“The UAE introduced notable updates to its employment laws, emphasizing stronger employee protections and more efficient dispute resolution in the labour courts. As these measures bed in, they are expected to shape 2026 in meaningful ways, particularly for legal proceedings, employer compliance, and employee rights.”
Throughout 2025, key employment developments in the United Arab Emirates (UAE) have continued to influence employer‑employee relationships and offer insight into what they mean for businesses operating in the UAE. This article summarizes the main highlights from the years 2024/2025 and considers their implications for 2026.
1. Longer window to file labour claims: Employers and employees now have two years from the end of the employment relationship to bring a labour claim, up from the previous one‑year limit.
2. Streamlined dispute resolution for smaller claims: Claims under AED 50,000 are handled exclusively by the Court of First Instance (with no appeal to higher courts), expediting the resolution of small cases. Higher‑value claims continue to follow the standard process.
3. Higher penalties for employer violations: Fines for labour law breaches have risen substantially, now ranging from AED 100,000 to AED 1 million depending on the violation.
4. Stronger employee protections during disputes: When an employee’s wages are withheld during a dispute, the Ministry of Human Resources and Emiratisation (MOHRE) may direct employers to continue...
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