GOFIRM

Legal Services in the UAE

Employment Matters in the UAE: Hiring, Contracts and Dismissal by MOHRE Rules

UAE employment law protects employees more strictly than it seems: a mistake in a contract or a dismissal turns into a complaint to , and the ministry decides small claims itself. We handle hiring, contracts, changes to terms and dismissals so that there is nothing to dispute.

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30–90 days
Statutory notice period for termination
Up to 6 months
Probation — only once with an employer
21 and 30 days
Gratuity per year of service: the first 5 years and after
The 1st
Deadline for last month’s salary from June 2026

In short

Onshore and in most free zones, Federal Decree-Law No. 33 of 2021 applies, and its guarantees are a minimum: 30–90 days’ notice of termination, probation of up to 6 months, gratuity of 21 days’ pay per year for the first 5 years and 30 days after. From June 2026 salaries are due by the 1st.

Checked 16 October 2026 · Violetta Absalyamova

Cost of a mistake

Up to 90 days’ pay

What a party pays for not observing the termination notice period: salary for the whole period in the contract — 30–90 days — or the remainder.

How to avoid it

How UAE employment law works

The mainland and most free zones are governed by one law — Federal Decree-Law No. 33 of 2021, as amended. Almost all of its guarantees are a minimum that a contract cannot reduce.

  • Fixed-term and in Arabic

    The parties choose the term themselves, renewals count towards length of service, and if work continues after the term ends, the contract is extended. The text is in Arabic and a language the employee understands; the Arabic prevails.

  • Dismissal follows a procedure

    Notice of 30–90 days, or dismissal without notice on a closed list of grounds — after a written investigation. All payments are due within 14 days.

  • Disputes start at MOHRE

    First comes settlement at the ministry. MOHRE decides claims of up to AED 50,000 itself, and its decision is enforced like a court judgment unless it is challenged in court.

  • DIFC and ADGM are separate

    The financial free zones have their own employment law: in DIFC, the 2019 law and the savings plan; in ADGM, the 2024 regulations.

Expert tip

Most employment disputes are set up at hiring: the offer says one thing, the contract another, a bonus was promised verbally. MOHRE looks at the documents. And before parting ways, calculate the full settlement — notice, , leave, a ticket home: reaching an agreement is often cheaper than defending yourself.
Violetta AbsalyamovaVioletta AbsalyamovaHead of Legal Practice · Business support and legal matters

Who it suits

Who it suits — and when to choose something else

A good fit if

  1. 01You are hiring your first employees and need an offer, a contract and internal rules.
  2. 02You need to change terms — salary, position, schedule — or move people to part-time or remote work.
  3. 03A dismissal or redundancy is coming up, and you need to understand the procedure and the settlement.
  4. 04An employee is leaving for a competitor, and you want to know what a non-compete clause gives you.
  5. 05The company is growing: you need an audit of HR documents, WPS and permits, and an Emiratisation threshold — 20 or 50 employees — lies ahead.
  6. 06The company is in DIFC or ADGM, and its contracts need to be brought in line with local rules.

Consider something else if

  1. 01The employee has already filed a complaint with MOHRE or a claim, or a summons has arrived — this is a dispute with its own deadlines and evidence. The sooner we get involved, the stronger the position.Disputes and Litigation
  2. 02You only need a work permit, a visa or their cancellation, with no legal questions — that is a procedure with the authorities.Visas
  3. 03The question concerns domestic staff — a nanny, a driver: they are covered by a separate law on domestic workers.Other Private Matters
  4. 04HR questions come up every month — a lawyer on subscription for a fixed fee is better value.Business Counsel
  5. 05You suspect an employee has taken data or money: first the evidence is secured, then the route is chosen — otherwise the criminal case will slip out of the company’s control.Criminal Cases

DIFC and ADGM

Mainland, DIFC and ADGM: three employment regimes

The federal law applies on the mainland and in most free zones, while the financial centres have their own rules and their own courts. The biggest differences are in end-of-service pay, notice and the deadline for the final settlement. Checked in October 2026.

End-of-service pay

Gratuity: 21 and 30 days

per year of service, on basic salary; capped at 2 years’ salary

Termination notice

30–90 days

set in the contract, the same for both parties

Where disputes go

MOHRE, then court

on the mainland; MOHRE decides claims up to AED 50,000 itself

Final settlement

14 days

after the contract ends

Benefits

What you get

A contract that matches the offer

The offer and the contract on the MOHRE or free zone form are consistent with each other, and the addendum — confidentiality, intellectual property, non-compete, bonuses — does not conflict with the law.

Dismissal by the book

The grounds, warnings, investigation, notice, settlement and deadlines are ready before the employee learns of the decision. That way, a complaint has nothing to stand on.

Settlement down to the dirham

Gratuity, leave, notice, a ticket home — we calculate in advance so that the decision is made with the figures in hand, not after a claim.

WPS and permits under control

Salaries via — by the 1st of the following month and in the amount stated in the contract. A permit for everyone before their first working day; changes only with written consent.

