Most UAE labour law summaries give you numbers without sources. That is a problem when the numbers are the whole point, and when a wrong one costs you a tribunal claim.
This guide attaches the article number to every figure. Federal Decree-Law No. 33 of 2021 came into force on 2 February 2022, replacing Federal Law No. 8 of 1980 [1][2], and it governs private sector employment in the UAE. Everything below is drawn from the decree-law itself [1], so you can verify any figure against the source rather than against another summary.
Two things in this guide are worth reading even if you skip the rest. The first is that there is no minimum wage figure in the decree-law, because Article 27 empowers the Cabinet to set one rather than setting one itself [1]. The second is that Article 9 gives you a recovery right against a competitor who hires your probationer [1], and in our experience almost no employer knows it exists.
Since 2013, BusinessDubai.ae has set up UAE companies and the employment infrastructure underneath them, including work permits, MOHRE contracts and WPS payroll. This guide is the reference we use when a client asks where a number comes from.
Is there a minimum wage in the UAE?
Short answer: the decree-law does not set one. Article 27 gives the Cabinet the power to determine a minimum wage, which is not the same as a figure you can rely on.
Article 27 provides that the Cabinet may issue a resolution determining the minimum wage for workers or for any category of them [1]. That is an enabling power. It is not itself a rate.
This matters because published UAE minimum wage figures circulate widely, often quoted with confidence and without a source. Some of them trace back to guidance for particular categories, some to older instruments, and some to nothing identifiable at all. Before you build a salary band, a visa application or an employment offer on a number you read somewhere, ask which instrument it comes from.
| Question | Position under the decree-law |
|---|---|
| Does Federal Decree-Law 33 of 2021 state a minimum wage? | No [1] |
| Who can set one? | The Cabinet, by resolution, under Article 27 [1] |
| Does that mean wages are unregulated? | No. The contract wage binds you, and WPS enforces payment of it |
| What should you rely on for a specific figure? | The instrument that sets it, not a secondary summary |
Common Mistake: Treating a widely repeated minimum wage number as statutory because it appears in many places. Repetition is not a source. If you cannot point to the Cabinet resolution, or to a published requirement attached to a specific permit category, you do not have a figure you can defend.
The practical employer position is straightforward. What binds you is the wage in the contract you signed, paid in full and on time through the Wages Protection System. That obligation is real, enforceable and independent of whether a general minimum wage exists.
Unsure what your obligations look like before you make your first hire? Check your eligibility→
Can you recover recruitment costs when a competitor hires your probationer?
Short answer: yes. Article 9 requires the new employer to compensate you for recruitment or contracting costs, unless otherwise agreed.
This is the single most under-used provision in the decree-law, so it gets its own section.
Where a worker wishes to move to another employer in the UAE during the probationary period, two things follow under Article 9 [1]:
- The worker must give the original employer not less than one month of written notice, not fourteen days.
- The new employer must compensate the original employer for the recruitment or contracting costs, unless otherwise agreed between them.
Read that second point again. It is a statutory allocation of cost between two employers, and it does not depend on you having a contractual clause. The phrase "unless otherwise agreed" means it can be varied by agreement, which in practice means a competitor who wants to avoid it has to negotiate you out of it.
Real Talk: Most employers treat losing a hire five weeks into probation as bad luck and an expensive lesson in recruitment. Article 9 says otherwise. If you paid an agency fee, ran assessments, funded relocation or paid visa and permit costs to bring that person in, those are recruitment or contracting costs, and the decree-law puts them on the company that took the person. Document what you spent at the point of hiring, because you cannot reconstruct it credibly six months later.
The practical steps are unglamorous and they work. Keep a per-hire cost file from day one, covering agency fees, permit and visa costs, medical and Emirates ID processing, relocation and any signing payments. When a probationer resigns to join another UAE employer, put the position in writing to both the worker and the new employer promptly, citing Article 9. Most disputes at this level settle without going anywhere near a tribunal, precisely because the provision is clear.
Note the boundary. This applies where the worker moves to another employer in the UAE during probation. A foreign worker who terminates during probation in order to leave the State gives not less than 14 days of notice and the recovery right is not framed the same way [1].
What kind of employment contract can you issue?
Short answer: fixed-term only, not exceeding three years, renewable by agreement.
The decree-law defines a fixed-term contract as one not exceeding three years, extendable or renewable by agreement for a similar or lesser period, once or more [2]. The unlimited contracts that existed under the 1980 law are gone.
