The UAE’s updated labour law, Federal Decree-Law No. 33 of 2021 (with recent amendments), provides a modern framework that ensures fairness, flexibility, and transparency in employment relationships across the private sector. These reforms are essential for recruitment agencies and employers to remain compliant and competitive in the evolving market.
Key Highlights:
- Employment Contract Types: All employees must have a fixed-term contract (up to 3 years, renewable), replacing unlimited contracts.
- Work Models Introduced: Full-time, part-time, temporary, flexible, and remote work contracts are officially recognized.
- Probation Period Rules: Maximum of 6 months, with specific notice periods required by both employer and employee.
- Non-Compete Clause: May be added to protect business interests, with limits of up to 2 years.
- Working Hours & Overtime:
- Standard work hours: 8 hours/day or 48 hours/week
- Overtime pay: 125%, or 150% for night shifts or public holidays
- Leave Entitlements:
- Annual leave: 30 days
- Maternity leave: 60 days (45 full pay + 15 half pay)
- Sick leave: Up to 90 days (with scaled pay)
- Other leaves: Bereavement, study, parental leave
- Termination & Notice:
- Minimum 30 days’ notice, max 90 days
- Justified reasons must be provided; arbitrary dismissal may result in compensation
- End of Service Benefits: Based on basic wage, 21 days/year for the first 5 years, 30 days/year thereafter.
Why It Matters for Recruitment Agencies
As a recruitment partner, staying updated on labour law changes is crucial for advising clients, preparing compliant employment contracts, and avoiding legal risks.
Capstone Solutions ensures that all recruitment and staffing services are aligned with the UAE’s latest labour laws, helping clients hire with confidence and clarity.
