2025 UAE Labour Law: Major Changes to Maternity, Parental, Study & Compassionate Leave

 The UAE Labour Law, specifically Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector

(the "UAE Labour Law"), and its subsequent amendments and executive regulations, govern leave entitlements in the private sector. These provisions are in effect for 2025.

Here's a detailed breakdown of the enhanced leave entitlements:

1. Maternity Leave

• Entitlement: Female employees are entitled to 60 days of maternity leave.
• The first 45 days are at full pay.
• The subsequent 15 days are at half pay.
• Additional Unpaid Leave:
• A female worker may apply for her maternity leave up to 30 days prior to the expected date of delivery.
• In addition to the basic maternity leave, she may take an additional 45 days of unpaid leave if she has an illness as a result of pregnancy or childbirth and is unable to resume work. This illness must be proven by a medical certificate issued by the respective medical authority. These leave days can be consecutive or intermittent.
• Special Provisions for Sick/Disabled Child: If the baby is sick or suffers from a disability, the female worker may take an additional 30 days of fully paid leave. This leave can be extended for an additional 30 days without pay. The illness or disability of the child must be proven via a medical certificate from the respective medical authority.
• Nursing Breaks: After resuming work, a female worker is entitled to one or two additional breaks each day for nursing her child, not exceeding one hour in total. These breaks are fully paid and can be availed for 6 months following the date of delivery.
• Miscarriage/Stillbirth: Women who suffer a miscarriage or stillbirth after six months of pregnancy are entitled to 10 days of paid leave.
• Relevant Section: These provisions are primarily outlined in Article 30 of Federal Decree-Law No. 33 of 2021.

2. Parental Leave

• Entitlement: Both male and female employees are entitled to 5 working days of paid parental leave.
• Timing: This leave must be taken within six months of their child's birth.
• Significance: The UAE was the first Arab country to grant parental leave to employees in the private sector.
• Relevant Section: This entitlement is provided for in Federal Decree-Law No. 6 of 2020 (which amended Federal Law No. 8 of 1980 on the Regulation of Labour Relations, and is now integrated into Federal Decree-Law No. 33 of 2021, specifically Article 32 regarding special leaves).

3. Study Leave

• Entitlement: Employees with two or more years of service are eligible for 10 days of paid study leave annually.
• Purpose: This leave is specifically for sitting for exams at approved UAE educational institutions.
• Relevant Section: This provision is outlined in Article 32 of Federal Decree-Law No. 33 of 2021.

4. Compassionate Leave (Bereavement Leave)

• Entitlement: Employees are entitled to paid bereavement leave in case of the death of close family members.
• 5 days of paid leave for the death of a spouse.
• 3 days of paid leave for the death of a parent, child, sibling, grandchild, or grandparent.
• Relevant Section: This is specified in Article 32 of Federal Decree-Law No. 33 of 2021.

Important Note: While the above details are based on the current UAE Labour Law (Federal Decree-Law No. 33 of 2021) and its executive regulations, it is always advisable for employers and employees to refer to the official and most up-to-date legislation published by the Ministry of Human Resources and Emiratisation (MOHRE) or consult with a legal professional for specific interpretations or complex situations. The official portal of the UAE Government (u.ae) and the MOHRE website (mohre.gov.ae) are reliable sources for this information.

#UAELabourLaw #EmployeeRights #MaternityLeave #ParentalLeave #StudyLeave #BereavementLeave

UAE Labour Law: Understanding Mandatory Fixed-Term Contracts (Current Requirements for 2025)

The landscape of employment in the UAE has undergone a significant transformation, culminating in 2025 with the full implementation of a pivotal change: fixed-term contracts are now the mandatory standard for the private sector. This shift, driven by Federal Decree-Law No. 33 of 2021 and its subsequent amendments (including Federal Decree-Law No. 20 of 2023), marks a new era in employer-employee relations, emphasising clarity, flexibility, and enhanced protection.

