The United Arab Emirates has rolled out a series of groundbreaking changes to its labour law in 2025, further enhancing the rights of workers, improving the work environment, and streamlining employment practices. This comprehensive update is aimed at promoting fairness, transparency, and economic growth by aligning the country’s employment regulations with global standards. Here’s a detailed look at all the important changes you should be aware of.
🚺 Extended Maternity and Parental Benefits
Maternity Leave
Working mothers now enjoy up to 60 days of maternity leave, with 45 days at full pay and 15 days at half pay. This applies to all female employees, regardless of how long they’ve been with the company.
Parental and Compassionate Leave
Fathers and mothers are now eligible for 5 days of paid parental leave within six months of childbirth. Additional provisions include compassionate leave—5 days for the death of a spouse and 3 days for close family members.
🩺 Health Insurance for All Private Sector Workers
A significant reform mandates that employers across Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain must provide basic health insurance to all private-sector employees and domestic workers. This insurance ensures access to essential medical services and promotes overall worker welfare.
📜 New Types of Leave Introduced
Study Leave
Employees who have completed more than two years with a company are now entitled to 10 days of study leave per year for academic purposes.
Miscarriage and Disability Support
Paid maternity leave is also applicable in cases of miscarriage after six months and for children born with disabilities, allowing additional time off for care and recovery.
⚖️ Dispute Resolution Overhaul
The Ministry of Human Resources and Emiratisation (MOHRE) has introduced more efficient mechanisms to resolve employment disputes:
- MOHRE can now issue binding rulings for claims up to AED 50,000.
- Cases exceeding this amount are referred to court if settlements fail.
- The court must make a final decision within 30 business days.
- The appeal process is now shorter, more direct, and transparent.
📅 Timeframe for Claims Extended
Employees now have up to 2 years from the date of termination to file legal claims against employers—twice the previous deadline. This change provides better protection and more time for workers to understand their rights.
💼 Employment Flexibility Enhanced
Recognizing the modern workplace, the UAE now supports various employment arrangements including:
- Part-time and temporary contracts
- Remote working arrangements
- Job sharing
All remote workers must have written agreements specifying working hours, performance expectations, and data protection guidelines.
💰 Introduction of Minimum Wage
For the first time, the UAE has introduced a national minimum wage. Workers classified in skilled categories 1 and 2 must be paid a minimum of AED 5,000 per month.
This policy applies to new labour contracts issued in 2025 and is expected to improve living standards and reduce wage disparities.
📊 Wage Protection System Reinforced
The UAE has tightened rules around salary payments:
- Employers must now pay salaries within 7 days of the due date.
- Delays over 30 days trigger automatic penalties.
- Employers in violation may face suspension of work permit issuance.
📈 End-of-Service Benefits Revamped
Employees now have access to a voluntary savings scheme that allows them to invest their end-of-service gratuity in secure financial products. This offers long-term financial growth and retirement planning opportunities.
🇦🇪 Emiratisation Goals Strengthened
In an effort to increase the participation of UAE nationals in the private sector, companies with 20 to 49 employees are required to hire at least two Emirati nationals by the end of 2025. Non-compliance will lead to penalties starting from AED 108,000.
🚫 Fake Employment Practices Penalized
Harsh penalties have been introduced for employers who falsify Emiratisation data or hire workers without proper documentation. Fines range from AED 100,000 to AED 1 million. Criminal charges may be filed in severe cases.
☀️ Summer Work Ban for Outdoor Labor
To protect workers from heat-related illnesses,