Hiring in the United Arab Emirates

A foreign company with no UAE entity cannot hold a work permit, because the MoHRE permit is issued for work at a licensed establishment.

You have three routes:

• Set up your own UAE entity with a mainland licence or in a free zone such as DIFC or ADGM.
• Use a locally licensed staffing or outsourcing company.
• Engage a licensed freelancer.

The UAE has no general minimum wage. Only Emiratis have a floor, AED 6,000 a month since 1 January 2026, according to EY.

Three employment regimes apply in the UAE: the mainland, under Federal Decree-Law 33/2021 and enforced by MoHRE, plus DIFC and ADGM. DIFC and ADGM apply their own employment laws.

Three ways to hire in the UAE

For a standing team, your own entity makes you the employer. A licensed staffing company can employ someone locally before you have an entity. Use a contractor for a defined project carried out by a genuinely independent person.

Route	Legal employer	What you pay on top of salary	How you end it
Your own entity	Your UAE entity	0% social security for expatriates; end-of-service gratuity of 21 days of basic wage per year for years 1 to 5, then 30; employer-funded health insurance; visa and permit fees	Notice of 30 – 90 days, as set in the contract
Employer of record	A MoHRE-licensed staffing or outsourcing company	The provider's fee; no figure is published here	The same labour-law notice, 30 – 90 days
Contractor	The contractor itself: a licensed company or a freelance-permit holder	Nothing set by statute	As the contract says; if the relationship is employment in substance, fines run AED 100,000 to 1,000,000, multiplied by the workers involved, up to AED 10,000,000 in total

On the mainland, placing workers with a third party needs a MoHRE licence. DLA Piper reports a mandatory bank guarantee of AED 300,000 for employment intermediation and AED 1,000,000 for temporary staffing or a combined licence.

The licence categories DLA Piper lists do not include one called "employer of record".

Afridi & Angell's 2024 note on hiring in the UAE says the mainland does not recognise a third-party employer of record or professional employment organisation as a category.

Individuals must be sponsored by a locally licensed entity, so a person engaged that way is deemed an employee of the provider, not of the foreign client. The note excludes DIFC and ADGM.

The licensed local provider is the employer in this arrangement. The employer of record model therefore works on the mainland only through that licensed employer.

For mainland employment in the UAE, a licensed establishment must hold the work permit. Expatriates have no UAE pension scheme; end-of-service gratuity applies instead, according to the UAE government pension page for expatriates.

For staff working abroad, permit requirements depend on the employment regime; see the remote staff section below.

Mainland, DIFC or ADGM: the three rulebooks

The governing texts are:

• Mainland: Federal Decree-Law 33/2021, under MoHRE.
• DIFC: the DIFC Employment Law.
• ADGM: the ADGM Employment Regulations 2024.

The end-of-service amounts are close; the regimes differ in when you fund benefits, how you count leave and how much notice you give.

Topic	Mainland	DIFC	ADGM
Governing text	Federal Decree-Law 33/2021, enforced by MoHRE	DIFC Employment Law No. 2 of 2019, consolidated to July 2025	Employment Regulations 2024, in force 1 April 2025
End-of-service	21 days of basic wage per year for years 1 to 5, then 30; unfunded; paid within 14 days of exit	Monthly payments into DEWS: 5.83% of basic wage for years 1 to 5, then 8.33%	21 days of basic wage per year for years 1 to 5, then 30; daily rate is basic wage / 365
Notice	30 to 90 days, set in the contract	7 / 30 / 90 days by tenure; excludes probation and fixed-term expiry	7 / 30 days by tenure; excludes probation, termination for cause and agreed fixed-term expiry
Probation	up to 6 months; employer ends it on 14 days' written notice	up to 6 months	up to 6 months; one week's written notice
Annual leave	30 days after one year	20 work days, excluding public holidays	20 working days, excluding national holidays
Public holidays inside leave	Counted as leave	Not counted	Not counted, and leave with pay on them
Working time	48 hours a week	Average of 48 hours per 7 days	48 hours in 7 days
Sick leave	Up to 90 days: 15 full pay, 30 half pay	60 work days: 10 full pay, 20 half pay	60 working days: 10 full pay, 20 half pay
Maternity leave	60 days	65 work days	65 working days
Remote employee living abroad	Remote work allowed with employer approval; permit position not stated	—	For an ADGM employer: no UAE residency visa or ADGM permit if the employee neither resides nor works in the UAE
After exit	Employer bears repatriation to the place of recruitment or an agreed place, unless the worker joins another employer or caused the termination	—	One-way flight within 30 calendar days, with exceptions

DIFC rows other than end-of-service follow the 2019 law text. The law has since been consolidated up to July 2025, and the DEWS rates above match that version.

Clyde & Co, which advised ADGM on its rules, confirms the 1 April 2025 start. The ADGM probation section was amended on 28 October 2025.

UAE and GCC nationals employed in DIFC are registered with the GPSSA and are not eligible for gratuity.

