Foreign workers in the UAE often face confusion about their rights and job rules.
The 2025 labor law changes aim to fix this with clearer contracts, better protections, and fairer conditions.
This blog will break down these updates, focusing on what they mean for you as a worker or employer.
Stay tuned for key details that might change your work life!
Key Takeaways
- Employment contracts must follow new fixed-term rules by 2025, capping terms at three years. Employers face penalties if they do not comply.
- Workers are entitled to fair overtime pay and breaks, with rules like a limit of 48 work hours weekly and mandatory midday breaks during summer heat.
- Foreign workers gain stronger rights through equal pay laws, anti-discrimination protections, maternity leave increases (60 days), and workplace harassment bans.
- New safety measures include stricter job loss protections under unemployment insurance and expansions in the Wage Protection System (WPS) for timely pay compliance.
- Domestic workers now get clearer contracts, free essentials like housing/medical care, one rest day weekly, and protection from illegal practices.
Key Updates in UAE Labor Law 2025
Big changes are reshaping work rules in the UAE for 2025. These updates focus on fair treatment, clear contracts, and better working conditions.
Mandatory Employment Contracts (Article 8)
Employment contracts are now a must for all workers. These agreements need to follow the updated rules in Article 8 by 2025. Contracts should include job type, work hours, and length of employment.
MOHRE offers templates to match different roles and skills.
Each contract must exist in two copies. One stays with the worker; the other goes to the company.
Three years is the maximum term allowed, but contracts can be renewed automatically if both parties keep working together after expiration.
Employers also need to update old contracts so they align with new labor laws in the UAE.
Transition to Fixed-Term Contracts
Unlimited contracts will no longer exist in the UAE starting 2025. Employers must switch all workers to fixed-term contracts by this deadline or face penalties.
The maximum duration for these agreements is three years, but they can be renewed for shorter or equal periods.
Expiration of a fixed-term contract counts as a valid reason to end employment. Workers won’t receive extra compensation beyond notice pay if their contract naturally ends on the agreed date.
Companies need to align with Ministry of Human Resources and Emiratization (MOHRE) rules while drafting new terms to avoid legal issues.
The next focus lies on updated working hours and breaks for employees under Article 17.
Revised Working Hours and Breaks (Article 17)
Under Article 17, the UAE sets a cap of 48 working hours per week and 8 hours per day.
Workers must get at least a 1-hour break after 5 continuous hours on the job. Breaks reduce fatigue and improve productivity.
From June to September, employees cannot work outdoors from 12:30 PM to 3:00 PM due to midday heat rules.
Commuting time does not count as working hours unless stated in the contract.
Employers risk fines if they fail to comply with these rules or track employee schedules properly. Flexible and remote work follow special guidelines under this law too.
Overtime Rules and Compensation Updates
Longer hours now come with fair pay. Overtime is limited to 2 extra hours per day.
For regular overtime, workers earn 25% more than their usual wage.
Night shifts between 10:00 PM and 4:00 AM are compensated with a higher rate, adding 50% to the normal pay.
Working on rest days or public holidays also results in extra income. Employees receive either a substitute day off or a 50% increase in wages for those days.
Accurate payroll records are required by law to track these payments.
Employers who fail to follow the rules face heavy fines ranging from AED 5,000 to AED 1,000,000 under labor law violations.
The Wage Protection System safeguards over five million workers’ rights regarding overtime and vacation pay compliance.
Rights for Foreign Workers
Foreign workers in the UAE now enjoy stronger rights, fairer pay, and better workplace protections—step into a brighter future with these changes!
Equal Pay and Anti-Discrimination Protections
The UAE labor law demands equal pay for men and women doing the same job. Employers must update HR policies to reflect new rules or risk penalties.
Fines for violations can go from AED 5,000 up to AED 1,000,000.
Discrimination based on race, religion, gender, nationality, social background, or disability is banned. Positive discrimination only applies to Emiratis.
Sexual harassment laws are strict. Offenders face at least one year in jail and a fine of AED 10,000 under Article 14(2) of Employment Law and Article 413 of Penal Law.
Work permit restrictions may follow non-compliance with policies against discrimination.
