UAE labour law for employees: gratuity, leave, overtime and notice (2026)
Your rights as a private sector employee in the UAE in 2026, from overtime and leave to notice periods, a worked gratuity example, ILOE and MOHRE complaints.
Highlights
- Normal hours are up to 8 a day or 48 a week, and overtime pays at least 25% extra.
- You get 30 days of paid annual leave after one year, and notice periods run from 30 to 90 days.
- Gratuity is 21 days of basic pay per year for five years, then 30 days per year, capped at two years.
- ILOE pays 60% of basic salary for up to three months, capped at AED 10,000 or AED 20,000.
If you work for a private company on the UAE mainland, your rights come from Federal Decree-Law No. 33 of 2021 and its updates. In short: a normal week is up to 48 hours, overtime pays at least 25% extra, you get 30 days of paid annual leave after a year, notice is 30 to 90 days, and after one year of service you earn an end of service gratuity of 21 days’ basic pay per year for the first five years and 30 days per year after that.
This guide walks through each of those rules in plain language, with a worked gratuity example and the steps to take if something goes wrong. It is general information, not legal advice. If you work in the DIFC or ADGM free zones, or in government, different rules apply (see the section near the end).
Who does the UAE Labour Law cover?
The law covers private sector employers and employees across the mainland and most free zones. It does not cover federal and local government staff, the armed forces and police, or domestic workers, who have their own laws. The DIFC and ADGM financial free zones in Dubai and Abu Dhabi have their own employment laws.
If you are still job hunting, our guides to finding a job in the UAE and the best job sites in Dubai are a good start.
What should your employment contract say?
Every private sector job needs a written contract registered with the Ministry of Human Resources and Emiratisation (MOHRE). Since the new law, unlimited contracts have been phased out and all contracts are fixed-term and renewable. MOHRE recognises several work patterns, including full-time, part-time, temporary, flexible and remote work.
Read your contract closely before you sign the MOHRE version. Check these points:
- Basic salary versus total package. Gratuity, overtime and leave pay are usually worked out on your basic salary, not your allowances, so the split matters a lot.
- Notice period. It must be between 30 and 90 days.
- Probation. It cannot be longer than six months.
- Working hours and rest days. These should be written down, especially for shift or remote roles.
Your employer also cannot charge you recruitment fees or keep your passport or other official documents.
How does probation work in the UAE?
Probation can last up to six months and cannot be extended. If you are confirmed, the probation time counts toward your total service.
- Your employer can end your contract during probation with 14 days’ written notice.
- If you want to move to another UAE employer during probation, you must give one month’s notice, and the new employer may have to compensate your current employer for recruitment costs.
- If you want to leave the UAE during probation, you must give 14 days’ notice. Leaving without notice can lead to a one-year ban on a new work permit.
Paid sick leave does not apply during probation, and you do not earn gratuity unless you complete a full year.
What are the legal working hours and how is overtime paid?
The standard maximum is 8 hours a day or 48 hours a week. After five hours of work in a row you are entitled to a break, and breaks totalling at least one hour do not count as working time. Your commute generally does not count as working time either.
Your employer can ask for overtime of up to two extra hours a day, and total hours, overtime included, should not go over 144 hours every three weeks. Overtime is paid on your basic salary, like this:
| Situation | Minimum pay |
|---|---|
| Normal overtime | Hourly rate plus 25% |
| Overtime between 10pm and 4am | Hourly rate plus 50% (not for shift workers) |
| Working on your rest day | A substitute rest day, or hourly rate plus 50% |
| Working on a public holiday | A substitute day off for each day worked, or that day’s wage plus at least 50% |
Here is a simple example. If your basic salary is AED 6,000, a common way to find the hourly rate is AED 6,000 divided by 30 days, then by 8 hours, which gives AED 25. Normal overtime would be AED 31.25 an hour and late night overtime AED 37.50 an hour. Your company may use a slightly different method, so check your contract. Our overtime calculator does the maths for you.
Outdoor work under direct sun is also banned from 12:30pm to 3pm between 15 June and 15 September each year.
