Different Work Categories Under the New Federal Labour Law No. 33 of 2021

Previously, UAE employment law stipulated only full-time work — employment with a single employer for the entirety of daily working shifts. Part-time, temporary, flexible, remote and job-sharing employment had not traditionally been offered by employers in the UAE, because the previous labour law did not regulate or allow such models.

Federal Labour Law No. 33 of 2021 changes this as the economy continues to diversify, dividing the employment market into six different work models:

Full-Time Work

Full-time work means employment with a single employer for the entirety of daily working shifts. This was the only model under the previous law and remains available under the new one.

Part-Time Work

Part-time work means working only part of the usual day or week. People living in the UAE on a family visa can work part-time, needing only a no-objection certificate (NOC) from the sponsor and a work permit from the Ministry of Human Resources and Emiratisation (MOHRE), which the employer must obtain.

An employee working part-time for one employer can hold another part-time role simultaneously, up to a combined maximum of 8 hours a day. A full-time employee may also work part-time elsewhere, conditional on the main employer's approval and the 8-hour daily cap, which in practice makes such arrangements difficult to apply.

Temporary Work

Temporary work means employment that ends upon completing specified contractual hours or projects. Employees may work under a temporary work permit issued by MOHRE for a period not exceeding six months, with a no-objection certificate required if sponsored by family or another employer.

The Ministry may grant a temporary work permit without the former employer's approval where there is a labour complaint referred to court between the employer and employee, or where it is confirmed the employer failed to pay wages for more than two months per the wage protection or labour relations office report.

Flexible Work

Flexible work means employment that allows working days and hours to change based on operational workload and requirements, depending on the employer's economic and operational circumstances.

Remote Work

Remote work means employees can work fully or partially from outside the office, city, or even the country.

Job-Sharing and Other Categories

Cabinet Resolution No. 1 of 2022 on the executive regulation of Federal Decree-Law No. 33 of 2021 introduced the job-sharing work type, where tasks and duties are divided among more than one worker as agreed in advance, with wages reflecting the division; such workers are dealt with under the rules of part-time work. The resolution also allows the Ministry to set out other work types as the labour market requires.

Positive Impact on the Market

The UAE has a large number of small, medium, and large employers, including many startups. Nearly all companies could benefit from part-time, temporary, flexible, or remote employees to save money and time — for example, a small entity that needs an accountant or IT support for only 20 hours a week previously had to hire full-time and pay a full salary for a partial need. Meanwhile, employees such as students or parents with limited availability can now work part-time and manage other responsibilities.

This change also protects employers from a large end-of-service liability, since the executive regulations set a different, proportional method for calculating end-of-service compensation under these work categories.

End-of-Service Compensation Under the New Work Models

Severance pay for an employee working under a part-time or job-sharing model is calculated as: the number of working hours set out in the employment contract in a year, divided by the number of usual working hours in a full-time contract in a year, multiplied by 100%, then multiplied by the severance pay that would apply under a full-time contract. End-of-service compensation does not apply to an employee under temporary work if the contract term is less than one year.

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