UAE Legal & Labour Law Update: Key Changes for Q3 2025

🇦🇪 UAE Labour Law Updates – 2025 Big news for HR leaders, employers, and professionals across the UAE! 🚀 The UAE has introduced major labour law reforms reshaping the way we hire, manage, and retain employees. Here are the key highlights every organization should know 👇 ⸻ 📝 Contracts, Probation & Non-Compete • Fixed-term contracts only — max 3 years, renewable. • Unlimited contracts discontinued. • Digital registration via MOHRE now mandatory. • Probation notice: 14 days (resignation/termination) | 30 days (if joining new employer). • Non-compete capped at 2 years — invalid in case of unfair termination. ⸻ 💻 Flexible Work Legalized • Remote, hybrid, freelance & job-sharing models now officially recognized. • Offers both compliance and flexibility to employers and employees. ⸻ ⏰ Working Hours & Midday Break • 40-hour weekly cap for physically demanding roles. • Mandatory break (12:30–3:00 PM) from June 15 to Sept 15 for outdoor workers. ⸻ 👨👩👧 Leaves & Employee Rights • 30 days annual | 90 days sick | 60 maternity (45 full + 15 half pay). • 5 days parental | 10 study | 3–5 bereavement leave. • 2-year claim window, salary protection during disputes (up to 2 months). • AED 50,000 claims settled directly by MOHRE — legally binding. ⸻ 💰 End-of-Service & Emiratisation • Employers can choose: traditional gratuity OR MOHRE savings plan. • SMEs (21–49 staff): hire 1 Emirati. • Firms (50+): maintain 2% Emiratisation in skilled roles. ⸻ 📌 These reforms are not just legal updates — they’re a blueprint for the future of work in the UAE. 💬 Is your organization ready to adapt? #UAE2025 #LabourLaw #HRCompliance #DubaiHR #FutureOfWork #WorkplaceReform #HRLeadership #HRTransformation #PeopleAndCulture #TotalRewards

⚖️ A Question I Was Asked This Week… Someone came to me and asked: 👉 “If my company is in a free zone in Abu Dhabi, does the UAE Labour Law apply to me, or am I under different rules?” Here’s what I told them 👇 ✅ Yes, UAE Labour Law applies to free zone companies (except DIFC and ADGM, which have their own employment regulations). Free zones may have internal guidelines, but they cannot override federal protections. 📌 Key rights employees should know: Working hours: Maximum 8 hours per day under Article 65. Breaks: Employees cannot work more than 5 consecutive hours without a break (Article 66). Lunch breaks are not counted as working hours. Employer discretion: Employers can structure hours, but always within legal limits. Employee protection: Wages, leave, end-of-service, and other entitlements remain protected by law. 💡 Takeaway: Free zone or not, the UAE Labour Law is your safety net. Always check your contract, but know the law is there to ensure fair treatment. #InHouseCounsel #UAELabourLaw #EmploymentRights #FreeZone #LegalAwareness #WorkInUAE #HRCompliance #EmployeeProtection #CorporateLaw

The Hidden Risks of Not Having Clear Employment Contracts in the UAE For many SMEs, employment contracts are often treated as a formality. But in the UAE, overlooking the importance of clear, compliant contracts can put your business at risk: Legal disputes – Ambiguities around pay, duties, or termination can quickly escalate into costly conflicts. Compliance penalties – UAE labour laws are strict. Non-compliance can result in fines, penalties, and unnecessary legal exposure. Unclear responsibilities – Vague terms lead to confusion, duplication of tasks, and reduced efficiency. Employee dissatisfaction – A lack of clarity erodes trust and fuels higher turnover rates. Reputation risks – Disputes don’t just stay internal — they can damage your credibility and employer brand. In the UAE, employment contracts are more than just paperwork — they are a strategic safeguard for your business. At Sahrah Consultancy, we support SMEs with contracts that are legally sound, practical, and people-focused — giving you compliance, protection, and peace of mind. #HumanResources #HRCompliance #HRDocumentation #WorkplaceCulture #EmployeeExperience #BusinessOperations #LeadershipDevelopment #FutureOfWork #PeopleAndCulture #WorkplaceSolutions

Don't Make These 7 HR Mistakes: A Compliance Checklist for Foreign Companies in the UAE The UAE offers incredible growth opportunities, but success hinges on understanding local HR rules. Getting compliance right from the start protects your business and builds a stable foundation for growth. Here are the seven most common pitfalls and how to avoid them: 1. Improper Visa & Work Permits Mistake: Letting employees start work before their work permit and residency visa are fully approved. How to Avoid: Never allow an employee to begin work until their visa is stamped under your company's sponsorship. 2. Missing Wage Protection System (WPS) Mistake: Paying salaries late, in cash, or outside the mandatory WPS. How to Avoid: Process all salaries through WPS on time via a UAE corporate bank account to avoid fines and work permit blocks. 3. Pay Inequality Mistake: Offering different salaries for the same role without objective justification. How to Avoid: Regularly benchmark salaries and document reasons for any pay differences based on skills, experience, or performance. 4. Discriminatory Hiring Mistake: Job ads or hiring decisions based on gender, nationality, or other protected characteristics. How to Avoid: Focus job ads and interviews on skills and merit alone to avoid fines and access the full talent pool. 5. Overlooking Emiratization Mistake: Companies with 50+ employees failing to meet quotas for hiring UAE nationals. How to Avoid: Stay updated on official targets and integrate Emiratization into your long-term workforce planning. 6. Inadequate Insurance Mistake: Not providing mandatory health insurance or workmen’s compensation coverage. How to Avoid: Secure the legally required insurance policies for all employees to avoid massive financial liability and visa renewal blocks. 7. Using Outdated Contracts Mistake: Operating with old contract templates that don’t comply with current UAE Labor Law. How to Avoid: Review and update all HR documents regularly and train managers on their legal obligations. Final Thought Navigating UAE labour law is essential for a successful expansion. By proactively managing these areas, you do more than avoid penalties, you build a reputable and trustworthy employer brand. Need expert guidance? Our HR Consulting team provides tailored support for your HR setup and ongoing compliance, so you can focus on growth. #UAE #Dubai #HR #Compliance #Business #UAEBusiness #HRCompliance #MiddleEastBusiness #CompanySetup #LabourLaw #Entrepreneurship

