Our latest Navigating Employment Law in the Middle East webinar—Part 1 of the UAE edition—kicked off the fourth installment of this multipart series. The session focused on the UAE private sector employment framework—excluding the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC)—and explored what employers need to know about the law, Emiratization, employment contracts, onboarding, and Golden Visa considerations.
This blog post explores the key takeaways.
The Legal Framework: UAE Labour Law at a Glance
Employment relationships in the UAE private sector are governed by UAE Decree-Law No. 33 of 2021, as amended (the UAE Labour Law), together with its Implementing Regulations. This legislation fully replaced the former labour law in February 2022.
The law applies broadly to private-sector employers but excludes federal and local government employees, members of the armed forces, police and security services, and domestic workers.
Enforcement and Penalties
Compliance is enforced by the Ministry of Human Resources & Emiratization (MOHRE). Penalties can be significant—ranging from AED 5,000 to AED 1 million, and multiplied by the number of employees affected, up to a maximum of AED 10 million.
How Employment Disputes Are Handled
The UAE Labour Law sets out a clear dispute resolution pathway:
- Claims must first be filed with MOHRE, which will attempt to facilitate a settlement.
- If the claim is AED 50,000 or less, or if a settlement is agreed but...
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