheme” in lieu of traditional gratuity
Monthly contributions from employers go into a regulated investment fund
Option is voluntary and offers flexibility for long-term financial planning
5. Anti-Harassment & Discrimination Protections Expanded
Labour Law 2025 now penalizes:
Harassment, bullying, and threats at work
Gender, race, or religion-based discrimination
Employees can file complaints anonymously via MOHRE
Penalties include fines up to AED 50,000 and potential employer license suspension
6. Resignation During Probation Made Easier
Employees can resign during probation by giving:
14-day notice if leaving UAE
30-day notice if joining another employer
Employers can no longer block job switch if notice is served legally.
7. Leave Entitlements Clarified
| Leave Type | Entitlement (2025) |
|---|---|
| Annual Leave | 30 calendar days/year |
| Sick Leave | 90 days (15 paid, 30 half-paid) |
| Parental Leave | 5 days (father or mother) |
| Maternity Leave | 60 days (45 full-pay + 15 half) |
| Mourning Leave | 3–5 days depending on relation |
8. Remote Work Regulations Introduced
Companies must issue remote work agreements for WFH employees
Hours, availability, and data security responsibilities must be defined
Employees working abroad temporarily must declare location
9. Minimum Wage (Discussed, Not Yet Enforced)
The law allows the UAE Cabinet to define minimum wage by profession
No fixed wage has been announced yet as of May 2025
Expected to be sector-based in future updates
10. Faster Dispute Resolution System
MOHRE launches e-Dispute Portal for small claims under AED 50,000
Resolution expected within 14 days
Appeals must be made within 7 days of judgment
FAQs About UAE Labour Law 2025
Q: Do old unlimited contracts still apply?
❌ No. All contracts are now limited term, renewable every 2 years.
Q: Can I get both gratuity and end-of-service fund?
No. You can choose one, not both.
Q: Are part-time workers entitled to leave and benefits?
✅ Yes, pro-rated based on working hours.
Mahad HRC UAE Labour Law Support
At Mahad HRC, we help:
Employers align contracts with 2025 law
Workers understand their rights
HR teams train staff on new compliance rules
Dispute cases resolve faster using legal channels
Whether you’re an employee or an HR manager, we’ve got your back.
Conclusion
The UAE Labour Law 2025 brings progressive updates that empower workers and require employers to modernize HR practices. By staying informed and compliant, both parties benefit from a transparent and fair employment system.