Important Updates
Important Updates
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
July 3, 2025 | CanadaCanada: Ontario Implements Key Reforms to the Immigrant Nominee Program
July 3, 2025 | CanadaCanada: Québec Reopens Skilled Worker Program and Unveils Selection Criteria
July 3, 2025 | United Arab EmiratesUnited Arab Emirates: Temporary Pause on Issuing Freelance Visas
July 3, 2025 | United KingdomUnited Kingdom: Migration Advisory Committee to Assess Salary Thresholds, Temporary Shortage List Occupations
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
July 3, 2025 | CanadaCanada: Ontario Implements Key Reforms to the Immigrant Nominee Program
July 3, 2025 | CanadaCanada: Québec Reopens Skilled Worker Program and Unveils Selection Criteria
July 3, 2025 | United Arab EmiratesUnited Arab Emirates: Temporary Pause on Issuing Freelance Visas
July 3, 2025 | United KingdomUnited Kingdom: Migration Advisory Committee to Assess Salary Thresholds, Temporary Shortage List Occupations
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

United Arab Emirates: Additional Details Released on Impact of Forthcoming Labor Law

November 29, 2021

insight-news-default

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • A new labor law, effective February 2, 2022, will replace existing employment regulations applicable to workers and companies in the private sector, except those in the Abu Dhabi Global Market and Dubai International Financial free zones (which have their own labour laws) and domestic workers.
  • The law consolidates many changes which have been implemented in the United Arab Emirates through various regulations over the past few years, and also introduces new changes. Topics covered include work models, employment contracts, probationary periods, wages, termination notices, and penalties, among others.
  • As a result, employers in the private sector should review their strategies and policies for the recruitment and employment of workers.

The situation

A new labor law, effective February 2, 2022, will replace existing employment regulations applicable to workers and companies in the private sector, except those in the Abu Dhabi Global Market and Dubai International Financial free zones (which have their own labour laws) and domestic workers.

A closer look

The new law consolidates many changes which have been implemented through various regulations over the past few years and introduces new rules. Details of the law include the following:

CURRENT LAW FUTURE LAW IMPACT
Work models. Alternative employment arrangements, including part-time work, are recognized by the main law and its executive regulations, to a limited extent.

Alternative employment arrangements will be addressed in more detail and new work models, including flexible work, will be introduced.

Employers will have additional options to consider for their recruitment needs. Alternative work models may result in reduced costs of employment while increasing work efficacy and providing flexibility for workers who require non-traditional work models.

Employment contracts. Limited- and unlimited-term employment contracts are recognized.

Only limited-term employment contracts not exceeding three years (renewable for similar or shorter periods) will be recognized.

 

Unlimited-term employment contracts for all employees will have to be converted into limited-term agreements by February 1, 2023. This is likely to create additional administrative burdens and extra costs, depending on the jurisdiction of the sponsoring entity.
Probationary period. The probationary period (the official time when an employer can monitor the employee’s performance) is currently for a maximum of six months and can be terminated by either party without notice.

The maximum probationary period will remain at six months. However, both parties will be required to serve a 14-day termination notice unless the employee has secured an alternative employment option in the United Arab Emirates, in which case the employee will be required to serve a one-month notice.

The new law will also impose specific obligations on employers, including possible reimbursement of recruitment costs where workers are seeking to change employers during and after the probationary period.

Employers must assess any specific obligations relating to the termination of the employment during and after the probationary period, including the reimbursement of recruitment costs where workers are seeking new employment in the United Arab Emirates.
Wages. Wages must be paid in the local currency (UAE Dirhams) Wages will be required to be paid in the local currency (UAE Dirhams), unless otherwise agreed between the parties in the employment contract. The payment of wages in a foreign currency may have an impact on employer’s compliance with the United Arab Emirate’s Wages Protection System. However, any specific implications should be assessed on an individual basis.
Termination notices. The minimum termination notice period is 30 days and the maximum period is three months. The minimum notice period will remain at 30 days and the maximum period will be 90 days. All financial dues will need to be paid by the employer to the employee within 14 days of the employment termination date. Employers will have to revise their internal policies to ensure that the applicable termination mechanisms comply with the 14-day deadline. This new requirement may also impact the date the employment residence permit cancelation can be processed by the employer.
Penalties. Companies employing workers without the relevant work authorization may be subject to a fine of AED 50,000 to 100,000. Companies employing workers without the relevant work authorization may be subject to a fine of AED 50,000 to 200,000. Employers should ensure that they comply with the applicable work authorization requirements or risk being subject to higher fines.

Background

These changes have been introduced after the implementation of numerous enterprising immigration laws, which are expected to support the United Arab Emirate’s economy and make the country a leader in attracting business in the region.  

