UAE Federal Decree-Law No. 33 of 2021 replaced the previous labour law and governs private-sector employment across the Emirates. Whether you are an employee checking your gratuity, leave, and termination rights, or an employer ensuring compliance, this guide summarises the key rules and points you to official MOHRE and u.ae sources — plus our calculators for your own numbers.
Federal Decree-Law No. 33 of 2021: Overview
The law came into force on 2 February 2022 and applies to most private-sector employment on the UAE mainland (including free zones that have not adopted their own labour regime). It introduced new work models (full-time, part-time, temporary, flexible), abolished the old open-ended “unlimited” contract, and modernised the rules on gratuity, leave, working hours, and termination. The Ministry of Human Resources and Emiratisation (MOHRE) issues implementing decisions that clarify how the law is applied.
Gratuity Calculation
Gratuity (end-of-service benefit) is calculated on your basic salary only — not on allowances such as housing or transport — unless your contract explicitly includes them. Under the current law:
- First 5 years: 21 calendar days of basic salary for each year of service.
- After 5 years: 30 calendar days of basic salary for each additional year.
- Cap: the total gratuity cannot exceed the equivalent of two years’ wage (Article 51(6)).
- Minimum service: you must complete at least one year of continuous service; below that, no gratuity is payable.
Article 51 states the entitlement in days of pay but does not spell out how to turn a monthly salary into a daily rate. Article 67 of the same law fills that gap: for the purposes of the law, a month is treated as 30 days. So on the mainland your daily rate is your monthly basic salary ÷ 30. (Employees in the DIFC or ADGM are covered by different employment laws, which divide by 365 instead.)
Put a number on it. On a basic salary of AED 15,000 a month, your daily rate is AED 500, so each of your first five years earns 21 × 500 = AED 10,500, and every year after the fifth earns 30 × 500 = AED 15,000. Five years of service is therefore AED 52,500 and ten years is AED 127,500 — and on that salary the Article 51(6) two-years’-wage ceiling sits at AED 360,000, which that accrual would not reach until around your twenty-sixth year of service.
Annual Leave
Employees who have completed one year of service are entitled to at least 30 days of paid annual leave per year. For service of between six months and one year, the entitlement is two days of leave per month. Leave is paid at 100% of wage, and unused leave is generally paid out on termination according to your contract and the law.
Sick and Maternity Leave
After probation, an employee is entitled to up to 90 days of sick leave per year, but only the first third of it is fully paid: the first 15 days at 100% of wage, the next 30 days at 50%, and the remaining 45 days unpaid.
Maternity leave is 60 days — the first 45 days at 100% of wage and the following 15 days at 50% — with additional unpaid and reduced-hours entitlements in defined circumstances. (The 90-day figure sometimes quoted online is sick leave, not maternity leave.)
Overtime
Overtime is capped at two hours a day on top of the standard eight, and it is paid at a premium over your ordinary hourly rate: your basic hourly rate plus 25% for ordinary overtime, rising to your basic hourly rate plus 50% for work between 10pm and 4am or on a rest day or public holiday. On the same AED 15,000 basic, the Article 67 daily rate of AED 500 over an eight-hour day is an hourly rate of AED 62.50, so an ordinary overtime hour is worth AED 78.13 and a night or rest-day hour AED 93.75.
Termination and Notice Periods
Either party can end a fixed-term contract with written notice of between 30 and 90 days, as set in the contract. During notice, the employee keeps 100% of wage and benefits. Certain grounds allow termination without notice — Article 44 lists the limited situations in which an employer may summarily dismiss an employee.
End-of-Service Benefits
Your final settlement includes gratuity (as above), a repatriation ticket to your country of origin (for non-nationals, unless otherwise agreed), and payment for any accrued but untaken leave. The employer must settle all dues within 14 days of the end of the employment relationship. An employer’s only route to reducing the payout is Article 51(7), which permits deduction of amounts you actually owe under the law or a court judgment — a deduction of a proven debt, not a forfeiture of the entitlement.
If your employer has enrolled you in the UAE’s voluntary savings scheme (an alternative to the traditional gratuity), the rules above stop applying from your enrolment date: you receive monthly contributions plus investment returns instead, and any gratuity accrued before enrolment is settled separately.
