Entering 2025, the UAE introduced significant revisions to its labour law—designed to empower employees, clarify employer obligations, and modernize workplace practice. Whether you’re in Dubai, Abu Dhabi, or anywhere else in the UAE, understanding these changes isn’t optional—it’s essential. Navigating the new UAE employment law not only protects your rights but helps you stay ahead in your career and ensures compliance with evolving regulations.
Gratuity Revamp: Smarter & Fairer
One of the most anticipated changes in the UAE labour law changes 2025 is the modification to end-of-service gratuity (EOSG):
- Flexible accrual: Workers now earn gratuity after just 6 months, rather than a year—newbies benefit sooner.
- Pro-rata calculations: Those leaving before the 1-year mark now get EOSG based on actual months worked (e.g., 9 months yields 3/4 of the full amount).
- Higher ceilings on EOSG: For high earners, gratuity payouts are now capped at 1.5 years of their salary (up from the previous 1‑year limit).
What this means: Whether you’re switching jobs after six months or staying long-term, EOSG is now fairer, more transparent, and quicker to access.
Clearer Probation Rules
Probationary terms have always caused confusion—but the new UAE employment law clarifies things:
- Maximum 6 months on probation.
- Employers must issue a formal probation period agreement.
- Dismissals during probation now require 30 days’ notice (unless gross misconduct).
Why it matters: You can no longer be dismissed arbitrarily during probation. The clearer rules protect new hires and build trust.
Flexible Contracts & Gig Work
As the UAE evolves into a major gig economy hub, 2025 laws acknowledge this trend.
- Fixed‑term and part‑time contracts now have clearer definition and application.
- Enhanced guidelines protect freelancers, gig workers, and project-based staff doing work through platforms like Careem or Talabat.
What workers gain: Greater clarity around contracts, fairer working hours, and stronger protection—especially for those working outside traditional corporate structures.
Digital Payslips & Enhanced Transparency
In line with the UAE’s digital transformation, the new UAE employment law requires:
- Payslips delivered digitally—via email, tablet, or secure systems.
- Must include itemized breakdowns: basic salary, allowances, overtime, deductions, and leave balance.
Why it matters: Workers get clarity into their pay and career progress—perfect for visa renewal, portability, or financial planning.
New Termination Clauses & Notice Requirements
Updates around termination in 2025 ensure a fairer process for employees:
- Notice periods: Depending on tenure, employers must provide:
- 30 days’ notice for up to 5 years of service.
- 60 days’ notice for more than 5 years.
- Final salary must be paid in full on termination—no delays.
- Special provisions protect pregnant workers, those on maternity leave, and individuals on medical leave.
What employees gain: More time to handle transitions, better severance clarity, and stronger protection for vulnerable demographics.
Power to Resolve Disputes Faster
The UAE labour law changes 2025 include faster, more transparent dispute resolution:
- Cases must be filed within 3 months of issue (shortened from 6).
- Virtual hearings and dedicated labour dispute portals help expedite resolution.
- Fines for non-compliance from employers are now stricter.
What workers benefit from: Quicker justice, fewer delays, and a stronger sense of fairness in the system.
Daily Working Hours & Wellness
Employee welfare received a boost in 2025:
- Maximum 8-hour workday mandated (unless contract specifies otherwise).
- Remote working arrangements such as hybrid models recognized with protections.
- Wellness programs and flexible schedules now encouraged; no deductions for minor absences.
Why this matters: Better work-life balance, clearer boundaries, and support for mental health.
Digital Health Records & Wellness Benefits
Continuing push for digitalization:
- Employers must issue digital health certificates—including COVID or flu vaccination status when relevant.
- Annual health checkups required for high-risk jobs.
- Ongoing mental health support is encouraged.
Impact: Modern, safe workplaces where employee well-being is a legal priority.
Wage Protection Program (WPS) Enhancements
The WPS underwent major improvements in 2025:
- Full compliance with mandatory digital salary transfers via banks or fintech.
- Hefty penalties for delays or underpayment.
- Workers can lodge complaints simply through WPS dashboards.
What employees gain: Faster, transparent, and fully traceable salary payments.
Inclusive Gender & Protection Policies
The new UAE employment law strongly addresses inclusivity:
- Increased maternity leave (60 days paid + 30 unpaid).
- Career breaks protected for women returning from maternity leave.
- Equal pay provisions for equal roles.
- Special mention of protections for LGBTIQ+ employees in the private sector (without altering public stance).
Why it matters: A more fair, inclusive workplace—regardless of gender, health, or lifestyle.
What These Changes Mean for You
These 2025 updates aren’t just legal jargon—they have real-life impact:
| Your Situation | Impact |
| You’re early in a job | Gratuity now phases in after 6 months—no need to wait a year. |
| On probation? | You can’t be terminated without cause or notice. |
| Freelancers or part-time | Now have contract clarity and labour protection fit for the gig era. |
| Worried about pay history | Digital payslips WPS data make your financial history verifiable. |
| Concerned about health | Required digital health certifications and wellness expectations. |
| Family planning? | Longer maternity leaves and better reentry options post-pregnancy. |
FAQ’s
1. What are the major changes in UAE labour law for 2025?
Key changes include revised gratuity payments, new flexible work contracts, updated probation rules, digital payslips, and stronger termination protections.
2. How has the gratuity system changed in UAE for 2025?
Gratuity is now calculated based on a more pro-employee model, with no cap on years of service and improved end-of-service entitlements.
3. What is the new rule for probation periods in the UAE?
Employers must now give a 14-day notice for termination during probation. Employees must give one month’s notice to resign if leaving the country.
4. What types of employment contracts are allowed in the UAE in 2025?
UAE now allows flexible, part-time, temporary, and freelance contracts alongside standard full-time ones, offering greater flexibility for both parties.
5. Are digital payslips mandatory in the UAE now?
Yes. From 2025, employers must issue itemized digital payslips, ensuring transparency and ease of record-keeping for employees.
6. What are my rights if I’m terminated under the new UAE labour laws?
Terminations now require justifiable cause, and unfair dismissals may lead to employee compensation under updated legal guidelines.
7. Can I work two jobs legally under the new UAE labour law?
Yes. With the proper work permits, you can hold multiple part-time jobs under the UAE’s new flexible employment system.
8. How do the UAE labour law changes impact women and maternity leave?
The new law strengthens women’s workplace rights, including extended maternity leave and protection from termination during pregnancy.
9. How do these updates affect expats working in Dubai?
Expats benefit from clearer contracts, stronger worker protections, and easier processes for remote and freelance work across UAE sectors.
10. Where can I check if my UAE employer complies with the new labour laws?
You can verify employer compliance via the MOHRE (Ministry of Human Resources & Emiratisation) portal or seek help through registered HR consultants.
Knowledge Is Power
These reforms reflect a modern, employee-centric future for the UAE job market. Staying informed isn’t just smart—it’s essential. Know your rights, understand new protections, and prepare to secure your career in a fast-moving workplace.