UAE Labor Law Updates 2026 – What Employers and Employees Must Know
The UAE Labour Law (Federal Decree‑Law No. 33 of 2021) introduced sweeping changes that continue to evolve through ministerial resolutions. Both employers and employees need to stay updated to avoid disputes and penalties. In this article, Alhekma AZ Legal Consultancy breaks down the most important recent updates and how they affect your workplace rights and obligations. Learn more about our corporate & commercial services →
1. Fixed‑Term Contracts Are Now Mandatory
All employment contracts must be fixed‑term, not exceeding three years. Unlimited contracts are no longer permitted. Employers must convert existing unlimited contracts to fixed‑term within one year. Our team can review your current employment agreements and ensure they comply.
2. End‑of‑Service Gratuity (EOSB) – What Has Changed
The calculation of gratuity remains based on the basic salary. However, the new law introduces the possibility for employers to subscribe to a government‑approved pension or savings scheme as an alternative. This can be beneficial for both parties. We help businesses evaluate the best option and implement the necessary changes. Read about regulatory compliance services →
3. Termination Rules and Notice Periods
Notice periods must now be clearly stated in the contract, with a minimum of 30 days and a maximum of 90 days. Early termination without notice is only allowed for gross misconduct defined by law. If you’ve been wrongfully dismissed, book a free consultation immediately.
4. Remote Work and Flexible Working Regulations
Recent cabinet resolutions have formalised remote work arrangements. Employers must provide a detailed policy covering working hours, tools, and data security. We draft comprehensive remote work policies that protect your business while giving employees clarity.
5. Dispute Resolution – MOHRE and Courts
Disputes are first lodged with the Ministry of Human Resources and Emiratisation (MOHRE), which attempts amicable settlement. If unresolved, the case moves to the Labour Court. Having an experienced lawyer at this stage can make the difference. Our former judges understand the court’s expectations and can represent you effectively.
Stay compliant and protect your rights. Contact Alhekma AZ Legal Consultancy for a free 15‑minute review of your employment contracts or a specific workplace issue.