Gulf employment law: the 2026 employer guide
There is no single Gulf employment law. Each of the six Gulf states, the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, has its own labour law, its own end-of-service rules for foreign workers and its own rules on hiring citizens. This hub compares them side by side, with a guide to each country and deeper guides for the UAE and Saudi Arabia.
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In forceUAE employment law: what an employer needs to knowMost UAE employers follow Federal Decree-Law No. 33 of 2021, which covers the mainland and most free zones, while DIFC and ADGM have their own employment laws. It sets fixed-term contracts, probation of up to six months, notice of 30 to 90 days, 30 days' annual leave after a year, and an end-of-service gratuity for foreign workers based on basic wage. Emirati staff add pension contributions and Emiratisation targets on top.1 July 2026
In forceEmployment law in Saudi ArabiaSaudi Arabia's Labor Law (Royal Decree M/51, heavily amended from 19 February 2025) sets the core terms: written contracts documented on Qiwa, probation of up to 180 days in total, 21 days' annual leave rising to 30 after five years, an end-of-service award of half a month's wage a year for the first five years and a full month after that, and 60 days' notice from the employer on an indefinite monthly-paid contract. On top sit Saudization quotas (Nitaqat) and GOSI social insurance.19 February 2025
In forceBahrain employment law: the Labour Law, SIO end-of-service contributions and LMRA permitsBahrain's private sector follows the Labour Law of Law No. 36 of 2012. Probation is up to 3 months (6 for occupations the Minister names), notice is 30 days and annual leave is at least 30 days after a year's service. Since 1 March 2024 employers fund expatriate end-of-service pay through monthly SIO contributions of 4.2% of wage for the first three years and 8.4% after.1 March 2024: expatriate end-of-service pay moved to monthly SIO contributions
In forceKuwait employment law: what an employer needs to knowKuwait's Private Sector Labour Law No. 6 of 2010 sets the minimum terms: probation of up to 100 working days, at least three months' notice for monthly-paid staff, at least 30 working days' paid annual leave, and an end-of-service indemnity of 15 days' pay a year for the first five years and a month's pay a year after that, capped at a year and a half's pay. Staff who resign receive a reduced share until they reach ten years' service.28 November 2024
In forceOman employment law: the 2023 Labour Law and the move to a savings systemOman's private sector follows the Labour Law of Royal Decree 53/2023. It caps probation at 3 months for monthly-paid staff, sets 30 days' notice for them and gives at least 30 days' annual leave. Expatriates still earn an end-of-service gratuity of at least one basic wage a year until a 9% employer-funded savings system replaces it, no later than 19 July 2027.19 July 2027 at the latest: savings system replaces expatriate gratuity
In forceQatar employment law: what an employer needs to knowQatar's Labour Law No. 14 of 2004 sets the minimum terms for private-sector staff: probation of up to six months, one month's notice in the first two years and two months after, three weeks' annual leave rising to four after five years, and an end-of-service gratuity of at least three weeks' basic wage for each year of service. Pay must reach the worker's account at a financial institution in Qatar through the Wage Protection System.8 September 2026
The six Gulf states compared
The same eight questions for every country, each answer checked against an official source.
| UAE | Saudi Arabia | Bahrain | Kuwait | Oman | Qatar | |
|---|---|---|---|---|---|---|
| Main labour law | Federal Decree-Law No. 33 of 2021 (mainland and most free zones); DIFC and ADGM have their own laws source | Labor Law, Royal Decree M/51 of 23/8/1426H (2005), latest amendments in force 19 February 2025 source | Labour Law for the Private Sector, Law No. 36 of 2012 (amended 2014 to 2021) source | Private Sector Labour Law No. 6 of 2010, as amended source | Labour Law, Royal Decree 53/2023 (replaced the 2003 law) source | Labour Law No. 14 of 2004, as amended (most recently by Law No. 9 of 2026) source |
| End-of-service pay | Foreign workers after 1 year: 21 days' basic wage a year for years 1 to 5, 30 days after; capped at 2 years' wage source | Half a month's wage per year for the first 5 years, one month's wage per later year, on the last wage source | Employer pays SIO 4.2% of wage monthly for years 1 to 3, then 8.4% (since 1 March 2024) source | 15 days' pay a year for the first 5 years, then a month's pay a year; capped at 1.5 years' pay (monthly-paid) source | At least one basic wage per year of service, until a 9% savings system replaces it source | At least 3 weeks' basic wage per year of service, after 1 full year source |
| Notice period | 30 to 90 days' written notice, as agreed in the contract source | Indefinite contract, monthly pay: 60 days from the employer, 30 days from the employee source | 30 days source | At least 3 months' written notice for monthly-paid staff on open-ended contracts source | 30 days if paid monthly, 15 days otherwise source | 1 month in the first 2 years of service, 2 months after that (either party) source |
| Probation | Up to 6 months, once per employer; employer gives 14 days' written notice to end it source | Must be written into the contract; 180 days in total at most source | Up to 3 months; up to 6 months for occupations set by the Minister source | Up to 100 working days, once per employer; either side may end it without notice source | Up to 3 months if paid monthly, 2 months otherwise source | Up to 6 months, once per employer; employer gives 1 month's notice to end it source |
