UAE Labour Law Analysis
Federal Decree-Law No. 33 of 2021 fundamentally restructured the UAE private sector labour framework, mandating a transition entirely to fixed-term contracts (maximum 3 years, renewable).
End of Service Gratuity
The calculation of severance pay (Gratuity) was streamlined. Under the new law, calculation for full-time employees is based on basic salary:
- Years 1 to 5: 21 days basic salary for each year.
- Beyond 5 years: 30 days basic salary for each year.
Important:
The total end of service gratuity shall not exceed the wage of two years.