If you're an employer operating in the UAE or an employee seeking to understand your rights, here’s a detailed breakdown of what this monumental overhaul means for you.

The End of Unlimited Contracts: A New Era of Clarity

For decades, "unlimited" contracts were a common feature of the UAE's private sector employment. However, the new legislation has phased them out entirely. As of February 2, 2025, all private sector employment contracts must be fixed-term contracts. This means every employment relationship now has a clear, defined end date, fostering predictability for both parties.

Key aspects of this change:

• Maximum Duration: Fixed-term contracts in the private sector cannot exceed three years. This cap encourages regular review and renewal of employment terms.
• Renewability: While fixed in terms, these contracts are designed for flexibility. They can be renewed for similar or shorter periods, multiple times, by mutual agreement. This allows for continuous employment while maintaining the fixed-term structure.
• Automatic Renewal: If a fixed-term contract expires, but both the employer and employee continue to operate under its terms without a new explicit agreement, the contract is generally considered automatically renewed under the same terms and conditions as the last signed agreement. This prevents ambiguity in ongoing employment relationships.
• Conversion Mandate: Employers were required to convert any existing unlimited-term contracts to fixed-term ones by a specific deadline (which was December 31, 2023, after an extension). Non-compliance can lead to penalties from the Ministry of Human Resources and Emiratisation (MOHRE).

Why the Shift? The Rationale Behind the Change

This move aligns the UAE's labour framework with international best practices and aims to achieve several strategic objectives:

1.    Enhanced Clarity and Predictability: Fixed-term contracts offer a clear beginning and end, reducing ambiguity regarding the duration of employment and termination procedures. This benefits both employers in workforce planning and employees in understanding their job security.

2.    Increased Flexibility: The new law, alongside mandatory fixed-term contracts, also formally recognizes and regulates various flexible work models (part-time, temporary, remote, job-sharing). This promotes a more agile workforce that can adapt to changing economic and business needs.

3.    Streamlined Termination Processes: While fixed-term contracts have a natural expiry, the law also outlines clear notice periods for early termination by either party, including during probation. This brings greater uniformity and reduces potential disputes.

4.    Balanced Rights and Obligations: The overhaul is designed to create a more equitable balance between employer and employee rights. It provides clearer guidelines for end-of-service benefits, leave entitlements, and protection against discrimination and harassment.

Impact on Employers: Navigating the New Landscape

For businesses operating in the UAE, the mandatory shift to fixed-term contracts requires diligent adherence to the new regulations:

• Contract Review and Standardization: All employment contract templates must be updated to reflect the fixed-term nature. Employers must ensure new hires are onboarded with fixed-term contracts, and any remaining legacy unlimited contracts are fully compliant.
• Renewal Management: Proactive management of contract renewals is crucial. Businesses need robust systems to track expiry dates and initiate renewal discussions well in advance to ensure continuity of employment.
• Understanding Termination: While the "expiry" of a fixed-term contract is a valid reason for its conclusion, employers must still adhere to proper procedures if terminating a contract early or for other reasons (e.g., redundancy, performance).
• Embracing Flexibility: The formal recognition of diverse work models presents opportunities for employers to optimize their workforce, potentially reducing overheads and attracting a wider talent pool.

Impact on Employees: What Does This Mean for You?

Employees in the UAE also need to be fully aware of these changes and their implications:

• Clarity on Employment Duration: You will now have a clear understanding of your contract's length. While fixed-term, the possibility of renewal is inherent, so open communication with your employer is key.
• End-of-Service Gratuity (EOSB): The calculation of EOSB remains consistent with the new law's provisions, typically based on your last basic salary and years of service. It's important to understand how your gratuity accumulates over successive fixed-term contracts.
• Notice Periods: Be aware of the mandatory notice periods for termination by either party, both during and after the probation period. These are legally defined and must be adhered to.
• Rights and Protections: The new law offers robust protections against discrimination, harassment, and unfair dismissal. Employees are empowered to raise grievances with MOHRE, which now has enhanced powers to resolve disputes.
• Greater Flexibility Options: If you are seeking flexible work arrangements (part-time, remote, etc.), the legal framework is now more supportive, potentially opening up more opportunities.