MOHRE Complaint Process
If your employer has not paid gratuity, leave, or other dues, or has terminated you in breach of the law, you can file a complaint with MOHRE — online through the MOHRE portal or app, or at a Tasheel service centre. MOHRE attempts conciliation first; if that fails, the dispute is referred to the labour court. Keep your contract, payslips, and termination letter.
You have two years from the end of the work relation to bring the claim — Article 54(9) of Federal Decree-Law 33/2021 bars a case heard after that period. Two years, not one: the shorter figure circulates widely and would cost you a valid claim if you relied on it. Since the employer’s own deadline to settle is 14 days, a genuine dispute is usually visible long before the window closes.
Quick Reference
| Item | Details |
|---|---|
| Governing law | Federal Decree-Law No. 33 of 2021 (in force 2 Feb 2022), as amended |
| Gratuity basis | Basic salary only; 21 days/year (first 5 yrs), 30 days/year thereafter; daily rate = basic ÷ 30 |
| Gratuity cap | Two years’ wage (Article 51(6)) — AED 360,000 on an AED 15,000 basic |
| Resignation | Does not reduce gratuity for completed years |
| Annual leave | 30 days/year after 1 year of service, at 100% of wage |
| Sick leave | 90 days/year — 15 at 100%, 30 at 50%, 45 unpaid |
| Maternity leave | 60 days (45 at 100% of wage + 15 at 50%) |
| Overtime | Basic hourly rate + 25%; + 50% between 10pm and 4am, on a rest day or public holiday |
| Notice period | 30–90 days |
| Final settlement deadline | 14 days from the end of the work relation |
| MOHRE claim window | Two years from the end of the work relation (Article 54(9)) |
| Applies to | UAE mainland private sector (not DIFC / ADGM / government / domestic workers) |
| Last verified | July 2026 |
| Expert reviewer | Varun Punjabi |
Frequently Asked Questions
How many days of annual leave am I entitled to in the UAE?
30 days of paid annual leave a year once you have completed one year of service. Between six months and one year you accrue two days per month. Leave is paid at full wage, and any accrued but untaken leave is paid out when your employment ends.
How much sick leave can I take in the UAE?
Up to 90 days a year after probation, on a sliding pay scale: the first 15 days at 100% of wage, the next 30 days at 50%, and the final 45 days unpaid. That is per year, not per illness — so only a third of the 90 days is fully paid.
How do I file a labour complaint, and how long do I have?
Through MOHRE — online via the portal or app, or in person at a Tasheel centre — and you have two years from the end of the work relation to bring it, under Article 54(9) of Federal Decree-Law 33/2021. Two years, not one: the shorter figure circulates widely and relying on it would cost you a valid claim. Your employer's own deadline to settle everything is 14 days, so a real dispute surfaces long before the window closes.
How much overtime pay am I owed in the UAE?
Your basic hourly rate plus 25% for ordinary overtime, and plus 50% for work between 10pm and 4am or on a rest day or public holiday, capped at two hours a day above the standard eight. On an AED 15,000 basic — a daily rate of AED 500, so AED 62.50 an hour — that is AED 78.13 for an ordinary overtime hour and AED 93.75 for a night or rest-day hour.
How long is maternity leave in the UAE?
60 days — the first 45 on full pay and the next 15 on half pay — with further unpaid and reduced-hours entitlements in defined circumstances. The 90-day figure often quoted online is the sick-leave allowance, not maternity leave.
What notice period does UAE labour law require?
Between 30 and 90 days, whichever your contract specifies, and it binds both sides. You keep full pay and benefits throughout the notice period. Article 44 sets out the limited grounds on which an employer may dismiss without notice — and even then your accrued gratuity survives.
Are limited and unlimited contracts still a thing in the UAE?
No. Federal Decree-Law 33/2021 abolished the open-ended "unlimited" contract on 2 February 2022, leaving one fixed-term contract type. Your contract type no longer affects your gratuity, so any guide still framing your rights around "limited vs unlimited" is describing repealed law.
What should my final settlement include when I leave a UAE job?
Gratuity, payment for accrued but untaken annual leave, your notice-period pay, and — for non-nationals, unless otherwise agreed — a repatriation ticket to your country of origin. The employer must settle all of it within 14 days of the end of the employment relationship.
How do I file a labour complaint against my employer in the UAE?
Through MOHRE — online via the portal or app, or in person at a Tasheel centre. MOHRE attempts conciliation first and refers the dispute to the labour court if that fails. Bring your contract, payslips and termination letter, and act within the applicable time limits.