UAE labour law at a glance
Federal Decree-Law No. 33 of 2021: 30 days of annual leave, 90 days of sick leave, gratuity of 21 then 30 days a year — and no reduction for resigning.
Governing law
Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022
The UAE replaced its 1980 labour law wholesale with Federal Decree-Law No. 33 of 2021, in force from February 2022 and filled in by Cabinet Resolution No. 1 of 2022. It governs the private sector onshore; the DIFC and ADGM financial free zones run their own employment regimes and are outside it.
Two changes from the old law matter more than the rest. The limited/unlimited contract split is gone — every contract is now fixed-term and renewable — and with it went the reduced gratuity for an employee who resigns. Someone who leaves voluntarily after two years is now owed the same award as someone dismissed.
The law also recognises part-time, temporary, flexible and job-share models explicitly, with entitlements pro-rated against hours worked, which is why an hours record rather than a headcount is the natural unit for UAE payroll.
At a glance
| Governing law | Federal Decree-Law No. 33 of 2021 |
|---|---|
| Standard hours | 8 hours a day, 48 a week |
| Ramadan hours | Reduced by two hours a day |
| Weekly rest | At least one paid rest day a week; Saturday–Sunday is the common weekend |
| Annual leave | 30 days a year after 12 months; 2 days a month between 6 and 12 (Art. 29) |
| Sick leave | 90 days a year: 15 full, 30 at half pay, 45 unpaid (Art. 31) |
| Maternity leave | 60 days: 45 at full pay, 15 at half pay (Art. 30) |
| Probation | Up to 6 months (Art. 9) |
| Notice period | 30 to 90 days, as agreed in the contract (Art. 43) |
| End of service | 21 days a year for 5 years, then 30 days a year — capped at 2 years’ wage (Art. 51) |
| Overtime | +25%, or +50% between 10pm and 4am (Art. 19) |
| Wage protection | Monthly WPS filing |
These rules, enforced automatically
Set the working week, leave entitlements and rest days once. Dawam applies them to every timesheet, leave balance and payslip after that — no manual counting, no rule remembered wrong.
The working week
Eight hours a day and 48 a week, reduced by two hours a day during Ramadan. Overtime is capped at two hours a day beyond the normal shift, and an employee is owed at least one paid rest day a week — the statute does not name it, and Saturday–Sunday became the ordinary private-sector weekend after the federal government moved in 2022. Some employers still run Friday–Saturday, which is lawful and means the rest day has to be a per-company setting rather than an assumption.
Annual leave
Thirty days of paid annual leave a year once an employee completes twelve months. Between six and twelve months the entitlement is two days for each month worked, which is the part most often missed for staff who leave inside their first year. Untaken leave is paid out on termination at the basic wage, and an employee may carry over up to half the balance where the employer agrees.
Sick leave and other absences
After probation, an employee is entitled to 90 days of sick leave a year, whether taken continuously or in pieces: the first 15 at full wage, the next 30 at half wage, and the remaining 45 unpaid. Nothing is payable for sickness during probation. Maternity leave is 60 days — 45 at full pay and 15 at half — with a further unpaid extension available, and five days of parental leave are available to either parent in the first six months.
Probation, notice and end of service
Probation may run to six months. Ending it has its own notice rules: the employer gives 14 days, an employee moving to another UAE employer gives one month, and an employee leaving the country gives 14 days. After probation, notice is whatever the contract says between 30 and 90 days. Gratuity is 21 days of basic wage for each of the first five years and 30 days for each year after, capped at two years of wage, and nothing is payable below one year of continuous service. Crucially, resigning no longer reduces it.
Overtime, wages and records
Overtime pays the basic hourly wage plus 25%, rising to plus 50% for hours worked between 10pm and 4am — a night rule that shift employers have to measure rather than estimate. Work on the weekly rest day is paid at 150% or compensated with a day off. Wages go through the Wage Protection System monthly, and employers must keep employee and hours records for at least two years after the relationship ends.
Frequently asked
How many annual leave days are employees entitled to in the UAE?
Thirty days a year once twelve months of service are complete. Between six and twelve months, the entitlement is two days for every month worked.
How is gratuity calculated in the UAE?
Twenty-one days of basic wage for each of the first five years of service and 30 days for each year after, capped at two years of wage. Nothing is due below one year. Since the 2021 decree-law, resigning does not reduce the award.
Does resigning reduce end-of-service pay in the UAE?
No. The old regime that cut gratuity to a third or two-thirds for an employee resigning from an unlimited contract was abolished with the 1980 law. An employee who resigns after completing a year receives the full award.
What is the maximum probation period in the UAE?
Six months. During it the employer must give 14 days’ notice to terminate; an employee moving to another UAE employer gives one month, and one leaving the country gives 14 days.
How many sick days does the UAE give?
Ninety days a year after probation: 15 at full wage, 30 at half wage and 45 unpaid. Sick leave taken during probation is unpaid.
What is the overtime rate in the UAE?
The basic hourly wage plus 25%, or plus 50% for hours falling between 10pm and 4am. Work on the weekly rest day is paid at 150% of the normal rate, or compensated with a substitute day off.
This summary is written for HR and business owners, not as legal advice. Statutes are amended, ministerial decisions change the detail, and contracts and collective agreements routinely improve on the statutory minimum. Check the current text of the law, or your counsel, before acting on a figure here.
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