Recent developments in United Arab Emirates
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in the UAE.
Enhanced Emiratization Requirements (2025)
The UAE government has introduced stricter Emiratization targets for private-sector companies. Firms with 20 or more employees in key industries must now ensure that at least 5% of their workforce consists of Emirati nationals by the end of 2025. Non-compliance may lead to increased fines and restrictions on new work permits.
New Remote Work Regulations (2025)
In response to evolving work trends, the Ministry of Human Resources and Emiratisation (MoHRE) has issued guidelines to regulate remote work arrangements in the private sector. Employers must now formalize remote work agreements, specifying working hours, responsibilities, and compensation structures.
Introduction of a Pension Scheme for Expatriates (2025)
The UAE has announced a new voluntary pension scheme for expatriate workers, allowing them to contribute towards long-term savings beyond their end-of-service gratuity. The scheme is designed to provide financial security for foreign employees planning for retirement.
Stricter Compliance on Wage Protection System (2025)
Authorities have increased enforcement of the Wage Protection System (WPS) to ensure timely salary payments. Companies failing to comply with WPS requirements may face business license suspensions and fines, reinforcing the UAE’s commitment to labor rights.
Mandatory Health Insurance Expansion (2025)
The UAE has extended mandatory health insurance coverage to all employees across the country, including those in free zones where coverage was previously optional. Employers must now provide comprehensive health insurance that meets updated government standards.