End-of-service pay by regime and tenure

The mainland pays 21 days of basic wage for each of the first five years and 30 days for each year after, once the worker has completed one year. The total cannot exceed two years' wage.

Mainland law sets gratuity in days of basic wage. The official gratuity page gives no daily-rate formula. The method you apply determines the dirham amount; press explainers divide monthly basic wage by 30.

The table compares the three regimes at a basic wage of AED 15,000 a month. ADGM pays its gratuity at exit; DIFC employers have already paid the DEWS contributions in, before any fund returns.

Service	Mainland (days of basic wage)	ADGM gratuity (AED)	DIFC DEWS contributions (AED)
3 years	63	31,068	31,482
5 years	105	51,781	52,470
10 years	255	125,753	127,440

At each tenure shown, DIFC contributions are slightly above ADGM gratuity. The costs are close across these examples, but you fund them at different times.

DIFC employers pay as they go. A mainland employer carries an unfunded liability, payable within 14 days of exit.

The voluntary Savings Scheme offers a pay-as-you-go route on the mainland and in free zones, at 5.83% of monthly basic wage before five years of service and 8.33% after. No mandate has been announced.

Enrolled employees leave the traditional gratuity system. DIFC's five-year count includes service before the scheme began.

Repatriation after exit

The mainland also puts repatriation on the employer, under Article 13(12) of Federal Decree-Law 33/2021, read in its unofficial English translation.

The employer bears the cost to the place of recruitment or an agreed place, unless the worker joins another employer or caused the termination.

ADGM adds a fixed deadline and a remote-employee exception. An ADGM employer must provide a one-way flight to the employee's country of origin, or reimburse it, within 30 calendar days of the termination date. Three exceptions apply:

• a remote employee who neither lives nor works in the UAE;
• an employee who obtains new UAE employment or visa sponsorship within 30 calendar days of cancellation of the ADGM work permit;
• an employee dismissed for cause.

The UAE labour market and pay reference points

Average salary in the UAE: No official figure published in the cited sources. The Central Bank of the UAE reports the average wage of employees covered by the Wages Protection System (WPS) only as a year-on-year change.

That change was a decline of 2.3% for June 2026, on a three-month moving average.

Abu Dhabi and Dubai host ADGM and DIFC respectively. Health insurance, visa fees and pensions also differ by emirate:

• Health insurance. Employer-funded cover has been compulsory in Abu Dhabi since 2005 and in Dubai. From 1 January 2025 it extends to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, according to Clyde & Co.
• Dubai visa fees. The work visa costs AED 200 plus 5% VAT. The residence permit costs AED 200 plus fixed charges and lasts two years.
• Pensions for nationals. In Abu Dhabi, the Abu Dhabi Pension Fund (ADPF) manages pensions for Abu Dhabi-based and employed UAE nationals. The federal GPSSA law covers private-sector employers in all other emirates, according to u.ae.

Salary reference points

The cited sources do not provide salaries by role. Statutory thresholds give you reference points for an offer.

Emirati private-sector minimum	AED 6,000 / month — since 1 January 2026	EY (minimum salary)
ILOE category split	Basic salary of AED 16,000: AED 5 + VAT a month up to it, AED 10 + VAT above	ILOE
GPSSA state share	2.5 of the employer's 15 percentage points, paid by the government for private-sector monthly salaries under AED 20,000	DLA Piper (pensions)
GPSSA private-sector pensionable cap	AED 70,000 / month	DLA Piper (pensions)
Freelancer green-visa income	AED 360,000 a year, for the two preceding years	GDRFA (green residence); ADDED (green visa)
WPS average wage change	−2.3% year on year, June 2026	Central Bank of the UAE

No pay floor applies to expatriates; the Labour Law requires only that wages meet basic needs. Check any offer against the thresholds above.

Registering as an employer, step by step

A foreign company needs a licensed UAE establishment before it can sponsor anyone. Once that exists, MoHRE's Work Bundle cuts the permit-to-visa stage from 30 working days to 5.

The cited sources give no total duration from company formation to the first wage.

Step	What happens	Takes
1. Licence and establishment	A licensed establishment is the base for any permit. Licence types: industrial, commercial, crafts, tourism, agricultural and professional; FTA (natural persons guide). Choose a mainland licence or a DIFC or ADGM registration	Not published
2. Work permit and residence	MoHRE Work Bundle (mainland): onboarding, work permit, residence visa, medical test and Emirates ID biometrics on one platform; the permit is valid for two years; u.ae (work permits)	5 working days
3. Entry and residence costs	The employer pays the entry visa, travel to the UAE, post-arrival medical tests and the residence permit; charging recruitment fees to the employee is illegal; u.ae (expatriate employment). Dubai fees are in the labour market section	Not published
4. Health insurance	Employer-funded cover for the employee, compulsory in every emirate; Clyde & Co (health insurance)	Not published
5. Contract and wage routing	A written contract; WPS (mainland): wages for each month are paid through WPS and fall due on the 1st of the next month; u.ae (payment of wages)	First wage due on the 1st
6. Emirati hires only	Register the Emirati with the pension system and start contributing within a month of the work permit; u.ae (Emiratis' employment). Count the hire towards Emiratisation	Within one month of the permit
Total	Step 2 is the only stage with a published duration	5 working days for step 2; others not published

Instead of an AED 3,000 bank guarantee with MoHRE, you can buy insurance for workers, with a maximum cover of AED 20,000 per worker.

