Introduction
The UAE Labour Law is crucial for both employers and employees, ensuring fair workplace practices and protecting rights. With the UAE Labour Law 2025, significant amendments have been introduced to align with evolving global work trends, enhance job security, and promote a balanced employer-employee relationship.
Consulting a labour lawyer in Dubai can help navigate the changes effectively by providing expert legal advice on employment contracts, termination policies, gratuity calculations, dispute resolution, and compliance with the updated UAE Labour Law 2025. Whether you are an employer ensuring adherence to regulations or an employee protecting your rights, a skilled lawyer can offer tailored solutions, represent you in legal proceedings, and help resolve workplace conflicts efficiently. With the evolving legal landscape, having professional legal support ensures that you understand your rights and obligations, avoid legal pitfalls, and secure fair treatment in employment-related matters.
This article explores the latest changes, employee rights, and employer obligations under the updated regulations.
Key Changes in UAE Labour Law 2025
The updated UAE Labour Law brings several important modifications aimed at improving workplace dynamics. Below are the most significant changes:
1. New Employment Contract Terms
- Fixed-Term Contracts: All employment contracts must now be fixed-term, with a maximum duration of three years. These contracts can be renewed upon mutual agreement.
- Employment Categories: The law classifies employees into full-time, part-time, temporary, and flexible work models to provide more clarity for both employers and employees.
2. End-of-Service Gratuity Enhancements
- Employees completing one or more years of service are entitled to end-of-service gratuity.
- The gratuity calculation remains based on 21 days’ basic salary for each year of service up to five years and 30 days’ salary for each additional year.
- New provisions ensure gratuity is calculated without deductions, making the system more transparent.
3. Workweek and Overtime Regulations
- Reduced Workweek: The standard workweek remains 48 hours, but some industries may adopt a 4-day workweek as per government initiatives.
- Overtime Pay: Employees working beyond standard hours are entitled to overtime compensation, with at least 125% of regular pay and 150% for late-night shifts.
4. Workplace Equality and Inclusion
- Equal Pay: The law reinforces equal pay for equal work, ensuring gender equality in salaries and benefits.
- Anti-Discrimination Measures: Employers cannot discriminate based on race, nationality, gender, religion, or disability.
- Maternity and Paternity Leave: Women are entitled to 60 days of paid maternity leave (45 days fully paid and 15 days half-paid), while fathers receive 5 days of paid paternity leave.
5. New Visa and Employment Permits
- The UAE is introducing Green Visas and Freelancer Visas to support self-employed professionals and skilled workers.
- Job Loss Insurance Scheme: Employees can subscribe to the job security fund, allowing them to receive monthly compensation in case of job loss.
Employee Rights Under the 2025 UAE Labour Law
The updated labour law strengthens employee rights, ensuring a fair and ethical workplace. Here are the key rights employees should be aware of:
1. Right to Fair Compensation
- Employees must be paid on time, as per the Wage Protection System (WPS).
- Salaries should be credited within 15 days of the due date.
2. Right to a Safe Work Environment
- Employers must ensure workplace safety and comply with occupational health and safety (OHS) regulations.
- Employees working in hazardous conditions must receive protective equipment and training.
3. Right to Annual Leave and Public Holidays
- Employees are entitled to 30 days of annual leave after completing one year of service.
- UAE public holidays must be granted as paid leave, with compensatory leave if employees work on holidays.
4. Right to Termination Benefits
- Employees must receive adequate notice (30 to 90 days) before termination.
- Unjustified termination can lead to compensation claims filed with labour courts.
Employer Obligations Under the 2025 Law
Employers must adhere to the revised legal framework to maintain compliance and avoid penalties.
1. Employment Contracts and Documentation
- Employers must issue clear, written contracts outlining job roles, salaries, and benefits.
- Contracts must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).
2. Payment of Salaries and Benefits
- Salaries must be processed through registered banks.
- End-of-service benefits must be settled within 14 days of an employee’s resignation or termination.
3. Compliance with Working Hours and Leaves
- Employers must monitor work hours and ensure overtime payments are made correctly.
- Employees must be granted statutory leaves, including maternity, paternity, and sick leave.
Resolving Labour Disputes
The UAE Labour Law provides dispute resolution mechanisms through:
- MOHRE Labour Complaints Portal (for salary, contract, and employment disputes).
- Dubai Courts and RDSC (for serious legal issues requiring court intervention).
- Legal Consultation: Employees can seek legal assistance from lawyers in Dubai specialized in labour law for professional guidance.
Conclusion
The UAE Labour Law 2025 introduces progressive changes to enhance employee rights, job security, and fair work practices. Both employees and employers must stay informed about these new regulations to ensure compliance and avoid legal issues. If facing workplace disputes or legal uncertainties, consulting top labour lawyers in Dubai can help navigate the complexities of employment law effectively.
