General Queries – HR & Employee Needs to Know in UAE

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.

The list of anticipated public holidays in 2025 

• 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.

Q2. Overtime calculations, if any? Any policies or guidelines laid down by the UAE government?

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.

Q3. Is health insurance mandatory for employees hiring in the UAE?

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 Dubai Care or accredited providers. Family coverage requirements vary, with Abu Dhabi mandating insurance for dependents, while other emirates may leave this optional.

Q4. What is the HR policy in UAE regarding the air ticket entitlement?

In the UAE, air ticket entitlement is not mandated by labour law but is a common contractual benefit, especially for expatriates. The law requires employers to cover repatriation costs upon contract termination unless the employee joins another company. As this benefit is not legally required, it must be clearly outlined in the employment contract or HR policy, specifying eligibility, travel class, frequency, and family coverage. Including such details ensures transparency and helps manage employee expectations effectively.

Q5. What are the gratuity benefits for employees working in the UAE?

A gratuity is a lump sum payment given to employees when they leave a company after completing a certain period of service. In the UAE, employees who have completed 1 to 3 years of service are entitled to a gratuity equivalent to 21 days of basic salary per year. For those who have worked between 3 to 5 years, the entitlement is two-thirds of 21 days’ salary per year. To calculate the gratuity, the daily wage is multiplied by 21 days (or 30 days for employees with more than 5 years of service), based on the employee’s length of service.