Overview

As remote work becomes more prevalent across the UAE, HR professionals must stay updated with the evolving legal framework. The UAE Labour Law 2025 introduces significant changes that directly impact remote employment agreements. This article outlines what HR leaders need to know, including contract essentials, tax implications, work-hour requirements, and compliance updates—ensuring your company avoids legal pitfalls and remains competitive in a hybrid work economy.

What is the UAE Labour Law 2025 and Why Does It Matter for Remote Work?

UAE Labour Law 2025 governs employment relationships across the Emirates, including provisions for remote and hybrid work models. It standardizes rights and responsibilities for employers and employees, ensuring clarity in work hours, leave entitlements, benefits, and dispute resolution.

Key highlights impacting remote contracts:

• Mandatory written contracts for remote roles

• Equal benefits for remote and in-office employees

• Clear distinction between full-time, part-time, and freelance setups

• Tax and visa implications for cross-border remote hires

Remote Contract Requirements Under UAE Labour Law

Under Article 17 of the new law, remote employment contracts must include:

Failure to define these elements can result in compliance violations or contract nullification.

What Are the Tax and Visa Rules for Remote Workers in UAE?

The UAE Labour Law 2025 mandates compliance with local tax and immigration regulations for remote staff:

• UAE residents working remotely must be sponsored under valid employment or freelance visas.

• Non-residents hired to work remotely from abroad must have compliant contracts with local or overseas branches.

• The Ministry of Human Resources and Emiratisation (MOHRE) requires companies to declare remote employees in official records.

Tip: Use MOHRE’s updated online portal to register remote staff for smooth compliance.

Does UAE Labour Law Require Equal Pay for Remote Employees?

Yes. Equal treatment is a cornerstone of the 2025 reforms. Remote employees must receive the same pay scale, leave benefits, end-of-service gratuity, and health insurance as their on-site counterparts—unless explicitly stated in the contract.

How Can HR Ensure Compliance with UAE Remote Work Laws?

To stay compliant with the UAE Labour Law 2025:

• Use MOHRE-approved templates for all remote agreements

• Register all remote roles, whether domestic or international

• Conduct regular policy audits (bi-annually recommended)

• Train managers on hybrid team oversight and legal updates

Conclusion

As remote work cements its place in the UAE’s evolving labour market, HR teams must adapt to the legal realities of 2025. Aligning your contracts and internal policies with the UAE Labour Law ensures legal compliance, protects employees, and strengthens your employer brand. By integrating clear clauses, honoring equal benefits, and staying alert to visa/tax requirements, HR leaders can confidently navigate the new hybrid workforce era.

FAQs

What types of remote contracts are recognized under UAE Labour Law?

The law recognizes full-time, part-time, temporary, and flexible contracts. Each must specify the working model clearly and be registered with MOHRE.

Are remote employees eligible for end-of-service benefits?

Yes. Remote workers, like on-site employees, are entitled to gratuity if they complete one year or more under continuous service.

Can a foreign employee work remotely for a UAE company?

Yes, but the employer must ensure legal status in the worker’s country and declare the contract to MOHRE. Local labor laws may also apply abroad.

Do UAE labour inspections apply to remote workers?

While physical inspections aren’t common for remote staff, employers are expected to maintain digital records that inspectors can review if needed.

How often should HR update remote work policies?

Best practice recommends bi-annual reviews or any time MOHRE issues new circulars. This ensures policy relevance and legal alignment.