| Annual leave | 30 days' paid leave a year after 1 year; 2 days a month between 6 and 12 months source | 21 days a year, rising to 30 days after 5 consecutive years with the employer source | At least 30 days after one year's service source | At least 30 working days' paid annual leave source | At least 30 days, after 6 months' service source | 3 weeks a year, rising to 4 weeks after 5 years of service source |
| Quota for hiring citizens | 50+ workers: Emiratis in skilled jobs up 2% a year; 20 to 49 workers in 14 sectors: Emirati hires required source | Saudization through Nitaqat bands set by activity and headcount, plus profession-level quotas source | Bahrainisation target rate by activity; extra LMRA fee per permit if below it source | Kuwaitization under Law No. 19 of 2000; check current sector requirements with PAM source | Omanisation percentages set by ministerial decision; some jobs reserved for Omanis source | No fixed percentage in law; Law No. 12 of 2024 lets the Ministry reserve jobs for Qataris source |
| Pension and social insurance | GPSSA pension for UAE nationals outside Abu Dhabi (26%: 11% employee, 15% employer); Abu Dhabi Pension Fund in Abu Dhabi; GCC nationals via home scheme; none for other expatriates source | GOSI: Saudis covered for pensions and occupational hazards; non-Saudis for occupational hazards only, 2% paid by the employer source | Bahrainis: employer pension share rising to 17%, employee 7% (Law No. 14 of 2022) source | Kuwaitis only, through PIFSS (employer pays 10% to the basic fund); none for expatriates source | Omanis: 11% employer, 7.5% employee for pensions, plus 1% branches and 0.5% each for job security source | Qataris only: 21% of salary (7% employee, 14% employer); none for expatriates source |
| Biggest recent change | August 2024 decree-law: AED 100,000 to AED 1 million fines, disputes to Court of First Instance, 2-year claim limit source | Labor Law amendments in force 19 February 2025: new resignation process, split notice periods, longer maternity leave source | 90-day expatriate secondment between employers (LMRA Resolution No. 2 of 2026) source | Decree-Law No. 114 of 2024 replaced the 1959 foreigners' residence law source | Expatriate savings system start moved to no later than 19 July 2027 (Royal Decree 60/2025) source | Wages due on the 1st of each month and paid through WPS within 7 days (from 8 September 2026) source |
Across the Gulf
In forceEmiratisation vs Saudization vs the rest: how Gulf local hiring quotas work (2026)Gulf local hiring rules differ by country. The UAE requires companies with 50 or more workers to add Emiratis to skilled jobs at 2% a year and charges AED 10,000 a month for each position missed from 1 July 2026, while Saudi Arabia's Nitaqat sets a minimum Saudi share by activity and size and blocks visas for companies in the Red and Low Green bands. Oman and Bahrain set percentages by ministerial decision or activity, Bahrain lets employers pay a parallel fee for permits beyond the ratio, Qatar's 2024 law sets no fixed percentage, and Kuwait's sector percentages are not confirmed here.1 July 2026
In forceEnd-of-service pay across the Gulf: UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain compared (2026)Across the Gulf the employer pays end-of-service money to expatriate staff, but the rules differ: the UAE pays 21 days' basic wage a year for five years then 30 days, Saudi Arabia and Kuwait pay half a month (15 days) a year for five years then a month on a wage that counts allowances, Qatar pays at least three weeks' basic wage a year, and Oman at least one basic wage a year. Bahrain has funded it since 1 March 2024 through monthly SIO contributions of 4.2% of wage for three years and 8.4% after, and Oman will switch to a 9% savings system by 19 July 2027.13 July 2025
In depth: UAE
In forceEmiratisation targets and Nafis in the UAE for 2026If your UAE company has 50 or more workers, you must add UAE nationals to your skilled jobs at 2% a year: 1% by 30 June and 1% by the end of the year. Each position you miss in 2026 costs AED 10,000 a month. Companies with 20 to 49 employees in 14 named sectors had to employ two UAE nationals by the end of 2025.1 July 2026
In forceEmployment contracts, probation and core terms in the UAEA UAE private sector employee needs a written, fixed-term contract on MoHRE's approved forms. Probation can last up to 6 months, once per employer, and either side must give written notice to end it. Core statutory terms include a 48-hour week, overtime at 25% above basic pay, 30 days' annual leave and up to 90 days' sick leave a year.1 January 2026
In forceEnd-of-service gratuity in the UAEAn expatriate on the UAE mainland who completes one year's continuous service is owed 21 days' basic wage per year for the first 5 years and 30 days per year after that, capped at two years' wage and paid within 14 days of leaving. Employers can opt into MoHRE's Savings Scheme instead. The DIFC replaces most of the gratuity with monthly contributions, and Emiratis receive a pension rather than a gratuity.8 July 2025
In forceEnding employment and labour disputes in the UAETo end a UAE employment contract you need a legitimate reason and written notice of between 30 and 90 days, or pay in lieu. Dismissal without notice is allowed only for the serious misconduct listed in Article 44, after a written investigation. Final pay is due within 14 days. Disputes start at MoHRE, which decides claims under AED 50,000 itself.2 February 2022