Emiratisation without surprises

We check whether mandatory quotas by headcount and sector apply to your company and remind you of the checkpoint dates — 30 June and 31 December.

Free zones and their rules

In a free zone, permits are issued by the zone authority, while DIFC and ADGM have their own employment law and their own courts. We take this into account in every document.

Parting ways

Four ways to part with an employee — who does what

The method determines the timing, the payments and the risk of a complaint. Deadlines are per UAE labour law; the PRO handles the processing with MOHRE or the free zone.

You
02

The conversation

You discuss the date and any payments above the minimum with the employee — we prepare the meeting plan in advance.

05

Settlement

The company pays everything due and receives the signed documents.

up to 14 days
GOFIRM
01

Calculating the minimum

We calculate what is due under the law and the contract: salary up to the leaving date, gratuity, leave, a ticket home.

03

Termination agreement

A written agreement between the parties is in itself a legal ground for ending the contract.

Authority
04

Termination with MOHRE

The contract is terminated through MOHRE or the free zone authority, and the work permit and visa are cancelled separately — the PRO handles the filing.

The calmest route: the date and payments are agreed in writing, leaving almost no grounds for a complaint.

Document review

Planning to part with an employee?

Before you talk to them, send us the contract and briefly describe the situation — we will calculate the payments and suggest the calmest lawful option.

Non-compete

Will your non-compete clause hold up?

Tick what is true for your contract and employee. The conditions come from the labour law and its executive regulations; DIFC and ADGM have their own rules.

Tick what is true for you

0/7Tick the items to see whether you qualify

Release in exchange for compensationExecutive Regulations, Art. 12

The employee or the new employer pays the former employer compensation — no more than 3 months’ salary under the last contract and only with the former employer’s written consent. The parties may also waive the clause by written agreement.

One year to sueArt. 10(3)

A claim against a former employee will not be heard once a year has passed since the breach was discovered. The loss will have to be proved — secure the evidence right away.

Federal Decree-Law No. 33 of 2021, Art. 10; Executive Regulations — Cabinet Resolution No. 1 of 2022, Art. 12. Checked on 15 October 2026.

Process

7 steps from the first conversation to the result

Every step is visible in the client portal: what’s happening now and whether we need anything from you.

Steps on your side: 2 of 7

We handle it · 4Needed from you · 2Authority · 1
  1. We look at the contract, the offer, internal rules, WPS payments, work permits and the history: warnings, correspondence, leave. We determine which law applies — federal, DIFC or ADGM.

Documents

What you’ll need

For hiring

  • Company licence and establishment card
  • Employee’s passport and photo; for some positions — a legalised diploma
  • Position, basic salary and allowances, bonuses, schedule and work pattern — full-time, part-time, remote
  • Internal rules and current contract templates, if any

For dismissal

  • Employment contract, offer and all addenda
  • Proof of salary payments via WPS for recent months
  • Warnings, investigation records, correspondence — if the dismissal is for misconduct
  • Records of leave, absences and advances paid
  • The reason for the redundancy — closure of a business line, reorganisation — with supporting evidence

For a company in DIFC or ADGM

  • Contract on the zone’s form and internal policies
  • Details of contributions to the savings plan or of the end-of-service calculation

For an HR audit

  • List of employees with work permits and their validity dates
  • All current contracts, addenda and policies
  • Disciplinary decisions over the past year
  • Contracts with freelancers and contractors who in fact work as employees

Timing and budget

What makes up the budget

Legal work is paid for separately from payments to the employee and authority fees. We name the budget in advance, and the largest expense is usually the settlement with the employee itself, so we calculate it first.

  • Consultation and calculationDepends onReview of the situation, the lawful options and a calculation of payments for each.WhenBefore work starts
  • Hiring documentsDepends onOffer, contract, confidentiality and intellectual property agreements, internal rules.WhenBefore the employee starts
  • Dismissal supportDepends onProcedure, documents, calculation, termination agreement.WhenPer task
  • HR auditDepends onChecking contracts against offers, WPS payments, work permits and internal rules. Depends on the number of employees and the depth of the review.WhenBefore work starts
  • Payments to the employeeDepends onSalary for the notice period, gratuity, compensation for unused leave — all on basic salary — and a ticket home, under the law and the contract. Paid to the employee, not to us.WhenWithin 14 days after the contract ends
  • MOHRE and free zone feesDepends onContract amendment, cancellation of the permit and visa — at the authorities’ rates. On the mainland, the amount also depends on the company’s MOHRE category.WhenOn filing
  • Work permit and visaDepends onA 2-year MOHRE permit at the rates in force since June 2022 — AED 250, 1,200 or 3,450 depending on the company’s category, plus AED 50 for the application. Entry permit, medical test, Emirates ID and visa — at the authorities’ rates.WhenOn hiring
  • Emiratisation contributionsDepends onIf the quota is not met, MOHRE charges a contribution for each unfilled position: AED 108,000 for the 2025 targets, and the amount rises year by year.WhenAt the end of the half-year or year
  • A dispute, if one arises after allDepends onA separate budget by stage. Employee claims of up to AED 100,000 are exempt from court fees — so the barrier to suing is low for them.WhenBy stage of the case

Deadlines

Labour law deadlines — and the cost of missing them

The scale shows dates from the employee’s first working day; below is what recurs every month and year, and which deadlines a separation triggers. The law’s deadlines apply on the mainland and in most free zones, MOHRE’s WPS sanctions and Emiratisation quotas apply to mainland companies; DIFC and ADGM have their own rules.

