Emirates Diary

UAE Labour Law – What has actually changed in 2017?

By: | In: UAE Labour Law | Last Updated:

New UAE Labour Law 2016-2017 (Download PDF)

If you are employed in the UAE, you’d have surely heard about the New UAE Labour Law or UAE Employment Law that has been issued in 2016. If you are an employer or employee in UAE, you must familiarise yourself with UAE Labour Law as this is what guides your employment. Ministry of Labour regularly makes updates to UAE Labour Law as a proactive step towards having best practices.

new uae labor law 2016

Most of the freezones follow UAE Labor Law; however they need not, as they are independent to follow their own set of rules and policies. In addition to the UAE Labour Law, the free zones may have their own rules which they may follow. You will have to visit their websites to find out more.

As an employee, UAE Labor Law will help you understand your rights, various procedures that you may need to follow and so on. As an employer or company, you must be aware of legalities involved in hiring and terminating employees. A careful reading of labor law will let you understand the various aspects that may affect your decisions. Companies do not know circumstances in which they can terminate an employee. Your HR team must be equipped well enough to gauge the UAE Labour Law which may save you from may difficulties.

With the new resolutions released by MOL, it has become more important for you to understand minute details and circumstances which may affect you.

Basically, the UAE Labour Law speaks about the following:

The new UAE Labour Law that has come into effect changes 3 main aspects of the UAE Labour Law.

  1. Standard Offer Letters – Resolution 764;
  2. Termination of Contract – Resolution 765;
  3. Getting New Work Permit / Labour Ban – Resolution 766.

These have been issued as a separate Resolutions to the existing resolutions and UAE Labour Law is not issued in a single document.

If you would like to download a copy of UAE Labour Law PDF, please enter your details below. You will subsequently receive emails to download the Resolutions and other related documents.

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You will also receive MOL Circulars, Resolutions and my in depth Articles. You will also be able to easily read and understand UAE Labour Law.

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Once you have signed up above, you will need confirm your email. The good thing is, once you sign up, you will also receive additional resources released by MOL and regular updates and articles on UAE Labour Law. This will make sure you are kept updated regularly on latest MOL laws.

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  • Shareena Khan

    Hi Deepak,

    My friend is facing some 1 year labour ban. He has won the case against previous company and he needs to come to Dubai to Collect his cheque money. Can he come on Visit Visa? Also, is this 1 year ban removable? he already has a freezone offer of AED 12,000. Please advise.

    • Yes, he could come on tourist visa or visit visa.
      Please speak to MOL with regard to 1 year labour ban removal.

  • Boom

    Sir,

    I have been informed last June 30, 2017 that I am being laid off and starting July, I will be serving my 30 days notice. I am under unlimited contract which started last September 1, 2016.

    I want to know if this is legal and what else should I claim? Am I eligible to claim the ffg:

    1. 30 day notice salary
    2. Unused leave pay
    3. Arbitrary Dismissal pay ( 3 months Salary )

    I hope you could answer my query.

    Thank you in advance.

    -Boom

    • 1. Yes.
      2. Yes
      3. Please consult with MOL/MOHRE. (800-665)

  • Ejaz Ashfaq

    Hi Sir, i am on vaccation. I have dubai viza still have one year for viza expire.this is my sceond viza in same company. the company not give me ticket last 3 months and now company said, my license is block when he will renewal than they send me ticket. Sir, i want to ask you that, i will buy my own ticket. So Sir, plz tell me that i Can enter the dubai or not. Have any problem for me or not on airport.

    • Sorry, I am not completely aware about your situation.
      So can not answer. There can be many reasons!

  • John Presa

    Hi. I’ve been on this company for 2 years. After 18 months they promote me as manager. We did inventory and all. Now that I am going to leave ofcourse we have to do the inventory again. When we did we found out that the variance item from the old manager still included on my variance means they did not remove it from stock file. That variance was already paid ny the old manager and now they include again and want me to pay for everything. It was cost 3500dhs. Its too much. What is the action I can take?

    • This is entirely your internal company issue!
      You must solve it amicably with your company.

