Labour And Immigration

Don't Sign Your UAE Employment Contract Until You Check These 10 Critical Legal Clauses
Starting a new job in the UAE is an exciting milestone, but many employees make one common mistake — they focus almost entirely on the salary package and overlook the legal terms hidden in the employment contract.
While salary is an important factor, the clauses covering probation, working hours, leave, gratuity, termination rights and post-employment restrictions can have a far-reaching impact on an employee's professional and financial future.
Under the UAE Labour Law, an employment contract defines the rights and obligations of both employers and employees. Before signing, employees should carefully review every provision and ensure that the terms match the original job offer. A clear understanding of the contract can help prevent disputes and protect an employee's legal rights throughout the employment relationship.
- Contract Type and Duration: Know How Long You are Committing For
One of the first aspects employees should check is the type and duration of the employment contract. Most private-sector employment in the UAE is governed by fixed-term contracts.
Employees should verify the contract's start and end dates, understand the conditions for renewal, and check the notice period required for resignation or termination. The employment contract should also match the original offer letter provided during the recruitment process.
Any differences between the offer letter and the final contract should be clarified before signing. A discrepancy in salary, designation, benefits or other key terms could create difficulties later.
- Salary Breakdown: Why Your Basic Pay Matters More Than You Think
The salary structure is one of the most important sections of an employment contract. Employees should ensure that the document clearly separates the basic salary from allowances such as housing, transport and other benefits.
This distinction is crucial because several statutory benefits, including end-of-service gratuity, are calculated based on the basic salary rather than the employee's total compensation package.
A job offer with an attractive overall salary may not provide the same long-term financial benefits if a large portion of the package consists of allowances and the basic salary is relatively low.
- Probation Period: Understand Your Rights Before Full Confirmation
The probation period is another key clause that employees should review carefully. Under UAE Labour Law, an employer may place an employee on probation for a maximum period of six months. Many companies, however, specify shorter probation periods depending on their internal policies.
During probation, either the employer or employee may end the employment relationship, but written notice requirements must still be followed.
If an employer terminates an employee during probation, at least 14 days' written notice must be provided. If an employee wishes to leave the UAE during probation, they must also provide 14 days' written notice. Employees who intend to move to another UAE employer must provide at least one month's notice.
Failure to comply with these requirements may require the employee to compensate the employer with an amount equivalent to the wage for the notice period. Leaving employment without fulfilling the required notice obligations may also result in a work permit restriction that could affect future employment opportunities in the UAE.
- Working Hours: Check Your Schedule and Workplace Commitments
Employees should carefully examine the clauses relating to working hours and workplace schedules. Under UAE private-sector employment rules, the standard working hours are generally limited to eight hours per day or 48 hours per week.
However, certain sectors and job categories may operate under different arrangements. The employment contract should clearly state normal working hours, shift requirements, weekly rest days and whether the employee is eligible for overtime.
Understanding these provisions in advance can help avoid misunderstandings about workload expectations and working schedules.
- Overtime Rules: Know When Extra Work Requires Extra Pay
The overtime clause is another important area that employees should understand before signing a contract.
While many managerial and supervisory positions are excluded from overtime provisions, employees who qualify for overtime compensation are protected under UAE Labour Law.
Employers may require employees to work additional hours, but overtime generally cannot exceed two hours per day. Where overtime applies, employees are entitled to their normal hourly wage based on their basic salary, plus an additional 25 per cent.
For overtime performed between 10pm and 4am, the additional payment increases to 50 per cent. These rules do not apply to employees working under shift arrangements.
If an employee is required to work on a scheduled day off, they are entitled either to a substitute rest day or payment equal to their normal wage plus an additional 50 per cent.
Before accepting a position, employees should clarify whether overtime is payable, compensated through additional leave or not applicable to their role.
- Annual Leave: Understand Your Paid Time-Off Entitlements
The employment contract should also clearly reflect an employee's annual leave rights.
Under UAE Labour Law, employees who complete one year of service are entitled to 30 days of fully paid annual leave. Employees who have completed more than six months but less than one year of service are entitled to two days of leave for every completed month.
If employment ends before an employee has used their accrued annual leave, they are entitled to leave benefits or payment in lieu for the unused portion based on the period worked.
Understanding leave entitlements before signing helps employees plan their personal commitments and avoid disputes over unused leave balances.
- End-of-Service Gratuity: Protect Your Long-Term Financial Benefits
The end-of-service gratuity clause is one of the most financially significant parts of an employment contract.
