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Labor Relations in the UAE: A complete guide for employees and employers
The UAE has become a global talent hub. However, its labor legislation has distinct features that both employees and employers should be aware of. Let's break down the key aspects of labor relations in the Emirates.
This article is prepared by the legal experts at Real Law — a service that consolidates all business-related laws in the UAE. Do you want fast access to updated laws andconsolidated versions? Book a Real Law demo and get 7 days of free access.
Who needs to understand UAE labor law
Labor law knowledge is essential for:
- Employers and business owners
- HR professionals and career consultants
- Lawyers and investors
- Future expats and employees of UAE companies
Key regulatory authorities
Labor relations in the UAE fall under the jurisdiction of the Ministry of Human Resources and Emiratisation (MoHRE). It develops labor market policy, monitors compliance, and issues specialized regulatory acts:
Besides federal laws, each of the Emirates issues its own regulations. The Dubai Government Human Resources Department issues legal acts that supplement the federal framework.
Important: Companies based in free zones are also subject to federal labor legislation, but free zone authorities may issue additional labor-related regulations.
- Ministerial Decisions
- Administrative Decisions
- Official manuals and guidelines
- Document templates
Besides federal laws, each of the Emirates issues its own regulations. The Dubai Government Human Resources Department issues legal acts that supplement the federal framework.
Important: Companies based in free zones are also subject to federal labor legislation, but free zone authorities may issue additional labor-related regulations.
Legal framework of labor relations
The core law is Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, which governs:
Federal Decree-Law No. 47 of 2021, a unified act that systematizes UAE labor laws and standards, is also important.
- Rights and obligations of both parties
- Employment contracts and probation period
- Employment types and working hours
- Leave policies and termination rules
- Dispute resolution
Federal Decree-Law No. 47 of 2021, a unified act that systematizes UAE labor laws and standards, is also important.
Full list of laws regulating labor relations in the UAE – in the Real Law. Book a demo and get 7 days free
Core principles of employment
Tolerance and freedom of laborу
There are no job restrictions based on religion in the UAE. The Constitution guarantees everyone the right to choose their profession in accordance with the law. Labor legislation applies equally to Muslims and non-Muslims.
Emiratisation programme
Since 2021, the UAE government has been actively encouraging the employment of nationals in the private sector. The goal is ambitious — to engage 75,000 citizens and raise the Emirati employment rate in private companies to 10% by 2026.
The core programme of the initiative is Nafis (from Arabic: "to compete") . It supports the employment of both young and experienced Emirati professionals.
Key law: Ministerial Resolution No. 663 of 2022 on Compliance with Emiratisation regulations in the Private sector.
There are no job restrictions based on religion in the UAE. The Constitution guarantees everyone the right to choose their profession in accordance with the law. Labor legislation applies equally to Muslims and non-Muslims.
Emiratisation programme
Since 2021, the UAE government has been actively encouraging the employment of nationals in the private sector. The goal is ambitious — to engage 75,000 citizens and raise the Emirati employment rate in private companies to 10% by 2026.
The core programme of the initiative is Nafis (from Arabic: "to compete") . It supports the employment of both young and experienced Emirati professionals.
Key law: Ministerial Resolution No. 663 of 2022 on Compliance with Emiratisation regulations in the Private sector.
Emiratisation requirements for employers
Requirements depend on company size:
Companies with 20–49 employees
As per Ministerial Resolution No. 455 of 2023, companies in certain sectors must:
Must increase the Emirati workforce by 1% every 6 months. Penalty: AED 42,000 for each unhired Emirati.
Emiratisation rates are regulated by Ministerial Resolution No. 279 of 2022 on Monitoring Mechanisms of Emiratisation Rates in the Private Sector and Contributions Imposed on Non-compliant Establishment.
Key requirement: A UAE national cannot be paid less than a foreigner for the same job. In practice, Emirati salaries often exceed those of expats.
Companies with 20–49 employees
As per Ministerial Resolution No. 455 of 2023, companies in certain sectors must:
- Hire at least one Emirati in 2024
- Hire one more Emirati in 2025
- AED 96,000 in 2025 if no hire in 2024
- AED 108,000 in 2026 if no hire in 2025
Must increase the Emirati workforce by 1% every 6 months. Penalty: AED 42,000 for each unhired Emirati.
Emiratisation rates are regulated by Ministerial Resolution No. 279 of 2022 on Monitoring Mechanisms of Emiratisation Rates in the Private Sector and Contributions Imposed on Non-compliant Establishment.
Key requirement: A UAE national cannot be paid less than a foreigner for the same job. In practice, Emirati salaries often exceed those of expats.
Practical Guide: How is Emiratisation hiring rate calculated. The full document is available in Real Law. Book a demo and get 7 days free
Emiratisation Partners Club (Tawteen)
Companies that meet the criteria of Ministerial Resolution No. 438 of 2024 can join the Tawteen Partners Club, which offers the following benefits:
Companies that meet the criteria of Ministerial Resolution No. 438 of 2024 can join the Tawteen Partners Club, which offers the following benefits:
- Waiver of bank deposit
- Access to Emirati candidate CVs
- Discounts on work permits and government services
- Fast-track processing in the federal procurement system
Penalties and fines
Federal Decree-Law No. 33 of 2021 sets severe penalties:
AED 20,000–100,000 fines for:
AED 20,000–100,000 fines for:
- Submitting false information to recruit foreign workers
- Obstructing MoHRE inspectors
- Disclosing work-related secrets
- Hiring unauthorized workers
- Hiring and leaving workers idle
- Misusing work permits
- Closing business without resolving employee claims
- Hiring minors or approving minor employment
- Fake employment to obtain government benefits.
- Maximum fine: AED 10,000,000. Repeat violations within a year: doubled fines and possible imprisonment.
- Misuse of digital MoHRE systems: up to 1 year in jail and a fine of AED 200,000–1,000,000.
Practical recommendations
- Employers: Stay up to date with Emiratisation rules and adjust your hiring strategy
- Expats: Double-check work permits and know your rights
- HR professionals: Monitor law updates, especially on Emiratisation
- Free zone companies: Remember, federal labor law applies to you too
Stay updated on legal changes and new penalties—always use current information. Reduce your risks with Real Law.
In the complete Labor Relations Overview available in Real Law, you'll find dedicated sections covering:
In the complete Labor Relations Overview available in Real Law, you'll find dedicated sections covering:
- Hiring foreign employees
- Remote work regulations
- Pension system updates
- Latest industry trends
- All sections include direct links to official regulatory documents.
The information in this article is current as of June 11, 2025.
With Real Law, you'll never waste time hunting for legislation and its amendments - we consolidate all updates in one reliable platform.
With Real Law, you'll never waste time hunting for legislation and its amendments - we consolidate all updates in one reliable platform.
With the help of Real Law, you’ll get:
- Analytical guides on contracts, bonuses, termination, leave, and labor disputes
- Legal templates (e.g. settlement agreement, salary certificate, offer letter)
- Step-by-step guides and FAQs (including EoSB and Emiratisation calculations)
- Timely updates with real-case examples
Sample Analytical Materials on Labor Law in Real Law Service. Full document library with intuitive navigation available in the service
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