The United Arab Emirates (UAE) has strict policies to protect workers’ rights. The Ministry of Human Resources and Emiratisation (MOHRE) oversees these rights. A few reforms were introduced in January 2025 to strengthen the UAE’s job market by improving working conditions for employees.
However, the new reforms also ensure transparency and obligations of the employee and the employer while working in the private sector. Moreover, the MOHRE has also updated the contract types, health coverage, methods to resolve conflicts at work, and quotas for Emiratis in companies. These factors affect the legal compliance of the UAE labour market.
lawyers and legal consultants in Dubai help employees and employers manage disputes between them, ensuring justice is delivered in line with UAE Labour Laws.
Key Changes Under the New MOHRE Law
Revising labour laws is an effective strategy to ensure legal alignment with international standards.
1. Shift to Fixed-Term Contracts Only
The employment contracts have shifted to fixed-term contracts, valid for three years. After the term, employees can choose whether to renew, providing flexibility and freedom to explore the UAE job market.
Legal consultants in Dubai ensure that no labour rights are violated, actively assisting companies in developing lawful employment contracts.
2. Faster Dispute Resolution for Claims Below AED 50,000
The MOHRE is now authorized to resolve employment claims under AED 50,000. These decisions are final, ensuring quick resolutions in the corporate sector. Earlier, such matters went to labour courts, but now a threshold distinguishes which cases go to MOHRE and which go to court.
Advocates in Dubai assist employees in preparing and filing documentation for claims and compensation.
3. Mandatory Health Insurance Coverage
Employers across the UAE are legally obligated to provide basic health insurance to all employees regardless of job description. This initiative reflects the UAE government’s commitment to public health.
Legal consultants in Dubai help employers draft legally compliant contracts that include health insurance coverage.
4. Enhanced Emiratisation Targets
Despite allowing foreign investments in free zones of Dubai and Abu Dhabi, the UAE mandates that companies in key sectors hire Emirati nationals.
This policy is not optional—companies failing to comply face financial penalties. Advocates in Dubai assist with workforce inspections, policy formation, and appeals regarding Emiratisation compliance.
5. Increased Penalties for Labour Law Violations
Companies that violate UAE Labour Law may face fines up to AED 100,000. Violations may include:
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Hiring without proper documentation
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Assigning inappropriate tasks to unqualified individuals
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Exploiting workers or failing to meet legal contract terms
There is zero tolerance for labour exploitation. Advocates in Dubai provide legal defense and representation for companies accused of such violations.
The Role of Advocates/Lawyers and Legal Consultants
• Advocates/Lawyers in Dubai
Advocates are hired by companies to represent cases in labour courts. Employees also hire them to claim maximum compensation from companies. These professionals are well-versed in MOHRE laws and assist both employers and employees in:
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Filing claims and compensation
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Responding to MOHRE decisions
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Managing appeals and legal proceedings
• Legal Consultants in Dubai
Legal consultants support the legal system of the UAE by:
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Drafting employment contracts
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Shaping HR policies
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Ensuring safe and lawful workplace regulations
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Assisting in document gathering for employees
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Updating companies on the latest UAE labour laws
Legal consultants give employers the legal confidence to grow their business in the UAE.
Sectors Most Affected by the 2025 Reforms
The 2025 labour reforms significantly impacted private companies and employees across various sectors vital to the UAE economy:
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Construction & Engineering: Now governed by clearer contracts and responsibilities.
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Hospitality: Working hour disputes are resolved faster under the AED 50,000 fast-track system.
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Technology Startups: Must meet all MOHRE compliance standards, even if the team is small.
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Domestic Work: Domestic workers and house help benefit from better contracts and insurance policies.
FAQs
1. Do fixed-term contracts automatically renew under the new MOHRE law?
No. Fixed-term contracts under the new law do not automatically renew. Employees can decide whether to continue with the job after their contract expires.
2. What is the benefit of resolving labour disputes through MOHRE for claims under AED 50,000?
It allows faster resolution of disputes without going to court. Employees can receive timely decisions regarding claims and compensation.
3. What happens if a company does not provide mandatory health insurance?
Failing to provide health insurance violates UAE labour law. This could result in fines or suspension of work permits. Legal consultants in Dubai help ensure compliance.
4. Can a company be penalized if it doesn’t hire an Emirati employee under the new rules?
Yes. Companies must employ at least one Emirati in specific sectors. Failing to do so leads to legal penalties.
5. Are the new penalties final, or can employers appeal them?
Employers can appeal the penalties in labour courts. However, appeals must be filed timely with the help of advocates in Dubai.