An employer cannot remove or reduce an employee's statutory gratuity entitlement through contractual terms. Gratuity is calculated based on the employee's final basic salary and does not include allowances such as housing or transport.
Employees are entitled to 21 days' basic salary for each completed year of service during the first five years. After completing five years, the entitlement increases to 30 days' basic salary for each additional year of service.
However, the total gratuity amount cannot exceed two years' total wages.
Employers are also required to settle all outstanding wages, benefits and gratuity payments within 14 days from the employee's last working day.
- Notice Period: Know the Rules Before Resigning or Being Terminated
The notice period clause determines the obligations of both parties when ending an employment relationship.
Under UAE Labour Law, the notice period must generally be between 30 and 90 days. Employees should check whether the contract clearly specifies the notice period required from both the employer and the employee.
The contract should also explain how notice must be served and whether payment in lieu of notice is permitted.
Understanding these terms can help employees avoid unnecessary legal or financial complications when changing jobs or leaving an organisation.
- Non-Compete Clauses: Watch Restrictions That Could Affect Your Next Job
Some UAE employment contracts contain non-compete clauses that restrict employees from joining competitors or starting a similar business after leaving their employer.
These clauses are governed by Article 10 of the UAE Labour Law and must be clearly defined and reasonably limited to be enforceable. A non-compete restriction may apply for up to two years after termination of employment.
Employees should carefully review the duration of the restriction, the geographical area covered and the specific industries or activities included.
An overly broad restriction may affect future career opportunities, making it essential to understand the scope of the clause before signing.
- Contract Changes: Employers Cannot Alter Terms Without Your Consent
Employees should also be aware that employers cannot make significant changes to employment terms without the employee's written agreement.
Changes involving salary, job title, responsibilities or other essential conditions of employment require proper documentation and consent. Any amendment made without following the required legal process may not be enforceable.
Employees should also remember that they are legally entitled to receive a copy of their employment contract. Under Article 8(1) of the UAE Labour Law, employment contracts must be prepared in at least two copies — one retained by the employer and one provided to the employee.
Understanding Your Contract is the First Step Towards Protecting Your Rights
An employment contract is more than a document confirming salary and designation. It is a legal agreement that defines an employee's rights, responsibilities and protections throughout their career.
Taking time to review every clause before signing can help employees make informed decisions, avoid future disputes and ensure that their employment relationship begins on a clear legal foundation.
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Commission-Only Jobs: What the UAE Law Says About Contracts, Salaries, Gratuity and Employee Benefits
A growing number of employers in the UAE, particularly in sales, real estate, insurance, financial services and business development, are offering employees commission-only or performance-based remuneration packages instead of conventional fixed salaries. While such positions often promise significantly higher earning potential, they also raise important legal questions about employment contracts, statutory benefits, gratuity and salary protection.
Contrary to a common misconception, commission-based employment is recognised under UAE law. However, such arrangements must comply with the provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and its implementing regulations under Cabinet Resolution No. 1 of 2022. These laws set out the legal framework governing remuneration, employment contracts and employee entitlements, irrespective of whether an employee receives a fixed salary, commission or a combination of both.
Under the UAE Employment Law, employers and employees are free to agree on a remuneration structure that is linked entirely to performance or commission. In these arrangements, an employee's earnings are generally calculated as an agreed percentage of sales, revenue, business generated or other measurable performance indicators achieved through the employee's efforts.
Although such payment structures are legally recognised, every employment relationship remains subject to the approval requirements of the Ministry of Human Resources and Emiratisation (MoHRE) and, where disputes arise, the interpretation of the competent courts. Therefore, employers cannot simply rely on informal commission arrangements without ensuring that the terms comply with UAE employment legislation.
A commission-only arrangement does not eliminate the requirement for a formal employment contract. Every employee working under the Employment Law must have a written employment contract executed in the approved format. The law requires the contract to record the agreed model of employment and serves as the primary document governing the employment relationship.
The Employment Law also allows an employee to establish the existence of an employment relationship, wage and other contractual rights through legally recognised methods of proof should a dispute arise. Nevertheless, a properly drafted written contract remains the strongest safeguard for both employer and employee.
One of the most important aspects of a commission-based contract is the manner in which remuneration is described. UAE law defines "wage" broadly. It is not limited to a monthly salary alone but includes the basic wage together with allowances and benefits payable in cash or in kind. These may include housing, transportation, cost-of-living allowances, benefits in kind and, significantly, commissions calculated as a percentage of sales, profits or revenue generated by the employee.