ADGM adds a contract rule: the employer must give the employee a copy of the signed contract within one month of the start date, according to ADGM's Employment Affairs Office guidance.

ADGM also issues its own work permit. For a self-sponsored employee, such as a UAE Golden Visa holder, the employer needs no residency visa but must hold, or have applied for, that permit before the start date.

Example: an employee who starts on 15 October is owed that month's wage on 1 November, which is the first payroll date to plan for.

After licensing and the Work Bundle, plan for the wage due date. Late-payment measures follow on day 5, 16 and 21.

Hiring and onboarding in the UAE

Mainland contracts are fixed-term, with duration and renewal agreed by the parties. The former three-year cap was removed in 2022. Probation can last up to 6 months; rules below are mainland rules unless marked DIFC or ADGM.

Legal limits on the contract

• Term. Mainland contracts remain fixed-term and renewable by agreement. Federal Decree Law 14/2022 removed the former three-year cap, as Pinsent Masons explains; the parties agree the duration.
• Probation. It may last up to 6 months and can be used once with the same employer. No paid sick leave accrues during probation.
• Ending probation. You must give at least 14 days' written notice. The law sets 14 days for the employer; the 30 days quoted in some summaries is not this probation rule.
• A worker who leaves during probation. A worker moving to another UAE employer gives one month's written notice, and the new employer compensates your recruitment costs unless agreed otherwise. A foreign worker leaving the UAE gives 14 days.
• Currency. Wages can be paid in dirhams or in another currency if the contract says so.
• Deductions. Total deductions may not exceed 50% of the wage. Recovering an overpayment is limited to 20% and disciplinary fines to 5%.
• Costs. Charging recruitment fees to the employee is illegal. You pay the entry visa, travel to the UAE, post-arrival medical tests and the residence permit.
• Emiratisation. The quota counts your own establishment, according to the government portal.
• With 50 or more workers, you must raise the Emirati share of skilled jobs by 2% a year, to a cumulative 10% by 2026.
• With 20 to 49 workers in 14 listed sectors, you had to hire one Emirati by the end of 2024 and one more by the end of 2025.

Onboarding checklist

• Sign a written fixed-term contract with an agreed duration and renewal terms.
• Obtain the work permit through the Work Bundle.
• Complete the visa, medical test and Emirates ID.
• Arrange employer-funded health insurance.
• Set up wage payment through WPS, with the first wage due on the 1st of the following month.
• Enrol the employee in ILOE unemployment insurance. It costs AED 5 + VAT a month up to a basic wage of AED 16,000, and the worker pays it (ILOE).
• Decide between traditional gratuity and the voluntary Savings Scheme.

What changes at 6, 12 and 60 months

Milestone	What changes
Month 6	Probation ends at the latest. Once service passes six months, annual leave accrues at 2 days a month
Month 12	Annual leave reaches 30 days and gratuity starts. ILOE claims become possible after 12 months of premiums: 60% of basic wage for up to 3 months
Year 5	Mainland gratuity steps from 21 to 30 days of basic wage per year. In DIFC, DEWS rises from 5.83% to 8.33% and notice from 30 to 90 days, excluding probation and fixed-term expiry

The year-5 step changes mainland gratuity and DIFC DEWS contributions. Year three is no longer a statutory contract-duration milestone: the parties agree a fixed term and any renewal.

Remote staff who live outside the UAE

The permit answer depends on the employer’s rulebook and actual work location. ADGM’s exemption requires a remote employee who neither resides nor works in the UAE; mainland permission for remote work does not establish the same exemption.

• ADGM. A remote employee who neither lives nor works in the UAE needs no residency visa or ADGM work permit, according to ADGM's Employment Affairs Office.
• ADGM, remote employee in the UAE. One who lives and works in the UAE does need the permit.
• Mainland. Federal Decree-Law 33/2021 lets a worker work remotely, inside or outside the UAE, with the employer's approval. Separately, any work in the UAE needs a work permit.
• Mainland, WPS. Foreign establishments can ask MoHRE to exclude staff paid outside the UAE from WPS, with the workers' approval.

Tax is a separate question. A foreign company has UAE corporate tax nexus through a fixed-place permanent establishment, such as an office, branch or place of management.

It also has nexus through a dependent-agent permanent establishment, where a person habitually concludes contracts on its behalf, according to the Federal Tax Authority. A remote employee who habitually concludes contracts for you can therefore create exposure.

For employment through a licensed local provider, the employer of record page covers how that model works.

Minimum wage in the UAE

None — Emiratis only AED 6,000: federal law sets no general minimum wage for private-sector employees, and the only floor is the AED 6,000 a month that applies to Emirati nationals.

