General Queries HR Professionals & Employees Commonly Ask in the UAE Workplace

Overview

When working in a foreign country like the UAE, both employees and employers care a lot about the type of work, benefits, and leaves. It’s important to know the leave policies—like annual, sick, maternity, and parental leave—as well as any special leaves like Hajj or bereavement. You’ll also undergo some mandatory training to keep up with workplace standards, like safety, anti-discrimination, and data protection. Plus, understanding the list of holidays in the UAE is key to managing your time off. So, get familiar with your rights, obligations, and the overall work culture to make the most of your job experience.

Q1. What are the leave policies for a permanent employee in UAE?

UAE Labour Law provides various leave entitlements: annual leave of 2 days per month after six months of service, with 30 days after one year; sick leave of up to 90 days, including full, half, and unpaid pay; maternity leave of 60 days; 5 days paid parental leave; and bereavement leave. Hajj leave grants Muslim employees 30 unpaid days after one year of service. Employment contracts must be bilingual, covering responsibilities and benefits. The law caps working hours at 8 hours daily or 48 hours weekly and reduces them during Ramadan. Employers must pay wages on time via the Wage Protection System for compliance.

Terminations require adherence to specific procedures, including a 30-day notice period for
unlimited contracts and severance pay based on the employee’s length of service. Employers must also maintain a safe working environment by conducting regular health and safety assessments.

Q2. Mandatory Insurance Policies a company would need from day one for employees hiring in the region?

The UAE mandates health insurance for all employees, ensuring nationwide coverage. From January 1, 2025, employers in the Northern Emirates must provide a basic insurance package, costing AED 320 annually, as a prerequisite for residency permits. Coverage includes inpatient care (20% co-payment, capped at AED 1,000 annually), outpatient care (25% co-payment, capped at AED 100 per visit), and medications (30% co-payment, capped at AED 1,500 annually). The insurance includes chronic conditions without waiting periods. Employers can purchase policies via DubaiCare or accredited providers. Family coverage requirements vary, with Abu Dhabi mandating insurance for dependents, while other emirates may leave this optional.

Q3. HR Compliance List for IT services and SaaS product firms hiring in the region

Establishing an IT or SaaS company in the UAE requires compliance with key HR regulations. Employment contracts must align with UAE Labour Law, and employers are responsible for obtaining work permits and visas for expatriates. Companies must register with the Wage Protection System (WPS) to ensure timely payment of wages. Emiratisation mandates require private sector companies to employ a specified percentage of Emirati nationals, with gradual targets through 2025. Employers must ensure workplace health and safety, prohibit discrimination, and provide equal opportunities. Compliance with UAE data protection laws and cybersecurity measures is crucial. Regular updates from government sources are essential.

Q4. Overtime calculations, if any? Any policies or guidelines laid down by the UAE govt?

The UAE Labour Law outlines clear overtime policies. Standard working hours are 8 hours per day or 48 hours per week. Overtime applies when employees exceed these limits, with compensation set at 125% of the regular hourly wage for weekdays and 150% for weekends or public holidays. Employers and employees must mutually agree on overtime, limited to 2 hours per day, ensuring total working hours do not exceed 12 per day. Certain employees, such as managers and supervisors, may be exempt from overtime pay. Employers must accurately track and compensate overtime, fostering compliance and transparency in workplace practices.

Q5. POSH or any other mandatory training an employee has to go through once he joins the company? 

As of 2025, UAE employees must complete mandatory training, including workplace safety, legal compliance, and ethical conduct programs.

• POSH – With a growing emphasis on workplace ethics, UAE companies are adopting anti-harassment policies, including POSH (Prevention of Sexual Harassment) training, to foster respectful work environments.
• Health & Safety training – UAE companies must provide health and safety training per Federal Law and Dubai Municipality guidelines, particularly in high-risk sectors like construction and hospitality. Training covers workplace safety protocols, emergency response, first aid, and mental health awareness.
• Anti-Discrimination & Equal Opportunity Training –  UAE organizations are increasingly adopting anti-discrimination training to promote diversity and inclusion. Training covers recognizing discrimination, fostering inclusivity, and understanding UAE labor laws prohibiting bias based on gender, nationality, age, or religion.
• Data Protection and Privacy Training – Under the UAE Data Protection Law (Federal Decree-Law No. 45 of 2021), businesses must train employees on data privacy. Training covers secure data handling, legal compliance with data protection rights, and cybersecurity awareness to prevent breaches.
• Anti-Money Laundering (AML) & Anti-Terrorism Financing (ATF) Training – UAE businesses, especially in banking and finance, must provide Anti-Money Laundering (AML) and Anti-Terrorism Financing (ATF) training. The training covers recognizing suspicious transactions, reporting obligations, and compliance with UAE AML laws (Federal Law No. 20 of 2018).
• Compliance with Local Labor Laws – The UAE encourages employers to provide labor law compliance training following recent reforms (Federal Decree-Law No. 33 of 2021). Training covers employee rights, including wages, leave, and overtime, as well as employer obligations on health, safety, discrimination, and termination.
• Company-Specific Orientation and Compliance Training – In addition to government-mandated training, employees often undergo company-specific orientation, covering policies, procedures, and culture. Key elements include the company’s Code of Conduct, internal procedures for attendance, communication, and performance evaluations, and training on IT security, data protection, and acceptable use of company resources to ensure compliance and alignment with organizational standards.

Q6. What is the min and max notice period? Or compensation in lieu of notice how is it calculated?

As of 2025, the UAE updated its labor laws significantly through Federal Decree-Law No. 33 of 2021, which took effect on February 2, 2022. This new law has revised various aspects of employment relations, including notice periods and compensation instead of notice.

The minimum notice period an employee is required to give when resigning is at least 30 calendar days. Employers must provide at least 30 calendar days’ notice to terminate an employee’s contract. In the case of fixed-term contracts, the employer must provide the same 30-day notice period unless the contract specifies a longer period.  There is no statutory maximum limit for the notice period. However, the notice period is often mutually agreed upon by both parties in the employment contract. Typically, 1-3 months is common, especially for senior positions or those with specialized skills. For indefinite contracts, the notice period typically does not exceed 3 months in practice. For fixed-term contracts, if the contract is set to expire, no notice period is needed unless both parties agree to a notice period at the time of resignation or termination.

List of Holidays

For 2025, the anticipated public holidays are: 

• New Year’s Day: Wednesday, January 1, 2025. 
• Eid al-Fitr: Expected from Sunday, March 30 to Thursday, April 3, 2025. (Dates may vary based on moon sightings.) 
• Arafat Day: Thursday, June 5, 2025.
• Eid al-Adha: Friday, June 6 to Sunday, June 8, 2025. 
• Islamic New Year: Thursday, June 26, 2025. 
• Prophet Muhammad’s Birthday: Thursday, September 4, 2025. 
• Commemoration Day: Monday, December 1, 2025 
• National Day: Tuesday, December 2, and Wednesday, December 3, 2025. 

Please note that Islamic holidays are determined by moon sightings, so exact dates may vary. Employers typically announce the specific days off closer to the holiday dates. Employees need to refer to their employment contracts and company policies, as some organizations may offer enhanced leave benefits beyond the statutory requirements.

About Arnifi

Arnifi is a digital-first Corporate service provider helping companies enter the Middle East region, starting with the UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq, and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience for the entry and scale-up of companies in both the UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward. Check out at – www.Arnifi.com for more details. You can also check out products and offerings here.