This means that commission earned under an employment contract forms part of an employee's overall wage. However, the law distinguishes between "wage" and "basic wage". The basic wage refers only to the amount specifically stated in the employment contract in return for the employee's work and excludes allowances and other benefits.
This distinction becomes particularly important because several statutory entitlements, including end-of-service gratuity, are calculated on the basis of the employee's basic wage rather than the employee's total earnings.
The Employment Law further makes it mandatory for an employment contract to specify the amount or type of wage payable to the employee. Failure to clearly define remuneration may result in disputes, with the competent court determining the appropriate wage if litigation arises.
In addition to remuneration, the Executive Regulations require employment contracts to contain several essential particulars. These include the employer's details, employee's personal information, qualifications, occupation, date of joining, place of work, working hours, weekly rest days, probation period where applicable, duration of the contract, agreed wage together with benefits and allowances, annual leave entitlement, notice period, termination procedures and any additional information prescribed by the Ministry.
Where remuneration is entirely commission-based, the contract should clearly explain the commission structure. It should specify how commission will be calculated, the performance targets to be achieved, the percentage payable, the intervals at which commission becomes due, payment procedures and any conditions governing eligibility for commission. Clearly documenting these provisions significantly reduces the risk of future disputes.
One of the biggest concerns for employees considering commission-only employment relates to end-of-service gratuity. Under Article 51 of the Employment Law, foreign employees who complete one year or more of continuous service are entitled to gratuity calculated on the basis of their basic wage.
The law provides gratuity at the rate of 21 days' basic wage for each of the first five years of service and 30 days' basic wage for every year thereafter.
For this reason, many commission-based employment contracts still include a nominal monthly basic salary, even where the employee's primary income comes from commission. The stated basic salary then becomes the basis for calculating gratuity and other statutory benefits linked to basic wage.
Situations occasionally arise where an employment contract does not specify any basic salary at all. In such cases, the employment relationship may be treated as piecemeal work for the purpose of determining wage-related claims. The Employment Law provides that the employee's daily wage may then be calculated on the basis of the average earnings received for the actual days worked during the six months immediately preceding the claim.
This approach has also received judicial support in decisions of the Dubai Court of Cassation, reinforcing the importance of clearly defining remuneration in employment contracts.
Employees should therefore carefully examine whether their proposed contract specifies a basic wage in addition to the commission structure, as this may have a direct impact on gratuity calculations and other statutory entitlements.
Accepting a commission-only remuneration package does not prevent an employee from negotiating additional contractual benefits. Employers remain free to provide a wide range of allowances and employment benefits over and above commission payments.
These may include housing allowance, transportation allowance, annual air tickets, enhanced medical insurance, company vehicles, mobile phone allowances, education allowances for children, performance bonuses or other employment-related benefits. Once these benefits are incorporated into the employment contract, they become legally binding obligations upon the employer.
For many employees, these additional contractual benefits can substantially improve the overall value of a commission-based package, even where the fixed salary component is relatively modest.
Before accepting any commission-only offer, employees should review the employment contract thoroughly to ensure that every aspect of remuneration has been properly documented. The contract should clearly specify the commission structure, payment schedule, performance criteria, any applicable basic wage, statutory entitlements, allowances and additional contractual benefits. A well-drafted employment contract not only protects the employee's legal rights but also minimises the likelihood of disputes during the course of employment.
Commission-based employment can be financially rewarding under the UAE's legal framework, provided that the remuneration structure is transparent, properly documented and fully compliant with the country's employment laws. Understanding these legal requirements before signing an employment contract is essential for protecting both present earnings and future statutory benefits.
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Restrictive Covenants in the UAE: Looking Beyond Non-Compete Clauses to Build Stronger Employment Protection
When UAE employers think about restrictive covenants, non-compete clauses are usually the first thing that comes to mind. However, an effective protection strategy extends well beyond non-compete obligations. It should also include non-solicitation provisions, confidentiality undertakings, trade secret protections and garden leave clauses, each governed by a different, and sometimes overlapping, area of UAE law.
This article explores that broader legal framework for mainland companies, highlights where the DIFC and ADGM regimes differ, and concludes with practical drafting guidance.