Article 8 sets out what the contract must contain: the parties' details, the worker's qualifications and occupation, the commencement date, place of work, working hours, rest days, probationary period where applicable, contract duration, the agreed wage including allowances, annual leave entitlement, notice period and the modalities of termination [1][2].
The practical point for employers is that a contract missing these particulars is a weak document in a dispute. MOHRE's standard contract exists precisely so that the mandatory content is not left to chance, and the version registered with the Ministry is the one that will be read against you.
Pro Tip: The single most consequential drafting decision in a UAE employment contract is the split between basic wage and allowances, because Article 51 calculates end of service benefits on the basic wage alone [1]. That decision is made once, at the offer stage, and it determines your gratuity exposure for as long as the person works for you. Work the numbers in the gratuity section below before you sign the first contract, not after the tenth.
Our guide to hiring employees in Dubai covers the permit and onboarding sequence that sits around the contract.
How does probation actually work?
Short answer: six months maximum, once per employer, with three different notice periods that employers routinely confuse.
Article 9 sets a ceiling of six months from the date work commences, and a worker may not be placed on probation more than once with the same employer [1]. If the worker passes probation and continues, the contract runs on agreed terms and the probation period counts toward the term of service [1].
| Situation | Notice required | Who gives it |
|---|---|---|
| Employer terminates during probation | 14 days written notice, at least [1] | Employer |
| Worker moves to another UAE employer during probation | Not less than one month [1] | Worker, plus cost recovery from the new employer |
| Foreign worker terminates to leave the State during probation | Not less than 14 days [1] | Worker |
Note also that there is no paid sick leave during probation [1]. The employer may grant unpaid sick leave on a medical report, but the paid entitlement does not begin until probation ends.
Worked example. You hire on 1 March with a six-month probation. On 10 April you decide the fit is wrong. You must give at least 14 days of written notice before the specified termination date, so the earliest clean end date is 24 April, and the employment relationship, wage and obligations continue through that period. If instead the worker resigns on 10 April to join a UAE competitor, they owe you not less than one month, taking the exit to 10 May, and the competitor owes your recruitment costs [1].
What are the working hour and overtime rules?
Short answer: 8 hours a day or 48 a week under Article 17, with overtime at basic wage plus 25%, rising to plus 50% between 10pm and 4am under Article 19.
Normal hours are a maximum of 8 hours per day or 48 hours per week under Article 17, and the Cabinet may increase or reduce this for particular sectors or categories [1].
Overtime, under Article 19 [1]:
- Overtime may not exceed 2 hours per day
- Total working hours must not exceed 144 hours in any 3 weeks
- Overtime is paid at basic wage plus not less than 25%
- Overtime worked between 10pm and 4am is paid at basic wage plus not less than 50%, with shift workers excluded from this clause
- Weekend work is compensated either with another day off or with the wage for that day plus an uplift [1]
Two traps here. The 144-hour ceiling across three weeks is expressed as an absolute limit rather than an average to be reconciled later. And the "not less than" phrasing on both uplifts means 25% and 50% are floors, not fixed rates. A contract may provide more, and if yours does, that is the rate you owe.
Quick Math: Take a worker on a basic wage of AED 9,000 a month. The daily basic wage is AED 300, and on an 8-hour day the hourly basic wage is AED 37.50. Daytime overtime at plus 25% is AED 46.88 an hour. Night overtime between 10pm and 4am at plus 50% is AED 56.25 an hour. Two hours a day across twenty working days is 40 hours, which costs AED 1,875 at the day rate and AED 2,250 at the night rate. Running a night shift pattern on overtime rather than on properly rostered shift workers is therefore about 20% more expensive per hour, before you count the compliance risk of the daily and three-weekly ceilings.
| Basic monthly wage (AED) | Hourly basic (AED) | Overtime at +25% (AED) | Night overtime at +50% (AED) |
|---|---|---|---|
| 3,000 | 12.50 | 15.63 | 18.75 |
| 6,000 | 25.00 | 31.25 | 37.50 |
| 9,000 | 37.50 | 46.88 | 56.25 |
| 12,000 | 50.00 | 62.50 | 75.00 |
| 18,000 | 75.00 | 93.75 | 112.50 |
Those figures use a 30-day month and an 8-hour day to derive a daily and hourly rate from a monthly wage. Check the basis your contracts specify, because a contract that defines the hourly rate differently will govern.
