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UAE HR Compliance Checklist for Employers

October 12, 2026
08:02 AM
UAE HR Compliance Checklist for Employers

Table of Content

    Employers in the UAE manage HR compliance across the whole employment relationship. This covers employment contracts, work permits, working hours, leave, payroll, employee records and end-of-service settlements. For private-sector employers on the mainland and in most free zones, the requirements are set by Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), its Executive Regulations and resolutions issued by the Ministry of Human Resources and Emiratisation (MOHRE). This article sets out a checklist that follows the employee lifecycle, explains what each area requires, and shows where our HR, payroll and PRO services can support your team.

    Companies in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) operate under separate employment laws, and this checklist does not cover them in detail.

    What Does UAE Labour Law Compliance Involve?

    HR compliance applies at each stage of employment. Your obligations start with the job offer and include keeping employee records for at least two years after an employee’s service ends. Changes to salary, role or payroll arrangements need a matching update to the employment contract and employee records.

    The Labour Law sets minimum entitlements for employees. Contracts and internal policies can provide more favourable terms. Any term that reduces a statutory entitlement is void.

    UAE HR Compliance Checklist

    1. Confirm Which Employment Law Applies

    The applicable law determines how you apply every other point in this checklist.

    • The Labour Law covers private-sector employers and employees. Government employees, the armed forces, police and security services, and domestic workers fall outside its scope.

    • Most free-zone companies are subject to the Labour Law. The relevant free-zone authority manages company registration and visa procedures.

    • DIFC companies follow DIFC Employment Law No. 2 of 2019. ADGM companies follow the ADGM Employment Regulations 2024. Guidance on the ADGM regulations is available from the ADGM Employment Affairs Office.

    2. Review Employment Contracts

    The UAE Labour Law requires a written, fixed-term contract on the approved form, issued in two copies. The contract must be in Arabic, with a matching version in a language the employee understands. If the two versions conflict, the Arabic text prevails.

    Each contract should show the employee’s current job title, place of work, working hours, probation period, notice period and salary. Basic salary should be listed separately from allowances, because overtime and gratuity are calculated on basic salary.

    3. Confirm Work Authorisation Before the Start Date

    A mainland employer needs a MOHRE work permit before an employee can start work. Recruitment and employment costs cannot be passed on to the employee. Free-zone employers should confirm whether their work permits are issued by MOHRE or by the free-zone authority.

    Residency is handled through the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) or, in Dubai, the General Directorate of Residency and Foreigners Affairs (GDRFA). Since 1 January 2025, employers in all seven emirates have been required to provide health insurance when an employee’s residency permit is issued or renewed.

    Record the expiry dates of work permits, residence visas and Emirates IDs so renewals can start on time. Our PRO services support these government transactions.

    4. Track Probation Periods

    Probation can last up to six months and cannot be extended. An employer ending employment during probation must give 14 days’ written notice. An employee moving to another UAE employer during probation must give one month’s notice, and an employee leaving the UAE must give 14 days. Paid sick leave does not apply during probation.

    5. Manage Working Hours, Overtime and Leave

    Normal working hours are 8 hours a day or 48 hours a week. During Ramadan, they are reduced by two hours a day.

    Overtime is limited to two hours a day, except where the work is necessary to prevent a serious loss or accident. Overtime is paid at basic salary plus at least 25%. Between 10pm and 4am, the rate rises to basic salary plus at least 50%, except for shift workers.

    Leave records should reflect the following statutory leave entitlements:

    UAE statutory leave entitlements table showing annual, sick, maternity and parental leave for private-sector employees under the UAE Labour Law.

    6. Process Payroll Through the Correct Wage System

    Establishments registered with MOHRE pay salaries through the Wage Protection System (WPS). Ministerial Resolution No. 340 of 2026 took effect on 1 June 2026. Under this resolution, salaries for each month are due on the first day of the following Gregorian month, and the previous 15-day grace period no longer applies. Employers that outsource payroll remain responsible for paying salaries on time.

    Some free zones, including the Dubai Multi Commodities Centre (DMCC) and Jebel Ali Free Zone (JAFZA), have implemented WPS. Free-zone employers should confirm the applicable wage payment rules with their authority. Salary deductions are permitted only in the cases set out in the Labour Law, and total deductions cannot exceed 50% of the wage.

    Our payroll service supports both WPS and non-WPS salary processing.

    7. Meet Employer Obligations and Statutory Requirements

    The Labour Law also sets out obligations that apply throughout employment:

    • Housing: provide licensed accommodation, pay a housing allowance, or include housing in the wage.

    • Workplace safety: provide a safe workplace and measures that protect employees from occupational injury.

    • Conduct: prevent harassment, bullying and violence at work, all of which the law prohibits.

    • UAE nationals: apply the national pensions and social security legislation to end-of-service benefits for UAE national employees.

    • Emiratisation: track your Emiratisation targets. Companies with 50 or more employees have targets for skilled roles. Companies with 20 to 49 employees in specified sectors have headcount targets.

    8. Maintain Employee Files and Workplace Regulations

    Employee files must be kept for at least two years after service ends, and records must be kept in Arabic.

