Navigating employment law in UAE is crucial for startups and business owners to ensure compliance and maintain a positive work culture. The UAE’s labour framework is designed to protect both employers and employees through clear rules on contracts, working conditions, and termination procedures.

At NH Management, we support businesses in understanding and applying UAE labour laws effectively—helping them reduce risk, strengthen employee relations, and comply with legal obligations.

Critical Aspects of Employment Law in UAE

1. Employment Contracts

Contract Types:
There are two types of employment contracts in the UAE: Fixed-term and Unlimited-term.

• Fixed-term contracts usually range from 2–3 years, depending on the business jurisdiction. For instance, within DMCC, contracts often last three years, while the UAE mainland typically limits terms to two years.

• Unlimited-term contracts provide ongoing employment without a specified end date but must still follow UAE labour law provisions for termination and renewal.

Contract Inclusions:
Employment contracts must include:

• Job title and description

• Start date

• Working hours

• Compensation and benefits

• Termination conditions

Arabic Translation:
All employment contracts must be drafted in Arabic or include an Arabic translation since Arabic is the official language of UAE legal documentation.

2. Worker Rights

Working Hours:
The standard UAE working week is 48 hours—8 hours per day—with at least a one-hour daily break. During Ramadan, working hours are reduced by two hours per day.

Overtime:
Employees are entitled to overtime pay if they work beyond the standard hours:

• 125% of the regular wage for extra hours

• 150% for late-night or public holiday work

Leave Entitlements:
After one year of service, employees are entitled to 30 days of annual leave. Other statutory leaves include:

• Sick leave: Up to 90 days per year (with pay scaling)

• Maternity leave: 45 days fully paid

• Paternity leave: 5 days

• Special leaves: For marriage, bereavement, or study

Health and Safety:
Employers must provide a safe and healthy work environment, ensuring compliance with UAE occupational health and safety standards.

Understanding and upholding employment law in UAE ensures a harmonious and compliant workplace while protecting employee welfare.

3. Termination Procedures

Notice Period:
The standard notice period is 30 days, though it can vary depending on contract terms. Both employer and employee must provide written notice.

Grounds for Termination:
Either party can initiate termination, but it must be for valid reasons defined under the UAE Labour Law (Federal Decree-Law No. 33 of 2021).

End-of-Service Gratuity:
Employees are entitled to an end-of-service gratuity based on the duration of employment:

• 21 days of basic salary for each of the first five years

• 30 days of basic salary for every subsequent year

Employers must ensure gratuity payments align with current UAE labour law standards.

Compliance Tips for Human Resources Law in UAE

1. Seek Legal Consultation

Engage experienced advisors like NH Management to review employment policies and ensure compliance with employment law in UAE.

2. Develop Clear Policies

Create transparent policies covering working hours, leave entitlements, and benefits. Consistency avoids disputes and supports fair treatment.

3. Employee Handbook

Prepare a detailed employee handbook summarizing all HR policies, rights, and obligations. Every staff member should receive and acknowledge it.

4. Regular Training

Conduct periodic training for management and HR personnel on UAE labour law compliance, workplace conduct, and disciplinary procedures.

Proactive HR management ensures your business remains compliant with employment law in UAE while maintaining a strong and transparent workplace culture.

Ensuring Employment Law in UAE Compliance with NH Management

At NH Management, we help startups and SMEs understand and apply employment law in UAE effectively. From drafting employment contracts to managing compliance and handling employee terminations, our HR and legal experts guide you at every stage.

We also provide integrated support in:

• Company Incorporation

• HR compliance frameworks and employee onboarding

• Employment contract drafting and review

• Regulatory updates under the UAE Ministry of Human Resources and Emiratisation (MOHRE)

For more details on UAE labour law and HR regulations, visit the UAE Ministry of Human Resources and Emiratisation (MOHRE) website.

Protect Your Business with NH Management

Ensuring compliance with employment law in UAE protects your business reputation and fosters trust with your employees. By following proper legal procedures and maintaining transparent HR policies, you can avoid disputes and create a stable environment for growth.

Contact us today at info@nhmanagement.com or call +971 4 222 1327 to schedule a consultation.

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