Looking ahead

The Ministry of Human Resources and Emiratization is expected to issue implementing regulations that will set out further frameworks and will contain additional explanatory provisions of the law. It is not clear when these regulations will be available.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Podcast

David Kipp über Migration von Indien nach Deutschland

David Kipp von der Stiftung Wissenschaft und Politik im Gespräch mit Marius Tollenaere, Partner im Frankfurter Büro von Fragomen.

Learn more

Blog post

EB-5: What You Should Know—And Why It Might Be Worth It

Partner Dan Schwarz and Senior Associate Mikhail (Mike) Izrailev provide an overview of the EB-5 visa program, highlighting its benefits and key considerations for potential investors.

Learn more

Blog post

The 11th Seat: Timor-Leste's ASEAN Debut and the Shifting Map of Regional Mobility

Business Immigration Consultant Ryaihanny Sahrom discusses Timor-Leste's ASEAN debut and its impact on regional mobility.

Learn more

Blog post

Understanding the Saudi Real Estate Market: What Expats Need to Know

Destination Services Manager Ali Sikandar provides essential information for expats navigating the Saudi real estate market.

Learn more

Blog post

2025 Middle East and Africa Immigration Trends: Balancing Localization Concerns with Global Talent Attraction Efforts

This blog highlights the most significant immigration developments shaping the Middle East and Africa in 2025, drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July.

Learn more

Video

French Citizenship by Decree | Everything You Need to Know

Immigration Consultant Azela Hadia covers everything you need to know about French citizenship by decree, a legal process through which a foreign national can acquire French nationality.

Learn more

Blog post

Navigating the UAE Corporate Landscape: A Strategic Guide for Startups and Entrepreneurs

This blog provides an overview of the key factors to consider when deciding in which jurisdiction to set up a company in the UAE.

Learn more

Media mentions

TechRound: Experts Share: How Will The Global Talent Visa Help The Startup Industry?

Manager Alexander Hood explains how the UK’s Global Talent visa helps tech founders start and grow businesses without employer sponsorship.

Learn more

Blog post

The Future of Care Work in the UK: Understanding the Latest Immigration Announcements

Partner Siobhan Owers and Senior Associate Asif Hanif discuss the latest UK immigration announcements and their impact on the future of care work.

Learn more

Media mentions

Toronto Star: 25 Years Ago New Immigrants to Canada Told Us Their Dreams. We Checked In to See How They’ve Fared

Senior Business Immigration Analyst Rabaa Biry recently shared her journey to Canada and how support and perseverance helped shape her path forward.

Learn more

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Podcast

David Kipp über Migration von Indien nach Deutschland

David Kipp von der Stiftung Wissenschaft und Politik im Gespräch mit Marius Tollenaere, Partner im Frankfurter Büro von Fragomen.

Learn more

Blog post

EB-5: What You Should Know—And Why It Might Be Worth It

Partner Dan Schwarz and Senior Associate Mikhail (Mike) Izrailev provide an overview of the EB-5 visa program, highlighting its benefits and key considerations for potential investors.

Learn more

Blog post

The 11th Seat: Timor-Leste's ASEAN Debut and the Shifting Map of Regional Mobility

Business Immigration Consultant Ryaihanny Sahrom discusses Timor-Leste's ASEAN debut and its impact on regional mobility.

Learn more

Blog post

Understanding the Saudi Real Estate Market: What Expats Need to Know

Destination Services Manager Ali Sikandar provides essential information for expats navigating the Saudi real estate market.

Learn more

Blog post

2025 Middle East and Africa Immigration Trends: Balancing Localization Concerns with Global Talent Attraction Efforts

This blog highlights the most significant immigration developments shaping the Middle East and Africa in 2025, drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July.

Learn more

Video

French Citizenship by Decree | Everything You Need to Know

Immigration Consultant Azela Hadia covers everything you need to know about French citizenship by decree, a legal process through which a foreign national can acquire French nationality.

Learn more

Blog post

Navigating the UAE Corporate Landscape: A Strategic Guide for Startups and Entrepreneurs

This blog provides an overview of the key factors to consider when deciding in which jurisdiction to set up a company in the UAE.

Learn more

Media mentions

TechRound: Experts Share: How Will The Global Talent Visa Help The Startup Industry?

Manager Alexander Hood explains how the UK’s Global Talent visa helps tech founders start and grow businesses without employer sponsorship.

Learn more

Blog post

The Future of Care Work in the UK: Understanding the Latest Immigration Announcements

Partner Siobhan Owers and Senior Associate Asif Hanif discuss the latest UK immigration announcements and their impact on the future of care work.

Learn more

Media mentions

Toronto Star: 25 Years Ago New Immigrants to Canada Told Us Their Dreams. We Checked In to See How They’ve Fared

Senior Business Immigration Analyst Rabaa Biry recently shared her journey to Canada and how support and perseverance helped shape her path forward.

Learn more

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.