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:
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Employment contracts
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Wages and working hours
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Leave entitlements
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Termination and end-of-service benefits
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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:
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Register part-time or remote employees with MOHRE
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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:
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Minimum: 30 calendar days per year after completing one year
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Pro-rata leave if less than a year of service
Maternity Leave:
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Now 60 days (45 paid + 15 half-paid)
Parental Leave:
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5 working days for both mothers and fathers
Bereavement Leave:
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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:
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First 5 years: 21 days of basic wage per year
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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
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Standard working hours: 8 hours/day or 48 hours/week
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During Ramadan: 6 hours/day
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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:
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Written notice (30 to 90 days based on contract)
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Valid reason (performance, company restructure, etc.)
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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):
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Allowed to work with a juvenile work permit
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Max 6 hours/day and no hazardous tasks
Senior Employees (65+):
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Permitted to work under renewed contracts
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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:
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Submit complaint
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Mediation by MOHRE official
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Escalation to Labour Court if unresolved
Timeframe: Most disputes are resolved within 14 working days.
9. Salary Protection System (SPS) Compliance
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Employers must pay salaries via WPS (Wage Protection System)
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Must be paid by 10th of every month
Delays or violations can result in:
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AED 5,000–20,000 fines
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Suspension of work permits
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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:
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Register all workers in MOHRE
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Issue contracts within 14 days of joining
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Provide health insurance & job safety training
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Respect maximum working hours and mandatory leave
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Settle dues within 14 days of termination
Worker Rights You Should Know
UAE Labour Law 2025 Key Updates:
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Right to end-of-service benefits
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Right to equal pay for equal work
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Right to file complaints without retaliation
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Right to contract transparency in native language
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Right to legal notice before termination
Summary: Top 2025 UAE Labour Law Changes
UAE Labour Law 2025 Key Updates:
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All contracts are now limited term
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Remote/freelance jobs officially recognized
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Leave benefits expanded
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EOSB for all tenures
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Overtime and rest rules clarified
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Clear termination steps required
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Work permits allowed for 15–18-year-olds
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100% digital dispute resolution
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Salary must be paid via WPS
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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.