How many days of annual leave do you get?
Once you complete one year of service, you get 30 days of fully paid annual leave each year. Between six months and one year, you earn 2 days per month. Part-time staff get leave based on the hours in their contract.
Leave should normally be taken in the year it is due. You can carry it over only with your employer’s agreement. If you leave the job with unused leave, your employer must pay you for it, worked out on your basic salary. You can estimate your balance with our annual leave calculator.
What other types of leave are there?
Sick leave
After probation, you can take up to 90 days of sick leave a year, in one block or several. The first 15 days are on full pay, the next 30 days on half pay, and the remaining 45 days are unpaid. Tell your employer within three days and provide a medical report. Your employer cannot dismiss you or serve notice while you are on sick leave.
Maternity leave
Mothers get 60 days of maternity leave: 45 days on full pay and 15 days on half pay. You can start up to 30 days before the expected due date. If you are ill because of the pregnancy or birth, you can take up to 45 extra unpaid days with a medical certificate. If the baby is sick or has a disability, you can take 30 extra fully paid days, extendable by 30 unpaid days. After you return, you get up to one hour a day of paid nursing breaks for six months.
Parental leave
Both mothers and fathers can take 5 working days of paid parental leave, to be used within six months of the child’s birth.
Bereavement, study and Hajj leave
The law also gives paid compassionate leave when a close family member dies (5 days for a spouse, 3 days for a parent, child, sibling or grandparent), study leave of 10 days a year for exams once you have two years of service, and leave to perform Hajj. Check your company policy for how to apply.
Which public holidays do private sector workers get?
Private sector staff get the same official public holidays as the government: New Year’s Day, Eid Al Fitr, Arafat Day, Eid Al Adha, Hijri New Year, the Prophet’s Birthday and National Day on 2 and 3 December. Islamic holidays depend on the moon, so exact dates are confirmed shortly before each one. Our post on important UAE holidays explains each occasion.
When is your salary due?
Salaries are paid through the Wage Protection System (WPS). Under Ministerial Resolution No. 340 of 2026, in force since 1 June 2026, wages for each month are due on the first day of the following month, and employers that pay late face escalating MOHRE measures. If your salary is late, keep records and raise it with HR first, then MOHRE.
How long is the notice period in the UAE?
Either side must give written notice of 30 to 90 days, as set in your contract. If one side does not respect the notice period, it owes the other the wage for the missing days. You can agree with your employer to shorten or waive notice.
If your employer ends your contract, you may take one unpaid day off per week during notice to look for a new job, as long as you tell them at least three days in advance. In a few serious cases, such as an employer who fails to fix a breach after a MOHRE instruction, or a dangerous workplace, an employee can leave without notice.
How is end of service gratuity calculated?
Gratuity is a lump sum for expatriate employees who complete at least one year of continuous service. It is based on your last basic salary and works like this:
- 21 days of basic salary for each of the first five years.
- 30 days of basic salary for each year after five years.
- Part years count in proportion, once you pass the first full year.
- Days of unpaid leave are not counted as service.
- The total cannot be more than two years’ wages.
Under the current law, resigning no longer reduces your gratuity the way it did under the old law. Your employer must pay your gratuity and other final dues within 14 days of the contract ending.
Worked example
Sara has a basic salary of AED 8,000 a month and leaves after 7 years and 6 months. Using a daily rate of AED 8,000 divided by 30 (about AED 266.67):
| Period | Days of pay | Amount |
|---|---|---|
| Years 1 to 5 | 5 x 21 = 105 days | AED 28,000 |
| Years 6 and 7 | 2 x 30 = 60 days | AED 16,000 |
| Final 6 months | 0.5 x 30 = 15 days | AED 4,000 |
| Total | 180 days | AED 48,000 |
Some employers use a daily rate of basic salary times 12 divided by 365, which would give Sara about AED 47,342 instead. Ask HR which method they use, and try our gratuity calculator to check the figure. Emiratis are covered by the pension system rather than gratuity.
What is the ILOE unemployment insurance scheme?