Beyond Fixed-Term: A Holistic Legislative Framework

It's important to remember that the mandatory fixed-term contract is just one piece of a broader, more comprehensive UAE Labour Law (Federal Decree-Law No. 33 of 2021). Other significant areas of the law that complement this change include:

• Comprehensive Leave Policies: Expanded maternity, paternity, compassionate, and study leave entitlements.
• Clear Working Hours and Overtime Rules: Standardized working hours and clear guidelines for overtime pay.
• Probation Period Regulations: Defined maximum probation periods and notice requirements for termination during this time.
• Enhanced Dispute Resolution: Greater powers for MOHRE to resolve disputes, including binding decisions for claims under AED 50,000.
• Strict Anti-Discrimination and Anti-Harassment Provisions: Stronger protections for employees against various forms of workplace misconduct.
• Regulated Non-Compete Clauses: Stricter rules on the enforceability and duration of non-compete clauses.
• Wage Protection System (WPS) Enforcement: Continued mandatory use of WPS for timely and transparent salary payments.

Conclusion

The UAE's Labour Law overhaul in 2025, with the mandatory shift to fixed-term contracts, reflects the nation's commitment to creating a dynamic, fair, and globally competitive labour market. For both employers and employees, understanding these changes is not merely about compliance but about leveraging the opportunities and protections they offer. Staying informed and seeking expert advice when needed will ensure a smooth and successful navigation of this evolving employment landscape in the UAE.

#UAELabourLaw2025 #FixedTermContracts #EmploymentRegulations #WorkforceUAE #LabourLawUpdates #EmployeeRights

 

𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐍𝐞𝐰 𝐔𝐀𝐄: 𝐊𝐞𝐲 𝐋𝐞𝐠𝐚𝐥 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐄𝐯𝐞𝐫𝐲 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 & 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐌𝐮𝐬𝐭 𝐊𝐧𝐨𝐰

 

uae law updates

The United Arab Emirates has consistently demonstrated its commitment to fostering a dynamic and progressive environment for both businesses and residents. In a bid to enhance its global competitiveness and quality of life, the UAE has implemented a series of significant legal reforms in recent years, with key updates coming into effect in 2024 and 2025. Staying informed about these changes is crucial for anyone living, working, or investing in the Emirates.

Here's a breakdown of the essential updates you need to know:

Visa and Residency Reforms: Opening Doors Wider

The UAE's visa landscape has undergone a remarkable transformation, focusing on attracting and retaining talent, investors, and skilled professionals.

• Expanded Golden Visa Program: The prestigious 10-year Golden Visa has been expanded to include a wider range of eligible categories. This now encompasses digital content creators, professionals in the education sector (including those from early childhood centers, schools, and universities), and even owners of luxury yachts. It offers long-term stability and flexible sponsorship options, making it easier for families to relocate.
• New Blue Visa for Environmental Contributions: A significant addition is the 10-year Blue Visa, awarded to individuals who have made outstanding contributions to environmental protection and sustainability, both within and outside the UAE. This highlights the nation's commitment to a greener future and attracts experts in this vital field.
• Enhanced Green Visa: The 5-year Green Visa, designed for freelancers and skilled professionals, continues to be a popular option, offering self-sponsorship and more flexibility for those seeking to work independently in the UAE.
• Five-Year Tourist Visa: Tourists can now apply for a multiple-entry five-year tourist visa, allowing stays of up to 90 days per visit, extendable for another 90 days. This offers greater convenience and encourages longer visits.
• Streamlined Job Seeker Visas: The job seeker visa has been enhanced, offering extended validity (up to 120 days) and simpler online application processes, making it easier for qualified individuals to seek employment opportunities.
• Visa-on-Arrival for Indian Nationals: Indian nationals with valid residency permits from certain countries (Australia, Canada, Japan, New Zealand, Singapore, South Korea, EU, UK, and US) can now receive a visa on arrival, further simplifying entry for a large demographic.
• Removal of the 10-Day Grace Period for Visit/Tourist Visas: A critical change for visitors is the removal of the previous 10-day grace period. Overstaying a visit or tourist visa now incurs immediate fines and potential deportation, emphasizing the importance of strict adherence to visa expiry dates.