Non-Compete Clauses: The Statutory Baseline
Onshore non-compete clauses are governed by Article 10 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, supplemented by Article 12 of Cabinet Resolution No. 1 of 2022 (the Executive Regulations). Such clauses are enforceable only where the employee's role provided genuine access to clients or confidential business information. The restriction must form part of the employment contract itself rather than a side agreement. It must also be limited in duration (subject to a maximum of two years), geographical scope and restricted activities, and go no further than necessary to protect a legitimate business interest. Articles 909 and 910 of the Civil Code (Federal Law No. 5 of 1985) reinforce the principle of proportionality and permit liquidated damages clauses, although courts may reduce excessive amounts.
A non-compete clause becomes unenforceable if the employer unlawfully terminates the employee or dismisses them during probation, or where both parties agree in writing to waive the restriction. An employee, or a new employer, may also buy out the covenant by paying up to three months' wages, provided the former employer gives written consent. Claims must be brought within one year of discovering the breach, and the employer bears the burden of proving actual, quantifiable loss. Since onshore courts do not grant injunctions, damages generally remain the only available remedy.
Non-Solicitation: A Valuable Contractual Protection
Unlike non-compete clauses, non-solicitation and non-dealing provisions have no specific statutory basis under the Labour Law. They are contractual obligations assessed against the same principles of reasonableness, while courts may also rely on the unfair competition provisions of the Commercial Transactions Law where a competitor has induced a contractual breach. As these clauses restrict contact with identified clients or employees rather than preventing employment altogether, they are generally easier to justify and enforce, particularly for senior executives and client-facing personnel.
Effective drafting should clearly identify the protected clients or employees, such as clients with whom the employee dealt during the twelve months preceding termination, rather than referring broadly to "all clients". The duration should also remain proportionate, typically between six and twelve months.
Confidentiality Obligations: A Multi-Layered Framework
Confidentiality obligations arise from several overlapping legal sources. Article 16 of the Labour Law requires employees to maintain the confidentiality of information obtained during employment and to return company documents upon termination. Article 44(5) permits summary dismissal without notice or gratuity for disclosing company secrets. Article 905(5) of the Civil Code imposes a continuing duty to protect commercial secrets even after employment ends, while Article 922 excludes trade secret disclosure claims from the standard one-year limitation period.
Criminal liability may also arise. Article 432 of the Penal Code (Federal Decree-Law No. 31 of 2021) criminalises the unauthorised disclosure of confidential information entrusted through a person's profession or position, carrying a minimum one-year prison sentence and fines starting from Dh20,000. Article 369 of the Commercial Companies Law separately penalises insiders who misuse corporate information. Depending on the circumstances, breaches involving electronic information may also engage the Cybercrimes Law and the Personal Data Protection Law.
Well-drafted confidentiality clauses and non-disclosure agreements complement these statutory protections by clearly defining confidential information, specifying a reasonable duration and recognising exceptions for disclosures required by regulators or courts.
Protection of Trade Secrets
The UAE does not have a standalone trade secrets statute. Instead, protection is derived from the Civil Code, Penal Code, Commercial Companies Law and Federal Law No. 11 of 2021 on Industrial Property Rights. Articles 61 to 63 of that law protect "undisclosed information" that has commercial value because it remains secret and has been safeguarded through reasonable protective measures. This approach is broadly consistent with Article 39 of the TRIPS Agreement, to which the UAE is a signatory.
The DIFC adopts a more codified approach through its Intellectual Property Law, which defines trade secret protection more comprehensively and provides a dedicated misappropriation regime enforceable before the DIFC Courts. Unlike onshore courts, the DIFC Courts can grant injunctions.
Regardless of jurisdiction, employers must demonstrate that they actively protected confidential information. Contractual provisions should therefore be supported by practical safeguards, including restricted system access, confidentiality markings and documented data-classification policies. Without evidence of such measures, trade secret claims can be difficult to sustain.
Garden Leave
Garden leave allows an employer to require a departing employee to remain away from work throughout all or part of the contractual notice period while continuing to receive full salary and benefits. It is commonly used alongside non-compete and confidentiality provisions to prevent senior employees from immediately joining competitors while their access to clients and company systems is withdrawn.
During garden leave, the employment relationship continues. The employee remains bound by contractual obligations, cannot commence new UAE-sponsored employment until the existing work permit has been cancelled or transferred, and continues to accrue gratuity and annual leave entitlements. Employers should avoid imposing conditions that exceed what the notice period reasonably justifies, as withholding salary or benefits may expose them to claims for arbitrary dismissal under Article 47 of the Labour Law.