The Involuntary Loss of Employment (ILOE) scheme is compulsory for most private sector and federal government employees. It pays you a monthly benefit if you lose your job for reasons other than resignation or disciplinary dismissal.
| Category | Basic salary | Premium | Maximum monthly benefit |
|---|---|---|---|
| A | AED 16,000 or less | AED 5 a month plus VAT | AED 10,000 |
| B | Above AED 16,000 | AED 10 a month plus VAT | AED 20,000 |
The benefit is 60% of your average basic salary over the six months before you lost your job, for up to three months per claim. You need at least 12 months of continuous subscription, and you should claim within 30 days of the job ending or of a labour dispute being settled. Investors, domestic workers, temporary contract workers, people under 18 and retirees on a pension who take a new job are excluded. Not subscribing carries an AED 400 fine, and missing premiums can bring an AED 200 fine. You can subscribe and claim on iloe.ae or the ILOE app.
How do you file a complaint with MOHRE?
Try to settle the issue with HR in writing first. If that fails, you can file a free complaint with MOHRE:
- Gather your documents: contract, payslips or bank statements, and any resignation or termination letter.
- File through the MOHRE website or the MOHRE app, or get help from the Labour Claims and Advisory Center on 80084. For general enquiries, call 600590000.
- Confirm your identity with the one-time password and note your complaint number.
- MOHRE contacts both sides and tries to reach an amicable settlement, usually within 14 working days.
- For claims of AED 50,000 or less, MOHRE can issue a binding decision. Bigger claims, or cases that do not settle, go to the labour court.
Do not wait too long. Since August 2024, you have two years from the end of your employment to file a labour claim.
Do DIFC and ADGM follow the same rules?
No. The DIFC in Dubai has its own Employment Law, and since 1 February 2020 most DIFC employers pay monthly contributions into a savings plan called DEWS instead of a lump sum gratuity. ADGM in Abu Dhabi has its own Employment Regulations too. If you work in either, read your contract and the zone’s own rules, because leave, notice and end of service terms can differ from the federal law.
Quick checklist before you leave a job
- Check your contract for your notice period and give written notice.
- Work out your gratuity and unused leave pay on your basic salary.
- Confirm your final settlement date (within 14 days of your last day).
- Make sure your work permit and visa are cancelled or transferred properly.
- If you were let go, check whether you can claim ILOE within 30 days.
Thinking about your next move? Our posts on reasons to work in the UAE and the cost of living in the UAE can help you plan.
Last checked: October 2026. Rules and fees in the UAE change; confirm on the official pages above before you rely on them.
Frequently asked questions
How is end of service gratuity calculated in the UAE?
You get 21 days of basic salary for each of your first five years and 30 days for each year after that, once you complete one year of service. The total is capped at two years of wages and unpaid leave days do not count.
How much is overtime pay in the UAE?
Overtime pays your hourly rate based on basic salary plus at least 25%. Overtime between 10pm and 4am pays plus 50%, except for shift workers.
Do I lose my gratuity if I resign?
No. Under the current law, resigning no longer reduces gratuity the way it did under the old law, as long as you have at least one year of continuous service.
How long do I have to file a labour complaint?
Since August 2024, you have two years from the end of your employment to file a labour claim. MOHRE can issue binding decisions on claims of AED 50,000 or less.
Sources
- u.ae: Working hours in the private sector
- u.ae: Annual leave
- u.ae: Sick leave
- u.ae: Maternity leave
- u.ae: Parental leave
- u.ae: Public holidays
- u.ae: Unemployment insurance scheme
- ILOE: Involuntary Loss of Employment scheme
- MOHRE: Register labour complaints (private sector employees)
- Morgan Lewis: New Wage Protection System resolution (June 2026)
- Simmons and Simmons: Federal Decree-Law No. 9 of 2024
- Simmons and Simmons: DEWS in the DIFC
- Gulf News: Notice period rules
- Gulf News: Entitlements when leaving your job
- Gulf News: Working on a public holiday
- Khaleej Times: Probation rules under the new labour law
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