Hiring in the UAE
The UAE Labour Law (Federal Decree-Law No. 33 of 2021, in force from 2 February 2022) is the federal framework for private-sector employment. Free zone employees may also be subject to free-zone specific rules layered on top.
Employment contract types
Since 2022 only fixed-term contracts are permitted (no more unlimited contracts for new hires). Maximum initial term: 3 years, renewable. Probationary period: maximum 6 months, with 14 days' notice during probation (employer or employee).
Working hours and leave
48 hours per week standard (reduced during Ramadan for Muslim employees). 30 calendar days' annual leave after 1 year. 90 days' sick leave per year. 60 days' maternity leave. 5 days' paternity leave. Public holidays approximately 12 days/year.
End-of-service gratuity (EOSG)
Mandatory severance payment based on length of service. 21 days' basic salary per year for the first 5 years, then 30 days' per year. Capped at 2 years' total. New 'Savings Scheme' (DEWS, ADGM, etc.) replaces EOSG in some free zones.
Termination
30-day notice required (or longer per contract). 'Arbitrary dismissal' (without lawful reason) triggers compensation up to 3 months' salary. Lawful grounds for termination: poor performance (after warning), redundancy, gross misconduct, expiry of contract term, mutual agreement.
Work permits and visas
Every UAE employee requires a work permit (MOHRE or free zone equivalent) and a residency visa sponsored by the employer. Cost: approximately USD 1,100 per employee for visa, plus AED 3,000-5,000 work permit (varies by free zone). Renewable every 2 years.
Updated 16 May 2026 by ArxSetup, Managing Partner.