These measures aim to create fair workplaces where all workers feel valued and safe from bias or harm.
Protections Against Harassment and Bullying
Physical, verbal, or psychological abuse is banned in workplaces under UAE law. Article 413 of the Penal Law details strict penalties for workplace harassment.
Offenders may face fines up to AED 10,000 and even jail time.
Employers must create policies against harassment and victimization as part of labor law compliance.
Safe reporting channels are available through MOHRE and labor courts. Employees are shielded from retaliation if they report misconduct or file complaints.
Dismissing workers after they voice concerns counts as unlawful victimization under these rules.
HR teams must receive specific training on handling such issues to foster a safe environment for all employees.
Enhanced Maternity Leave and Nursing Breaks
Protecting mothers in the workplace is now a priority. Maternity leave has increased to 60 days, with 45 days at full pay and the next 15 at half pay. New moms can also take up to 100 unpaid days if they show medical proof.
Employers must include these updated policies in all contracts.
Nursing breaks are essential too. For six months after childbirth, working moms get two daily nursing breaks of 30 minutes each. Companies need to keep track of these breaks for compliance purposes.
Pregnant workers have protection against discrimination or unlawful termination as well. Safe work environments are mandatory for them by law!
Termination and Notice Period Changes
Losing a job can be stressful, but the new rules aim to give workers more security. These updates clarify notice periods and protect against unfair dismissals.
New Structure for Notice Periods Post-Probation
Employees with less than five years of service must give a 30-day notice after probation. Those working between five and ten years must provide 60 days’ notice.
For employees with over ten years, the notice period jumps to 90 days.
These new rules apply to all job types, including full-time and flexible roles.
Employers are required to state these terms clearly in updated employment contracts. Workers retain their full salary and benefits throughout the notice period. Violations can result in compensation claims against employers.
The amendments aim for fairness and consistency across all sectors under UAE labor law.
Unlawful Termination Protections (Article 47)
Under Article 47, dismissing workers for filing complaints is illegal. Employers must respect this rule or face fines and penalties. If unlawful termination occurs, compensation can reach up to three months’ salary.
MOHRE offers a 14-day period to settle disputes related to unjust dismissal. If not resolved, the case may go to court. Workers are entitled to end-of-service gratuity within 14 days of being wrongfully let go.
Free legal support in 22 languages helps employees during such disputes, ensuring fairness and accessibility for all foreign workers in the UAE labor market.
Mandatory 30-Day Minimum Notice for Termination
All employment terminations now need a clear, written 30-day notice. This rule applies to all workers, regardless of their contract type or job category. Failure to follow this can lead to fines and penalties for employers.
Even in cases of dismissal during probation, the notice must be documented properly.
Employers should update termination policies right away. Every notice period needs tracking by HR teams for audits. Exceptions are rare and must have valid proof on record.
Notice rules apply whether the employer or the employee ends the contract.
Let’s look at new protections against unlawful termination next!
New Additions Under 2024–2025 Amendments
Changes are rolling in that promise a better safety net for workers. Big steps are being taken to protect wages and offer more security for all employees.
Mandatory Unemployment Insurance Scheme
The UAE made the Unemployment Insurance Scheme mandatory in 2024 for all private and federal sector workers. This scheme costs AED 5 monthly for salaries under AED 16,000 and AED 10 for higher earners.
If a worker loses their job, they receive 60% of their salary for up to three months. Employees must register and pay premiums to access benefits.
Non-compliance can lead to fines of AED 400 or even visa/work bans. The program helps onshore and free zone workers cover gaps after job loss. In some cases, it replaces traditional end-of-service payments.
It started in January 2023 as part of improved protections under labor laws in the UAE.
Wage Protection System (WPS) Expansion
The Wage Protection System (WPS) now covers more ground. In 2024, free zones like RAKEZ and Fujairah joined. Over 5 million workers rely on it to secure timely wages, overtime pay, and vacation allowances.
Employers must process payroll through WPS or face penalties like fines and work permit blocks.
MOHRE inspections focus heavily on WPS compliance. Businesses must upgrade their payroll systems to meet the new coverage rules. The MOHRE Work Bundle integrates this system for smooth management.