Free Zones: DIFC and ADGM
The DIFC and ADGM operate common law-based employment regimes independent of the federal Labour Law. Although neither jurisdiction expressly regulates post-termination restrictive covenants, English case law on reasonableness is highly persuasive before their courts. Importantly, both jurisdictions can grant injunctions, a significant advantage over the mainland courts.
Unlike the federal regime, neither the DIFC nor the ADGM imposes a statutory two-year limit. Instead, each restriction is assessed according to whether it is reasonably necessary to protect legitimate business interests in light of the employee's specific role and responsibilities.
Practical Drafting Guidance
- Include restrictive covenants within the signed employment contract itself rather than in an offer letter or separate policy.
- Tailor each covenant to the employee's actual access to clients, confidential information and commercial influence, rather than adopting a standard template for every employee.
- Define the duration, geographical scope and restricted activities with precision, ensuring they remain proportionate to the business interest being protected.
- Support restrictive covenants with a carefully calculated liquidated damages clause that reflects a genuine pre-estimate of likely loss.
- Maintain documentary evidence of protective measures, including access logs, confidentiality markings, exit interviews and prompt system deactivation, to strengthen any future claim.
- Carefully consider governing law and dispute resolution provisions, particularly whether a DIFC or ADGM structure, with access to injunctive relief, better serves the employer's commercial objectives than a purely onshore arrangement.
Conclusion
Restrictive covenants are most effective when drafted with precision and supported by practical business measures. For mainland employers, a non-compete clause alone is rarely sufficient. Combining proportionate non-compete, non-solicitation, confidentiality, trade secret and garden leave provisions, while understanding the important distinctions between the mainland, DIFC and ADGM regimes, offers employers the strongest legal framework for protecting client relationships, confidential information and workforce stability in a market where employee mobility remains the norm.
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US Tightens Student Visa Rules, Limits Foreign Students’ Stay to Four Years
Foreign students on F-1 visas will face a four-year limit on their stay in the US under new regulations finalised by the Department of Homeland Security (DHS).
The DHS rule, released on Thursday, ends the long-standing “duration of status” framework that allowed foreign students to remain in the country as long as they maintained full-time enrolment and complied with visa requirements. Under the new system, F-1 students must seek DHS approval to extend their stay beyond the four-year admission period.
The agency said the change was aimed at strengthening national security safeguards and addressing concerns linked to oversight of the student visa programme.
The regulation marks the latest immigration policy shift by the Trump administration affecting the nearly 1.2 million international students enrolled in US universities.
Last year, DHS cancelled the legal status of thousands of students under its “Student Criminal Alien Initiative”. The agency has also revised the selection process for H-1B specialty occupation visas, reducing opportunities for some early-career foreign professionals, while US Immigration and Customs Enforcement (ICE) has increased scrutiny of alleged fraud involving F-1 visas.
The new rule also introduces fixed periods of stay for J-1 exchange visitors, including foreign researchers working at US universities, and international media personnel holding I visas. It further restricts changes to academic programmes and shortens the grace period available for F-1 students to leave the US after their status expires.
Higher education and medical organisations had strongly criticised the draft regulations released last year, warning that the changes could disrupt degree completion, research activities and physician training programmes.
Homeland Security Secretary Markwayne Mullin said the previous duration of status system had weakened national security and created opportunities for abuse.
“By implementing clear, finite limits on these visas, the United States is reclaiming its ability to properly screen, vet and monitor individuals within our borders,” Mullin said. “This final rule ensures that foreign students remain focused on their primary purpose: completing their studies and returning home.”
However, NAFSA: Association of International Educators criticised the policy, saying it addressed a problem that did not exist.
Fanta Aw, the organisation’s executive director and chief executive officer, said requiring students and researchers to seek government approval for academic extensions, changes in majors or further study would shift educational decisions from universities to an already strained immigration system.
“At a time when global competition for talent is intensifying, this policy sends exactly the wrong message,” Aw said. “It tells the world’s brightest students and scholars that the United States is becoming less welcoming, less predictable and less committed.”
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UAE Strengthens Employee Protections During Epidemics with Full Pay and Protected Leave for Workplace Absences
Employees in the UAE who are required to stay away from work during an epidemic or pandemic will continue to receive their full salary without losing any of their statutory leave entitlements, following amendments to the federal draft law on combating communicable diseases approved by the Federal National Council (FNC).
The amendments require employers to prevent any employee or worker who is infected with a communicable disease, suspected of being infected, or identified as a close contact during an epidemic or pandemic from attending the workplace if their presence could pose a risk to the health and safety of others.