General minimum wage (mainland)	None; the Labour Law requires only that wages meet basic needs	u.ae (payment of wages)
Power to set one	Article 27 lets the Cabinet set a minimum wage by resolution; none has been set	Decree-Law 33/2021
Emirati private-sector minimum	AED 6,000 / month — since 1 January 2026, up from AED 5,000	EY (minimum salary)
Deadline for earlier Emirati hires	30 June 2026 to raise salaries of Emiratis hired before 1 January 2026 to AED 6,000	EY (minimum salary)
Consequence of missing it	From 1 July 2026, those Emiratis are excluded from Emiratisation targets and new work permits can be suspended	EY (minimum salary)

For expatriates, the contract salary is a market matter. The only wage-adequacy test is "enough to meet basic needs", set out on the government payment-of-wages page. No statutory hourly rate is set.

For an Emirati at the floor, employed outside Abu Dhabi, who first joined the labour market on or after 31 October 2023, you also pay a GPSSA contribution of AED 750 a month, covered in the taxes section.

Register the Emirati for pension within a month of the work permit.

The Nafis programme, which supports Emirati private-sector employment, was extended to 2040 on 6 April 2026.

KPMG reported that the reform benefits would be available to new beneficiaries from September 2026, with existing participants able to transition over three years.

Paying wages: the first-of-the-month rule and what happens when you are late

On the mainland, wages for the previous month have been due on the first day of each Gregorian month since 1 June 2026.

At least 85% of the total wages due must go through the Wages Protection System (WPS) on time.

The threshold was 80% before Ministerial Resolution 340 of 2026, according to Morgan Lewis.

Late payment triggers the measures on the government payment-of-wages page:

The escalation ladder

Day after due date	What happens	Source
Day 2	Notifications and alerts go to the non-compliant establishment	u.ae (payment of wages)
Day 5	New work permits for the establishment are suspended	u.ae (payment of wages)
Day 11	On a repeat violation within six months: an administrative fine and reclassification of the establishment to the Third Category	u.ae (payment of wages)
Day 16	Labour disputes are registered automatically for establishments with 25 or more workers	u.ae (payment of wages)
Day 21	An executive instrument for the wages under 50 workers, or a collective labour dispute at 50 or more; precautionary attachment and a travel ban on the person in charge. Referral to the Public Prosecution for 50 or more workers on a repeated violation within two consecutive months	u.ae (payment of wages)

Clyde & Co lists the same sequence: reminders from day 2, permit suspension from day 5, and fines and Third Category classification from day 11 for repeat breaches.

A worked example

Wages for September are due on 1 October. Within three weeks of that date, late payment escalates from an alert to a travel ban.

Wages are late from 2 October, so fund the transfer before the last working day of September.

On June wages, the first month under the rule, Sara Khoja, a partner at Clyde & Co, wrote:

Any payment made after 1 July would technically constitute delayed payment under the WPS regime

— Sara Khoja, Partner, Clyde & Co

The same Clyde & Co authors note that the resolution addresses employers that outsource payroll and confirms they remain ultimately responsible for timely salary payment.

The resolution is a mainland MoHRE rule; DIFC and ADGM run their own employment rulebooks.

Taxes and contributions

None — no personal income tax applies to employees, on the mainland or in free zones, according to the government taxation page.

Employer social security for expatriates is 0%, because the UAE has no pension scheme for them; end-of-service gratuity applies instead.

Who	Employer	Employee	Source
Expatriates, mainland	0%	0%	u.ae (expatriate pensions)
Expatriate employees of a DIFC entity	DEWS: 5.83% of basic wage for years 1 to 5, then 8.33%	Not stated	DIFC (Law No. 2 of 2019)
Private-sector UAE nationals outside Abu Dhabi (first joined the labour market on or after 31 October 2023)	15% of pensionable salary, of which the government pays 2.5% for private-sector monthly salaries under AED 20,000; salary capped at AED 70,000	11%	DLA Piper (pensions); u.ae (pensions for UAE citizens)
UAE nationals based and employed in Abu Dhabi	Under the Abu Dhabi Pension Fund (ADPF), not GPSSA	Under ADPF	u.ae (pensions for UAE citizens)
GCC nationals	Home-country social security, subscribed by the UAE employer	Home-country rules	u.ae (expatriate pensions)
ILOE unemployment insurance	None	AED 5 + VAT a month up to basic AED 16,000; AED 10 + VAT above	ILOE
Savings Scheme (voluntary, replaces gratuity)	5.83% of basic wage before 5 years of service, 8.33% after	None	u.ae (end of service benefits)

The split above follows Federal Decree-Law 57/2023, in force from 2 October 2023, according to DLA Piper. GPSSA’s first-employment cutoff is 31 October 2023 for participating employers; previously registered employees retain the 1999 law.

Nationals already registered with GPSSA before the 2023 law took effect stay under the 1999 pensions law, which splits the contributions differently, according to DLA Piper and u.ae.

The Nafis programme changes the employer side for enrolled Emiratis. From September 2026 private-sector employers pay their statutory share of pension contributions.

