UAE Labour Law Hiring 2025: Employer Compliance Guide
Quick Answer
UAE labour law hiring rules require every new mainland employment contract to be fixed-term (maximum 3 years) under Article 8 of Federal Decree-Law No. 33 of 2021. Before the employee starts, you must obtain a MoHRE work permit, register the contract, provide mandatory health insurance, and enrol in WPS.
Federal Decree-Law No. 33 of 2021 · Articles 8, 9, 16 · MoHRE
5-Step UAE Hiring Compliance Checklist
- Obtain a valid MoHRE work permit before day 1 — Article 16 prohibits employment without one. Apply through mohre.gov.ae before the employee’s first day.
- Issue a fixed-term employment contract — Maximum 3 years under Article 8. Must include job title, basic salary (separate from allowances), leave entitlement, and notice period.
- Register the signed contract with MoHRE — Upload to the MoHRE portal before the start date. The registered version governs in any dispute.
- Arrange mandatory health insurance — Dubai: DHA regulations. Abu Dhabi: DOH regulations (not HAAD — abolished 2017). Required before visa stamp.
- Enrol in WPS before first payroll — Register through mohre.gov.ae and process salary through a Central Bank UAE-approved channel.
Step 1 — Work Permit Under Article 16
Article 16 of Federal Decree-Law No. 33 of 2021 prohibits an employer from allowing a worker to begin employment without a valid MoHRE work permit. The employer applies through the MoHRE portal using the company establishment card. Employing without a permit exposes the employer to fines and potential business activity restrictions.
Step 2 — Fixed-Term Contract Requirements (Article 8)
| Mandatory Contract Element | Requirement | Article Reference |
|---|---|---|
| Contract type | Fixed-term only — maximum 3 years | Article 8 |
| Basic salary | Must be stated as a distinct figure — separate from allowances | Article 51 basis |
| Job title and duties | Must match the work permit category | MoHRE template |
| Notice period | Minimum 30 calendar days after probation | Article 43 |
| Annual leave | Minimum 30 calendar days after 12 months service | Article 29 |
| Probation clause (if included) | Maximum 6 months — must be stated in contract | Article 9 |
Step 3 — MoHRE Contract Registration
The employer must upload the signed employment contract to the MoHRE portal before the official start date. Where the signed contract differs from the MoHRE-registered version, the registered version typically governs in MoHRE disputes and labour court proceedings.
Step 4 — Mandatory Health Insurance by Emirate
| Emirate | Regulating Authority | Status |
|---|---|---|
| Dubai | DHA (Dubai Health Authority) | Mandatory before visa stamp |
| Abu Dhabi | DOH — Department of Health (NOT HAAD — abolished 2017) | Mandatory before visa stamp |
| Sharjah / Northern Emirates | MOH — Ministry of Health | Mandatory |
Step 5 — WPS Enrolment
The Wage Protection System (WPS) requires every employer to pay salaries through a Central Bank UAE-approved financial channel. Employers must register for WPS before the first salary payment. Employers who miss WPS enrolment before the first payroll face MoHRE sanctions including work permit processing bans.
Probation Period at Hiring Stage (Article 9)
| Rule | Detail | Article |
|---|---|---|
| Maximum duration | 6 months — no extension permitted | Article 9 |
| Employer termination notice | Minimum 14 calendar days written notice | Article 9 |
| Employee resigns — leaving UAE | Minimum 14 calendar days notice | Article 9 |
| Employee resigns — joining UAE employer | Minimum 1 month notice | Article 9 |
| Gratuity during probation | No gratuity entitlement until 1 full year of service | Article 51 |
Emiratisation at the Hiring Stage
Cabinet Resolution No. 18 of 2022 requires companies with 50 or more employees to increase Emirati workforce by 2% per year, reaching 10% by 2026. The penalty is AED 108,000 per unfilled Emirati position per year in 2025, rising to AED 120,000 from 2026. Every hire decision should be reviewed against the company’s current Emiratisation quota position.
NAFIS Tip: Register each Emirati hire with NAFIS at the onboarding stage — not retroactively. Incentives of up to AED 8,000 per month per Emirati employee are paid from the registration date, not the employment start date.
Free Zone vs Mainland Hiring
| Factor | Mainland UAE | DIFC | Other Free Zones |
|---|---|---|---|
| Work permit authority | MoHRE | DIFC Authority | Free zone authority |
| Contract law | FL 33/2021 Article 8 | DIFC Employment Law No. 2 of 2019 | FL 33/2021 (typically) |
| Contract type | Fixed-term only | Fixed or indefinite | Fixed-term only |
| Gratuity model | Article 51 lump sum | DEWS monthly contribution | Article 51 lump sum |
| Emiratisation quota | Mandatory (50+ employees) | Exempt | Exempt |
RFS Delivers Compliant Hires in 48–72 Hours
Since 2016, RFS HR Consultancy has managed end-to-end hiring across Dubai, Abu Dhabi, and Sharjah. Our 6-month replacement guarantee covers hires that do not pass probation.
Frequently Asked Questions
Must UAE employers issue fixed-term contracts for all new hires in 2025?
Yes. Article 8 of Federal Decree-Law No. 33 of 2021 requires all new mainland UAE contracts to be fixed-term with a maximum 3-year duration. Unlimited-duration contracts were abolished from February 2, 2022.
Can a UAE employer start an employee before their work permit is approved?
No. Article 16 prohibits employment without a valid MoHRE work permit. The permit must be approved before the employee’s first working day.
Which health insurance authority covers Abu Dhabi employees?
DOH — the Department of Health, Abu Dhabi. HAAD was abolished in 2017. DOH regulations require mandatory health insurance for all visa-sponsored employees in Abu Dhabi.
What are the Emiratisation obligations for companies with 50 or more employees?
Companies with 50 or more employees must increase their Emirati workforce by 2% per year under Cabinet Resolution No. 18 of 2022, reaching 10% by 2026. The penalty for each unfilled position is AED 108,000 per year in 2025, rising to AED 120,000 from 2026.