UAE

• New Year's Day
• Eid al-Fitr Holidays
• Arafat (Haj) Day
• Eid Al Adha
• Hijri New Year’s Day
• Prophet Mohammed’s Birthday
• Commemoration Day
• UAE National Day Holiday

Working Hours

Employees can work up to eight hours a day, or 48 hours per week. This is reduced by two hours a day during Ramadan.

Minimum Wage

There is no statutory minimum wage in UAE.

Employee Tax

Tax rate	None
Social security contribution	5%

Bonuses

There are no statutory bonus schemes in UAE.

Employees in non-free zones must enter into a standard dual-language contract which is provided by the Ministry of Human Resources and Emiratisation. Some free zones issue their own standard contract template.

The contract must include:

• Employment start and end date (if applicable)
• Job title and responsibilities
• Workplace
• Contract length (if applicable)
• Salary

Employees in non-free zones must also sign a standard template offer letter stating the basic terms of employment.

The law allows only Limited Employment Contracts/Fixed-Term Employment Contracts for private sector employees. These employment contracts (for private sector employees) must cover a defined term of employment, which can be renewed subject to an agreement by both the employer and employee. Residence and work visas are thus issued in line with the validity period of the employment contract.

Annual Leave

Employees accumulate two days of paid leave for each month worked after six months of service. After a year of service, employees are entitled to a minimum of 30 days’ paid holiday per year.

Sick Leave

Employees are entitled to full pay for the first 15 days of sick leave and half-pay for the next 30 days. Any further sick leave will be unpaid. This applies following the probation period plus three months of service.

Parental Leave

• Maternity leave: at least 60 days' paid leave, plus 45 days' unpaid leave.
• Paternity leave: all male employees are entitled to 5 working days of paid paternity leave.

Termination Process

Employers in the UAE can terminate a contract provided they give notice and/or compensation in line with legal requirements.

Other grounds for termination include:

• Mutual consent
• Contract expiry
• Safety violations
• Misconduct
• Intoxication at work
• Excessive unauthorised absences

Employees can also end a contract by giving at least 30 days’ notice.

Severance Pay

Employees with at least one year of service are eligible to receive severance pay.

They are entitled to 21 days’ wages for each year of service up to five years, plus 30 days’ wages for each additional year thereafter.

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