Business and Investment Facilitation: A More Attractive Hub

The UAE continues to solidify its position as a global business hub with reforms aimed at simplifying business setup and attracting foreign direct investment.

• 100% Foreign Ownership on Mainland: A landmark reform, 100% foreign ownership is now permitted in most mainland sectors, eliminating the previous requirement for a local Emirati partner to hold 51% of shares. This significantly boosts investor confidence and streamlines business operations.
• Corporate Tax Implementation (with exceptions): While the UAE has long been known for its zero corporate tax, a 9% corporate tax now applies to net profits exceeding AED 375,000. However, most domestic businesses remain exempt, and large multinational companies with revenues exceeding €750 million are subject to a 15% minimum corporate tax, aligning the UAE with global tax standards (OECD's Global Anti-Base Erosion Rules).
• VAT Regulations Updates: Recent amendments to VAT Executive Regulations, effective November 15, 2024, include clarifications on zero-rating for exporting goods and adjustments to VAT on insurance premiums. Businesses must ensure their systems and documentation are compliant.
• New Investment Funds Regime: Cabinet Decision No. 34 of 2025 introduces a new framework for Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs), aiming to simplify the tax regime and attract more investment into the UAE.
• Enhanced Bankruptcy Law: The amended Bankruptcy Law introduces specialist bankruptcy courts and revised debt thresholds, providing more efficient mechanisms for financial restructuring and creditor protection.
• Remote Business Setup: Foreign entrepreneurs can now initiate company incorporation processes without being physically present in the UAE by issuing a Power of Attorney to a local agent. While some steps like bank account opening or visa stamping still require physical presence, this offers considerable flexibility.

Labor Law Modernization: Protecting Rights and Fostering Flexibility

The UAE's labor laws have been significantly updated to create a more balanced, fair, and flexible working environment.

• Salary Continuation During Disputes: The Ministry of Human Resources and Emiratisation (MOHRE) can now require employers to continue paying salaries for up to two months during employment disputes, providing financial stability for employees.
• Legally Enforceable MOHRE Decisions: MOHRE's decisions in labor disputes, especially those under AED 50,000, are now legally enforceable, streamlining resolution processes and reducing reliance on lengthy court proceedings.
• Extended Statute of Limitations for Claims: Employees now have up to two years from the date of employment termination to file labor claims, an extension from the previous one-year period.
• New Work Models: The reforms embrace a wider range of work models beyond full-time employment, including part-time, temporary, remote working, and job-sharing roles, promoting greater flexibility in the job market.
• Stricter Emiratisation Targets and Penalties: The UAE continues to emphasize Emiratisation, with specific quotas for private companies. Stricter penalties are in place for non-compliance, encouraging the employment of UAE nationals.
• Stronger Protections Against Harassment and Discrimination: The amended law reinforces zero tolerance for workplace harassment and discrimination based on race, gender, religion, or disability, emphasizing employer accountability and employee recourse.

Other Important Updates:

• Domestic Minimum Top-Up Tax (DMTT): Effective January 1, 2025, the UAE introduces a DMTT, aligning with OECD's global minimum tax rules for large multinational groups.
• Mandatory Boardroom Gender Diversity: From January 2025, all UAE private joint-stock companies are required to include at least one woman on their boards of directors, a significant step towards gender equality in corporate leadership.
• Stricter Traffic Regulations: New traffic regulations are being introduced to enhance road safety, with stricter penalties for violations.
• Expanded Plastic Ban: Building on the 2024 ban on plastic bags, a broader ban on single-use plastics takes effect from January 1, 2025, aiming to foster a more eco-conscious culture.

