Hiring in Dubai 101: Labour Law Basics, Contracts, Benefits, and Probation Must-Knows (2025)

Most entrepreneurs entering Dubai discover that hiring isn’t as simple as finding talent. It’s the legal fine print in contracts, probation, and benefits that can make or break your business.

Hiring in Dubai is more than just filling a vacancy. It’s about ensuring that your company complies with the UAE’s evolving labour laws while building a motivated, protected, and high-performing workforce. For employers, especially international investors and Indian entrepreneurs entering the UAE market, understanding the legal landscape of employment in Dubai is essential.

As of 2025, the UAE labour market is governed primarily by Federal Decree-Law No. 33 of 2021, as amended by Decree-Law No. 20 of 2023 and No. 9 of 2024. These reforms were introduced to modernise the employment framework, balance the rights of employers and employees, and align with global standards.

This guide breaks down the essentials of hiring in Dubai, from employment contracts and probation periods to benefits, rights, and employer obligations, helping you build compliant and sustainable HR practices.

Overview of the UAE Labour Law System

The UAE labour system for the private sector is regulated by Federal Decree-Law No. 33 of 2021, along with its executive regulations and subsequent amendments.

• Applicability: This law covers most private-sector employees across the UAE, except for those governed by special jurisdictions like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), which have their own frameworks.
• Recent Reforms: Revisions made in 2023 and 2024 introduced more flexible work models (remote, part-time, temporary), enhanced worker protections (anti-discrimination, anti-harassment), and clarified employer obligations regarding probation and termination.
• Key focus: Flexibility, transparency, and alignment with global employment practices, while ensuring fairness for both employers and employees.

Employment Contracts

Under Article 8 of the Labour Law, all employment relationships in Dubai must be governed by written contracts.

Types of contracts:

• Only fixed-term contracts are permitted (up to 3 years, renewable).
• Unlimited contracts were abolished in 2022.

Mandatory Elements: Job title, duties, salary and allowances, benefits, probation terms, working hours, and termination notice period.
Format: Two signed copies (one for the employer, one for the employee).
Contract Expiry: If work continues beyond the expiry without renewal, the contract is automatically considered extended under the same terms.

Pro Tip: Always use the official MOHRE contract template to avoid disputes and ensure compliance.

Probation Period

Probation is a critical stage in Dubai employment law, and employers must follow specific rules:

• Length: Maximum of 6 months. It cannot be extended.
• During Probation:
  • The employer may terminate employment with 14 days’ notice.
  • The employee may resign with one month’s notice (if moving to another UAE employer) or 14 days’ notice (if leaving the UAE).
• Post-Probation: If employment continues, the contract automatically transitions into full validity under the agreed fixed term.

Misuse of probation rules can lead to fines or disputes, so ensure notice periods are respected.

Employee Benefits and Rights

Employees in Dubai enjoy comprehensive rights under the labour law:

• Working hours: 8 hours/day or 48 hours/week (maximum). Overtime must be compensated at 125%–150%.
• Annual leave: 30 calendar days per year after 1 year of service; 2 days per month for those with 6–12 months of service.
• Maternity leave: 60 days (45 paid, 15 half-paid).
• Paternity leave: 5 working days within 6 months of childbirth.
• Sick leave: Up to 90 days (15 paid, 30 half-paid, 45 unpaid).
• Unpaid leave: Allowed by mutual agreement.
• Wage Protection System (WPS): Salaries must be paid via registered channels, and non-compliance leads to penalties.
• Termination: Notice periods range from 30 to 90 days, depending on the contract.
• Anti-Discrimination Protections: Employees cannot be discriminated against based on gender, race, religion, or disability. Harassment and bullying are strictly prohibited.

Employer Obligations and Rights

Employers must adhere to a structured set of obligations:

• Contracts & Compliance: File contracts with MOHRE and keep records updated.
• Insurance: Provide medical insurance coverage for employees.
• Record-Keeping: Maintain accurate payroll, leave, and attendance records.
• Labour Disputes: Claims up to AED 50,000 may be resolved through MOHRE with binding decisions.
• Termination Obligations: Provide notice, cancel visas, settle final dues, and pay end-of-service benefits.
• End-of-Service Gratuity: Employees completing at least one year of service are entitled to 21 days’ basic salary per year for the first 5 years and 30 days thereafter.

Probation and Contract Termination Must-Knows

Employers should note the specific rules regarding probation and termination:

• Termination during probation requires written notice as per the law.
• Employees have the right to compensation if termination is unlawful.
• Employers cannot force employees to continue beyond probation without proper renewal.

Failure to follow procedures can result in labour disputes filed through MOHRE, leading to financial penalties.

Practical Hiring Tips in Dubai

• Comply with MOHRE: Always issue contracts via the official MOHRE system.
• Check Emiratisation Quotas: For larger companies, meeting Emiratisation targets is mandatory.
• Use Official Templates: This avoids misinterpretation of terms.
• Be Transparent: Clearly state job roles, salaries, and benefits.
• Onboarding Matters: Provide a smooth orientation, payroll setup, and medical insurance from day one.

Useful Links and Resources To Check

• MOHRE – UAE Ministry of Human Resources and Emiratisation
• UAE Government Portal – Employment Laws
• Federal Decree-Law No. 33 of 2021 and Amendments (available on the MOHRE website)
• UAE Labour Law Guide (2025 edition PDFs from MOHRE)

Conclusion

For employers in Dubai, hiring is not just about finding talent; it’s about complying with the UAE’s labour law framework to protect both the company and its employees. Understanding probation rules, employee benefits, employer obligations, and MOHRE requirements ensures smooth operations and avoids costly disputes.

As the UAE continues to refine its labour laws in line with global standards, staying updated is crucial. Whether you are a new business owner, an Indian entrepreneur expanding into Dubai, or an HR professional, mastering these fundamentals will give you a solid foundation for building a compliant and thriving workplace.

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