That ends the phased employer ramp Nafis had covered: 0% in year one, then 2%, 4%, 5% and 6%, according to Gulf News.

Corporate tax applies to the employer entity, not to employees' pay. It is 0% on taxable income up to AED 375,000 and 9% on the part above, according to the Federal Tax Authority.

Employment income of natural persons falls outside corporate tax. A foreign company can also create tax nexus through a permanent establishment, as the remote staff section explains.

What an employee actually costs you

Pension contributions differ between expatriate and Emirati hires.

The table compares monthly pension contributions for a private-sector Emirati outside Abu Dhabi, covered by the 2023 GPSSA law and first employed on or after 31 October 2023. It is not a total employer-cost comparison.

Monthly salary	Expatriate: employer pension contribution	UAE national: employer GPSSA contribution
AED 6,000	AED 0	AED 750
AED 30,000	AED 0	AED 4,500
AED 100,000	AED 0	AED 10,500

• At AED 6,000, the national's figure is 15% minus the 2.5% the state pays.
• At AED 30,000, the full 15% applies.
• At AED 100,000, the AED 70,000 cap binds: you pay 15% of AED 70,000, which is AED 10,500, the maximum.

Compare pension contributions at the same salary. An Emirati hire carries the AED 6,000 floor; expatriate gratuity is a separate cost.

The figures leave out health insurance premiums, visa fees, ILOE (worker-paid) and any Emiratisation contributions.

Expatriate gratuity accrues on basic wage only, excluding allowances.

On the mainland that is 21 days per year of service for the first five years; in DIFC it is DEWS at 5.83% of basic wage for the first five years.

Working time and overtime

Normal mainland working hours are 8 a day or 48 a week, not 40, under Federal Decree-Law 33/2021. The other mainland rules:

• Overtime limit. Normally at most 2 hours a day; total hours may not exceed 144 per 3 weeks. Article 19 permits departures from the two-hour limit under Implementing Regulation conditions.
• Overtime pay. Basic wage plus at least 25%, and plus at least 50% between 10 pm and 4 am. Shift workers are not covered by the night premium.
• Weekly rest day. Work on it earns another day off or the day's wage plus at least 50% of basic wage.
• Public holidays. Work on a public holiday is compensated the same way: another day off, or the normal day's wage plus at least 50% of basic wage.
• Ramadan. Private-sector hours are cut by 2 a day with no wage reduction, according to the government working-hours page.
• Remote work. Allowed with the employer's approval, and the employer may require specific working hours.

The free zones differ on the same points:

	DIFC	ADGM
Weekly limit	Average of 48 hours per 7 days, more with written consent	48 hours in 7 days, more with written consent
Ramadan	Muslim employees work at most 6 hours a day with no pay cut	Muslim employees' hours cut by 25% a day with no pay cut

A 12-hour day falls outside the ordinary mainland pattern. Articles 17(2), 19(1) and 20 provide for Implementing Regulation conditions and excluded categories, so its legality depends on the applicable rules.

Leave, sick pay and parental leave

Mainland employees get 30 days of paid annual leave after one year of service, plus public holidays of up to 13 days.

Between six and twelve months of service, leave accrues at 2 days a month, according to the government leave page.

The public holiday calendar counts these days:

• New Year: 1 day
• Eid Al Fitr: up to 4 days
• Arafah Day: 1 day
• Eid Al Adha: 3 days
• Hijri New Year: 1 day
• Prophet's birthday: 1 day
• National Day: 2 days

Islamic dates follow moon sighting, so the exact days move each year. On the mainland, unused leave is paid out on exit at basic wage.

Do public holidays count inside annual leave?

On the mainland, yes: a public holiday that falls inside annual leave counts as part of the leave, unless the contract or establishment rules are more favourable. A 30-day entitlement therefore does not grow when a holiday lands in it.

DIFC and ADGM exclude holidays from annual leave:

• DIFC. 20 work days of paid leave a year after 90 days of employment, exclusive of public holidays. Up to 5 days can be carried forward for 12 months.
• ADGM. 20 working days a year, exclusive of national holidays, plus leave and daily wage on national holidays that fall on a working day.

Sick leave, maternity and parental leave

Type	Mainland	DIFC	ADGM
Sick leave	Up to 90 days a year after probation: first 15 days full pay, next 30 half pay, the rest unpaid	60 work days in 12 months: 10 full pay, then 20 at 50%	60 working days in 12 months: 10 full pay, 20 at 50%, last 30 unpaid, after probation
Maternity leave	60 days: 45 full wage, 15 half wage	65 work days; after 12 months' service, 33 at full pay and 32 at half	65 working days: 33 at full pay and 32 at half
Paternity or parental leave	5 working days for either parent, within 6 months of the birth	Up to 5 work days for a father with 12 months' service	5 working days within 2 months of birth or adoption; paid after 12 months' service

Other mainland rules:

• Bereavement leave is 5 days for a spouse and 3 days for a parent, child, sibling or grandparent.
• Dismissal because of pregnancy or maternity leave is prohibited.
• ILOE is a separate insurance paid by the worker and does not replace sick pay.

