UAE Labour Law 2025: Complete Guide to Contracts, Gratuity & MOHRE Rules
Understand the UAE Labour Law 2025 with details on employee rights, contracts, gratuity, and MOHRE rules for all UAE workers.
Introduction
UAE Labour Law 2025 defines the key rules that govern employment relationships across all seven emirates. It protects both employers and employees by setting clear standards for contracts, working hours, termination, and end-of-service benefits. This law, issued under the supervision of the Ministry of Human Resources and Emiratisation (MOHRE), ensures fairness and transparency in every workplace.
Importance of the Law
Understanding this law is essential for every employee in the UAE. It not only helps workers know their legal rights but also guides employers to maintain compliance. By learning the main rules of the UAE Labour Law 2025, both parties can avoid disputes, follow fair procedures, and ensure that gratuity and benefits are calculated correctly.
Key Focus Areas
The UAE Labour Law 2025 focuses on several critical aspects such as contract types, gratuity entitlement, leave rules, and termination procedures. It applies equally to workers in both the private sector and free zones like JAFZA, DMCC, and DDA. Whether an employee holds a limited or unlimited contract, this law guarantees protection, fair pay, and proper end-of-service rights.
Overview of UAE Labour Law 2025
UAE Labour Law 2025 acts as the foundation of employment relations in the country. It outlines the duties, rights, and protections for both employees and employers to ensure a balanced working environment across all emirates. This law standardizes how contracts, salaries, and benefits are managed in both private and free zone companies, maintaining fairness and equality for every worker.
Purpose of the Law
The main goal of the UAE Labour Law 2025 is to create a transparent and secure employment system. It ensures that employees receive fair treatment and that employers follow proper procedures for hiring, termination, and compensation. By setting clear regulations, the law promotes stability in the job market and supports the UAE’s vision of being a global hub for skilled professionals.
Who the Law Applies To
This law applies to almost all workers in the UAE, including private sector employees, domestic workers, and those working in free zones such as JAFZA, DMCC, and DDA. However, federal and local government workers are usually governed by separate laws. Every employee covered under MOHRE must comply with this legislation to ensure fair employment practices and accurate gratuity calculations.
Key Updates in the 2025 Labour Law
The 2025 version of the UAE Labour Law introduced several updates to make the workplace more flexible, transparent, and fair for both employers and employees. These changes were designed to keep pace with modern work trends, ensuring that the UAE continues to provide one of the most worker-friendly environments in the region. The new law emphasizes employee welfare, clear contracts, and digital management of employment procedures through MOHRE platforms.
Working Hours and Overtime
Under the updated law, the maximum working hours remain eight hours per day or 48 hours per week. However, flexible arrangements such as part-time and remote work are now officially recognized. Overtime must be compensated at a higher rate, and employees working on public holidays are entitled to extra pay or compensatory leave. These rules ensure a better balance between productivity and employee well-being.
Paid Leave and Holidays
Employees are entitled to a minimum of 30 days of paid annual leave after completing one year of continuous service. The law also provides paid public holidays, sick leave, and maternity or paternity leave. One major addition in 2025 is the inclusion of compassionate leave, allowing workers to take time off in case of family emergencies or bereavement, reflecting a more humane approach to employee welfare.
Termination Rules and Notice Periods
The termination process has become more transparent under the new law. Both employers and employees must serve the agreed notice period, which typically ranges from 30 to 90 days. Unfair or unlawful termination can lead to compensation, and employees have the right to file complaints through MOHRE. This ensures job security and protects employees from sudden dismissals without proper justification.
Employment Contract Types
Under the UAE Labour Law 2025, every employee must have a valid and registered employment contract. These contracts define the duration, responsibilities, and rights between the employer and employee. The law mainly recognizes two kinds of agreements that determine how gratuity, resignation, and termination are handled.
To understand the full difference between limited and unlimited contracts, along with the new rules for 2025, read the detailed guide here:
Limited vs Unlimited Contracts in UAE
This article explains the major differences, rules for 2025, and how each contract impacts your end-of-service benefits under the UAE Labour Law.
