UAE Labor Law Updates 2025: What HR Managers Need to Know

The UAE continues to evolve its labor laws to create a more balanced and progressive work environment. As we move through 2025, HR managers must stay informed about the latest regulatory changes to ensure compliance and avoid penalties.

Major Updates in Federal Decree-Law No. 33 of 2021

The UAE's Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations continues to see refinements. Here are the key updates for 2025:

1. Enhanced Parental Leave Provisions

Starting from January 2025, the UAE has expanded parental leave benefits:

• Maternity Leave: Extended to 60 days paid leave (previously 45 days)
• Paternity Leave: Increased to 5 days paid leave
• Adoption Leave: New provision of 30 days for adoptive parents

WPS Compliance Requirements

The Wages Protection System (WPS) has new requirements for 2025:

Requirement	Deadline	Penalty for Non-Compliance
Salary Transfer	Within 10 days of due date	AED 5,000 per worker
WPS Report Submission	Monthly, by 5th of month	AED 1,000 per month
Employee Contract Upload	Within 5 days of signing	AED 10,000
Annual Leave Record	Updated quarterly	AED 2,000 per quarter

End of Service Gratuity Calculations

Recent clarifications on gratuity calculations:

For Unlimited Contracts

• Less than 1 year: No gratuity
• 1-5 years: 21 days' wages for each year
• More than 5 years: 30 days' wages for each year after the first 5 years

Emiratization Requirements

The Nafis program continues with updated targets:

• Private sector companies with 50+ employees: Minimum 2% Emirati workforce in 2025
• Target increase: 4% by 2026, 6% by 2027
• New incentive: AED 7,000 monthly support per Emirati employee for 5 years

Compliance Checklist for HR Managers

To ensure your organization stays compliant:

• Update employment contracts with latest provisions
• Review and adjust parental leave policies
• Ensure WPS submissions are on time
• Verify gratuity calculation formulas
• Track Emiratization targets and progress
• Update data protection and privacy policies
• Train managers on new regulations
• Conduct quarterly compliance audits

Conclusion

Staying compliant with UAE labor laws is an ongoing responsibility. The 2025 updates demonstrate the government's commitment to protecting workers' rights while supporting business growth.

Need help ensuring compliance? RadixHR's AI-powered platform automatically updates with the latest UAE labor law changes. Schedule a consultation with our compliance experts today.