0123456789101112months from the first working day

Day one

Work permit — before starting

A signed offer on the MOHRE form is submitted for the permit, and the contract then mirrors it. Hiring costs are borne by the company, not the employee.

If missed: AED 100,000–1,000,000 for the company for work without a permit

Up to 6 months

End of probation

Probation is allowed only once with the same employer. While it lasts, you can part ways with 14 days’ written notice; after that, the general rules apply.

1 year

Gratuity entitlement

After a year of continuous service, a foreign employee is entitled to end-of-service pay: 21 days of basic salary for each of the first five years, 30 for each year after that. Incomplete years count pro rata.

Every month

  • By the 1st of the following month

    Salaries via WPS

    This has applied since 1 June 2026, with no grace period. The obligation is met if at least 85% of the payroll is paid on time.

    If missed: from the 5th day of delay, MOHRE may stop issuing new work permits to the company

  • From the 11th day of delay

    Fines and the company’s category

    The MOHRE category determines the fee for a 2-year work permit: AED 250, 1,200 or 3,450 — the highest in category 3.

    If missed: administrative fines; for a repeat breach — category 3

  • From the 16th and 21st day

    Dispute and prosecution

    From the 16th day, a labour dispute is in some cases registered automatically. From the 21st, large and repeat violators face the Public Prosecution, a precautionary attachment and a travel ban.

Every year

  • 30 June and 31 December

    Emiratisation: 50+ employees

    Mainland companies raise the share of UAE nationals in skilled positions by 1% by each date; by the end of 2026, the target is 10%.

    If missed: MOHRE contribution for each unfilled position

  • Per the year’s targets

    Emiratisation: 20–49 employees

    Selected companies in 14 sectors keep UAE nationals on staff: one since 2024 and one more since 2025.

    If missed: for the 2025 targets — AED 108,000 for each unfilled position

  • At least a month in advance

    Leave dates

    Leave is at least 30 days per year of service. The company agrees the dates with the employee and informs them in advance.

When something happens

  • 30–90 days

    Termination notice

    The period is set in the contract and is the same for both parties. Throughout it, the contract remains in force and the salary is paid in full.

    If missed: compensation — salary for the whole notice period or the remainder of it

  • 14 working days

    Employee complaint of a breach

    If the company breaches its obligations, the employee notifies MOHRE and, after 14 working days, may leave without notice while keeping all their rights — if the breach has still not been remedied.

  • 14 days after the contract ends

    Final settlement

    Salary, gratuity, leave compensation and other payments under the law, the contract and internal rules.

  • 15 working days

    Challenging a MOHRE decision

    In disputes of up to AED 50,000, the ministry’s decision is enforced like a court judgment if neither party files a claim in court.

  • 2 years after leaving

    Labour claims and the personnel file

    Claims for rights under the labour law are not heard once 2 years have passed since employment ended. Keep the personnel file for at least that long.

Getting it right

Common mistakes — and how to avoid them

Click a card to see how to do it right · 0 of 8 open

  1. 01 What people often do

    Extending probation or setting it a second time.

  2. 02 What people often do

    Dismissing someone “on the spot” without an investigation because the employee broke the rules.

  3. 03 What people often do

    Cutting a salary or changing a position by an announcement in a chat.

  4. 04 What people often do

    Keeping an employee’s passport “for safety”.

  5. 05 What people often do

    Banning work for competitors “worldwide for five years”.

  6. 06 What people often do

    Paying salaries “in the first days of the month”, as before.

  7. 07 What people often do

    Letting an employee start work while the permit is still being processed.

  8. 08 What people often do

    Paying part of the salary in cash and showing only the basic salary in WPS.

FAQ

Expert answers

Violetta Absalyamova — Business support and legal matters

From 30 to 90 days — the period is stated in the contract. Notice is given in writing and is binding on both parties; during this period the employee receives full salary. Whoever fails to observe the period pays the other party compensation equal to the salary for the whole period or the remainder of it. If the company is terminating, the employee may take one unpaid day a week to look for work, giving 3 days’ notice. All payments on departure are due within 14 days after the contract ends.

Violetta Absalyamova · Business support and legal matters

Next step

Tell us what is happening with the employee

Hiring, changing terms, parting ways or a question about a contract — describe the situation. We will tell you what rights each side has, how much you will have to pay and in what order to act so as not to face a complaint.

Violetta AbsalyamovaVioletta AbsalyamovaHead of Legal Practice · Business support and legal matters
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