# What is UAE Labour Law?

UAE Labour Law stands for Federal Decree-Law No. 33 of 2021.

Federal Decree-Law No. 33 of 2021 is the UAE's private-sector employment law, governing contracts, working hours, leave, termination and end-of-service entitlements.

## UAE Labour Law explained

The law replaced the 1980 statute and introduced fixed-term contracts as the standard form, alongside flexible working models including part-time, temporary and job-sharing arrangements.

It sets the framework for annual leave, sick leave, maternity and parental leave, overtime, notice periods and end-of-service gratuity, and prohibits discrimination and forced labour.

It applies to mainland private-sector employment. DIFC and ADGM operate their own employment regimes, and employers spanning both must run two sets of rules in parallel.

## How NeuralHR.AI handles UAE Labour Law

- [UAE Labour Law guide](https://neuralhr.ai/en/resources/guides/uae-labor-law-2025)

## Related terms

- [End-of-service gratuity](https://neuralhr.ai/en/hr-glossary/gratuity): End-of-service gratuity is the lump sum a UAE employer owes an employee with at least one year of continuous service, calculated on basic salary under Federal Decree-Law No. 33 of 2021.
- [MOHRE](https://neuralhr.ai/en/hr-glossary/mohre): MOHRE is the UAE federal ministry that regulates private-sector employment, issuing work permits and labour cards and enforcing the Wage Protection System and Emiratisation quotas.
- [DIFC](https://neuralhr.ai/en/hr-glossary/difc): DIFC is a Dubai financial free zone with its own employment law, DIFC Employment Law No. 2 of 2019, which applies instead of the federal UAE Labour Law.
- [ADGM](https://neuralhr.ai/en/hr-glossary/adgm): ADGM is an Abu Dhabi financial free zone with its own employment regulations, which apply to ADGM-registered employers instead of the federal UAE Labour Law.

---

Canonical page: https://neuralhr.ai/en/hr-glossary/uae-labour-law
Last verified: 2026-08-01

Published by NeuralHR.AI — AI-native HR and payroll platform for the UAE, Saudi Arabia and India.