Termination: notice and payments

Notice on the mainland is 30 – 90 days, fixed in the contract and not tied to length of service, under Federal Decree-Law 33/2021. The other mainland rules:

• During notice. The worker keeps full wages. A party skipping notice pays the other the wage for the full or remaining period. After employer notice, the worker may take one unpaid working day weekly to find work.
• Summary dismissal. Allowed only on the ten grounds of Article 44, after a written investigation and a reasoned written decision.
• Unlawful dismissal. Dismissal for filing a proven complaint or a lawsuit is unlawful. Compensation can reach 3 months of the last wage, on top of notice pay and gratuity.
• Health. You may not terminate for lack of health fitness before the worker has used accrued leave.
• A worker who leaves illegitimately. A foreign worker who leaves before the contract term ends cannot get a new work permit for one year.

Notice by regime and tenure

DIFC notice minima exclude probation and fixed-term expiry. ADGM's ordinary minima exclude probation, termination for cause and agreed fixed-term expiry.

During ADGM probation, either party may terminate without cause on at least 7 calendar days' written notice. Otherwise, DIFC and ADGM use tenure; mainland notice is set in the contract.

Length of service	Mainland	DIFC	ADGM
Under 3 months	30 to 90 days, set in the contract	7 days	7 days
3 months to 5 years	30 to 90 days, set in the contract	30 days	30 days
Over 5 years	30 to 90 days, set in the contract	90 days	30 days

Under the ordinary notice rules, DIFC steps up to 90 days after five years; ADGM stays at 30.

In DIFC, notice does not apply during probation or at the expiry of a fixed term.

ADGM minima exclude termination for cause and agreed fixed-term expiry. Payment in lieu of notice needs the employee's written consent.

What you owe at exit

A mainland worker with at least one year of continuous service receives gratuity of 21 days of basic wage for each of the first five years and 30 days for each year after. The total cannot exceed two years' wage.

It runs on the last basic wage, excluding allowances such as housing and transport, with part years counted pro rata.

Multiply the days by the daily basic wage to get dirhams. The amount depends on the daily-rate method you apply, because the official page gives days and no formula.

• Deadline. All outstanding wages and gratuity are due within 14 days of termination, according to the government end-of-service page.
• Unused leave. Paid out at basic wage.
• Savings Scheme. Enrolled employees are no longer covered by gratuity, and the employer settles gratuity accrued before enrolment. The scheme is voluntary and no mandatory date has been announced.

DIFC and ADGM exit pay, and the repatriation rules, are in the three rulebooks section above. For an exit through a licensed employer, see the employer of record page.

Recent changes in UAE employment rules

The Emirati minimum rose to AED 6,000 on 1 January 2026. New wage-payment rules took effect on 1 June 2026. Further deadlines run from 30 October 2026 to 1 July 2027.

• 31 August 2024. Federal Decree-Law 9/2024 raises labour-law fines for unauthorised employment and misuse of work permits to AED 100,000 to 1,000,000, up from AED 50,000 to 200,000 (Clyde & Co).
• 1 January 2025. Employer-funded health insurance becomes compulsory in the other five emirates (Clyde & Co).
• 1 April 2025. The ADGM Employment Regulations 2024 come into force (Clyde & Co).
• July 2025. The DIFC Employment Law is consolidated and amended up to this date.
• 28 October 2025. ADGM amends its probation section.
• 1 January 2026. The Emirati private-sector minimum rises to AED 6,000 a month (EY).
• 6 April 2026. The Nafis programme is extended to 2040 (EY).
• 1 June 2026. Resolution 340/2026 makes wages due on the 1st of the month and raises the WPS threshold to 85% (Morgan Lewis).
• 30 June and 1 July 2026. Raise pre-2026 Emirati hires to AED 6,000 by 30 June. From 1 July, employers with 50 or more staff missing the first-half Emiratisation rate face financial contributions (Erickson Immigration Group).
• 7 August 2026. Ministerial Decision 131 extends Small Business Relief, for revenue up to AED 3 million, to tax periods ending on or before 31 December 2029 (Ministry of Finance, via Khaleej Times).
• The threshold, conditions and exclusions are unchanged (BIFI Partners).
• September 2026. Private-sector employers pay their full share of pension contributions for Emiratis enrolled in Nafis (Gulf News).
• 1 October 2026. Most amendments under Cabinet Decision 149/2026 to the VAT Executive Regulation take effect (KPMG); the contractors page covers it.

The Savings Scheme remains voluntary, with no mandatory date announced.