What leave must you give?
Short answer: 30 days of annual leave, 60 days of maternity leave split 45 full and 15 half, and up to 90 days of sick leave on a 15, 30 and unpaid ladder.
Annual leave, Article 29 [1]:
- 30 days for each year of service
- 2 days per month where service exceeds six months but is less than a year
- Leave for the part of the final year worked, where service ends before the balance is used
There is also a rule employers overlook. The employer may not prevent the worker from benefiting from annual leave accrued for more than two years, unless the worker wishes to carry it forward or receive payment in lieu, in accordance with the establishment's regulations [1]. Allowing leave to pile up indefinitely is not a neutral act.
Maternity leave, Article 30 [1]:
- 60 days total
- The first 45 days at full wage
- The following 15 days at half wage
- After that, up to 45 further days unpaid, continuous or intermittent, where the absence is due to her illness or the child's [1]
Sick leave, Article 31 [1]:
- Up to 90 days per year, continuous or intermittent, after probation ends
- The first 15 days at full pay, the following 30 days at half pay, the remaining period unpaid
- The worker must notify the employer within 3 working days and produce a medical report [1]
- No entitlement to paid sick leave during probation [1]
- No wage entitlement where the sickness resulted from the worker's misconduct, per the Implementing Regulation [1]
An employer may terminate after the sick leave period is exhausted if the worker cannot return, subject to conditions [1].
Worked example. A worker on a monthly wage of AED 12,000 takes the full 90 days of sick leave in a year. The daily wage is AED 400. The first 15 days cost AED 6,000 at full pay. The next 30 days cost AED 6,000 at half pay. The final 45 days are unpaid. Total wage cost across a 90-day absence is AED 12,000, which is one month of wage spread across three months of absence.
Worked example. A worker who joins in March and leaves in November has completed eight months of service. Under Article 29 that produces 16 days of accrued annual leave at 2 days per month [1], payable for the part of the year worked if untaken.
What notice applies on termination?
Short answer: not less than 30 days and not more than 90 days as agreed in the contract, under Article 43.
Either party may terminate for a legitimate reason with written notice, and the agreed notice period must be not less than 30 days and not more than 90 days [1]. The contract remains valid throughout the notice period, the worker is entitled to full wage for it based on their last wage, and the employer may require them to work it [1].
Separately, Article 44 sets out the cases in which a worker may be dismissed without notice, and Article 45 the cases in which a worker may quit without notice [1]. Those are specific enumerated grounds, not general discretion. Do not treat summary dismissal as available on a judgement call.
Article 47 covers illegitimate termination [1], which is where an employer who gets the process wrong ends up.
A 90-day notice period written into every contract because it feels protective binds you as well. If you need to exit a senior hire you are paying 90 days of full wage either way. Match the notice period to how long the role genuinely takes to replace, within the Article 43 band.
Our guide to what to do after setting up a company in Dubai covers the visa cancellation sequence that follows a termination, which has to happen in the right order or it stalls.
How is end of service gratuity calculated?
Short answer: 21 days of basic wage per year for the first five years, 30 days per year after that, on the last basic wage, capped at two years' wage.
Article 51 applies to full-time foreign workers who have completed one year or more of continuous service [1][2]:
- 21 days' basic wage for each of the first five years of service
- 30 days' basic wage for each year beyond that
- Pro-rata entitlement for parts of a year, provided one year of continuous service is complete
- Calculated on the last basic wage
- Unpaid days of absence are excluded from the service term
- The total must not exceed two years' wage [1]
Here is the entitlement expressed in days, and then in AED at three basic wage levels, using a 30-day month to derive the daily basic wage.
| Years of service | Entitlement in days of basic wage | Basic AED 5,000 | Basic AED 10,000 | Basic AED 20,000 |
|---|---|---|---|---|
| 1 | 21 | 3,500 | 7,000 | 14,000 |
| 2 | 42 | 7,000 | 14,000 | 28,000 |
| 3 | 63 | 10,500 | 21,000 | 42,000 |
| 5 | 105 | 17,500 | 35,000 | 70,000 |
| 8 | 195 | 32,500 | 65,000 | 130,000 |
| 10 | 255 | 42,500 | 85,000 | 170,000 |
| 15 | 405 | 67,500 | 135,000 | 270,000 |
| 20 | 555 | 92,500 | 185,000 | 370,000 |
The days column is the important one, because it is wage-independent. First five years at 21 days each is 105 days. Every year after that adds 30 days.
