Mainland employment is governed by Federal Decree-Law No. 33 of 2021, which requires fixed-term contracts, caps probation at six months and sets end-of-service gratuity for foreign staff. Employment income alone does not bring an individual within corporate tax. The DIFC and ADGM have their own employment laws. Every foreign employee needs a work permit and residence visa before starting work.
Contracts, hours and leave
On the mainland and in most non-financial free zones, contracts must be for a definite period and are renewable by agreement. Probation may not exceed six months. Normal working hours are capped at 8 hours a day or 48 hours a week, and overtime carries a premium of at least 25%, or 50% between 10 pm and 4 am, with a limit of two overtime hours a day. Annual leave is 30 days per year of service.
The DIFC and ADGM apply their own employment laws, so contract terms, leave and end-of-service rules differ there.123456
Ending employment and end-of-service gratuity
Either party must give between 30 and 90 days' notice. Workers who leave are entitled to end-of-service gratuity of 21 days' wage for each of the first five years and 30 days for each further year, capped at two years' wage for foreign workers. This is a significant balance-sheet liability for growing teams and should be accrued from the start.
UAE nationals are generally enrolled in the federal pension system; its contribution rates and interaction with gratuity were not confirmed.78
Work permits, visas and Emiratisation
An employer may not employ a worker without a work permit. Mainland employers obtain it from the Ministry of Human Resources and Emiratisation; free zone employers should confirm the permit process with their free zone authority. Residence visas and Emirates ID are handled separately by the immigration authorities.
Private-sector employers above certain sizes must meet Emiratisation targets set by Cabinet resolution, with financial contributions for shortfalls. The labour law expressly allows measures that promote UAE nationals' participation in the labour market. The current targets and contribution amounts should be checked with the Ministry before hiring plans are fixed.9
| Topic | Rule |
|---|---|
| Contract type | Definite period, renewable by agreement |
| Probation | Up to 6 months |
| Normal hours | 8 hours a day or 48 hours a week |
| Overtime | At least 25% premium; 50% between 10 pm and 4 am; maximum 2 hours a day |
| Annual leave | 30 days per year of service |
| Notice | 30 to 90 days |
| End-of-service gratuity (foreign workers) | 21 days' wage per year for years 1 to 5; 30 days per later year; capped at 2 years' wage |
How it works, step by step
- Obtain the establishment's labour or immigration file so it can sponsor employees.9Ministry of Human Resources and Emiratisation (mainland) or free zone authority
- Issue an offer and register the definite-term employment contract.2Ministry of Human Resources and Emiratisation or free zone authority
- Obtain the work permit before the employee starts work.9Ministry of Human Resources and Emiratisation or free zone authority
- Apply for the residence visa, medical test and Emirates ID.Federal and emirate immigration authorities
No timings or fees are shown unless an official source states them.
Documents usually needed
- Signed definite-term employment contract in the authority's format
- Employee passport, photographs and attested educational certificates where required for the job category
- Work permit and residence visa approvals
- Payroll records showing basic wage, used for overtime and gratuity calculations
- Gratuity accrual schedule for foreign employees
Common mistakes
- Letting an employee start work before the work permit is issued.
- Setting basic salary very low relative to allowances without checking how this affects overtime, which is calculated on basic salary, and end-of-service gratuity.
- Applying mainland labour law to staff employed by a DIFC or ADGM entity, which have their own employment laws.
- Not accruing end-of-service gratuity from the first year, creating an unfunded liability.
- Ignoring Emiratisation obligations once headcount grows.
When the business crosses borders
- Employment income alone does not create a UAE corporate tax liability for an individual, but expatriate employees may remain taxable in their home country depending on residence rules.
- Seconded staff working in the UAE still need a UAE work permit and residence visa, even if paid from abroad.
- Staff of a foreign company working from a fixed place in the UAE can create a permanent establishment for corporate tax purposes.
Questions businesses ask
Are unlimited-term employment contracts still possible on the mainland?
No. Federal Decree-Law No. 33 of 2021 requires contracts to be for a definite period, renewable by agreement.2
How is end-of-service gratuity calculated?
21 days' wage for each of the first five years and 30 days' wage for each further year, with a total cap of two years' wage for foreign workers. Check the wage basis used for the calculation with an adviser.8
Can we hire someone on a visit visa while the work permit is processed?
No. The law prohibits employing a worker before a work permit is obtained.9
What this guide does not yet confirm
These points need checking with a qualified local professional in the United Arab Emirates before you rely on them.
- Current Emiratisation targets, the companies and sectors covered and contribution amounts for shortfalls could not be confirmed.
- Federal pension (GPSSA) contribution rates for UAE and GCC nationals were not confirmed.
- The mandatory unemployment insurance scheme, the Wage Protection System and any voluntary end-of-service savings scheme were not confirmed.
- DIFC and ADGM employment law rules, including the DIFC Employee Workplace Savings scheme, were not reviewed.
- The English text of Federal Decree-Law No. 33 of 2021 opened may not reflect its three amendments; check the consolidated version.
- Free zone work permit procedures and the wage basis for end-of-service gratuity were not confirmed.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Private-sector employment on the mainland is governed by Federal Decree-Law No. 33 of 2021 Regulating Labour Relations, in force since 2 February 2022. Mainland and most non-financial free zones. The DIFC and ADGM have their own employment laws. The record lists three amendments.
Employment contracts must be concluded for a definite period, renewable by agreement. Mainland employers under Federal Decree-Law No. 33 of 2021.
The English text opened may not reflect later amendments; check the consolidated version.
A probation period may not exceed six months from the start of work. Mainland employers under Federal Decree-Law No. 33 of 2021. Notice rules apply to termination during probation.
Maximum normal working hours are 8 hours a day or 48 hours a week. Mainland private sector. Overtime is paid at a premium.
Workers are entitled to 30 days' annual leave for each year of service, and two days a month where service is more than six months but less than one year. Mainland private sector.
Overtime is paid at the normal wage plus at least 25%, rising to 50% for overtime worked between 10 pm and 4 am, and overtime may not exceed two hours a day. Mainland private sector. The premium is calculated on basic salary. A separate summer midday ban on outdoor work applies from 15 June to 15 September under Ministerial Resolution No. 44 of 2022.
The notice period for terminating an employment contract must be at least 30 days and no more than 90 days. Mainland private sector.
A foreign worker's end-of-service gratuity is 21 days' wage for each of the first five years of service and 30 days' wage for each further year, capped at two years' wage in total. Mainland private sector. The two-year cap is stated for foreign workers. The wage basis for the calculation and the treatment of UAE nationals were not reviewed here.
An employer may not recruit or employ a worker without first obtaining a work permit from the Ministry of Human Resources and Emiratisation. Mainland employers under Federal Decree-Law No. 33 of 2021. Free zone permit procedures were not reviewed here.
Questions on this topic
9 statements on employment, payroll and mobility in the United Arab Emirates