The period of absence will not be deducted from the employee's legally prescribed leave, and the worker will continue to receive their full wage or gross salary throughout the absence, provided it is supported by a certificate issued by the competent health authority.
The amendments were approved during the FNC's 13th session of its third ordinary term of the 18th legislative chapter, chaired by Speaker Saqr Ghobash at Zayed Hall in Abu Dhabi recently, in the presence of Ahmed bin Ali Al Sayegh, Minister of Health and Prevention.
The FNC had initially approved the draft law in March. It was subsequently returned to the council with additional provisions and amendments proposed by the Presidential Court in coordination with the Cabinet to broaden the scope of the legislation and address a wider range of public health scenarios.
The new provisions were referred to the FNC's Health and Environmental Affairs Committee, which reviewed the amendments on July 6. After examining their legal and practical implications, particularly in light of situations that could arise during implementation, the committee endorsed the amendments as submitted.
What it Means for Employers and Employees
The amendments place a clear legal responsibility on employers to prevent affected workers from attending the workplace once a certificate is issued by the competent health authority, removing any ambiguity over whether the decision rests with the employee.
The changes also reflect lessons learned from the Covid-19 pandemic, when uncertainty arose over whether quarantine and isolation periods should be treated as paid sick leave, unpaid leave or another category of absence.
The revised draft law modernises the UAE's legislative framework for combating communicable diseases and strengthens the country's legal preparedness to prevent, detect and respond effectively to future public health emergencies while safeguarding both workplace safety and employees' rights.
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Saudi Warns of SR50,000 Fine, Jail and Deportation for Overstaying Entry Visas
Saudi Arabia has issued a fresh warning to visitors and expatriates against overstaying their entry visas, saying violators could face fines of up to SR50,000, imprisonment for up to six months and deportation from the Kingdom.
In a statement carried by the Saudi Press Agency (SPA), the Ministry of Interior stressed that all foreign visitors must leave the country before their entry visas expire. Authorities said strict legal action would be taken against anyone who remains in the Kingdom beyond the authorised period, as part of ongoing efforts to enforce immigration laws and maintain public security.
The ministry reiterated that overstaying an entry visa is a legal offence punishable by a maximum fine of SR50,000, a prison sentence of up to six months and deportation after completion of the sentence. The warning applies to all categories of entry visas, including visit visas, unless extended in accordance with Saudi regulations.
The Ministry of Interior also urged members of the public to report any violations of residency, labour and border security regulations. Reports can be made by calling 911 in the regions of Makkah, Riyadh and the Eastern Province, and 999 or 996 in all other regions of the Kingdom.
The latest advisory comes amid an intensified nationwide campaign against immigration and labour law violations. Saudi authorities have recently conducted large-scale inspection drives, arresting thousands of individuals for breaches of residency, labour and border security laws. Officials have emphasised that enforcement efforts will continue to ensure compliance with the Kingdom's immigration regulations and to safeguard public order.
Saudi Arabia has repeatedly reminded visitors, employers and sponsors of their legal responsibilities, urging all concerned to comply with visa conditions and avoid penalties by ensuring that visitors depart before their visas expire.
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Qatar Labour Law Changes Introduce Flexible Work, New Non-Compete Rules
Qatar has introduced significant amendments to its Labour Law under Law No. 9 of 2026, bringing in professional licensing requirements for selected occupations, a legal framework for part-time and freelance work, and revised non-compete provisions designed to better balance employers' interests with employees' rights.
The reforms were introduced following an assessment of labour market needs and are intended to benefit both workers and employers, according to Yousuf Ali Abdulnour, Assistant Director of the Labour Relations Department at the Ministry of Labour.
Speaking to Qatar TV, Abdulnour said the amended law allows employers in specified professions to require employees to obtain professional licences, complete approved training programmes and pass recognised competency assessments before practising their occupations.
He said the new provisions would help create a more skilled workforce while enabling employers to recruit qualified and competent professionals. The Ministry of Labour will also identify and announce accredited training providers, including authorised private training centres, to deliver the required courses and certifications.
The amendments establish a structured system for entry into certain professions through mandatory training and professional assessments. The objective is to improve workforce competence, raise service standards and enhance safety and productivity across various sectors of the economy.
The law also introduces a legal framework for regulating part-time and freelance employment, reflecting the growing demand for more flexible working arrangements.