Quick Math: The two-year cap in Article 51 bites later than most people assume. Two years of wage is 720 days. The entitlement reaches 720 days at 105 plus 30 times the years beyond five, so 30 times 20.5 years, which is 25 and a half years of service. Below that length of service the cap is not doing any work, and quoting it as though it limits an ordinary long-serving employee is wrong.
Two points employers get wrong more often than any others.
It is basic wage, not total package. Allowances are excluded [1], and this materially changes the number where a package is allowance-heavy.
Worked example. Two employees each cost you AED 20,000 a month and each leave after five years, which is 105 days of entitlement. Employee A is on a basic wage of AED 12,000 with AED 8,000 of allowances, so the daily basic wage is AED 400 and the gratuity is AED 42,000. Employee B is on an all-basic package of AED 20,000, so the daily basic wage is AED 666.67 and the gratuity is AED 70,000. Same cost to the business every month, AED 28,000 of difference at the exit, decided entirely by how the offer letter was drafted.
| Package split on AED 20,000 per month | Basic (AED) | Daily basic (AED) | Gratuity at 5 years (AED) | Gratuity at 10 years (AED) |
|---|---|---|---|---|
| 100% basic | 20,000 | 666.67 | 70,000 | 170,000 |
| 60% basic, 40% allowances | 12,000 | 400.00 | 42,000 | 102,000 |
| 50% basic, 50% allowances | 10,000 | 333.33 | 35,000 | 85,000 |
Pro Tip: Decide your standard basic-to-allowance ratio once, at company level, and apply it consistently. The expensive version of this is not choosing a high basic. It is having no policy, so that packages drift and two people doing the same job accrue very different exits, which is exactly the fact pattern that turns a routine departure into a grievance.
The Cabinet may also approve alternative end-of-service schemes [1], which is the basis for the savings-scheme arrangements some employers now use. Our UAE end of service gratuity guide works through more calculation variants.
Want your contract templates and gratuity exposure reviewed before the next hire? Talk to a setup expert→
What else binds you as an employer?
Short answer: records for two years after exit, a non-compete ceiling of two years, WPS, and Emiratisation obligations that sit outside the decree-law entirely.
Record keeping. Article 13 requires employers to maintain workers' files and records per Ministry resolution, keeping a worker's file for not less than two years after the worker leaves [1]. If you dispose of files when someone resigns, you are removing your own evidence in any claim they bring afterwards.
Non-competition. Article 10 caps a non-compete at two years from contract expiry, and the requirement is nullified if the employer terminates the contract in violation of the decree-law [1]. A claim for breach is not heard once one year has passed [1]. A non-compete is therefore conditional on the employer having behaved properly, which is a point worth making internally before a termination is handled badly.
WPS. Wages must be paid through the Wages Protection System. This is an operational obligation with its own enforcement, and it interacts with your ability to obtain new work permits.
Emiratisation. Separate from the decree-law, and enforced with monthly financial contributions for shortfalls. Our Emiratisation 2026 guide covers targets and penalties, which change more often than the labour law does.
| Obligation | Source | The number to remember |
|---|---|---|
| Keep worker files after exit | Article 13 [1] | Not less than 2 years |
| Non-compete ceiling | Article 10 [1] | 2 years from contract expiry |
| Non-compete claim time bar | Article 10 [1] | Not heard after 1 year |
| Contract length ceiling | Fixed-term definition [2] | 3 years, renewable |
| Notice band | Article 43 [1] | 30 to 90 days |
| Probation ceiling | Article 9 [1] | 6 months, once per employer |
Common Mistake: Terminating in a way that breaches the decree-law and then attempting to enforce a non-compete against the same person. Article 10 nullifies the non-compete requirement where the employer terminated in violation [1]. The badly handled exit does not just create a claim against you. It also destroys the protection you thought you had bought.
Does the labour law apply to free zone companies?
Short answer: yes for most free zones, but DIFC and ADGM run their own employment regimes and the figures in this guide are not theirs.
The federal decree-law is the reference for mainland employers and for the large majority of free zone companies. Two financial free zones are different. DIFC and ADGM have their own employment laws, which differ on notice, gratuity and end-of-service arrangements.
If you are hiring into a DIFC or ADGM entity, do not apply the numbers in this guide. Check the zone's own employment law. Our ADGM versus DIFC comparison sets out where the two diverge, and our business setup in Abu Dhabi page covers the wider emirate around ADGM.
