UAE New Labour Laws 2025: What Expats Must Know

The UAE has introduced significant labour law reforms in 2025 aimed at protecting employees, improving working conditions, and modernizing employment regulations. These changes impact expatriates across all sectors. Understanding these updates is crucial for both employees and employers to ensure compliance and safeguard rights.

1. Fixed-Term Contracts Only

Unlimited-term contracts have been abolished. All employment contracts must now be fixed-term, with a maximum duration of three years. Employers are required to transition existing employees to these contracts, ensuring clarity regarding employment terms, salary, and benefits.

2. Enhanced Leave Entitlements

The 2025 reforms improve leave benefits for employees:

• Maternity Leave: Extended to 60 days (45 days full pay + 15 days half pay).

• Paternity Leave: 5 paid days introduced.

• Study Leave: 10 paid days per year after two years of service.

These changes ensure greater support for family and personal development.

3. Remote Work and Equal Treatment

Remote work is now formally recognized under UAE labour law. Employers must provide remote employees the same pay, leave benefits, end-of-service gratuity, and health insurance as on-site employees, unless otherwise stated in the contract.

4. Protections Against Unfair Termination

The new laws introduce stronger safeguards against unjust dismissal. Employees terminated without valid cause are entitled to compensation. Clear procedures for dispute resolution have also been established to protect worker rights.

5. Anti-Harassment Measures

Workplace harassment regulations have been strengthened. Violations can result in fines or imprisonment, emphasizing the UAE government’s commitment to maintaining a safe and respectful work environment.

6. Wage Protection System (WPS)

Employers are required to pay salaries through the Wage Protection System, ensuring timely and transparent payments. This system helps prevent wage-related disputes and ensures employee compensation is delivered according to contract terms.

7. Grace Period for Job Seekers

Expatriates who resign or are terminated without fault are granted a grace period to remain in the UAE while seeking new employment. This provision allows employees to transition between jobs without immediate legal consequences.

8. Midday Work Ban

To protect outdoor workers from extreme heat, a midday work ban is enforced from June 15 to September 15. Outdoor labor is prohibited between 12:30 PM and 3:00 PM. Employers are responsible for compliance, and violations can result in penalties.

9. Legal Recourse for Salary Disputes

Employees are entitled to their wages once an employment contract is signed, even if work has not commenced. Courts have ruled in favor of employees in cases where employers delayed or refused payment, reinforcing the protection of salary rights under UAE law.

10. Labour Dispute Resolution

The UAE has introduced integrated systems for resolving labor disputes, allowing employees to register complaints and track resolutions efficiently. This helps ensure timely dispute resolution and that employees receive their rightful dues.

These reforms reflect the UAE’s ongoing commitment to enhancing labour standards and protecting the rights of expatriates. Employees are encouraged to familiarize themselves with these changes to ensure compliance and safeguard their employment rights.