According to Abdulnour, the Minister of Labour will be empowered, through decisions issued by the Prime Minister, to regulate both employment models. Separate contractual frameworks will be introduced for part-time and freelance work to clearly define the rights and obligations of both employers and workers.
He said these standardised contracts are intended to safeguard both parties and reduce the likelihood of future employment disputes.
The detailed regulatory framework for these employment models will be issued through subsequent ministerial decisions, providing businesses with greater flexibility in engaging skilled professionals while supporting the continued growth of the platform economy and evolving labour market requirements.
The amendments also revise Qatar's non-compete provisions by extending the maximum duration of non-compete agreements from one year to two years.
Abdulnour said the change reflects labour market requirements identified during the government's review of existing legislation. Under the amended law, employers may require employees to refrain from competing with the business for up to two years after the end of their employment.
However, he stressed that the extended non-compete period is subject to an additional legal safeguard. The clause will only be enforceable if it is approved by the competent department at the Ministry of Labour and incorporated through an approved addendum to the employment contract.
The revised provisions seek to protect the legitimate commercial interests of businesses, including trade secrets and client relationships, while maintaining an appropriate balance with employees' right to pursue their profession. By introducing clearer legal rules governing non-compete agreements, the amendments aim to provide greater certainty for both employers and workers in Qatar's evolving labour market.
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Company Ordered to Pay Dh875,700 After Failing to Formally Terminate Employee
The Abu Dhabi Court of Cassation has ordered a company to pay an employee Dh875,761 in unpaid salaries and employment benefits after ruling that it failed to formally terminate her employment before stopping salary payments.
The ruling, issued by Abu Dhabi's highest court, concluded a lengthy legal dispute that passed through the Court of First Instance and the Court of Appeal before reaching the Court of Cassation.
The employee filed a labour claim in 2025, alleging that the company stopped paying her monthly salary of $26,666 (around Dh97,866) from April 2025 without issuing a formal termination notice. She sought unpaid salaries, annual leave pay, notice compensation, end-of-service gratuity, contractual bonuses, stock-related benefits and damages for what she claimed was wrongful termination during her probation period.
A lower court initially awarded her only Dh18,350 for the notice period and a return air ticket, while rejecting her remaining claims. She appealed the decision, prompting the higher court to overturn the ruling and appoint an independent expert to examine the case.
The employee maintained that the company had never formally notified her that her employment had ended, meaning the employment relationship remained legally valid. She said she continued performing her duties after her salary stopped and was unable to join another employer because no termination documents had been issued.
The court-appointed expert found no document, letter or email showing that the company had informed the employee that her services had been terminated.
The expert also found that the employee's repeated attempts to contact the company by telephone, email and even through a newspaper notice received no response. Based on the available evidence, the expert concluded that she remained in employment until she filed her lawsuit on November 25, 2025.
According to the expert's report, the employee had been paid only until the end of May 2025 and was therefore entitled to unpaid salaries for the remaining period up to the date the case was filed, amounting to Dh760,354.
The expert further assessed her entitlement to Dh57,088 in end-of-service gratuity and Dh58,317 for 29 days of unused annual leave. The cost of a return air ticket to her home country was valued at Dh2,500.
However, the court dismissed her claims for two contractual bonuses after the expert found that she had not satisfied the conditions required to receive them.
Accepting the expert's findings, the Court of Cassation amended the earlier judgment and ordered the company to pay the employee a total of Dh875,761 in unpaid salaries, end-of-service gratuity and annual leave pay.
The company was also directed to provide a return ticket to the employee's home country or pay Dh2,500 in lieu of the ticket, unless she had already taken up employment elsewhere. In addition, it was ordered to bear the legal costs of the proceedings, including Dh1,000 towards the employee's legal fees for both stages of litigation. All other claims were dismissed.
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Can a Maid Switch Employers in the UAE? What Sponsors Need to Know About Domestic Worker Transfers Under the Latest Law
Under the UAE's domestic workers law, a maid or any other domestic worker sponsored by a family can legally transfer to another employer without leaving the country, provided certain conditions are met. The law seeks to balance the worker's right to seek new employment with the rights of the original sponsor, while laying down detailed rules on recruitment costs, government fees, visa procedures and contractual obligations.
The legal framework governing such transfers is contained in Federal Decree-Law No. 9 of 2022 on Domestic Workers and its Executive Regulations issued under Cabinet Resolution No. 106 of 2022.
A domestic worker has the right to move to a new employer once the obligations contained in the employment contract have been fulfilled. However, the transfer must be carried out in accordance with the procedures prescribed by the Ministry of Human Resources and Emiratisation (Mohre), ensuring that the interests of both the worker and the current employer are protected.