For everyone else, the federal decree-law governs, subject to zone-specific rules on work permits and visa quotas. Our free zone company setup and mainland company setup pages cover which regime a given structure sits under, and our guide to visa quotas in free zones covers how many people a given licence and premises will actually let you employ.
Emirate choice matters here too, because permit processing, premises requirements and cost differ across the country. Our business setup in Sharjah page covers one of the routes employers use when headcount cost is the binding constraint.
Where do employers actually get caught?
Short answer: in five places, and four of them are decided at the contract stage rather than at the exit.
| Failure point | What goes wrong | The provision that governs it |
|---|---|---|
| Contract particulars | Missing Article 8 content leaves you with a weak document in a dispute | Article 8 [1] |
| Gratuity basis | Budgeted on total package instead of basic wage | Article 51 [1] |
| Summary dismissal | Treated as generally available rather than limited to enumerated grounds | Articles 44 and 45 [1] |
| Leave accrual | Allowed to build for years, then arrives as cash | Article 29 [1] |
| Probation exits | Wrong notice period applied, and recovery right never claimed | Article 9 [1] |
Real Talk: Employment disputes in the UAE are rarely about a dramatic event. They are about a document that was drafted casually two years earlier and read carefully for the first time on the day someone leaves. The cheapest hour you will ever spend on employment compliance is the one before you issue your first contract, deciding your basic-to-allowance split, your notice period and your probation policy as deliberate company positions rather than as fields to fill in.
Our post-setup services team runs work permits, MOHRE contracts, WPS payroll and visa sequencing as an ongoing function rather than as a one-off filing.
Hiring your first employees and want the contract, permit and payroll set up correctly from the start? Talk to a setup expert→
Real Client Stories
Real examples from businesses we have helped set up. Names have been changed for privacy.
Karim, the employer who budgeted gratuity on the full package
Karim ran a firm with allowance-heavy packages and had modelled end of service on total salary rather than basic wage. Article 51 calculates on the basic wage [1], so his budgeted figure was substantially higher than the actual entitlement. That sounds like good news, and it was not, because the number had been quoted informally to a departing employee before anyone checked, and correcting it mid-negotiation turned a routine exit into a dispute.
The structural lesson mattered more than the money. On a AED 20,000 package split 60% basic, a five-year exit is AED 42,000. On an all-basic package it is AED 70,000. That decision is made at the offer stage and it runs for the life of the employment.
His comment: "Nobody in the business knew that gratuity ran off basic wage rather than salary. We had been budgeting a number that was wrong in both directions depending on who you asked."
Layla, the employer who let leave accumulate for three years
Layla let a valued employee carry annual leave forward year after year, treating it as a favour to both sides. Article 29 prevents an employer from preventing a worker benefiting from leave accrued for more than two years, other than where the worker wishes to carry it forward or take payment in lieu [1].
When the employee resigned, the accrued balance became a cash liability arriving at the worst possible moment. On a monthly wage of AED 15,000, the untaken balance was worth AED 500 a day, and the exit cost several times what the business had planned for.
Her comment: "I thought I was being generous by never pushing anyone to take leave. I was actually running up a debt and calling it goodwill."
Tarek, the employer who did not know he could recover recruitment costs
Tarek lost a hire five weeks into probation to a direct competitor and treated it as bad luck. Article 9 requires a worker moving to another UAE employer during probation to give the original employer not less than one month of written notice, and requires the new employer to compensate the original employer for recruitment or contracting costs unless otherwise agreed [1].
He had paid an agency fee, permit and visa costs and a relocation contribution. He had a claim and did not know it, and by the time he found out, the per-hire cost file did not exist in any form he could evidence. He now keeps one from the day an offer is accepted.
His comment: "The provision was there the whole time. What I was missing was the paperwork to prove what the hire had cost me."
Get the employment side built properly the first time
The UAE labour law is not complicated, but it is precise, and most employer exposure comes from three places. Contracts that omit Article 8 particulars. Gratuity budgeted on the wrong wage figure under Article 51. And terminations processed as though summary dismissal were generally available, when Articles 44 and 45 enumerate specific grounds.
Two figures are worth carrying out of this guide. There is no minimum wage in the decree-law, only a Cabinet power to set one under Article 27 [1], so treat any published figure as needing a source. And Article 9 gives you a recruitment-cost recovery right against a company that hires your probationer [1], which is worth real money if you keep the records to prove it.
