What is the gratuity formula under UAE Labour Law?

Under Federal Decree-Law No. 33 of 2021, employees are entitled to 21 days basic salary per year for the first 5 years, and 30 days per year thereafter. Gratuity is capped at 2 years total salary.

What is the notice period under UAE Labour Law?

The minimum notice period is 30 days. Contracts may specify up to 90 days. Both employer and employee must observe the notice period unless mutual agreement is reached.

Can an employer terminate an employee on probation in the UAE?

Yes. During probation (maximum 6 months), either party may terminate with 14 days written notice. If the employer terminates without notice, they may be liable for compensation.

UAE Labour Law Advisory

Stay compliant. Avoid penalties. Protect your business.

Navigate UAE Labour Law with confidence. Our expert advisors provide end-to-end guidance on Federal Decree-Law No. 33 of 2021, MOHRE regulations, and GCC employment compliance — keeping your business protected and your workforce managed lawfully.

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UAE Labour Law Alert: Non-compliance can result in fines up to AED 1,000,000 under UAE Labour Law. Ensure your contracts, HR policies, and payroll practices are fully aligned with Federal Decree-Law No. 33 of 2021.

Our Labour Law Advisory Services

Comprehensive UAE employment law support across every aspect of your workforce management.

Employment Contract Review

Review and drafting of UAE-compliant employment contracts — limited and unlimited term — fully aligned with Federal Decree-Law No. 33 of 2021.

UAE Labour Law Compliance Audit

End-to-end HR compliance audit covering policies, contracts, leave entitlements, WPS, and payroll practices.

Termination & Gratuity Advisory

Expert guidance on lawful termination procedures, gratuity calculations, and end-of-service settlements to minimise legal exposure.

Disciplinary Procedure Guidance

Structured support on warnings, show-cause notices, investigations, and disciplinary actions compliant with UAE Labour Law.

MOHRE & Ministry Liaison

Representation and advisory support for Ministry of Human Resources & Emiratisation filings, complaints, and regulatory queries.

Emiratization Compliance

Guidance on Nafis programme, Emiratization quotas, TAWTEEN targets, and avoiding penalties under Emiratization regulations.

Federal Decree-Law No. 33 of 2021

UAE Labour Law — Key Provisions at a Glance

Notice Periods

Minimum 30 days, up to 90 days as per contract. Applies to both employer and employee.

Gratuity Entitlement

21 days basic salary/year for first 5 years, 30 days/year thereafter. Capped at 2 years salary.

Annual Leave

30 calendar days per year after 1 year of service. 2 days/month during the first year.

WPS Compliance

Wage Protection System mandatory for all employers. Non-compliance triggers fines and recruitment bans.

Probation Period

Maximum 6 months. Termination during probation requires 14 days written notice.

Emiratization

Private sector employers with 50+ staff must meet Emiratization targets or face quarterly fines.

Our Advisory Process

A structured, four-step approach to keeping your business compliant.

Initial Consultation

We assess your current HR framework, workforce profile, and key compliance gaps in detail.

Compliance Review

Deep audit of contracts, policies, payroll practices, and regulatory adherence across the business.

Risk Report

Detailed report identifying risks, priority actions, and recommended remediation steps with timelines.

Ongoing Advisory

Monthly retainer support for evolving queries, law updates, MOHRE changes and regulatory guidance.

Common Issues We Resolve

Our clients come to us with real, pressing employment law challenges. Here are the most common issues we resolve for businesses across Dubai and the UAE.

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Wrongful or unlawful termination claims
Gratuity calculation disputes and underpayments
Visa and work permit compliance failures
Employment contract errors and non-compliant clauses
WPS non-compliance and salary payment disputes
Disciplinary procedures challenged by employees
MOHRE complaints and labour court cases
Emiratization quota non-compliance penalties

Transparent Pricing

Flexible engagement models to suit your business size and needs.

Monthly Retainer

AED 2,000/month

Starting from — customised to business size

✓ Unlimited advisory queries
✓ Contract and policy review
✓ MOHRE guidance & liaison
✓ Monthly compliance updates

Per-Project Fixed Fee

Custom quote

Scoped and agreed upfront — no surprises

✓ HR compliance audits
✓ Contract drafting projects
✓ Termination & gratuity cases
✓ One-off legal reviews

Frequently Asked Questions

Quick answers to common UAE Labour Law questions.

Under Federal Decree-Law No. 33 of 2021, employees are entitled to 21 days basic salary per year of service for the first 5 years, and 30 days basic salary per year thereafter. Gratuity is calculated on the last drawn basic salary and is capped at a total of 2 years gross salary.

The minimum statutory notice period is 30 days. Employment contracts may specify a longer period, up to a maximum of 90 days. Both employer and employee are legally required to observe the notice period. A mutual waiver must be agreed and documented in writing.

Yes. Probation may last a maximum of 6 months under UAE Labour Law. Either party may terminate during probation with 14 days written notice. If the employer terminates without notice, they owe compensation equal to the notice period wages. Employees who resign during probation to join a competitor may be barred from working in the UAE for up to 1 year.

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Speak with an expert UAE Labour Law advisor. Whether you need a compliance audit, contract review, or guidance on a specific HR issue — we are here to help your business stay protected.

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