Deadlines in the next six months

Date	What	Who
30 Oct 2026	Appoint an Accredited Service Provider for e-invoicing. The date was extended from 31 July 2026, and the Ministry says no further extensions will be granted (MoF)	Businesses with revenue of AED 50 million or more
31 Dec 2026	End of the Emiratisation year: cumulative 10% Emirati share of skilled jobs	Employers with 50 or more workers
1 Jan 2027	E-invoicing goes live (MoF)	Businesses with revenue of AED 50 million or more
31 Mar 2027	Appoint an Accredited Service Provider; register for Corporate Tax if 2026 turnover exceeded AED 1,000,000, with an administrative penalty of AED 10,000 for missing the deadline (FTA)	Businesses under AED 50 million; natural persons with business turnover above AED 1,000,000
1 Jul 2027	E-invoicing goes live	Businesses with revenue below AED 50 million

The AED 10,000 late-registration penalty can be waived for eligible taxable persons, including natural persons, if their first Corporate Tax return is filed within seven months after the first tax period ends (FTA clarification).

What a mistake costs and who pays

The employer entity bears most penalties, with fines scaling per worker. Breaches can also freeze work permits.

Party	Risk	Amount
Employer	Mainland: employing without a valid permit, or misusing permits	AED 100,000 to 1,000,000 (Clyde & Co), multiplied by the workers involved, up to AED 10,000,000 in total (Decree-Law 33/2021)
Employer	Mainland: any other Labour Law violation	AED 5,000 to 1,000,000, doubled on a repeat within a year (Decree-Law 33/2021)
Employer	Mainland: late wages	Day 5: new work permits suspended. Day 21: attachment and travel ban; u.ae (payment of wages)
Employer	Mainland: with 50 or more workers, missing the Emirati skilled-job share	AED 6,000 a month per Emirati not employed, rising AED 1,000 a year until 2026; u.ae (Emiratis' employment)
Employer	Mainland: with 20 to 49 workers in 14 listed sectors, missing the required hires	AED 96,000 (January 2025, one Emirati) and AED 108,000 (January 2026, two Emiratis); u.ae (Emiratis' employment)
Employer	Mainland: paying an Emirati below AED 6,000	The Emirati no longer counts towards Emiratisation targets, and new work permits can be suspended; EY (minimum salary)
Employer	Mainland: no health insurance	Fines and possible suspension, rejection or non-renewal of work permits; amount not stated (Gulf News)
Staffing provider	Mainland: placing staff without a MoHRE licence	No fine amount is published here; the licence itself needs a bank guarantee of AED 300,000 or AED 1,000,000; DLA Piper (licensing)
Employer	DIFC: breaching the DEWS payment rules	Up to USD 2,000 per contravention per employee; DIFC (Consolidated Version No. 5)
Employer	Mainland: unlawful dismissal	Compensation up to 3 months of last wage, plus notice and gratuity (Decree-Law 33/2021)
Employee	Mainland: leaving illegitimately before the term ends	One-year ban on a new work permit (Decree-Law 33/2021)
Foreign client	UAE corporate-tax nexus through a permanent establishment	Depends on taxable income; 9% above AED 375,000; FTA (Corporate Tax General Guide)

Clyde & Co reads the wage resolution as leaving employers ultimately responsible for timely salary payment even when payroll is outsourced.

Treating an employee as a contractor can trigger the unauthorised-employment penalty. The blog post on employee misclassification penalties explains how that exposure arises.

Questions people actually ask

What is the minimum wage in the UAE?

The UAE has no general minimum wage for private-sector employees. Emiratis have a floor of AED 6,000 a month since 1 January 2026, up from AED 5,000, and it does not apply to expatriates.

Do expats pay income tax or social security in the UAE?

No personal income tax applies. Employers pay 0% social security for expatriates, because no pension scheme exists for them; end-of-service gratuity applies instead.

What is the rule for end-of-service pay in the UAE?

On the mainland, after one year of service: 21 days of basic wage per year for the first five years, 30 after, capped at two years' wage, paid within 14 days of exit. DIFC employers fund DEWS monthly.

Is it legal to work 12 hours a day in the UAE?

Ordinary mainland hours are 8 a day, with normally at most 2 overtime hours. A 12-hour day's legality depends on the applicable Implementing Regulation conditions and excluded worker categories.

What are the new labour rules in the UAE in 2026?

Two stand out: the AED 6,000 Emirati minimum from 1 January 2026, and Resolution 340/2026 from 1 June 2026: wages due on the 1st, 85% paid on time through WPS. Earlier Emirati hires needed AED 6,000 by 30 June.

Can a foreign company hire in the UAE without setting up a company?

For mainland employment in the UAE, the work permit requires a licensed establishment. A licensed provider is an alternative to your own entity. For an ADGM employer, a remote employee wholly outside the UAE needs no UAE visa/ADGM permit.

Do public holidays count as annual leave in the UAE?

On the mainland, yes, unless the contract is more favourable. In DIFC and ADGM they do not: the 20 working days of leave are exclusive of public holidays.

What is the average salary in the UAE?

No official figure published in the cited sources. The Central Bank of the UAE reports the average WPS wage as a year-on-year change: down 2.3% in June 2026.

