Comprehensive Guide to UAE Labour Laws for Accounts & Finance Professionals (For India, Pakistan, Bangladesh, United States, and Other Expat Workers)
Introduction
A Detailed, Easy-to-Understand Article for Professionals from India, Pakistan, Bangladesh, the USA & Beyond
The United Arab Emirates (UAE) continues to be one of the most attractive destinations for accounting and finance professionals across the world. Whether you’re from India, Pakistan, Bangladesh, Nepal, Sri Lanka, the Philippines, the United States, or Africa, the UAE offers unmatched opportunities in banking, auditing, fintech, corporate finance, and tax/VAT management.
But before starting your career in the UAE, it’s crucial to understand the UAE Labour Laws, so you know your rights, protections, responsibilities, and benefits as an expatriate worker. This article explains everything in simple language — no legal jargon — so every general reader can understand.
🔵 CHAPTER 1: Understanding UAE Labour Law – The Basics
1.1 What is the UAE Labour Law?
The main law governing employment in the UAE is:
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, effective from February 2022.
It applies to employees working in the private sector across all seven emirates:
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Dubai
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Abu Dhabi
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Sharjah
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Ajman
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Fujairah
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Ras Al Khaimah
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Umm Al Quwain
It covers expatriates and local citizens, providing rules for:
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Employment contracts
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Working hours
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Overtime
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Salaries & payment
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Leaves
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Resignations & terminations
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Gratuity
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Worker protection
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Dispute resolution
🔵 CHAPTER 2: Employment Contracts in UAE
2.1 Types of Contracts
Since 2022, the UAE uses only one type of contract: the Fixed-Term Contract, typically lasting 1 to 3 years, renewable.
Why?
To create transparency and protect both employer and employee.
2.2 Key Elements in a UAE Contract
Every employment contract must include:
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Job title (e.g., Financial Analyst, Accountant, Auditor)
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Basic salary
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Allowances (housing, transport, other benefits)
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Working hours
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Annual leave
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Contract duration
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Notice period
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Probation terms
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Employer and employee obligations
Important Tip for Accountants
Always compare basic salary vs total salary, because your gratuity depends on basic salary only.
🔵 CHAPTER 3: Working Hours Rules in UAE
3.1 Standard Working Hours
The legal working hours in UAE:
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8 hours per day
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48 hours per week
Some finance roles require longer hours during:
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Year-end closing
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VAT filing
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Internal/external audits
However, employers must comply with overtime rules.
3.2 Overtime Rules
If you work beyond 8 hours/day or 48 hours/week, you are entitled to:
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125% pay for normal OT hours
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150% pay for night OT hours
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Day-off overtime = 150% pay or a compensatory day off
🔵 CHAPTER 4: Salary, Payments & Deductions
4.1 Wages Protection System (WPS)
All companies must pay employees through WPS, an electronic salary deposit system monitored by the Ministry of Labour.
This ensures:
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Salary is paid on time
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Payments are traceable and secure
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Prevents salary exploitation
4.2 Salary Deductions
Employers cannot deduct money except for:
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Legal penalties
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Loan recovery
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Social security (for UAE nationals only)
🔵 CHAPTER 5: Probation Period in UAE
The probation period can be 3 to 6 months.
During probation:
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You receive full salary
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You can resign with 14 days’ notice
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Employer can terminate with 14 days’ notice
🔵 CHAPTER 6: Annual Leave & Holidays
6.1 Annual Leave
As per UAE law:
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30 days paid leave after completing 1 year
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2 days/month leave for first 6 months
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30 days/year thereafter
6.2 Public Holidays
You are entitled to paid holidays on:
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Eid al Fitr
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Eid al Adha
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National Day
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Islamic New Year
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Commemoration Day
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Prophet Muhammad’s Birthday
🔵 CHAPTER 7: Sick Leave Rules
Employees are entitled to 90 days of sick leave per year:
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15 days – full pay
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30 days – half pay
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45 days – no pay
Medical certificate is required.
🔵 CHAPTER 8: Maternity & Paternity Leave
8.1 Maternity Leave
Female employees get:
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60 days maternity leave
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45 days full pay
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15 days half pay
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8.2 Paternity Leave
Fathers get 5 days paternity leave.
🔵 CHAPTER 9: End-of-Service Benefits (Gratuity)
Gratuity is one of the most important benefits for expats.
Eligibility
You must complete minimum 1 year.
Calculation
For full-time workers:
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21 days basic salary per year (first 5 years)
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30 days basic salary per year (after 5 years)
Important
Unpaid leave is deducted from gratuity calculations.
🔵 CHAPTER 10: Termination, Resignation & Notice Period
10.1 Notice Period
Both parties must give:
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30 to 90 days’ notice (usually 30 days)
10.2 Arbitrary Termination
Employers cannot:
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Fire an employee without valid reason
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Fire during sick leave
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Fire because you requested legal rights
Such termination can lead to compensation.