Staying Compliant and Thriving in the UAE

These sweeping legal reforms underscore the UAE's proactive approach to creating an environment that is both business-friendly and provides a high quality of life for its residents. For businesses, it means greater autonomy, simplified processes, and new tax considerations. For residents, it translates to more flexible visa options, enhanced labor protections, and a clearer legal framework.

It is highly recommended for all businesses and residents to:

• Stay Informed: Regularly check official government sources and consult legal professionals for the latest updates.
• Review and Update: Ensure your business practices, employment contracts, and personal documents are fully compliant with the new regulations.
• Seek Expert Advice: For complex situations, engage with legal and financial advisors who specialize in UAE law to navigate the changes effectively.

By understanding and adapting to these key updates, businesses and residents can continue to thrive in the dynamic and ever-evolving landscape of the UAE.

#UAELegalReforms #DubaiBusiness #UAEVisas #ExpatLifeUAE #NewUAELaws

𝗨𝗔𝗘: 𝗧𝗵𝗲 𝗨𝗹𝘁𝗶𝗺𝗮𝘁𝗲 𝗙𝗗𝗜 𝗗𝗲𝘀𝘁𝗶𝗻𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗚𝗖𝗖

 The United Arab Emirates (UAE) continues to be a global leader in Foreign Direct Investment (FDI), attracting international investors with its business-friendly policies, economic diversification, and strategic location. As the region’s premier investment hub, the UAE consistently ranks among the top FDI recipients worldwide.

Latest FDI Figures 📈

📌 2022: FDI inflows reached $𝟮𝟯 𝗯𝗶𝗹𝗹𝗶𝗼𝗻, marking a 10% increase from 2021.

📌 2023: Investments surged to $𝟯𝟬.𝟲𝟴𝟴 𝗯𝗶𝗹𝗹𝗶𝗼𝗻, ranking the UAE 2nd globally in FDI inflows.

📌 2024: Dubai alone attracted 𝟭,𝟭𝟭𝟳 𝗚𝗿𝗲𝗲𝗻𝗳𝗶𝗲𝗹𝗱 𝗙𝗗𝗜 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀, reinforcing its status as a global investment hub.

📌 2025 (Projected): The UAE is expected to maintain strong FDI growth, driven by NextGenFDI initiatives and increased investments in technology, fintech, and renewable energy.

https://www.linkedin.com/feed/update/urn:li:activity:7331592142315769856?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAdhtQEByIrnT3NLq8xzDUPzNuiQ6auFn4g

𝗪𝗵𝘆 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗖𝗵𝗼𝗼𝘀𝗲 𝘁𝗵𝗲 𝗨𝗔𝗘? 🌍

✅ Business-Friendly Regulations: The UAE offers streamlined procedures, competitive tax policies, and full foreign ownership in key sectors, fostering investor confidence.

✅ Economic Diversification: Moving beyond oil, the UAE is expanding into technology, tourism, logistics, renewable energy, fintech, and healthcare.

✅ Strategic Location: Positioned at the crossroads of Europe, Asia, and Africa, the UAE serves as a gateway for businesses seeking access to global markets.

Dubai’s FDI Success 🔥

Dubai has solidified its position as the world’s leading destination for Greenfield FDI projects. With ambitious initiatives like the Dubai Economic Agenda (D33), aiming to double its GDP by 2033, Dubai continues to strengthen its global investment appeal.

Future Outlook 🚀

The UAE’s proactive economic strategies, investor-friendly policies, and ambitious development plans ensure continued FDI growth. As emerging sectors gain traction, foreign investors can expect lucrative opportunities in the years ahead.

