The UAE’s employment regulatory landscape has seen several developments in 2026, introducing additional responsibilities for businesses in areas ranging from salary payments and Emiratisation to workforce accommodation and the prevention of forced labour.
The changes affect employers across various sectors, although the specific obligations depend on the size and nature of their workforce and the activities they undertake. Businesses employing Emirati nationals, managing large workforces or providing staff accommodation may need to make particular adjustments to their existing arrangements.
For companies, compliance involves more than simply updating human resources policies. Payroll systems, employment contracts, staff records, accommodation arrangements and internal procedures may all require attention to ensure that business practices remain aligned with the latest regulatory requirements.
Understanding the scope of these developments and the obligations they create is important for employers seeking to avoid regulatory breaches and maintain a compliant workplace.
Revised Wage Protection System Requirements
The Wage Protection System (WPS) continues to serve as a principal mechanism for monitoring salary payments in the UAE, enabling authorities to identify establishments that fail to meet their contractual obligations towards employees.
Ministerial Resolution No. 340 of 2026, which took effect on June 1, introduced revised provisions governing compliance with the system. Under the updated framework, employers are required to pay wages for the preceding month by the first day of the following Gregorian month.
The resolution also introduces an 85 per cent threshold for assessing an establishment’s compliance with wage-payment requirements. However, this threshold should not be understood as allowing employers to retain 15 per cent of employees’ monthly salaries. Their contractual obligation to pay the agreed wages remains in force.
Businesses should review their payroll arrangements to ensure that salaries are transferred within the prescribed timeframe through authorised payment channels. They should also maintain proper records of salary transactions, including bank transfer confirmations and other relevant documentation, to address any questions concerning payment delays or discrepancies.
Employees facing salary-related difficulties should similarly preserve their payslips, bank statements and written communications with their employers. These documents can help establish whether wages were transferred on time and whether the amounts received correspond with contractual entitlements. If an issue cannot be resolved internally, employees may approach the appropriate labour authorities through the prescribed complaint procedures.
Higher Minimum Pay For Emirati Employees
Another significant development concerns the minimum monthly salary applicable to Emirati nationals employed in the private sector.
The prescribed minimum increased to Dh6,000 with effect from January 1, 2026. Employers were given until June 30 to adjust the salaries of existing Emirati employees to meet the revised requirement, with compliance measures taking effect from July 1.
The requirement is specifically directed at Emirati nationals working in the private sector. It does not introduce a universal minimum wage for all employees in the UAE, and businesses should distinguish between the two when reviewing their employment obligations.
Employers should examine their workforce records to identify any Emirati employees whose salaries remain below the prescribed threshold. Where adjustments are required, the corresponding changes should be reflected consistently in payroll systems, employment contracts and other relevant records.
A review of contractual documentation is particularly important because discrepancies between the agreed terms and actual salary payments could create difficulties during regulatory inspections or employment disputes. Businesses should retain evidence of salary revisions and ensure that all necessary administrative changes have been completed.
Nafis Programme Extended Until 2040
The UAE's decision in April 2026 to extend the Nafis programme until 2040 provides a longer-term framework for encouraging Emirati participation in the private sector.
Nafis is a government initiative intended to improve employment opportunities for UAE nationals and support their career development outside the public sector. It offers various employment-related incentives and financial assistance measures, subject to the eligibility conditions governing individual schemes.
The extension is relevant to businesses seeking to recruit and retain Emirati employees, as well as UAE nationals looking for opportunities in private-sector organisations. Depending on the applicable initiative, eligible employees may receive financial support, while participating employers can benefit from measures designed to encourage the recruitment and development of national talent.
However, the availability of assistance is not automatic. Employers and prospective beneficiaries should examine the relevant programme conditions and current eligibility criteria before making decisions based on the expected benefits.
Although extending Nafis does not amount to an amendment of the UAE Labour Law, it remains an important policy consideration for businesses developing their Emiratisation plans. Companies should assess how the available initiatives can complement their recruitment strategies while ensuring that they continue to meet their statutory obligations.
New Standards For Labour Accommodation
Worker welfare and accommodation have also received regulatory attention in 2026, with updated requirements governing employers responsible for providing housing facilities.
In February, the Ministry of Human Resources and Emiratisation issued Ministerial Resolution No. 122 of 2026, introducing revised standards for labour accommodation.
The provisions generally apply to establishments employing 50 or more workers whose contractual monthly wages do not exceed Dh1,500. Businesses within the scope of the resolution must provide approved accommodation, maintain the prescribed records and ensure that the facilities meet the applicable standards.
The framework also addresses accommodation and support arrangements for workers with disabilities, employees who have sustained injuries and individuals requiring additional assistance. These requirements reflect a broader regulatory emphasis on ensuring that workforce housing arrangements provide suitable living conditions and take account of workers' particular needs.
For employers, meeting these obligations involves more than arranging accommodation. They must establish whether the facilities satisfy the applicable standards and whether the necessary approvals, registrations and administrative requirements have been completed.
Businesses should undertake a review of their existing accommodation arrangements to identify any shortcomings requiring attention. Where housing is provided through an external operator or third-party contractor, employers should also examine the service agreements and verify that the facilities comply with the requirements applicable to their workforce.
International Commitment Against Forced Labour
The UAE strengthened its international commitment to protecting workers against exploitation in January 2026 by ratifying the International Labour Organization's Protocol of 2014 to the Forced Labour Convention, 1930.
`
Forced labour is already prohibited under UAE domestic legislation. Article 14 of Federal Decree-Law No. 33 of 2021 prohibits employers from compelling workers to perform duties against their will or threatening them with penalties to make them work.
The international protocol reinforces the wider framework for preventing forced labour, protecting affected individuals and providing access to appropriate remedies. It places particular emphasis on identifying coercive employment practices, addressing exploitation and safeguarding the rights of vulnerable workers.
For businesses, the ratification highlights the importance of ensuring that recruitment and employment practices remain transparent and voluntary. Employers should examine their recruitment procedures, contractual arrangements and workplace policies to identify practices that could expose workers to coercion or exploitation.
Proper employment documentation, clear contractual terms and effective internal complaint mechanisms can help businesses identify potential concerns and take corrective action. Employers should also ensure that workers are not subjected to threats, unlawful restrictions or other forms of pressure that undermine their freedom to work.
The ratification represents an international commitment rather than a separate amendment to the UAE Labour Law. Nevertheless, it reinforces the country's existing legal protections and signals the continuing importance of responsible employment practices across the private sector.
What Employers Should Do To Remain Compliant
Taken together, the developments in 2026 demonstrate the continuing expansion of the regulatory responsibilities placed on UAE employers. While some measures introduce specific compliance requirements, others reinforce the broader policy direction towards better worker protection, greater Emirati participation and improved employment standards.
Businesses should review their payroll systems, verify that Emirati employees receive the prescribed minimum salary, and assess whether their recruitment and workforce planning arrangements take account of the extended Nafis programme.
Employers falling within the scope of the revised accommodation requirements should also check their housing facilities, approvals and supporting records. Recruitment practices and internal procedures should be examined to ensure that workers are employed voluntarily and are protected against coercion or exploitation.
A periodic compliance review involving human resources, payroll, finance and legal teams can help identify gaps before they develop into regulatory or employment disputes. Companies should also monitor further announcements from the relevant UAE authorities, as implementation requirements and administrative guidance may evolve.
For employers, the objective should not simply be to respond to individual regulatory changes. Maintaining accurate records, transparent employment practices and effective internal controls is essential to managing legal risks and building a sustainable workforce in the UAE.
For enquiries or further information, contact ask@tlr.ae or call +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.