  • Aleem

    Hello sir,
    I had 1 year visa remaining time in my compan.I want to go emergency vacation and unfortunately I will not return back to UAE untill my visa period expires.Then what is the procedure for me to
    Come back UAE from another visa?Please explain me
    Thank you!

    • In that case, it is better to renew your visa and go!

  • You must get 3 month salary from company if they break limited contract

  • Waseem

    What date should be considered as joining date as per UAE Law.
    Signing offer letter or first working day or which ever is earlier in both

    • First working day is usually considered as joining date.

  • Benson Stanley

    Hi i have a new job and am 15 months in my company but now my company insist i pay for cancellation and also pay for insurance ID that was insured to me after one year working and i have never use it for medication, please mr Deepak is it proper i pay for insurance ID and cancellation after working for 14 months?

    • No you are not required to pay any of these charges to the company.

      • Benson Stanley

        so please what should i do?

        • Please question your HR on this!

  • Please consult with MOL/MOHRE on this.

  • Employer should bear the cost of Emirates ID.

  • No thoughts here. Sorry.
    But have they done something like this in the past?

    • kevin tayaban

      I dont know sir but im just so worried because they might do it since i have no copy or letter that i am not in need in the workshop until my notice finished. I asked in the lebor nd they told me to get a proof that i am in need in the company untill the notice period so i asked the HR but they could not give me anything. Thank you depak

      • Please get this in writing from your company that you are not required to come to work. Email also should be OK.

  • Moin Gulam

    Hi i want to ask if i can leave the company which i have just joined and i have unlimited contract

  • john tiquevillas

    Hi Deepak,

    Im currently employed and just renew my unlimited contract 3 months ago.
    My concern is I’ve got an offer from the other company which is better for what i have right now. Is it possible for me to resign and grab the opportunity. Im just worried about having ban or any problem that my company will do.

    Regards,
    John

  • Hi Deepak,

    Hope you are very well.

    I have a pressing question… I might be signing a contract for a job very shortly… I am currently under discussion on two points;

    1. The company is saying that the labor law allows the employer to extend probation on its own discretion. The issue is that we have decided on a pre & post probation salary. If they decide to extend the probation, I will be at a loss. I trust them but I don’ feel this one sided discretionary decision is fair. Am I wrong?
    2. They are defining basic salary to be 60% of the package. I am pushing for 75% minimum. Am I being too demanding?

    Regards,
    Talha

    • 1. Probation Period can not be extended beyond 6 months.
      2. 60/40 seems ok to me. There is no definite question. However, higher the better.

      • Thanks a lot Deepak… much appreciated.

        I understand the probation cannot exceed 6 months. My question is… is it okay that employer has agreed to give me a higher salary after 3 months probation… but has also provisioned for an extension of probation on their own discretion?

        • There is no provision for extension beyond 6 months.
          Also, if your employer promises to increase salary, it must be written in the contract and nothing should be taken at face value.

  • osman

    hi deepak

  • osman

    hi deepak

  • Ridge Pereira

    hi deepak,

    can i take up employment during a labor dispute

    regards,
    Ridge

    • I guess, you will have to get consent from MOL / MOHRE.

  • Åsshī Khâñ

    hello deepak bhai!!
    is resignation via email is acceptable in uae or not? @[email protected]:disqus

    • Depends on your company culture. However, I’d recommend that you provide written as well as email resignation after you have spoken to your manager.

  • chandrika

    Hello Mr Deepak , I have been offered 10% commision on Profit . now the emploer says that it is only in offer letter and not labor contract . so am I going to lose it , I have also been arbitrarily terminated after 22 months service.

    • Your company is correct.
      What is not on labour contract can not be considered.
      However, if the termination is arbitrary, you should get in touch with MOL/MOHRE (800665)

  • PRG

    Hi Deepak,
    Request your help.
    I had joined a company 24th Sep 2016. But labour contract (unlimited) was made only in Jan 2017. I am on my father’s sponsorship. I had taken sick leave during month of May for ankle sprain. The company is deducting my pay for those days and not reimbursing the doctor’s bills. The medical card also was given at end of May after my doctor’s visit.
    Can they rightfully deduct my salary for the same?