Gratuity and End-of-Service Benefits
Gratuity is one of the most important rights given to employees under the UAE Labour Law 2025. It serves as a financial reward for the service an employee provides to a company over the years. This end-of-service benefit is mandatory for all private sector and free zone workers who complete at least one year of continuous employment. The amount depends on the employee’s basic salary and total years of service, ensuring that every worker receives fair compensation after leaving a job.
Eligibility for Gratuity
An employee becomes eligible for gratuity after completing a full year of continuous service with the same employer. It applies to both limited and unlimited contracts. However, gratuity can be reduced or forfeited if the employee leaves the company without proper notice or is terminated for misconduct under MOHRE guidelines. For domestic workers, special conditions may apply according to the latest updates issued in 2025.
Gratuity Calculation Formula
The standard calculation for end-of-service benefits remains the same under the 2025 law.
- First 5 years of service: 21 days’ basic salary per year.
- After 5 years: 30 days’ basic salary per year.
The total amount should not exceed two years’ salary.
To calculate your exact gratuity based on your salary and service duration, visit the detailed calculation guide:
UAE Gratuity Calculation Formula 2025
Gratuity for Domestic Workers
Domestic workers, including housemaids, drivers, and nannies, are also entitled to gratuity under the new law. They must complete at least one year of continuous service to qualify. Their gratuity follows the same calculation method used for other employees. For a detailed explanation and updated rules, refer to:
Gratuity Rules for Housemaids and Domestic Workers in UAE 2025
MOHRE Regulations and Compliance
The Ministry of Human Resources and Emiratisation (MOHRE) is the primary authority responsible for enforcing the UAE Labour Law 2025. Every employer and employee registered under the ministry must follow its rules for contracts, termination, and gratuity payments. MOHRE ensures that all employment relationships remain transparent and legally protected through its online systems and mobile applications.
Checking Your Contract Online
Employees can verify their employment details directly through the MOHRE website or mobile app. By using an Emirates ID or Labour Card number, you can view your official contract type, salary, and service records. This helps workers confirm whether they are under a limited or unlimited contract and ensures that their employer has properly registered their information. For those who prefer a step-by-step method, visit this detailed guide:
How to Check UAE Labour Card Online
Labour Card and E-Signature Card
The Labour Card acts as official proof of employment, while the E-Signature Card allows companies to manage digital employment processes. Both are essential for maintaining compliance with MOHRE regulations. Employers must ensure these documents are valid and renewed on time to avoid penalties. Employees can also verify their details online. For complete guidance, read:
How to Apply for an E-Signature Card in UAE
MOHRE’s Role in Dispute Resolution
MOHRE also handles labour disputes and employee complaints. If a worker faces unfair termination, unpaid salary, or contract violations, they can file a complaint through MOHRE’s smart services. The ministry reviews each case and ensures that both parties receive fair treatment according to UAE Labour Law 2025.
Free Zone Employee Rules
Employees working in UAE free zones such as JAFZA, DMCC, and DDA are also protected under the UAE Labour Law 2025. Although each free zone may have its own regulations, most follow the federal labour law for gratuity, working hours, and contract terms. The purpose of these rules is to provide fair employment conditions and protect employee rights within special business zones.
Free Zone Employment Overview
Free zone companies often offer limited contracts for project-based roles, but they still must respect the basic labour law standards. Employees receive the same end-of-service benefits as those in the private sector, unless the free zone authority specifies otherwise.
Below is a comparison table summarizing how the UAE Labour Law applies in major free zones:
| Free Zone | Authority | Contract Type | Gratuity Policy | Special Notes |
|---|---|---|---|---|
| JAFZA | Jebel Ali Free Zone Authority | Usually Limited | Follows UAE Labour Law 2025 | Must complete 1 year for gratuity eligibility |
| DMCC | Dubai Multi Commodities Centre | Limited or Unlimited | Same as MOHRE guidelines | Full gratuity if contract completed |
| DDA | Dubai Development Authority | Limited Contract | 21 days for first 5 years, 30 days after | Overseen by DDA Labour Office |
JAFZA Gratuity Guide
For employees working in Jebel Ali Free Zone (JAFZA), gratuity is calculated based on the same formula used across the UAE. They are eligible after one year of continuous service. To learn the exact calculation method and eligibility criteria, visit:
How to Calculate JAFZA Gratuity
Rights of Free Zone Employees
Free zone employees have the same legal protection for salary, working hours, and termination as private sector employees. MOHRE and the respective free zone authority collaborate to resolve disputes and ensure compliance with national employment standards.