If you are handling employment contracts, tracking work permit applications, or ensuring compliance with UAE labour laws, understanding how to navigate 𝗠𝗢𝗛𝗥𝗘 enquiry services is essential. Our latest blog post offers a comprehensive guide to using these services both online and offline. It highlights the key benefits, common mistakes to avoid, and best practices that can help streamline your HR and administrative processes. Read the article by clicking on - https://lnkd.in/gKBX9MDY #MOHRE #UAEEmployment #BusinessInUAE

📢 UAE’s New Labour Law: Key Updates You Should Know The UAE has introduced a new labour law bringing major changes to employment rules — designed to make workplaces more flexible, fair, and future-ready. 🔑 Highlights: • Flexible contracts (part-time, temporary, remote) • Stronger anti-discrimination protection • Updated leave, notice & termination rules • Clearer dispute resolution process 💼 For HR & Employers: Now’s the time to review contracts, update policies, and train teams to stay compliant. This law reflects the UAE’s commitment to protecting workers while supporting business growth. #UAELabourLaw #UAE #HR #Employment #WorkplaceReform #FutureOfWork

🔎 UAE Employment Law Essentials Talentuch with Rinki Dutta, an HR leader with over 13 years of experience across Fortune 500 companies and startups, will conduct a webinar to guide HR professionals and business leaders through the essentials of UAE employment law. 💡 What you’ll gain: ✔️ A clear understanding of contracts, termination rules, and working hours ✔️ Compliance insights on leave, WPS, and gratuity ✔️ A practical HR checklist to keep your organization aligned with UAE regulations 👉 Register to attend the live webinar: https://lnkd.in/ebTqXSRb 📺 Missed the event? Watch it later in our library: https://lnkd.in/eaHqs-rb #HR #UAE #EmploymentLaw #Compliance #Talentuch #HRProfessionals

Streamlining Payroll & Immigration Compliance in UAE — the Smart Way Running payroll in the UAE isn’t just about transferring salaries — it’s about ensuring legal compliance, accuracy, and trust. At Manovista Consulting LLP, we go beyond standard payroll processing. Our UAE Payroll & Immigration division ensures that every client meets: ✔️ WPS compliance under UAE Labour Law ✔️ Visa processing & renewal management ✔️ Employee onboarding documentation ✔️ Seamless HR audits & payroll reconciliation We understand that your employees are your biggest asset — and errors in payroll or visa compliance can quickly disrupt operations or reputation. That’s why our team integrates tech-based solutions to handle end-to-end payroll management with precision and confidentiality. Whether you’re a Free Zone startup or a Mainland enterprise — Manovista ensures your people stay paid, compliant, and stress-free. 📩 DM us to simplify your payroll & immigration compliance today.

Employment Termination in the UAE: In the UAE, termination is governed by Federal Decree-Law No. 33 of 2021, which standardized all employment contracts to fixed-term (limited) and set clear rules around notice periods and valid reasons for ending employment. Types of Termination under UAE Labour Law Mutual Agreement – Both employer and employee can agree in writing to end the contract at any time. Contract Expiry – If a fixed-term contract is not renewed, it automatically ends on its specified date. Termination with Notice – Either party may end the contract for a legitimate reason, provided written notice is given. Termination without Notice (Summary Dismissal) – An employer may dismiss an employee immediately for serious misconduct (e.g., fraud, disclosure of trade secrets, workplace violence). Employee Resignation without Notice – An employee can resign immediately if the employer commits serious violations, such as harassment, discrimination, or unsafe working conditions. #UAELabourLaw #EmploymentLaw #HRinUAE #HRCompliance #EmployeeRights #WorkInUAE #TerminationPolicy #HRProfessionals #HumanResources #PeopleAndCulture #UAE #Dubai

News Update! **Important Update for Pakistanis Living in UAE: Know Your Labor Rights Under UAE Law** Pakistan Consulate in Dubai issues advisory for overseas workers, outlining key UAE labor laws including work permits, contracts, working hours, leave entitlements, and dispute resolution. #PakistanUAEadvisory #laborlawsUAE #workerrights #probationperiodUAE #workinghoursUAE #overtimecompensations #healthinsuranceUAE #passportrightsUAE #TasheelCentres #End-of-servicebenefits Read More: https://lnkd.in/dfDewWc3 Visit Us: https://lnkd.in/d_8kFaZU