    They gave me a warning letter on May 21 and termination letter on 5 June. Ideally they are required to provide with 1 month notice period yes? Are they required to provide me with 1 month salary? What are my rights and claims in this matter as I need to collect my final dues. I havent yet taken my annual leave. Can I claim the same to be reimbursed?

    Request your advice.

    Rgs
    PRG

    • Are you still on Probation.
      If yes, you are not allowed to take Sick Leave.
      Read the above mentioned links.

      • PRG

        Hi,
        I joined on 24 Sept 2016 and took sick leave in May 2017. I wasn’t on probation period.

        Request to advice on the termination rights which I have mentioned.

        Await your kind advice.

          • PRG

            Thanks dear, I have read the same. But some points are still unclear. Request your advice.
            I joined the company on 24 Sep 2016, but company made the labour contract in Jan 2017 and labour card in Feb 2017. I used to followup but they would say it is taking time.
            If I make a labour complaint for claiming my 1 month termination notice salary, will I face any legal trouble for working without labour card?

            Please do advice.

            Tnx

  • vigeeth salian

    Hi Mr. Deepak, i want to resign my company. i am in limited visa and i have still 7 months left.

    Please tell me how can i get out of my company without getting myself in trouble. help me out.

  • mohammad ashraf

    hi, I just want to ask for an advise regarding salary. my employer has not been paying our salary on time since November 2016. it just usually gets delayed for a few days like 4-8 days maximum as they are trying to keep up with the 10th of the month due date. however, last month it got delayed for 22 days. we had i reported to the Ministry of Labour and they even came to our office for this then that’s the only time our salary got released. however this current month, salary is still delay and still no sign on when it will be paid. as per filing of salary complain in MOL system, it has to be 15 days delayed before we can initiate a complain but that is too long. MOL number is currently busy the whole day and unable to seek advise from them. i just want to get some opinion regarding this as this is not doing any good anymore. rent, bills, card payments are getting delayed and worst if there are any interest on it our employer will not shoulder due to their late payment of salary. i hope someone can answer and give advise. thank you!

    • Why don’t you directly approach MOL/MOHRE offices?

  • I believe you are talking about Labour Ban.
    Labour Ban + Bans in UAE

  • Rachelle Ann Aboy

    Hi Mr. Deepak, I would appreciate if you can help me on this. Can a company ban me if I will resign after my 6 months with 1 month notice and transfer to another company with same field with higher salary? Thank you.
    Because I was informed that if I will resign my current company will ban me.

  • Kashiff Ahmed

    hi,

    what is the procedure to change the company during Probation period.

    my current company is in Jebel ali free zone. i want to resign the company.

    please guide me.

    • You have to first resign, cancel labour card/visa and start joining formalities.

      • Kashiff Ahmed

        Dear Mr. Deepak,

        Thank you so much for your answer.

        Do I need to pay the visa charges if I resign the company in probation period. ?

        • No, but depending on whether yours is a Limited Contract, you may have to pay your employer 45 day salary.
          Please confirm with MOL/MOHRE.
          Read about Limited Contract

          • Kashiff Ahmed

            Thank you for the clarification.

          • Kashiff Ahmed

            Can you give me mol contact no ?

            • 800665

              • Kashiff Ahmed

                Thanks a lot.

  • Umair Saleem

    • No, the working hours are same for all.
      However, few exceptions are possible for certain industries like hospitality, outlets etc

  • @Manesh, HR should not deduct HRA. Leave salary should be gross.

  • Manesh

    Hi,
    can company deduct the week off days salary, if the Annual leave starting immediately after the week off days? ie if I have applied and approved the annual leave on Sunday onwards for 30 days, but am flying Friday itself as Friday& Saturday is week off..then can these two days will be included in the 30 days leave?

    • This is not something that makes sense.
      Companies can not deduct salaries for these reasons.

