UAE Labour Law 2025 Key Updates: In a rapidly evolving job market, staying updated with the latest UAE labour law is crucial for both employers and employees. The UAE Labour Law 2025 comes with critical updates that reflect the government’s vision for a more fair, transparent, and digitally governed workforce.
Whether you are a blue-collar worker, white-collar professional, or an HR manager, understanding these new regulations will help protect your rights, avoid penalties, and build stronger employer-employee relationships.
UAE Labour Law 2025 Key Updates Every Worker Should Know
Overview: What Is UAE Labour Law 2025 Key Updates?
UAE Labour Law 2025 Key Updates: The UAE Labour Law governs:
Employment contracts
Wages and working hours
Leave entitlements
Termination and end-of-service benefits
Worker protections and employer obligations
The most recent amendment Federal Decree-Law No. 20 of 2023 took effect in early 2025, refining and expanding several key provisions.
UAE Labour Law 2025 Key Updates
1. All Contracts Must Be Limited-Term
The 2025 law reaffirms that all employment contracts must be limited to a maximum of 3 years, with the possibility of renewal.
📌 Unlimited contracts are now invalid. Employers must migrate all legacy contracts to limited-term formats.
2. Flexible Work & Remote Options Included
The updated law legally recognizes remote work, freelance contracts, and part-time employment as standard options.
Employers must:
Register part-time or remote employees with MOHRE
Clearly define work hours and responsibilities
This is a major win for flexible and gig workers in the UAE.
3. Official Leave Days Expanded
Annual Leave:
Minimum: 30 calendar days per year after completing one year
Pro-rata leave if less than a year of service
Maternity Leave:
Now 60 days (45 paid + 15 half-paid)
Parental Leave:
5 working days for both mothers and fathers
Bereavement Leave:
3–5 days based on relation
The law also introduces study leave for employees enrolled in government-accredited educational institutions.
4. End of Service Gratuity (EOSB) Calculation Clarified
For full-time employees, EOSB is based on basic wage:
First 5 years: 21 days of basic wage per year
After 5 years: 30 days per year
2025 revision ensures employees with less than one year of service also receive EOSB proportionally.
5. Working Hours & Overtime Rules
Standard working hours: 8 hours/day or 48 hours/week
During Ramadan: 6 hours/day
Overtime pay: 25–50% extra depending on timing (evening/holiday)
A new rule mandates two consecutive rest days per week in many sectors unless stated otherwise in MOHRE exceptions.
6. Termination Rules Revised
Termination must follow these steps:
Written notice (30 to 90 days based on contract)
Valid reason (performance, company restructure, etc.)
End-of-service settlement within 14 days of last working day
Unlawful dismissal (e.g., based on race, gender, or complaint filed to MOHRE) may result in employer fines + compensation.
7. Employment for Teens and Seniors
Teen Workers (15–18):
Allowed to work with a juvenile work permit
Max 6 hours/day and no hazardous tasks
Senior Employees (65+):
Permitted to work under renewed contracts
Must undergo medical fitness clearance from a UAE health authority
8. Labour Complaints & Disputes – 100% Digital
Workers can now file complaints online via the MOHRE app or website.
Steps:
Submit complaint
Mediation by MOHRE official
Escalation to Labour Court if unresolved
Timeframe: Most disputes are resolved within 14 working days.
9. Salary Protection System (SPS) Compliance
Employers must pay salaries via WPS (Wage Protection System)
Must be paid by 10th of every month
Delays or violations can result in:
AED 5,000–20,000 fines
Suspension of work permits
Bans from new visa issuance
10. Penalties for Non-Compliance Increased
| Violation | Fine (AED) |
|---|---|
| Hiring without work permit | 50,000 |
| Failure to issue contract | 5,000 per worker |
| Delayed salary payment | 10,000 |
| Employment of underage workers without permit | 20,000 |
| Refusal to settle EOSB | Up to 50,000 |
Employers must keep records for at least 2 years, including contracts, payslips, and leave logs.
Employer Responsibilities in 2025
UAE Labour Law 2025 Key Updates:
Register all workers in MOHRE
Issue contracts within 14 days of joining
Provide health insurance & job safety training
Respect maximum working hours and mandatory leave
Settle dues within 14 days of termination
Worker Rights You Should Know
UAE Labour Law 2025 Key Updates:
Right to end-of-service benefits
Right to equal pay for equal work
Right to file complaints without retaliation
Right to contract transparency in native language
Right to legal notice before termination
Summary: Top 2025 UAE Labour Law Changes
UAE Labour Law 2025 Key Updates:
All contracts are now limited term
Remote/freelance jobs officially recognized
Leave benefits expanded
EOSB for all tenures
Overtime and rest rules clarified
Clear termination steps required
Work permits allowed for 15–18-year-olds
100% digital dispute resolution
Salary must be paid via WPS
Higher fines for labour law violations
Final Thoughts
UAE Labour Law 2025 Key Updates: Understanding the UAE Labour Law 2025 is more important than ever for every worker and employer in the Emirates. It’s designed to improve fairness, enforce compliance, and create a better workplace culture across the country.