💼
#InvestUAE #FDIGrowth #UAEBusiness #DubaiInvestment #GreenfieldFDI #EconomicDiversification #VentureCapital

 

𝗨𝗔𝗘’𝘀 𝗡𝗲𝘄 𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗟𝗮𝘄: 𝗔 𝗚𝗮𝗺𝗲-𝗖𝗵𝗮𝗻𝗴𝗲𝗿 𝗳𝗼𝗿 𝗗𝗲𝗯𝘁 𝗥𝗲𝗹𝗶𝗲𝗳

 The UAE's personal insolvency law, primarily Federal Decree-Law No. 19 of 2019 on Insolvency (and related updates like Federal Decree-Law No. 51 of 2023, which further clarifies and expands the bankruptcy framework to include natural persons in certain contexts), provides significant relief and assistance to debt-ridden residents in several key ways:

𝟭. 𝗗𝗲𝗰𝗿𝗶𝗺𝗶𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗳𝗿𝗼𝗺 𝗣𝗿𝗼𝘀𝗲𝗰𝘂𝘁𝗶𝗼𝗻:

• No automatic jail for debt: A major shift is the decriminalization of financial obligations for insolvent persons. Previously, bounced checks or inability to pay debts could lead to criminal charges and imprisonment. The new law aims to remove this threat, allowing individuals to address their financial difficulties without fear of incarceration.
• Protection from legal action: Debtors are generally protected from legal prosecution and enforcement proceedings once the insolvency process begins. This provides a "breathing space" for individuals to resolve their financial issues.

2. Structured Debt Rescheduling and Settlement Plans:

• Court-appointed expert: The law allows for the appointment of one or more experts by the court to assist debtors in settling their financial obligations. These experts work with the debtor and creditors to formulate a repayment plan.
• Three-year repayment plan: The expert, in coordination with the debtor and creditors, will devise a plan to settle financial liabilities, typically within a maximum period of three years. This structured approach helps individuals manage their debts in a systematic way.
• Moratorium on new loans: During the repayment plan, the debtor is generally prevented from taking new loans or entering new obligations, ensuring they focus on clearing existing debts.

3. Opportunity for Rehabilitation and Fresh Start:

• Continued work and productivity: The law aims to allow insolvent individuals to continue working, be productive, and provide for their families, rather than being incapacitated by debt.
• Rehabilitation of rights: Upon successful completion of the repayment plan, or by settling a significant portion of their debts, debtors can regain rights they might have been deprived of due to insolvency. The rehabilitation period can be reduced based on the percentage of debt repaid (e.g., 2 years for 50% repayment, 1 year for 75% repayment, and immediate rehabilitation upon full repayment).
• Reduced fees and swift procedures: The law includes provisions to streamline legal procedures and reduce fees associated with debt rescheduling and restructuring, making the process more accessible and efficient.

4. Enhanced Transparency and Creditor Confidence:

• Increased transparency: The law contributes to greater transparency in civil debt repayment transactions.
• Improved creditworthiness: By providing a structured framework for addressing insolvency, the law enhances the UAE's overall creditworthiness and strengthens its economy, fostering a more favorable environment for businesses and investors.

In summary, the new UAE insolvency law helps debt-ridden residents by:

• Offering a legal framework for personal bankruptcy, which was previously lacking.
• Shifting from a punitive approach to a rehabilitative one.
• Providing a structured and court-supervised process for debt settlement.
• Protecting debtors from imprisonment and allowing them to continue working.
• Ultimately, we aim to give individuals a pathway to a financial fresh start.

It's important to note that while the law provides significant relief, it still emphasizes the responsibility of debtors to repay their obligations. Eligibility for the insolvency process typically requires demonstrating an inability to pay debts for a specified period (e.g., more than 65 consecutive working days) and meeting certain debt thresholds.

#DebtReliefUAE #FinancialFreedom #InsolvencyLaw #UAEFinance #DebtRecovery