  • Srinivasan

    Dear Sir,

    i have working in free zone company. 2014 i have joined. from join date to till I’m facing salary issue. this month i got salary for November 2015. i have given them my resignation letter last april 2015 because of my family financial issue. management called me and promised will give required cash. but up to last Minuit they did not give cash. they told you can go to home country, we will deposit the required cash. i was wait up to 2 month in my home country. they did not give money. again i have given resignation letter to them. one of the director promised me will give weekly AED 5000. cash. nut i have received only 15000. balance i did not get. again im plan to go my home country resolve my financial issue with some other way. i was stay in india upto 5.5 months and solved my family issue and came back. my management they did not allow me to continue the job. i have asked them termination letter. they are not ready to give. since 40 days i was idle in my accommodation. shall i go for legal action? already many people went court. it was taken more than one year he got final notice from court. my question is court will not check other employee salary details? because who ever goes to court they only only get their pending salary. that also taking much more time to get them settlement.
    Note:
    in our company many peoples are facing same salary issues. i would like to know if i raise the complaint against my company, i will get positive reply from court along with my compensation amount?

    • Srinivasan,
      it is better to get things done amicably than to go through court.
      Court should be last resort.
      I can not comment on what the decision of the court will be.

  • Emily2016

    Hi,
    I’ve been working to my previous company for almost 3 years and during the last 9 mos we are of financial struggle. Management only give 50% of salary sometimes even half salary still delay. I already got a new job and the owner promise to pay my last pay(all dues) after a month when they can collect the receivables from client. I already signed the cancellation paper so the other company can process my new working visa. Months later, CEO flew to his hometown and until now he did not come back. I made complaint to MOHRE for my claim and the first appointment already passed my former Boss did not show up during the appointment meeting. We still have another appointment coming, i dont know if they will show up again. The company already expire the trade license and many former co-worker already resigned and hoping the promise to pay last pay when financial status will regain. My question is, they are in SPONSORSHIP for the license, are they allowed to issue NEW TRADE LICENSE even they dont update salary payment-WPS, i already made complaint for my claims are these thing cannot affect in renewing the company license? Also, can i still have claims right in my last pay? Still company is on struggle and employees dont get salary on time. Is the Ministry of Labor have controls in knowing if the company paying wages or not or they only have idea once complaints were made.
    I am expat, being away from family is too much sacrifice but we end up getting no salary. How can the Government protect the small individual like me.

  • Sophia2016

    Hi, is there any standard bracket of basic salary? sometimes company will give lower percentage of basic salary because this will be the basis of gratuity computation. Mu basic salary is only 45% of my gross salary and they put it almost in accommodation and transportation allowance. Thank you.

  • Muhammad

    i have been working in a company for last 10 months with office boy visa and in limited contract. I have a new offer now. is there any problem like ban in changing the job.
    plz help me 0544649300

  • Duncan Baker

    I am very grateful to every one who participate in making the UAE labour law serve both the employer and employees, unfortunately have found it very hard for the low income earners (this I mean from 3999 and below) to access any bank facility for their development and they’re never trusted by banks because the first question you’re asked is how much is your salary and the answer will determine the opening of the door!!! How do you help such people because we would desire to be productive to the nations where we come from if the operating capital here is to big for us and in my conclusion I request you to help us low income earners to access facilities from banks here and commit ourselves to be trust worthy in all manner to make life better even for others.

  • Ranjith

    Hello sir,i have joined a company in dubai on december 2016.and can i change the employment after 6 months.wil there be any ban if am in limited contact of 2 years??

  • Arthur ramos

    Hi good morning,
    My employer terminated me after 3 months of my service. They asked me to sign the cancellation without giving my salary. They promised me that they will transfer the money by 30th of the month but until now I’m not receiving anything. And also, the salary mentioned in my labour contract is lesser than the offer letter and salary transfered to my bank.

    Please advice me what to do.

    Thank you.

    • Arthur,
      under probation, the company can fire you.
      but salary must be paid till the time you have worked.
      Now, if you have signed the cancellation, you’d have agreed that you have received all the due.

