A practical guide to the new Labour Law in UAE 2025

New Labour Law in UAE 2025 for Government and Private Sectors – Perfect Guider

In February, the new Labour Law in UAE 2025 came into force, which introduced several changes concerning the previous legislation. In this case, the changes have to do with types of employment, flexible work, other leaves, and discrimination. Besides, with these new rules, the authorities seek to guarantee flexibility for employees in the public and private sectors.

Thus, the UAE Ministry of Human Resources and Emiratization (MOHRE) introduced details, implementation, and overall impact. In addition, in October, His Majesty Sheikh Mohamed lifted the 3-year limit for certain employment contracts in the private sector. Thus, the UAE Labour Law 2025 establishes that the employee and employer establish the duration of the contract without a defined limit.

Thus, the UAE new labour law 2025 will allow companies to establish longer-term agreements. However, this new law governs labor relations in the private sector but does not apply to public sector functions.

1. When was the UAE new labour law announced?

The new labour law in UAE 2025 was documented for the first time on September 20, 2021. Furthermore, the authorities made the official announcement to the public on November 15, 2021.

1.1 When did the UAE Labour Law 2025 come into force?

The UAE new labour law came into effect on February 2, 2025.

1.2 What was the reason why the law was changed?

The authorities decided to establish these legislative changes to guarantee a more flexible labor market in the country.

1.3 Some important changes you should know about

The changes established in the new law have to do with the types of employment, flexible work, and types of contracts. In addition, this law also establishes new annual leave provisions and other licenses. Also, there are details related to workplace harassment, discrimination, intimidation, or recruitment.

2. Salary and leave in the new Labour Law in UAE 2025

Within the new labour law in UAE 2025, some have to do with the basic salary and licenses for employees.

2.1 Basic salary percentage in UAE labour law 2025

In the case of the minimum wage, this will be determined and announced by the cabinet, by the proposal of MOHRE. In addition, this provision established by the authorities will apply to employees of the private sector.

2.2 Annual leave UAE labour law

In this case, there are no changes regarding the number of vacation days. Thus, it will still be 2 days per month for the first year and 30 days per year after that. However, one of the important changes is that you will be able to request annual leave during the probation period.

In addition, the new labour law in UAE 2025 states that the employee must receive a full salary during any leave.

2.3 Annual leave and public holidays

Another of the provisions indicates that holidays are added to the annual leave for employees. However, if the holidays fall within the vacation allowance, they are part of the leave.

2.4 Annual vacations for part-time workers

The changes in the labor law establish provisions for the new working hours in UAE 2025. Likewise, it deals with the types of work, full-time, part-time, and flexible but the Executive Regulations will determine the characteristics of each one.

3. Maternal, paternal, and humanitarian leave

The UAE New Labor Law 2025 also introduced some changes to leave for mothers, fathers, and other reasons.

3.1 Maternity leave in UAE for private sector 2025

The UAE new labour law 2025 protects pregnant employees against dismissal during maternity leave. In addition, they also have protection through article 30 for absence from work due to this license. Similarly, they will now receive full salary compensation for 45 days and 15 days with half salary.

Also, female employees with less than 1 year of service will receive the same compensation as those with more than this time. Thus, they will still receive full salary and be eligible, as long as their pregnancy lasted 6 months during employment. Besides, the rest period after work lasts the same time but only for 6 months.

3.2 Paternity leave in the new law

In this case, fathers can take up to 5 business days at full salary. In addition, the employee can choose to take the leave continuously or intermittently in the 6 months following the birth of the child.

3.3 Compassionate leave UAE

UAE employees can apply for leave for humanitarian reasons, in case of bereavement. In addition, the number of days of the license varies from 3 to 5 according to the degree of the deceased relative. However, there are no specific changes about sick leave so far.

4. Other provisions of the new Labour Law in UAE 2025

There are other changes but no changes to the UAE new labour law 2025 working hours. However, there is some additional good news for workers.

4.1 Flexible work under the new Labour Law in UAE 2025

This new law includes flexible work, which will be detailed by the authorities (MOHRE) in the Executive Regulations. In addition, these provisions include the types of contracts, salaries, or pay for workers with flexible hours.

4.2 What about working from home?

There are no specific regulations in the law that have to do with working from home, although it is not prohibited. In this case, this may depend exclusively on companies or employers.

4.3 UAE Labour Law working hours

Although the work week is reduced to 4 1/2 days, the law does not decrease weekly work hours, which will remain at 48. However, this is the upper limit of work hours, so an employer can reduce hours. Therefore, the new working hours in UAE 2025 for private sector remain the same.

Nevertheless, you should know that the employer must pay as overtime the weekly hours that exceed the limit of 48. Likewise, in three weeks, an employee cannot work more than 144 hours.

4.4 Resignation and new gratuity law in UAE 2025

The UAE Labour Law 2025 improves and strengthens the terms of the resignation during the probation period. In addition, both parties to a given employment contract must give a minimum of 2 weeks of notice. Moreover, if an employee has resigned and decides to return to the UAE within three months, the former employer must receive compensation.

In this case, it is the new employer who must pay the compensation to the former employer of the worker. The same is true if the worker remains in the UAE, in which case 30 days of notice must be given. However, if you decide not to give legal notice and flee the country, you will receive a one-year mandatory work ban.

4.5 What happens with gratuity?

The gratuity for workers improves because if the employee quits, the employer cannot reduce or deny the payment. Hence, if you completed 1 year of work, you will be able to receive 21 days of salary for each year worked. In this case, it is up to the first 5 years, then 30 days of service compensation over 5 years.

In addition, article 120 of the new law establishes that the bonus is not lost for serious “misconduct” of the employee.

4.6 Who can you go to learn more about and understand these laws?

Employers can go to the Ministry of Human Resources and Emiratization (MOHRE) to learn more about the UAE new Labour Law 2025. You can contact this ministry through its official website or by calling number 80060. In this case, you can find the Complete law on the MOHRE website or through the mobile application.

In the same way, if you want to properly understand these laws, we offer you the advice of our best lawyers. To do this, you only have to contact us, as we are specialists in laws of any kind in the UAE. Also, we offer you services such as:

–Family Law

–Financial law

–Construction law

–Corporate law

–Immigration law