The law specifically provides that where a domestic worker transfers to another employer in accordance with the prescribed legal procedures, the original employer is not responsible for paying the worker's return air ticket to her home country. Since the worker is continuing employment within the UAE rather than ending her employment altogether, the obligation to arrange repatriation does not arise.
The legislation also addresses situations where a worker who was recruited specifically by name or designation wishes to change employers during the period of the first employment contract. In such cases, the new employer is required to compensate the original employer for part of the recruitment expenses that were paid to bring the domestic worker to the UAE. The amount payable is calculated in accordance with the formula prescribed under the Executive Regulations.
Apart from reimbursing part of the recruitment expenses, the new employer must also pay the government fees incurred by the original employer for recruiting and employing the domestic worker, unless both employers mutually agree otherwise. This provision is intended to ensure that an employer who has recently invested in recruiting a domestic worker does not bear the financial burden if the worker moves to another household shortly afterwards.
The Executive Regulations also contain provisions covering transfers after an employment contract has been renewed. If a domestic worker decides to move to another employer following the renewal of the employment contract, the new employer must reimburse the government fees paid by the original employer for renewing the contract, provided that the transfer takes place within the first three months after the renewal. This reimbursement requirement may be waived only if both employers agree otherwise.
These provisions are designed to strike a fair balance between allowing domestic workers greater employment mobility and protecting employers from financial losses arising from recruitment and visa-related expenses incurred shortly before a transfer.
For sponsors whose domestic worker wishes to pursue another employment opportunity within the UAE, the transfer can therefore proceed legally, provided the contractual obligations under the existing employment agreement have been fulfilled and all outstanding employment dues have been settled. The employer should also ensure that the necessary visa cancellation or transfer procedures are completed through the competent authorities in accordance with Mohre requirements to avoid future disputes.
The current legal framework makes it clear that domestic workers are no longer tied indefinitely to a single employer. At the same time, employers are afforded legal safeguards through reimbursement provisions and formal transfer procedures, ensuring that changes in employment take place in an orderly and transparent manner for all parties involved.
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Indian Passport Service Rollout Delayed as Court Case Keeps New Centres Closed
The launch of Indian passport and consular services at 16 newly established application centres across the UAE has been delayed as a legal dispute over the outsourcing contract continues in India.
The centres, operated by Alhind Global Services, were expected to begin operations on July 1. However, the transition has been put on hold pending the outcome of proceedings before the Delhi High Court, leaving the newly equipped facilities largely unused.
A visit to the company's Consular, Passport and Visa (CPV) application centre at UW Mall found the office ready for operations but largely empty. Staff were conducting system simulations, including token management and waiting-time tests, while waiting areas and most service counters remained vacant.
The centre, spread across more than 12,000 square feet with over 45 service counters, has been designed to handle passport, consular and attestation services with the aim of significantly reducing waiting times for applicants.
In Dubai, Alhind has another CPV application centre at Dubai Investment Park (DIP). The remaining centres are located in Al Danah, Al Reem, Musaffah, Al Ain, Madinat Zayed, Al Majaz, Rolla, Ajman, Fujairah, Umm Al Quwain, Khorfakkan, Kalba and Ras Al Khaimah. For the first time, a centre has also been established in Gayathi, in Abu Dhabi's Al Dhafra region, to serve the large Indian community living and working around the Ruwais area.
Legal Dispute Delays Transition
Alhind was awarded the outsourcing contract earlier this year following a competitive bidding process initiated in November 2025. The Embassy of India had announced that it would replace BLS, which had managed passport, visa and consular services in the UAE since 2011. Alhind emerged as the lowest bidder among four shortlisted companies.
However, the handover has been delayed after two unsuccessful bidders challenged the contract award before the Delhi High Court. The petitioners contend that they were excluded during the technical evaluation stage without adequate justification. The court is expected to deliver its judgment in the coming weeks.
Appointment-only Passport Services Continue
Until the legal dispute is resolved, the Embassy of India in Abu Dhabi and the Consulate General of India in Dubai have temporarily taken over the delivery of passport and consular services.
Both missions now require applicants to secure appointments online before visiting, replacing the earlier walk-in system. Applicants must book their slots in advance through the official appointment portal.
The move comes amid heavy seasonal demand, with the Consulate General of India in Dubai receiving more than 1,000 applicants on most days during the peak summer travel period.
For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.