UAE Labour Law 2026: Complete Guide to Employment Rules, Contracts, Leave & Employee Rights

The UAE Labour Law 2026 represents one of the most significant overhauls of employment relations in the country’s history. Introduced under Federal Decree-Law No. 33 of 2021 (effective since February 2, 2022), the law continues to evolve, shaping workplace practices in Dubai and across all seven emirates.

Whether you are an employee, employer, or job seeker planning to work in the UAE, understanding these updates is essential to protect your rights and comply with the law.

Overview of the New UAE Labour Law

The updated UAE Labour Code consolidates changes introduced by the Ministry of Human Resources and Emiratisation (MOHRE) over the last five years. It standardizes regulations across mainland companies and free zones (except DIFC and ADGM, which have separate laws).

The 2026 updates strengthen protections for employees while granting employers more structured frameworks for managing contracts, leave entitlements, and workplace conduct.

Key Highlights of UAE Labour Law 2026

Job Categories & Contract Types

• Only fixed-term contracts are now allowed (unlimited contracts abolished).

• Job models include full-time, part-time, temporary, and flexible contracts.

• Probation rules require employers to provide 14-day notice for termination during probation.

Flexible Work Arrangements

Employees can legally opt for flexible working hours or remote work, ensuring more balance between professional and personal life.

Protections Against Harassment & Discrimination

The law explicitly prohibits workplace bullying, harassment, and gender discrimination, reinforcing safe and fair employment standards.

UAE Minimum Wage Policy 2026

While the exact figure is pending finalization, the law empowers the Cabinet to set a national minimum wage for private sector workers after consultation with MOHRE. This ensures fair compensation across industries.

Maternity & Paternity Leave Under UAE Labour Law

The UAE has introduced progressive maternity benefits:

• 45 days fully paid leave.

• 15 additional days at half pay.

• Full maternity leave entitlement even if the employee has worked less than one year, provided pregnancy lasts at least six months.

• Protection from termination due to pregnancy.

• Nursing mothers are entitled to reduced working hours for the first six months post-delivery.

Fathers are entitled to 5 days of paid paternity leave to be taken within six months of childbirth.

Annual Leave, Public Holidays & Other Paid Leave

Employees are entitled to a minimum of 30 calendar days of annual leave per year, in addition to UAE public holidays.

Bereavement Leave

• 5 days for the death of a spouse.

• 3 days for the death of a parent, child, sibling, or grandparent.

Study Leave & Parental Leave

• 10 days of study leave for employees pursuing exams in accredited institutions.

• 5 days parental leave (separate from maternity/paternity).

Probation, Resignation & Termination Rules

• Employees resigning during probation must give at least 14 days’ notice.

• If an employee resigns to join another UAE employer, one month’s notice is required.

• Employers can claim recruitment cost reimbursement if an employee resigns and re-joins another UAE company within three months of leaving.

Overtime & Rest Days Regulations

• All employees, including supervisors, are now covered by overtime rules.

• Overtime pay applies for hours beyond 8 per day or 48 per week.

• Employers must provide at least one paid rest day per week, though it no longer has to be Friday.

Implications for Employers & Employees in 2026

• Employers must update contracts and HR policies to comply with the new standards.

• Employees gain stronger legal protection, clearer entitlements, and more flexible work options.

Risks of Misinterpreting Labour Law Updates

Many expatriates and even small businesses misinterpret legal updates, risking penalties, disputes, or contract voids. Relying on unofficial sources or outdated information can lead to visa delays, fines, or termination disputes.

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Conclusion

The UAE Labour Law 2026 provides a modern framework that balances employer flexibility with employee rights. From maternity benefits to flexible work arrangements, these reforms reflect the UAE’s commitment to becoming one of the most employee-friendly destinations in the world.

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