Since 2013, BusinessDubai.ae has handled UAE company formation and the employment infrastructure that follows it: work permits, MOHRE contracts, WPS payroll setup and the visa sequencing underneath. Our post-setup services team runs that as an ongoing function rather than a one-off filing.
This guide is a reference, not legal advice. For a specific dispute or termination, take advice on the facts.
Frequently Asked Questions
Is there a minimum wage in the UAE?
The decree-law does not set one. Article 27 empowers the Cabinet to issue a resolution determining a minimum wage for workers or any category of them [1]. Treat any specific figure you read as requiring a source in a Cabinet resolution or a permit-specific requirement.
Why do I keep seeing a UAE minimum wage figure quoted?
Because the figures circulate widely without attribution. Some trace to guidance for particular categories, some to older instruments. Repetition is not a source, so ask which instrument sets the number before relying on it [1].
Can I recover recruitment costs if a probationer joins a competitor?
Yes. Where a worker moves to another employer in the UAE during probation, the new employer must compensate the original employer for recruitment or contracting costs unless otherwise agreed, under Article 9 [1].
What counts as recruitment or contracting costs?
The decree-law does not itemise them. In practice employers claim agency fees, permit and visa costs, medical and Emirates ID processing, relocation and signing payments. Keep a per-hire cost file from the day the offer is accepted, because the claim is only as good as the evidence.
What is the maximum probation period in the UAE?
Six months from the date work commences, and a worker cannot be placed on probation more than once with the same employer, under Article 9 [1]. The probation period counts toward the term of service.
How much notice is required during probation?
Three different periods apply. An employer terminating gives at least 14 days of written notice. A worker moving to another UAE employer gives not less than one month. A foreign worker leaving the State gives not less than 14 days [1].
Can I still issue unlimited employment contracts?
No. Contracts are fixed-term, not exceeding three years, extendable or renewable by agreement [2]. The unlimited contracts of the 1980 law no longer apply.
What must a UAE employment contract contain?
Article 8 requires the parties' details, the worker's qualifications and occupation, commencement date, place of work, working hours, rest days, probation period where applicable, contract duration, the agreed wage including allowances, annual leave, notice period and the modalities of termination [1][2].
What are the maximum working hours in the UAE?
8 hours per day or 48 hours per week under Article 17, with the Cabinet able to vary this for particular sectors or categories [1].
What are the UAE overtime rates?
Basic wage plus not less than 25%, rising to basic wage plus not less than 50% for overtime between 10pm and 4am, with shift workers excluded from the night rate. Overtime cannot exceed 2 hours a day, and total working hours cannot exceed 144 hours in any 3 weeks, under Article 19 [1].
How do I calculate an overtime hour in AED?
Derive the daily basic wage from the monthly basic wage, then the hourly rate from an 8-hour day, then apply the uplift. On a basic wage of AED 9,000 a month the hourly basic is AED 37.50, daytime overtime is AED 46.88 and night overtime is AED 56.25 [1].
How much annual leave are employees entitled to?
30 days per year of service, or 2 days per month where service is between six months and a year, under Article 29 [1]. An employer may not prevent a worker taking leave accrued for more than two years, subject to carry-forward or payment in lieu.
What happens to untaken annual leave?
It remains an entitlement and becomes a cash liability at exit. Article 29 also prevents an employer from blocking leave accrued over two years [1], so allowing balances to build indefinitely is not a neutral choice.
What is UAE sick leave entitlement?
Up to 90 days per year after probation: the first 15 days at full pay, the next 30 at half pay, and the remainder unpaid, under Article 31 [1]. The worker must notify within 3 working days with a medical report.
Is sick leave paid during probation?
No. There is no entitlement to paid sick leave during the probation period [1]. An employer may grant unpaid sick leave on a medical report.
What is maternity leave in the UAE?
60 days under Article 30, the first 45 at full wage and the following 15 at half wage, plus the possibility of up to 45 further unpaid days where the absence relates to her illness or the child's [1].
What notice period applies on termination?
Not less than 30 days and not more than 90 days, as agreed in the contract, under Article 43 [1]. The contract stays valid through the notice period and the worker is entitled to full wage for it.
Can I dismiss someone without notice?
