The regulatory architecture governing employment relations in the United Arab Emirates private sector has undergone its most significant structural transformation. The framework, established under Federal Law No. 8 of 1980, was entirely repealed and replaced by Federal Decree-Law No. 33 of 2021. The new framework moved private sector employment contracts away from unlimited-term contracts and required employment contracts to be concluded for a fixed term. At the same time, economic changes, salary payment concerns, and the rise of remote work have changed the way employment disputes arise in the UAE. These developments have led many expatriate employees to seek legal guidance, especially in cases involving salary delays, unpaid dues, termination issues, or other employment concerns. This makes it important for workers to understand the correct steps for raising and handling a labour dispute in the UAE.
Remote work is no longer considered a temporary workplace arrangement. It is recognised as a formal work model according to Article 5 of Cabinet Resolution No. 1 of 2022, implementing Federal Decree-Law No. 33 of 2021 on employment relationships. The framework describes remote work as a situation when the employee performs all or part of their duties outside the employer’s physical workplace, communicating through electronic means instead of face-to-face. If an employee wants to work remotely from inside or outside the UAE, this is still subject to the employer’s approval, according to Article 17(6) of Federal Decree-Law No. 33 of 2021. If such approval is granted, the employer may require the employee to perform specified hours under the arrangement. Any changes to a remote or hybrid working arrangement should be clearly documented in the employment contract or a written addendum, particularly if it affects working hours, reporting requirements, location of work, supervision, means of communication or performance expectations. This reduces uncertainty should a dispute arise in the future over attendance, salary, performance or contractual obligations.
Remote work allows more flexibility for employers and employees, but it also changes the supervision process. The employer may have once wanted to have direct physical control over workers in the workplace, but they might now turn to digital check-ins, attendance systems, email records, productivity tools, or project management platforms to keep track of work. The obligation to provide a safe work environment under Article 13 of Federal Decree-Law No. 33 of 2021 also applies to remote or hybrid arrangements. Before taking action that affects salary or attendance during adverse weather conditions, travel restrictions or emergencies, employers should consider whether the employee can work remotely. Written approvals that are clear can help prevent disputes later on.
The UAE enforces salaries through the Wages Protection System to protect workers and improve wage compliance. Ministerial Resolution No. 340 of 2026, which came into force on 1 June 2026 established a tighter framework and repealed Ministerial Resolution No. 598 of 2022. Under the new rules, wages are usually payable from the first day of the month following the wage period.
Generally, an employer is considered compliant under the revised Wages Protection System if it pays at least 85 per cent of total wages by the due date. This, however, does not deprive the worker of the right to claim full salary or any unpaid balance. Wages are often delayed, which can lead to administrative action against the employer under the WPS rules, and the payment records can be used to support unpaid salary claims in the UAE.
Annex No. 1 to Ministerial Decision No. 340 of 2026 provides for the phased response to late wage payments. Monitoring starts from the due date and electronic warnings from the second day. If the non-payment continues, MoHRE may suspend the issuance of new work permits as early as the fifth day, impose more severe measures as early as the eleventh day and automatically register labour disputes as early as the sixteenth day in certain instances. Serious cases may be referred to the Public Prosecution, and measures may be taken to freeze assets or impose travel bans on the persons responsible for the cases after twenty-one days.
Termination may be justified on account of business closure, insolvency or serious economic difficulties under Article 42 of Federal Decree-Law No 33 of 2021. However, the employer must comply with Article 43 and give written notice and comply with the agreed notice period, which must be between 30 and 90 days unless notice period compensation is paid. This is in contrast with Article 44, which states that an employee can only be dismissed without notice in certain cases of misconduct, following a written investigation and a justified written decision.
Article 47 of the UAE Labour Law protects employees from unlawful dismissal in the event of dismissal in connection with raising a serious complaint with MoHRE or pursuing a valid claim against the employer in court. If the court finds the dismissal unlawful, it may award equitable compensation of up to three months’ salary, calculated on the basis of the employee’s last remuneration. This compensation does not affect the employee’s entitlement to notice period compensation, end of service gratuity or other unpaid employment dues. Employers should also ensure that final settlements are paid on time, as failure to settle workers’ rights properly may expose the employer to further claims and regulatory consequences.
In case salary delays are not resolved internally, an employee can file a labour complaint for unpaid wages in the UAE. Check the correct authority and keep the required documents ready before filing.
Key filing points:
Article 54 of the UAE Labour Law gives MoHRE a more active role in resolving individual labour disputes. If the claim value does not exceed AED 50,000, or if the dispute relates to non-compliance with a previous amicable settlement, MoHRE may issue a decision that has the force of an executable instrument. However, either party may challenge the decision before the competent Court of First Instance within 15 working days of notification, and filing the case suspends enforcement of MoHRE’s decision. The court must set a hearing within three working days and issue its decision within 30 working days.
For disputes outside MoHRE’s decision-making scope, the Ministry refers the matter to the competent court with a summary of the dispute and its recommendation. MoHRE may also require the employer to continue paying the worker’s salary for up to two months where the dispute has resulted in salary suspension. Labour claims must generally be filed within two years from the end of the employment relationship.
The UAE has changed its employment framework, particularly in the areas of fixed-term contracts, remote working, wage protection and labour dispute resolution. For employers, this means contracts, payroll records, remote working arrangements and termination procedures need to be properly documented and managed. The law has set a clear path for employees to raise salary delays, unpaid dues, unlawful termination and other employment issues, provided they act within the stipulated timelines and maintain proper evidence. With MoHRE becoming more proactive in resolving smaller claims, employers and employees both benefit from knowing the correct process before a dispute escalates. Clear documentation, timely payment and proper communication remain the best protections against employment disputes in the UAE in this evolving labour market.
