UAE Labour Law for Expats 2026: Notice Period, Gratuity and Termination Rights

|

by

in ,

Most expat workers in the UAE do not know their basic rights. Workers who understand the law recover more, faster, when disputes arise. Here is what Federal Decree-Law No. 33 of 2021 guarantees you.

If you are between roles or actively job hunting in the UAE, use our free Dubai CV builder to build an ATS-ready CV tailored for UAE employers before you apply.

Your Contract and the Law That Governs It

The primary legislation is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into force in February 2022. This law replaced Labour Law No. 8 of 1980 and made significant changes to contracts, leave, and termination. Free Zone regulations may add requirements, but Federal Labour Law is the baseline across all sectors.

Recommended Reading

Want to accelerate your career? Get Kim Kiyingi’s From Campus to Career – the step-by-step guide to landing internships and building your professional path. Browse all books →

Since February 2022, all UAE employment contracts must be fixed-term. Unlimited-term contracts were phased out. Your contract must state your basic salary and allowances, job title and duties, working hours, annual leave entitlement, notice period, and end-of-service benefit details. Always read your contract before signing. If it is in Arabic only, request an English version.

Standard working hours are eight hours per day and 48 hours per week. Overtime is payable at 125% of the regular hourly rate. Work on rest days or between 9pm and 4am is payable at 150%.

Annual Leave

Under UAE Labour Law annual leave rules, employees are entitled to 30 calendar days of annual leave per year after completing one year of service, and two days per month if they have served between six months and one year.

Annual leave pay must be paid before the employee takes leave. If your employment ends before you take accrued leave, the employer must pay it out at your daily wage rate.

Sick Leave

After three months of service, you are entitled to 90 days of sick leave per year under UAE law: the first 15 days at full pay, the next 30 days at half pay, and the remaining 45 days unpaid. Sick leave must be supported by a medical certificate from a recognised UAE healthcare provider.

End-of-Service Gratuity

After one year of continuous service, you are entitled to end-of-service gratuity calculated as 21 calendar days of basic salary for each of the first five years of service, and 30 calendar days of basic salary for each year beyond five years.

Gratuity is calculated on your basic salary only. It does not include housing allowance, transport, or other benefits. The total gratuity cannot exceed two years of total basic salary.

If you resign before completing one year, you receive no gratuity. Between one and three years, partial gratuity applies. After five or more full years, you receive the full entitlement regardless of whether you resigned or were terminated.

Notice Period and Termination

The minimum notice period under Federal Decree-Law No. 33 of 2021 is 30 days. Your contract may specify up to 90 days. Both employer and employee must give notice. If the employer terminates without notice outside the permitted grounds, they must pay salary in lieu for the notice period.

An employer may terminate without notice only in specific circumstances defined by law: the employee assumed a false identity or submitted forged documents; caused serious material loss to the employer; assaulted a colleague or customer; was repeatedly absent without justification; was found intoxicated at work; or disclosed confidential company information. Summary dismissal for any reason outside this list may be treated as arbitrary dismissal, entitling the employee to compensation.

Your Rights and How to Act on Them

Your employer cannot confiscate your passport. It is a criminal offence under UAE law. Your employer must provide health insurance; this is a legal requirement in Dubai and Abu Dhabi. You have the right to transfer employment without your employer’s permission, subject to your contract’s notice period.

If your employer violates your rights, file a complaint with MOHRE online at mohre.gov.ae, through the MOHRE app, or by calling 800-60. MOHRE will attempt mediation. If that fails, the case goes to the Labour Courts. There is no fee to file. Keep copies of your contract, payslips, and all written communications throughout your employment.

Frequently Asked Questions

Can my employer cancel my UAE visa without paying gratuity?

No. Under Federal Decree-Law No. 33 of 2021, the employer must settle all end-of-service entitlements, including gratuity and any accrued leave, before or at the time of visa cancellation. Withholding gratuity while cancelling the visa is a labour violation. You can file a complaint with MOHRE to recover unpaid entitlements even after your visa has been cancelled, within a statutory time limit.

What notice period am I entitled to as an expat in the UAE?

Under Federal Decree-Law No. 33 of 2021, the minimum notice period is 30 days. Your employment contract may specify a longer period, up to a maximum of 90 days. Both the employer and the employee must observe the same notice period. If the employer terminates without serving the full notice, they must pay salary in lieu for the remaining notice days. If you resign without serving notice, you may owe the employer equivalent compensation.

Do I get gratuity if I resign in the UAE?

Yes, provided you have completed at least one year of continuous service. Under Federal Decree-Law No. 33 of 2021, resignation does not forfeit gratuity. However, the amount varies by length of service: between one and three years you receive one-third of the full entitlement; between three and five years, two-thirds; after five or more years, you receive the full amount. If you resign before completing one year, you are not entitled to gratuity.

What happens if my UAE employer does not pay my salary on time?

Under Ministerial Resolution No. 340 of 2026, in force from 1 June 2026, wages must be paid through the Wage Protection System (WPS) by the first day of each month. A salary not settled by Day 1 triggers automatic MOHRE warnings. From Day 16, labour disputes register automatically. From Day 21, the case is referred to the Public Prosecution. Under Federal Decree-Law No. 33 of 2021, wilful non-payment of wages is a criminal offence. You can also file a complaint directly with MOHRE at any point after the payment date passes.

This guide references Federal Decree-Law No. 33 of 2021 and Ministerial Resolution No. 340 of 2026. For disputes or complex situations, consult a UAE-licensed labour lawyer.


Before submitting your resignation, use the UAE notice period calculator to confirm your legal notice requirement under your contract type.

Calculate your exact end-of-service entitlement with the free UAE gratuity calculator, which applies the Federal Decree-Law No. 33 of 2021 formula automatically.

Do this today: Pull out your employment contract and confirm it includes all six required clauses (salary, job title, hours, leave, notice period, and end-of-service). If any are missing or vague, raise the issue with HR in writing before your next working day.

👉 Enjoying this content?

Stay updated with more insightful articles and tips by subscribing to our newsletter.

Subscribe Now 👉

For free calculators built around UAE employment law, visit the UAE Career Tools hub including gratuity, notice period, and end of service calculators.

Unsure about any term in this guide? The UAE hospitality career glossary defines every labour law, Emiratisation and HR term in plain English.

Explore the Interview Library