Significant changes are coming to the United Arab Emirates' private sector employment landscape in 2025, bringing substantial updates to working conditions, compensation policies, and employee benefits that will affect millions of workers across the country.
Revised Working Hours Structure
The updated labour regulations introduce more flexible working arrangements while maintaining the standard eight-hour workday. However, the new provisions allow for extended hours in specific circumstances, particularly during the holy month of Ramadan when reduced working hours become mandatory for all private sector establishments.
Overtime Compensation Overhaul
One of the most impactful changes comes in the overtime pay structure. Employees working beyond their regular hours will now receive:
- 25% additional pay for overtime during normal working days
- 50% premium for overtime during weekends and public holidays
- Clear guidelines for calculating overtime based on basic salary components
Enhanced Leave Entitlements
The 2025 updates bring considerable improvements to leave policies, including:
- Increased annual leave accrual based on years of service
- More comprehensive sick leave provisions with better compensation
- Additional leave categories for special circumstances
- Streamlined procedures for leave approval and extension
Implementation Timeline and Employer Compliance
All private sector companies operating in the UAE must align their employment contracts and HR policies with these new regulations by January 2025. The Ministry of Human Resources and Emiratisation will provide detailed implementation guidelines to ensure smooth transition for both employers and employees.
These reforms represent the UAE's continued commitment to creating a balanced and competitive work environment that protects employee rights while supporting business growth in the region's dynamic economy.