Missing these updates risks legal trouble and disrupted operations for employers.
Domestic Worker Law Updates (Federal Decree-Law No. 9 of 2022)
Domestic workers in the UAE, like maids and drivers, now have better protections under Federal Decree-Law No. 9 of 2022.
Employers must offer clear contracts before hiring. These include details about wages, work hours, and rest days.
Workers should get at least one day off weekly and 12 hours of rest daily. Keeping passports or documents is strictly forbidden.
Employers also need to provide free housing, meals, medical care, and a return ticket every two years. Domestic workers must complete mandatory orientation sessions before starting their jobs.
Recruitment agencies face tighter rules from MOHRE to stop illegal practices.
Read on for more changes affecting compliance and employer duties!
Compliance and Employer Responsibilities
Employers must follow new rules to protect workers’ rights, avoid fines, and keep a safe workplace—read on for critical details.
Updating Employment Contracts
All employment contracts must meet the 2025 labor law changes in the UAE. These updates are crucial to match MOHRE guidelines and templates.
Fixed-term contracts now replace older formats, covering specific categories like part-time, temporary, remote work, or job sharing.
Employers need to clearly document all changes and share them with employees. HR teams must oversee this process carefully to avoid errors. Non-compliance may lead to penalties or audits from authorities.
Securely storing updated contracts is also mandatory for legal checks later on.
Managers can reclaim recruitment costs if workers leave during probation periods too, following these new rules tightly ensures smoother operations without risks of fines or disputes!
Ensuring Workplace Safety Standards
Workplace safety is not just a rule; it’s a necessity. Employers in the UAE must maintain safe environments by providing proper equipment and regular health checks. Inspections and maintenance are required to avoid hazards.
Violating these rules can lead to fines or penalties, making compliance essential.
The summer ban on outdoor work during noon hours from July to September protects workers from extreme heat.
Medical insurance for every employee is mandatory. The worker insurance scheme covers up to 30 months, costing AED 137.50 for skilled workers and AED 180 for partially skilled ones.
Detailed records of safety training and incident reports are also required by law.
Adhering to Emiratization Requirements
Companies with 50 or more employees must grow their Emirati workforce by 2% every year. By June 2025, the target is set at 7%, increasing to 8% by December that same year.
For smaller businesses, like those with only 20–49 staff members, having two Emirati employees will be mandatory.
MOHRE enforces these rules through regular inspections and audits. Non-compliance can lead to fines or other penalties. Positive discrimination in favor of hiring UAE nationals is legal under anti-discrimination laws.
Employers should update recruitment practices and regularly report Emirati employment numbers.
Conclusion
The UAE’s 2025 labor law updates bring big changes. They offer stronger rights for foreign workers, clearer rules, and better protections.
Whether it’s fair pay, safe workspaces, or longer maternity leave, these laws aim to improve lives.
Workers now have more security and fairness at their jobs. These updates mark a positive shift for all employees in the UAE!
FAQs
1. What are the key changes in UAE labor laws for 2025?
The updated labor laws focus on flexible work options, better worker protections, and new permits like part-time work and temporary work permits.
They also emphasize safe working conditions, equal pay, and stricter compliance requirements.
2. How do these changes affect foreign workers’ rights?
Foreign workers gain enhanced employment rights such as fair treatment during recruitment from outside the UAE, protection against workplace discrimination, and access to unemployment insurance schemes.
3. What types of work permits will be available under the new rules?
New options include juvenile work permits for young workers, student training and employment permits for learning opportunities, private teacher permits for educators, and part-time or temporary work permits.
4. Will maternity leave or sick leave policies change?
Yes. The updated laws improve paid sick leave entitlements while maintaining strong support for maternity leave to protect employee health during critical times.
5. Are there new protections against unlawful termination?
Yes. Employers must follow strict guidelines when ending contracts to avoid unlawful termination claims. Workers can also seek help from mediators if disputes arise over fixed-term contracts or other issues.
6. How does this impact domestic workers in the UAE?
Domestic helpers now receive stronger safeguards through federal decree-law updates that address recruitment fees, working hours limits, end-of-service gratuity payments, and overall occupational safety standards in their roles.