Labour Disputes

Private-sector employment is governed by the federal Labour Relations Law, amended in 2024. Labour claims begin with the Ministry of Human Resources and Emiratisation (MOHRE) before any court proceedings.

Time limit. Following the 2024 amendments, labour claims must generally be brought within two years of the end of the employment relationship. Waiting can extinguish a claim.

MOHRE decisions. MOHRE can issue binding decisions in disputes worth up to AED 50,000, which may then be challenged before the court within a short period. Larger disputes are referred to the court if not settled.

End-of-service entitlements. Entitlements typically include unpaid wages, accrued leave, notice pay and the end-of-service gratuity, calculated on the basic wage and length of service.

Unlawful termination. The law treats termination as unlawful in defined cases, notably dismissal because the employee filed a well-founded complaint or claim. Compensation is set by the court and cannot exceed three months' wages, in addition to notice pay and end-of-service benefits.

Keep the employment contract, offer letter, payslips, bank statements and the termination notice. Employers should keep the same records, together with evidence of any disciplinary procedure.

Legal framework
Federal Decree-Law No. 33 of 2021 regulating Labour Relations, as amended including by Federal Decree-Law No. 9 of 2024
Cabinet Resolution No. 1 of 2022 (Executive Regulations)

Different rules apply to domestic workers, to the public sector and to employees in the DIFC and ADGM. Time limits for challenging a MOHRE decision are short and should be checked as soon as the decision is received.