Not legal advice
Content summarises labour law as published by each GCC ministry, current as of May 2026. Not a substitute for legal advice. Employment law is jurisdiction-specific and subject to change. For contracts, disputes, visa issues, or any decision with legal consequences, consult a qualified labour lawyer licensed in your jurisdiction.
Not legal advice
This guide summarizes United Arab Emirates employment law for informational use only. It is not a substitute for advice from a qualified labour lawyer. Employment law is complex and jurisdiction-specific. For contracts, disputes, visas, or decisions with legal consequences, consult a licensed labour lawyer in your jurisdiction.
Quick summary
All UAE private-sector employment runs on a fixed-term contract under Federal Decree-Law 33/2021. Contracts must be in writing, can run up to three years (renewable), and must spell out salary, benefits, working hours, leave, probation, and notice. Free zones (DIFC, ADGM, etc.) apply their own employment regimes.
What changed in 2022
Federal Decree-Law No. 33 of 2021 took effect on 2 February 2022 and replaced the 1980 Labour Law in full. The reform abolished the old unlimited-term contract, every onshore private-sector contract is now fixed-term, with a statutory cap of three years per renewal. Existing unlimited contracts were given a transition window to convert; that window has now closed.
Mandatory contract clauses
Under Article 8 of the Decree-Law and the MOHRE standard contract template, every contract must include:
- Job title and a written job description
- Workplace location and primary work model (on-site, remote, hybrid)
- Basic wage and total compensation (allowances broken out)
- Working hours and weekly rest day(s)
- Annual leave entitlement
- Probation period (up to six months)
- Notice period (minimum 30 days, up to 90 days)
- Grounds for termination and entitlements on termination
Probation, the post-2022 mechanics
Probation is capped at six months and cannot be extended. During probation:
- Employer ends probation: 14 days' written notice, no end-of-service gratuity.
- Employee resigns to leave the UAE: 14 days' notice and the employee must reimburse recruitment costs unless the new employer agrees to take them on.
- Employee resigns to a new UAE employer: One month's notice, and the new employer covers the recruitment-cost obligation.
Free zones run on different rules
DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market) operate under their own English-language employment regulations. The mainland Decree-Law does not apply inside those jurisdictions. Other free zones, Dubai Multi Commodities Centre, Jebel Ali Free Zone, twofour54, and so on, generally follow the federal Decree-Law unless their internal regulations override. Always confirm which regime governs your contract before signing.
Worked example
Salma signs a contract for a Marketing Manager role in Dubai onshore (not a free zone). The contract is a two-year fixed term with a six-month probation, AED 22,000 monthly basic plus AED 8,000 housing allowance, 30 days annual leave, and 60 days' notice. After her probation, her position is reorganized. She and her employer agree to a mutual termination. Gratuity is calculated on the AED 22,000 basic only, not the AED 30,000 total. She receives 21 days' basic for each completed year and pro-rata for partial years.
Frequently asked questions
Can I still get an unlimited contract in the UAE?
No. Federal Decree-Law 33/2021 abolished unlimited contracts for onshore private-sector employment. Every new contract is fixed-term, renewable up to three years at a time. Free zones with their own employment regulations (DIFC, ADGM) may operate differently.
Is my contract valid if it's only in English?
Onshore, the MOHRE contract is generated in Arabic and English; the Arabic version prevails in any dispute. A free-zone contract follows the free zone's language conventions, DIFC and ADGM contracts are issued in English and are fully enforceable in English.
Can my employer change my contract mid-term?
Only with your written consent. Material changes (salary cut, role change, location change) require an amendment signed by both parties. Unilateral changes are grounds for the employee to terminate with full entitlements.
What happens at the end of my fixed-term contract?
The contract can be renewed for another fixed term, or it ends. End-of-service gratuity is paid regardless of whether the contract ends by expiry, mutual agreement, or termination, provided the employee has completed at least one year of service.
When to consult a labour lawyer
Speak to a UAE employment lawyer before signing if your contract contains a non-compete clause, an unusually long notice period (over 90 days), a unilateral variation clause, or if you're moving across the mainland/free-zone boundary mid-contract. Free-zone-to-mainland transitions often have visa-cancellation cost implications worth pricing in.