    Under the Executive Regulations, establishments with 50 or more workers must:

    • issue written work regulations covering work instructions, penalties, promotions, bonuses and termination procedures

    • publish a complaints and grievance procedure

    Before imposing a disciplinary penalty, the employer must notify the employee in writing, document the employee’s response, and record the outcome in the employee’s personal file.

    9. Record Changes to Employee Terms

    Salary increases, promotions, role changes and updates to personal details should each be supported by a written approval and an updated employee record. Assigning an employee to work that is fundamentally different from their contract requires the employee’s written consent, except in cases of necessity.

    Confirm whether an amended contract needs to be registered with MOHRE or your free-zone authority. Also check that the payroll record reflects the updated terms.

    10. Manage Exits and End-of-Service Payments

    • Notice: Notice must be given in writing for the period set in the contract, which must be between 30 and 90 days. The same period applies to both parties, unless a different period is more favourable to the employee. If notice is given during the employee’s leave, the notice period begins the day after the employee’s scheduled return.

    • Dismissal without notice: This applies only in the cases the law specifies. The employer must first conduct a written investigation and then issue a written, reasoned decision.

    • Final settlement: All final dues are payable within 14 days of the contract ending.

    • Gratuity: Foreign full-time employees with at least one year of continuous service receive 21 days’ basic salary for each of the first five years and 30 days’ basic salary for each year after that. The total is capped at two years’ wage. Employers can also choose to join the optional alternative end-of-service scheme. In the DIFC, service from 2020 is covered by contributions to DEWS or another qualifying scheme.

    • Experience certificate: If the employee requests one, the employer must provide it free of charge.

    Our gratuity calculator provides an estimate of end-of-service benefits.

    UAE HR compliance checklist summary table covering employment law, contracts, work authorisation, probation, working hours, payroll, records and exit.

    Our HR audit reviews each of these areas against your current documents and processes.

    How Often Should You Review HR Compliance?

    The Labour Law does not set a review schedule. A full annual review of this checklist is good practice. You should also review the relevant sections when any of the following happens:

    • a new MOHRE resolution is issued

    • an employee joins, receives a salary change, is promoted or leaves

    • your payroll provider or payroll calendar changes

    • your headcount reaches 50, which brings work regulation and Emiratisation obligations

    What Are Common HR Compliance Gaps?

    • Contracts that show a previous salary or job title.

    • Payroll calendars that still follow the former WPS grace period.

    • Gratuity calculations that include allowances in the salary figure.

    How Nathan HR Supports HR Compliance

    Our services can support individual areas of this checklist or several areas together, depending on the agreed scope:

    • Strategic HR consulting covers HR audits, HR policies and process development.

    • HR outsourcing covers employee administration, onboarding and offboarding, payroll and WPS support, visas, HR policies and employee relations.

    • Payroll management covers WPS and non-WPS payroll, end-of-service processing, payslips and payroll reports.

    • PRO services cover staff visas, Emirates ID, medical administration, renewals and cancellations.

    • Employer of Record places your staff on our sponsorship.

    Our HR technology brings payroll, visa and PRO requests, onboarding, leave and attendance, documents and reports into one working environment for your team and ours. Government applications and approvals remain subject to the systems and decisions of the relevant UAE authorities. Your organisation retains the approvals and responsibilities agreed during scoping.

    Speak with our team about reviewing your HR processes against this checklist, or about HR audit, payroll, PRO and HR outsourcing support. Book a free consultation with Nathan HR.

    Frequently Asked Questions

    Most free-zone companies are subject to Federal Decree-Law No. 33 of 2021, the UAE Labour Law. Their free-zone authority manages company registration and visa procedures. Companies in the Dubai International Financial Centre (DIFC) follow DIFC Employment Law No. 2 of 2019. Companies in Abu Dhabi Global Market (ADGM) follow the ADGM Employment Regulations 2024.
    The Wage Protection System (WPS) applies to establishments registered with the Ministry of Human Resources and Emiratisation (MOHRE). Some free zones, including DMCC and JAFZA, have implemented WPS, so free-zone employers should confirm the wage payment requirements with their authority. Under Ministerial Resolution No. 340 of 2026, salaries for each month are due on the first day of the following Gregorian month. This applies to MOHRE-registered establishments from 1 June 2026.
    Under Article 13 of the UAE Labour Law, employers must keep each employee’s file for at least two years after the employee’s service ends. Records must be kept in Arabic. Contracts and workplace instructions must also be provided in a language the employee understands.
    The Executive Regulations of the UAE Labour Law require establishments with 50 or more workers to issue written work regulations. These must cover work instructions, penalties, promotions, bonuses and termination procedures. These establishments must also publish a complaints and grievance procedure. Smaller employers can use written policies to record how their HR processes are applied.
    Employers must pay an employee’s wages and all other entitlements within 14 days of the employment contract ending. For foreign full-time employees with at least one year of continuous service, gratuity is 21 days’ basic salary for each of the first five years and 30 days’ basic salary for each year after that. Total gratuity is capped at two years’ wage.