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6 Important UAE Labour Law Facts everyone should know

uae labor law, types of contracts in uae, salary issues in uae, end of service gratuity calculations, maternity leave in uae, probation period in uae
Hello everyone, we are here with the 6 Important UAE Labour Law facts every employee should know.
Read and share with all your friends, collogues and family members for awareness.

1: Employee Contract
There are 2 types of employment contract under UAE Labour Law.
A Limited Contract is a fixed term of up to 2 years and Unlimited Contracts are, as they say, for an unlimited period. Most contracts in the UAE are unlimited.
One of the main differences to note is on termination - under a Limited Contract, if terminated before the end of the two year term by either the employer or employee, there is a penalty payment to be made by the terminating party.
End of service gratuity also varies depending on the type of contract. See number six for more info

2: Employee Salary
wages or salary is to be paid at least once a month with a pay slip. Nothing can be deducted from the employee’s salary in relation to money owed to the employer in excess of 10 percent of the wage.

3: Maternity Leave Entitlement
You are entitled to 45 calendar days leave on full pay provided you have served over one year with your employer (half pay if less than one years’ service). You can claim up to 100 days additional unpaid time off provided the time off is related to an illness connected to your pregnancy and you get the necessary certification from a medical professional

4: Probationary Period
The maximum a probationary period can be is
6 months. It is quite usual to have a 3 months notice period that can then be extended only by another 3 months.

5: New Laws from 1 January 2016
We are still waiting to see the true impact of these new ministerial decrees which took effect from January 1 2016. One of the important changes to stand out was that offer letters and contracts must contain the same benefits, this is to help those employees who are offered certain terms only to have these amended in the
finalized contract.

6. End of Service Gratuity
End of service gratuity is a very important benefit for employees in the UAE. As above, payment and entitlement to end of service gratuity varies on whether you are working under a limited or unlimited contract.
Where an employee resigns from an unlimited term contract, the gratuity payable is based on 21 days pay for each year as follows:
a: Period of service of between one to three years: 2/3 reduction
b: Period of service of between three to five years: 1/3 reduction
c: If the period of service if over five years there is no reduction

Thank you For Your Time



  1. Does the Service Gratuity applies to UAE Housemaids?

  2. i am working in a supermarket 11hours duty,half day off,no public holiday pay.my question is if im resigning in my company can i get all those in a conpensation in cash wich is not given to me wen im working?.i am 3yrs still working in my company..pls help me give the rights which include in the labor law.thank you.

  3. Hi how much I reiceved if end of contract because in my leave salary I'm not received they not pay for me they told me that I'm not working in 1 month so they not give me my leave salary they told me end my contract i get

  4. Hi just want to ask im unlimited contract i start working in a restaurant last jan.19 2017 but i dont want to continue working with them coz i found a much better company that giving me a good and fair salary.but the hr told me i cannot resign if im under 6months probation coz i will have BAN.and i need to finished my probation and by that i can resing and no BAN.
    I just want to know if its true coz as far as i know and other people told me that i will not have ban if under probation.but after probation this is the time i can have ban.pls.help me which is true and correct.thank you and your quick response is highly appreciated.Godbless

  5. Hi just want to asked where i can asked to compute my graduity that i will get in my company i already finished my 2yrs.in unlimited contract.byt my company is not giving a computation pls.help me in this matter.thank you


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