10.3 Resignation Rules
An employee can resign anytime by:
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Serving notice period
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Submitting resignation in writing
🔵 CHAPTER 11: Visa, Work Permit & Sponsorship Rules
11.1 Work Visa
Foreign workers must have:
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Employment visa
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Residency visa
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Emirates ID
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Medical test clearance
Employer must bear costs for:
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Visa processing
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Medical fees
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Renewal fees
Employees should not pay visa costs.
🔵 CHAPTER 12: UAE Labour Laws for Accounting & Finance Professionals
Accounting & finance roles are sensitive, regulated positions. Below are extra rules relevant to finance professionals.
12.1 Professional Certifications
Many finance jobs prefer:
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ACCA
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CPA
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CA/ICAEW
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CMA
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CFA
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CIMA
12.2 VAT & Corporate Tax
Since UAE introduced:
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VAT (5%) in 2018
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Corporate Tax (9%) in 2023
Finance professionals must:
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File VAT returns
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Maintain tax records
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Ensure compliance with UAE Federal Tax Authority (FTA)
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Manage audits and reporting
12.3 Confidentiality Obligations
Finance roles require strict adherence to:
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Financial confidentiality
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Anti-money laundering laws
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Internal control regulations
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Financial reporting accuracy
Violation can result in:
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Immediate termination
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Fines
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Legal action
12.4 Working Hours in Finance
During:
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Audits
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Year-end closing
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Tax filing
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Budgets
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ERP migration
Additional working hours may be required but must be compensated legally.
🔵 CHAPTER 13: Rights of Expat Workers
All expats are protected by UAE law:
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No passport confiscation
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No forced labour
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No unpaid overtime
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No delayed salary
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No illegal deductions
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No discrimination
If any violations occur, employees can file complaints.
🔵 CHAPTER 14: Filing Labour Complaints
Complaints can be filed with:
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MOHRE (Ministry of Human Resources & Emiratisation)
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Dubai Labour Court
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Abu Dhabi Judicial Department
Complaint process is simple:
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Submit complaint
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Mediation
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Court (if unresolved)
🔵 CHAPTER 15: UAE Corporate Tax Law (Important for Finance Professionals)
As of 2023:
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9% corporate tax on taxable profit above AED 375,000
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Finance teams handle CT returns and record keeping
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Misreporting can result in penalties
🔵 CHAPTER 16: UAE Free Zones vs Mainland – Key Differences
Mainland
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Work with any UAE company
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Labour law applies directly
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No tax except corporate tax
Free Zones
Examples:
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DMCC
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JAFZA
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DIFC
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ADGM
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DWC
Differences:
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Some zones follow their own employment rules
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Different notice periods or benefits
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Corporate tax exemption varies
🔵 CHAPTER 17: Salary Expectations for Accounting & Finance Jobs (2025 Guide)
Approximate monthly salaries:
| Role | Salary (AED) |
|---|---|
| Junior Accountant | 3,500 – 6,000 |
| Accounts Executive | 5,000 – 8,000 |
| Senior Accountant | 7,000 – 12,000 |
| Financial Analyst | 10,000 – 18,000 |
| Chief Accountant | 12,000 – 20,000 |
| Finance Manager | 15,000 – 28,000 |
| Finance Controller | 18,000 – 35,000 |
| CFO | 35,000 – 70,000 |
🔵 CHAPTER 18: Practical Tips for New Expats
18.1 Avoid Fake Recruitment Agents
Always verify:
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Offer letter
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Company trade license
Legitimate UAE employers never ask:
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Visa fee
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Recruitment charges
18.2 Accommodation Rules
Employer may offer:
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Housing allowance
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Transportation allowance
18.3 Bank Accounts
You will need:
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Emirates ID
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Salary certificate (if needed)
18.4 Important Mobile Apps
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MOHRE App
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UAE Pass
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ICP Smart Services
🔵 CHAPTER 19: Common Violations by Employers (Know Your Rights)
Illegal practices:
❌ Holding passports
❌ Salary delays
❌ Working without insurance
❌ Overtime without pay
❌ Forcing resignation
❌ Contract change without consent
You can report all violations legally & confidentially.
🔵 CHAPTER 20: Final Advice for Foreign Accounting & Finance Professionals
If you plan to work in the UAE, especially in finance:
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Always read your contract carefully
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Request detailed breakdown of salary
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Never sign a blank paper
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Confirm company reputation
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Understand tax responsibilities
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Learn ERP systems (SAP, Oracle, Tally, Zoho, etc.)
The UAE offers excellent career growth, high salaries, and a safe environment, but a strong understanding of the labour law will protect your rights and improve your career.
🔵 Conclusion
The UAE labour law is designed to provide fairness, transparency, and protection for all expatriates. Whether you’re an accountant, senior finance manager, auditor, or tax professional, knowing your rights makes your career journey smoother and more rewarding.
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