  • Can you please send me the labout law for 2017?

  • Julia Alvares

    Can you give an updated change in 2017 UAE Labour Laws?

  • Malik faheem

    I am 19.4 year old can i got a working visa in uae

    • Muhammad

      no

  • dilliram

    My basic sealry is 600 only.
    How much is my 1 hour overtime.
    Can you help me.

  • MAHBOOB UR REHMAN

    If a company appointed a person and during the probationary period the ceo of company directed do their work another place, what can the employee do ?
    Does he obey the direction or disobey?
    The ceo wants to use to employee for their business, and illegally he is involving to employee by force.

  • alian

    what is right for household for leaving his/her job? please guide me and reply me i am waiting your reply

  • Umesh

    Dear sir/Madam

    Yesterday I was terminated because phicycal abuse. That’s mean I push one of my team member because he point his pen towards my face .after that guy who complain to the human resources and tbey check camera and they decided I must terminate without my inquiry. In the my contract include after probation period if i terminate they must give ne one moth salary but today they told we didn’t give you because that’s physical abuse is that right or wrong

  • geraldine marcial

    Hi im just new in my company.. Im a nail technician i just wanna know if i can resign while im on probationary period?

  • ayahxxxxxx

    Good day Sir, Madam

    I would like to ask is there a grounds that the contract for 3 years freezone terminated?
    like example in contract saying u have to work for 48 hours but your working for 13.5 hrs. not paid for over time. no medical insurance as in the contract it should. off day only 4 times a month, even if some months having 31 days. ticket and visa of my employment i payed for that . He let me work in my tourist visa.

  • ayah

    Good day Sir, Madam

    I would like to ask is there a grounds that the contract for 3 years freezone terminated?
    like example in contract saying u have to work for 48 hours but your working for 13.5 hrs. not paid for over time. no medical insurance as in the contract it should. off day only 4 times a month, even if some months having 31 days. ticket and visa of my employment i payed for that . He let me work in my tourist visa.

  • Rajeev

    Dear Sir,

    I am working in UAE since Aug 2015. I join as Project Manager to a project scheduled to be completed by June 2016. I was promised for a Performance bonus based on timely completion of project with a clause of 10% deduct in bonus on per week delay, if due to my performance. This was a part of my CTC. However, the promoters could not arrange for the full finances yet and the project is getting delayed due to non performance on promoters part. There are several evidence supporting to it including letters from consultant and Main contractor.

    Recently they had terminated my contract citing organisational restructuring as the reason and are denying the performance bonus.

    pl advice me on it.

    regards,

  • Arick

    Dear Sir,
    I applied for a sales job with ABC Co. On 28/08/2016 and I cleared the interview. I got the offer letter on 07/09/2016 from XYZ Co. I was told that the payroll is outsourced to XYZ Co. And ABC Co. Is their client. An unlimited term employment contract was signed on 26/09/2016 ABC Co’s name did not reflect on any of the documents.

    I was told that the joining date will be in the first week of October. I went back to India. After a lot of follow up, finally, I got the employment visa on 18/10/2016 and I was told that the date of joining is 01/11/2016. Based on date of joining I came to Dubai on 30/10/2016

    On 31/10/2016 I received an email from XYZ Co. That the joining date is postponed to 01/12/2016 as ABC Co. Is facing some legal issues.

    Now when I contact ABC they ask me to contact XYZ and XYZ says this that they can’t do anything.

    After signing the offer on 07/09/2016 I got other job offers but I did not take it because I had already signed the offer letter with XYZ.

    I have no other source of income and I cannot afford to live without income anymore. I have already waited for almost two months and I cannot wait another month.

    Am I entitled for any compensation for the delay in date of joining? If yes, how to claim.

    Kindly help.

  • ezham

    Hi Rakesh,

    Iam in a grave trouble and needed your assistance. I work for a Travel management company. I was the first employee of the project that iam currently working with. I was slogged and exploited royally for an years time for the fact that i was the first employee and the product wasnt fully ready.