Domestic Worker Rights
Domestic workers play an essential role in UAE households, and the 2025 Labour Law ensures that they receive fair treatment and the same level of protection as other employees. The law clearly defines their working hours, leave entitlements, salary payments, and gratuity rights. It also introduces stronger regulations to prevent exploitation and to guarantee transparent employment practices.
Working Conditions and Hours
Domestic workers are entitled to adequate rest, paid leave, and a maximum number of working hours per day. Employers must provide suitable accommodation, timely salary payments, and medical insurance coverage. Any violation of these obligations can result in penalties under MOHRE regulations.
Below is a simple summary table showing the main entitlements of domestic workers in 2025:
| Category | Entitlement / Rule | Explanation |
|---|---|---|
| Working Hours | Maximum 12 hours per day | Must include at least 8 hours of rest |
| Weekly Rest Day | 1 full day off | Paid day off per week is mandatory |
| Annual Leave | 30 days per year | Paid leave after completing 1 year of service |
| Medical Insurance | Mandatory | Provided by the employer |
| Gratuity | Eligible after 1 year | Based on 21 days’ salary per service year |
Gratuity for Domestic Workers
Just like private employees, domestic workers are entitled to gratuity after completing one full year of continuous service. Their gratuity is calculated using the same method 21 days of basic pay per year for the first five years and 30 days per year after that.
For a complete explanation of the rules and latest updates, visit:
Gratuity Rules for Housemaids and Domestic Workers in UAE 2025
Legal Protections and Complaint Process
Domestic workers can file complaints through MOHRE in case of delayed payments, unfair dismissal, or contract violations. The 2025 Labour Law ensures that every complaint is handled transparently, protecting both employee and employer rights.
Filing Complaints and Legal Support
The UAE Labour Law 2025 provides a transparent and structured process for resolving workplace disputes. Employees who face unfair treatment, unpaid salaries, wrongful termination, or contract violations can file a formal complaint through the Ministry of Human Resources and Emiratisation (MOHRE). The law ensures that all complaints are handled fairly and that both the employee and employer have an equal chance to present their side.
How to File a Complaint
Filing a complaint is simple and can be done online through the MOHRE website, mobile app, or by visiting a customer happiness center.
Here are the basic steps:
- Gather your employment documents (Labour Card, Emirates ID, and Contract).
- Log in to the MOHRE portal or app using your UAE Pass.
- Select “File a Complaint” and describe the issue clearly.
- Upload any supporting evidence (salary slips, termination letters, or messages).
- Submit and track your complaint status online.
The system notifies both parties, and MOHRE reviews the case within a few days. If an agreement isn’t reached, the issue can be escalated to the Labour Court for a final decision.
Common Reasons for Filing Complaints
Employees often file complaints related to unpaid wages, delayed gratuity, contract disputes, or unfair dismissal. Under the 2025 law, MOHRE can penalize employers for violations such as withholding end-of-service benefits, not issuing salary slips, or failing to provide health insurance.
Employee Support and Legal Assistance
MOHRE offers free legal support and guidance for employees who need help understanding their rights. Workers can also contact the MOHRE helpline for advice on issues such as termination, unpaid benefits, or workplace harassment.
For more information, visit the guide section of the official website:
Guide Section – UAE Gratuity Calculator
FAQs
Final Words
The UAE Labour Law 2025 reflects the country’s ongoing commitment to protecting workers’ rights and maintaining fairness in employment relationships. It balances the needs of both employers and employees by clearly defining contracts, working hours, leave policies, and gratuity entitlements.
By understanding this law, employees can secure their benefits and ensure they receive what they rightfully deserve at the end of their service. Employers, on the other hand, can maintain compliance and avoid legal disputes by following MOHRE’s regulations.
For anyone working in the UAE, staying informed about labour rights is the key to professional stability and peace of mind. To calculate your gratuity instantly and check your end-of-service benefits, use the free online tool here:
UAE Gratuity Calculator