Sources

1. UAE Government portal (u.ae). Work permits in the private sector. Accessed 6 October 2026.
2. EY. UAE raises minimum salary for Emirati employees in the private sector effective 1 January 2026. Accessed 6 October 2026.
3. Decree-Law 33/2021. Federal Decree-Law No. 33 of 2021 on labour relations. Accessed 9 October 2026.
4. DLA Piper. New guidelines for recruitment agency licensing. Accessed 6 October 2026.
5. Afridi & Angell. Hiring in the UAE: Overview. Accessed 6 October 2026.
6. UAE Government portal (u.ae). Pension schemes for expatriate workers. Accessed 6 October 2026.
7. DIFC. Employment Law, DIFC Law No. 2 of 2019. Accessed 6 October 2026.
8. ADGM. Employment Regulations 2024, version of 28 October 2025. Accessed 6 October 2026.
9. DIFC. Employment Law, Consolidated Version No. 5 (July 2025). Accessed 6 October 2026.
10. Clyde & Co. The new ADGM Employment Regulations. Accessed 6 October 2026.
11. UAE Government portal (u.ae). End of service benefits for employees in the private sector. Accessed 6 October 2026.
12. Gulf News. UAE gratuity calculator: what are your end-of-service dues. Accessed 6 October 2026.
13. Central Bank of the UAE. Quarterly Economic Review, September 2026. Accessed 6 October 2026.
14. Clyde & Co. Nationwide extension of employer-funded compulsory health insurance. Accessed 6 October 2026.
15. GDRFA. Work visa fee, Dubai. Accessed 6 October 2026.
16. GDRFA. Residence permit for private-sector workers, Dubai. Accessed 6 October 2026.
17. UAE Government portal (u.ae). Pensions and social security for UAE citizens. Accessed 6 October 2026.
18. ILOE. Involuntary Loss of Employment insurance. Accessed 6 October 2026.
19. DLA Piper. New UAE pensions law. Accessed 6 October 2026.
20. GDRFA. Green residence for self-employment, Dubai. Accessed 6 October 2026.
21. Abu Dhabi Department of Economic Development (ADDED). Abu Dhabi green visa for freelancers. Accessed 6 October 2026.
22. UAE Government portal (u.ae). Payment of wages. Accessed 6 October 2026.
23. Federal Tax Authority (FTA). Taxation of natural persons guide. Accessed 6 October 2026.
24. UAE Government portal (u.ae). Employment of expatriates in privately held companies. Accessed 6 October 2026.
25. UAE Government portal (u.ae). Emiratis' employment in the private sector. Accessed 6 October 2026.
26. UAE Government portal (u.ae). Insurance system for employees in the private sector. Accessed 6 October 2026.
27. ADGM Employment Affairs Office. Guidance on the Employment Regulations 2024 (February 2025). Accessed 9 October 2026.
28. Pinsent Masons. UAE lifts cap on private-sector employment contracts. Accessed 9 October 2026.
29. UAE Government portal (u.ae). Types of leaves. Accessed 6 October 2026.
30. Federal Tax Authority (FTA). Permanent establishment. Accessed 6 October 2026.
31. EY. UAE extends the Nafis programme until 2040. Accessed 6 October 2026.
32. KPMG. Flash alert on the Nafis reform. Accessed 6 October 2026.
33. Morgan Lewis. UAE tightens wage protection rules with new WPS resolution effective June 2026. Accessed 6 October 2026.
34. Clyde & Co. UAE introduces stricter wage protection. Accessed 6 October 2026.
35. UAE Government portal (u.ae). Taxation. Accessed 6 October 2026.
36. GPSSA. Scope of Federal Law No. 57 of 2023 and first-employment cutoff. Accessed 9 October 2026.
37. Gulf News. Employers to bear their full share of pension contributions for Emirati employees. Accessed 6 October 2026.
38. Federal Tax Authority (FTA). Corporate Tax General Guide. Accessed 6 October 2026.
39. UAE Government portal (u.ae). Working hours. Accessed 6 October 2026.
40. UAE Government portal (u.ae). Public holidays. Accessed 6 October 2026.
41. Clyde & Co. Significant amendments to the UAE labour law. Accessed 6 October 2026.
42. Erickson Immigration Group. UAE reminds private employers of June 2026 Emiratisation deadline. Accessed 6 October 2026.
43. Khaleej Times. UAE extends corporate tax relief for small businesses until 2029. Accessed 6 October 2026.
44. BIFI Partners. UAE Small Business Relief extended to 2029. Accessed 6 October 2026.
45. KPMG. Cabinet Decision 149 of 2026 amending the VAT Executive Regulation. Accessed 6 October 2026.
46. Ministry of Finance (MoF). UAE eInvoicing Programme update. Accessed 6 October 2026.
47. MoF. Ministerial Decision No. 244 of 2025 on the Implementation of the Electronic Invoicing System. Accessed 6 October 2026.
48. Federal Tax Authority (FTA). FTA urges natural persons to register for Corporate Tax before the end of March. Accessed 6 October 2026.
49. Federal Tax Authority (FTA). CTP006: Waiver of late-registration administrative penalty. Accessed 9 October 2026.
50. Gulf News. UAE identifies six health insurance violations by employers. Accessed 6 October 2026.