Employment Laws and Policies in Abu Dhabi

Employment in Abu Dhabi is regulated by the UAE Labor Law and related Ministerial decrees, ensuring employee rights, workplace safety, and fair labor standards.

Employment Contracts

• Written contracts are mandatory and must specify role, salary, working hours, benefits, and notice period.
• Contracts can be fixed-term (up to 2 years, renewable) or indefinite-term.
• Probation period: Maximum 6 months, during which the notice period is 1–30 days.
• Termination requires compliance with UAE labor regulations and end-of-service benefits.

Working Hours

• Standard workweek: 8 hours/day, 48 hours/week (or 9 hours/day, 6 days/week).
• Ramadan: Working hours reduced by 2 hours/day for Muslim employees.
• Overtime: Paid at 125% of normal salary on regular days, 150% on weekends/public holidays.
• Employees entitled to one day off per week (usually Friday).

Leave Entitlements

• Annual Leave: 30 calendar days after 1 year of continuous service.
• Sick Leave:
  • First 15 days: Full pay
  • Next 30 days: 50% pay
  • Beyond 45 days: Unpaid
• Maternity Leave: 45 days fully paid for UAE nationals; 45 days partially paid or unpaid for expatriates depending on contract.
• Paternity Leave: 3 days paid leave (may vary by employer).
• Public Holidays: 11 official holidays annually (e.g., Eid, National Day).

Payroll, Tax & Contributions

• Income Tax: 🚫 No personal income tax.
• Employer Contributions:
  • Pension fund for UAE nationals (5% employer, 5% employee)
  • Workmen’s compensation and health insurance: mandatory for all employees
• Payroll: Typically monthly in AED; all wages must be paid on time under UAE Labor Law.

Health & Safety

• Employers must ensure a safe and secure workplace under UAE regulations.
• Safety standards vary by industry; construction and industrial sectors require strict compliance.
• Health insurance is mandatory for all employees, and employers must provide coverage for both nationals and expatriates.

Termination & End-of-Service Benefits

• Notice Period: Minimum 30 days for indefinite-term contracts; 1–7 days during probation.
• Gratuity (End-of-Service):
  • 21 days’ basic salary per year for the first 5 years
  • 30 days’ basic salary per year for service beyond 5 years
• Termination must be lawful; dismissals without cause require full payment of gratuity.

Non-Discrimination & Equality

• UAE Labor Law prohibits discrimination based on nationality, religion, gender, or disability.
• Equal pay for equal work is encouraged.
• Employers must comply with UAE anti-harassment and workplace safety regulations.