    Gradually things developed and the work pressure increased, which left me with no choice but to work more than the regular working hours, though in my contract only 48 hrs per week was mentioned. Its mentioned in my contract that overtime will be paid but i never asked for it neither did i get the same from the company.

    Now iam not too sure if i will get that or not ? Upon speaking to the hr i was told that its bygone…
    Can i ask them again for the same or do i stand a chance to take this up to the labor law…

    regards,
    ez

  • pinto

    Iam on my husband sponsor and working one of the manpower company for oil and gas. Initially my 1st labor contract not had rules apart from the normal but in the 2nd contract the company had mentioned competitor rules “Not allowed to work for similar competitors company/ client in the same field for 2 YR after Termination .Not allowed to disclose any confidential information that belongs to the company”. I have bachelor degree. My question is that is this rules are applicable for me if I change my company

  • precilla

    Iam on my husband sponsor and working one of the manpower company for oil and gas. Initially my 1st labor contract not had rules apart from the normal but in the 2nd contract the company had mentioned competitor rules “Not allowed to work for similar competitors company/ client in the same field for 2 YR after Termination .Not allowed to disclose any confidential information that belongs to the company”. I have bachelor degree. My question is that is this rules are applicable for me if I change my company

  • Omar

    Sir I’m Omar, I just want to ask, Current I had my working permit waiting for medical for process of visa. I came from transfer visa, now Im in probation period. My question is can I resign are they allow me to resign, to have new company? What are I’m going to pay my to company.

    PleasE advice me.

  • Ankit tyagi

    I am working in Abu Dhabi from 30th November 2014 and my contract is for 2 years . Currently I am on notice period of 30 day which is going to finish on 8th August 16. How much time they will take to cancel my visa and to clear my all dues. And how much gratuity and what all they have to pay me f

  • pradeep kumar singh

    In Hindi labour law 2016

  • Rahim

    Hi Deepak,
    Recently my company wanted to apply new Indian Nationality worker to work as a labourer in Dubai, therefore I apply for that purpose. To my surprise, my PRO said that all the Indian Nationality who wanted to apply visa has to apply according to new requirements:-

    1. The applicant contract agreements has change from AED800 before, now minimum AED1500.

    2. The applicant has to agree and signed with thumb fingerprint on the contract agreement in India before sent for next procedure.

    3. When I feedback to my company boss which operating in Singapore about this changes, they not believing me and demand me to show them a new clause of the said requirements as stated in Labour Law.

    The question is I do not know how to get a copy of this article from the Labour Law or book or website. Please help me how to find or get the article of the above said requirements. Your help very much appreciated. Thanks

  • jossim uddin

    hi my name is jossim,I am from Bangladesh, BangladeshI people can transfer visa to government or freezone? plese give me some information.

  • Manivarma

    Hi depak i have doubt in my contract my end of agreement is 29.10.2017 bt in my visa its 25.12.17 which one i want to follow for my no renewal

  • Acacia

    I meant 1.3 years

  • Acacia

    Hi Deepak,

    I have been employed in a company for 1.3 months. I didn’t take my annual leave during this tenure. My contract is unlimited in nature. i am serving my notice period and my employer says I’m not eligible for the leave salary as he has given me a raise in my remuneration 9 months ago. He is equating my raise with my leave salary. He adds that my raise compensates for my leave salary. How is that even possible?

    Kindly advice.

  • ivy

    i’ve been working for my company since may 2015 and until now we dont have insueance yet, is it legal?

  • shujath

    Dear Sir,

    I am working as a Safety Officer from 3 months on (Unlimited Contract) in Abu Dhabi with 8,000 AED & in Labour contract 5,000 AED is basic salary.
    I had done PGDHSE (Post Graduate Diploma in Health, Safety & Environment) 1 Year from Annamalai University & Certificate is Attested. Can I change the company without any ban.

    Please Advice me as soon as possible I will be thankful to you.

  • Sulfikar BS

    i have been working in a company for last 17 months with Engineer visa and in limited contract. I have a new offer now. is there any problem like ban in changing the job.