Employment Law

UAE Labour Law: Complete Guide to Employee Rights & Termination

5 June 202613 min read

Overview of UAE Labour Law

The UAE Labour Law (Federal Law No. 8 of 1980) governs employment relationships between employers and employees.
It establishes minimum standards for wages, working hours, leave, and termination procedures.

Employee Rights in the UAE

**Minimum Wage:** While UAE doesn't mandate a specific minimum wage, employers must pay agreed salaries on time.
**Working Hours:** Maximum 48 hours per week, with mandatory rest periods.
**Annual Leave:** Minimum 30 days paid annual leave per year.
**End of Service Gratuity:** Employees receive gratuity based on years of service upon termination.

Salary & Benefits

**Salary Payment:** Must be paid on or before the agreed date each month.
**Overtime:** Paid at 1.25x regular rate for hours beyond 48 per week.
**Bonuses:** Annual bonuses are not mandatory but must be paid if promised in the contract.

Leave Entitlements

**Annual Leave:** 30 days minimum, or 2.5 days per month
**Sick Leave:** 10 days paid per year (with medical certificate)
**Maternity Leave:** 60 days paid for female employees
**Bereavement Leave:** 3-5 days for death of immediate family

Termination Procedures

**Probation Period:** Up to 6 months; either party can terminate without notice
**Notice Period:** After probation, employer must give 30 days notice or pay 30 days salary
**Immediate Termination:** Only for gross misconduct (theft, violence, etc.)

End of Service Gratuity

**Calculation:** Based on final salary and years of service
**Less than 1 year:** No gratuity
**1-5 years:** 21 days salary per year
**5+ years:** 30 days salary per year

Grounds for Termination

**Valid Grounds:** Expiration of contract, mutual agreement, employee resignation, retirement, death
**Invalid Grounds:** Discrimination, retaliation, pregnancy, union membership

Employee Protections

**No Discrimination:** Employers cannot discriminate based on nationality, gender, religion, or age.
**No Retaliation:** Employees cannot be punished for reporting violations.
**Pregnancy Protection:** Pregnant employees cannot be terminated except for gross misconduct.

Dispute Resolution

Disputes are typically resolved through the Ministry of Human Resources or labour courts.
Employees can file complaints within 2 years of the incident.

FAQ

**Q: What is the maximum working week in UAE?**
A: 48 hours per week (typically 8 hours per day, 6 days per week).

**Q: Am I entitled to gratuity if I resign?**
A: Yes, you receive gratuity based on years of service even if you resign.

**Q: Can my employer terminate me without notice?**
A: Only during probation or for gross misconduct. Otherwise, 30 days notice is required.

**Q: What should I do if my salary is not paid on time?**
A: Report to the Ministry of Human Resources or file a labour complaint.

Conclusion

UAE labour law provides comprehensive protections for employees.
**Facing employment issues?** Contact LexBridge for expert legal advice.

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