UAE Labour Law No. 33 of 2021 Clarifies Employer Discretion and Employee Rights on Working Hours, Overtime and Rest Days

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the “UAE Labour Law”) forms the primary legislative framework governing employment relationships in the UAE private sector. Introduced to modernise labour regulation and align workplace practices with international standards, the law establishes a balanced structure of rights and obligations for both employers and employees. As set out in Article 4, the UAE Labour Law seeks to regulate labour relations, protect the interests of both parties to the employment contract, and ensure a stable and productive working environment.

 

A key element of this balance lies in the regulation of working hours, overtime and rest periods. While the law acknowledges operational needs and affords employers a defined degree of discretion, it simultaneously imposes clear statutory limits to safeguard employee welfare. These provisions operate as mandatory minimum standards and cannot be waived to the detriment of the worker.

 

Under Article 17 of the UAE Labour Law, the maximum normal working hours are fixed at eight (8) hours per day or forty-eight (48) hours per week. This provision establishes a core right relating to working time and serves as the benchmark against which all additional work arrangements are assessed. The law further requires that a worker must not be asked to work for more than five (5) consecutive hours without a rest period, or periods, totalling at least one hour, which are excluded from the calculation of working hours. This statutory safeguard highlights the law’s emphasis on employee health and productivity.

 

At the same time, the UAE Labour Law allows for sector-specific and operational flexibility. Pursuant to Article 17, the Cabinet may, on the Minister’s proposal, increase or reduce daily working hours for certain economic sectors or categories of workers. In addition, time spent commuting between a worker’s residence and the workplace is not treated as working time. The Implementing Regulations also provide for special working-hour arrangements during the month of Ramadan. For employment patterns other than full-time work, the law expressly states that neither the original employer nor any other employer may require a worker to exceed the hours agreed in the employment contract without the worker’s written consent, reinforcing contractual certainty.

 

Employer discretion is more tightly circumscribed in relation to overtime. Article 19 permits an employer to require overtime work beyond normal hours, but such overtime must not exceed two (2) hours per day. Beyond this daily limit, the law imposes an absolute cap on cumulative working time, providing that total working hours must not exceed one hundred and forty-four (144) hours over any three-week period, irrespective of working conditions. These limits are intended to prevent excessive workloads and curb the potential misuse of overtime arrangements.

 

The law also prescribes mandatory compensation for overtime work. Where a worker is required to work beyond normal hours, they are entitled to their normal remuneration, calculated on the basis of the Basic Salary, plus an additional amount of not less than twenty-five percent (25%) of that remuneration. Where overtime is performed between 10:00 p.m. and 4:00 a.m., the worker is entitled to a higher premium of not less than fifty percent (50%) of the Basic Salary. This enhanced rate does not apply to workers employed under shift-based systems, as expressly provided under Article 19.

 

Beyond working time, the UAE Labour Law places strong emphasis on rest days and official holidays as integral to employee protection. Article 21 entitles workers to a paid weekly rest day of not less than one day, as determined by the employment contract or workplace regulations. The Cabinet may increase the minimum weekly rest entitlement where necessary. The law further provides that workers must not be employed for more than two consecutive rest days, except in the case of day labourers, thereby limiting extended work schedules without adequate rest.

 

Where work requirements oblige a worker to perform duties on a designated weekly rest day or an official holiday, the law mandates compensation. In such circumstances, the employer must either grant an alternative rest day or pay remuneration for that day equivalent to a normal working day, together with an additional amount of not less than fifty percent (50%) of the Basic Salary for that day, as stipulated in Article 21. Separately, Article 28 entitles workers to fully paid official holidays as determined by Cabinet resolution.

 

In conclusion, the UAE Labour Law establishes a clear hierarchy that favours employee protection. The rights set out under the Decree-Law represent minimum statutory entitlements. Any agreement, internal regulation or employment contract that offers more favourable terms to the worker will prevail. Conversely, any contractual provision that contravenes the UAE Labour Law is null and void unless it grants a greater benefit to the worker. Through this framework, the law strikes a balance between employer discretion and enforceable employee rights, promoting fairness, predictability and compliance in modern employment relationships across the UAE.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.