Only on the grounds enumerated in Article 44, and a worker may resign without notice only on the grounds in Article 45 [1]. Summary dismissal is not a general discretion, and getting it wrong takes you into Article 47 on illegitimate termination.
How is UAE end of service gratuity calculated?
21 days of basic wage for each of the first five years and 30 days for each year after, calculated on the last basic wage, pro-rated for part years after one year of continuous service, excluding unpaid absence, and capped so the total does not exceed two years' wage, under Article 51 [1].
Is gratuity based on basic salary or total salary?
Basic wage. Article 51 calculates end of service benefits on the basic wage [1], so allowances are excluded. This is the most common gratuity miscalculation.
What is gratuity after 5 years on a basic wage of AED 10,000?
105 days of basic wage. At a daily basic wage of AED 333.33 that is AED 35,000, using a 30-day month to derive the daily rate [1].
When does the two-year gratuity cap actually apply?
Two years of wage is 720 days. The entitlement reaches that at 105 days for the first five years plus 30 days a year thereafter, which is about 25 and a half years of service [1]. Below that, the cap is not limiting anything.
Do I have to pay gratuity if someone leaves before a year?
No. Article 51 applies to workers who have completed one year or more of continuous service, with pro-rata entitlement for parts of a year after that point [1][2].
How long must I keep employee records?
Not less than two years after the worker leaves, under Article 13 [1]. Disposing of files at resignation removes your own evidence in any later claim.
How long can a non-compete last?
Up to two years from contract expiry under Article 10, and the requirement is nullified where the employer terminates the contract in violation of the decree-law. A claim is not heard once one year has passed [1].
Does the UAE labour law apply to free zone companies?
For most free zones, yes. DIFC and ADGM operate their own employment laws with different notice, gratuity and end-of-service rules, so the figures in this guide do not apply to entities in those two centres.
What is the most common employer mistake we see?
Budgeting gratuity on total package rather than basic wage under Article 51 [1]. The second is not knowing about the Article 9 recruitment-cost recovery right when a probationer is poached.
Related reading: UAE End of Service Gratuity, Emiratisation 2026 Guide, How to Hire Employees in Dubai
References
[1] Ministry of Human Resources and Emiratisation. Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments, English text. Articles relied on: Article 8 on contract particulars; Article 9 on probation, the 14-day employer notice, the one-month notice and recruitment cost compensation where a worker moves to another UAE employer, and the 14-day notice where a foreign worker leaves the State; Article 10 on non-competition, its two-year maximum, nullification where the employer terminates in violation, and the one-year time bar; Article 13 on retention of worker files for not less than two years; Article 17 on 8 hours daily and 48 hours weekly; Article 19 on overtime not exceeding 2 hours daily, 144 hours per 3 weeks, and uplifts of 25% and 50% between 10pm and 4am; Article 27 on the Cabinet power to determine a minimum wage; Article 29 on 30 days annual leave, 2 days per month for 6 to 12 months of service, and the restriction on preventing leave accrued over two years; Article 30 on 60 days maternity leave at 45 full and 15 half wage plus up to 45 unpaid days; Article 31 on 90 days sick leave at 15 full, 30 half and the remainder unpaid, with no paid sick leave in probation and 3 working days notification; Article 43 on notice of not less than 30 and not more than 90 days; Articles 44 and 45 on dismissal and resignation without notice; Article 47 on illegitimate termination; and Article 51 on end of service benefits of 21 days per year for the first five years and 30 days thereafter, on last basic wage, pro-rated after one year, excluding unpaid absence and capped at two years' wage. Federal Decree-Law No. 33 of 2021 (PDF)
[2] The Official Platform of the UAE Government. Employment laws and regulations in the private sector, confirming that Federal Decree-Law No. 33 of 2021 came into force on 2 February 2022 replacing Federal Law No. 8 of 1980, that fixed-term contracts may not exceed three years and are renewable by agreement, the mandatory contract particulars, and the end of service benefit rates. u.ae employment laws
[3] Ministry of Human Resources and Emiratisation. Laws and regulations index and media releases on the decree-law regulating labour relations in the private sector. MOHRE laws and regulations
[4] BusinessDubai.ae. Internal data from UAE company formation and employment setup since 2013, including MOHRE contract issuance, work permit and WPS onboarding, per-hire cost records, and the gratuity, leave accrual and probation issues that most often produce employer disputes. businessdubai.ae
This guide is general information about published law, not legal advice. Take advice on the facts of a specific matter.