In forceMainland vs free zones: which employment law applies in the UAEWhere the employer is licensed decides the law. A mainland employer, and an employer in most free zones, follows the federal UAE Labour Law, Federal Decree-Law No. 33 of 2021. An employer registered in the DIFC or the ADGM follows that financial free zone's own employment law instead, with its own rules on notice, probation and end-of-service benefits.28 October 2025
In forcePaying people in the UAE: WPS, pensions and mandatory insuranceUAE payroll has no personal income tax. Pay wages on time through MoHRE's Wage Protection System, or risk losing work permits. Pension contributions apply to UAE nationals only: 26% of pensionable salary for those who started on or after 31 October 2023. Employees subscribe to unemployment insurance at AED 5 or AED 10 a month, and the employer must provide health insurance.1 January 2025
In depth: Saudi Arabia
In forceEnd-of-service award in Saudi ArabiaIn Saudi Arabia an employer owes an end-of-service award of half a month's wage for each of the first five years and a full month's wage for each year after, calculated on the last wage (Article 84). An employee who resigns gets nothing under two years, one third from two to five years, two thirds from five to ten, and the full award after ten (Article 85). It must be paid within one week of the end of employment, or two weeks if the employee resigned (Article 88).19 February 2025 (resignation procedure added)
In forceGOSI contributions and the 2025 Labor Law amendments in Saudi ArabiaFor a Saudi employee, GOSI takes a pension contribution of 9% from the employer and 9% from the employee (rising by 0.5 points a year each side to 11% for people who joined the system from 3 July 2024), 0.75% each for SANED unemployment insurance, and 2% from the employer for occupational hazards. For an expatriate, the only contribution is the employer's 2% occupational hazards share. The Labor Law amendments in force since 19 February 2025 split notice periods, created a resignation procedure, capped probation at 180 days and lengthened several leaves.19 February 2025
In forceSaudi employment contracts, probation, notice and leave: the rules after the 2025 amendmentsA Saudi employment contract is written in Arabic, documented on Qiwa and, for a non-Saudi, always fixed-term (one year if no term is stated). Probation can last up to 180 days in total, an indefinite monthly-paid contract needs 60 days' notice from the employer and 30 from the employee, and annual leave is at least 21 days, rising to 30 after five consecutive years. Working time is capped at 9 hours a day or 45 a week, and 7 hours a day or 35 a week for Muslim employees in Ramadan.19 February 2025
In forceSaudization and Nitaqat in Saudi ArabiaSaudization is the legal requirement to employ a minimum share of Saudi nationals. The Nitaqat Mutawar programme ranks every company in one of five bands from Platinum to Red, using a target that depends on its economic activity and size and rises each year to 2028. Red and Low Green companies lose access to new visas and other services, and on top of Nitaqat, separate decisions set quotas of 30% to 100% for named professions.14 February 2027 (project management quota)
In depth: Bahrain
In forceBahrain employment contracts: probation, notice, working hours and leave (2026)A Bahrain employment contract must be in writing and in Arabic. Probation is allowed only if the contract states it, for up to 3 months, or up to 6 for occupations the Minister names, and either side can end it on one day's notice. After probation, notice is 30 days in writing, annual leave is at least 30 days on full pay after one year, and working time is capped at 48 hours a week.2 August 2021: equal pay for work of equal value added to the Labour Law
In forceBahrain end-of-service for expatriates: SIO contributions and the old leaving indemnity (2026)Since 1 March 2024 a Bahrain employer pays the SIO 4.2% of each expatriate's monthly wage for the first three years of service and 8.4% after that, and the employee pays nothing. When the job ends, the SIO pays half a month's wage per year for the first three years and a month's wage per later year, on the last wage and capped at the contributions paid. Service before 1 March 2024 is still paid by the employer under Article 116 of the Labour Law.1 March 2024: monthly SIO end-of-service contributions began
In forceBahrain payroll: wage payment, the Wage Protection System and SIO contributions (2026)Bahrain employers must pay monthly-paid staff at least once a month through the Wage Protection System, using a bank or payment provider licensed by the Central Bank of Bahrain. For Bahraini staff the SIO pension contribution is set to reach 17% of wage from the employer and 7% from the employee, and every insured worker pays 1% of wage for unemployment insurance. For expatriates the employer pays an end-of-service contribution to the SIO instead of a pension.21 October 2025: LMRA launched the enhanced Wage Protection System
In forceBahrainisation: target rates, LMRA work permits and the parallel fee (2026)Bahrain has no single national quota: the LMRA sets a Bahrainisation target rate for each business activity and size band, for example 35% for computer programming from 10 workers and 40% for legal and accounting firms. A business below its target can still get expatriate work permits by paying a parallel fee of BHD 500 for a two-year permit or BHD 250 for a one-year permit, on top of the BHD 200 or BHD 100 permit fee.27 August 2024: Decree-Law No. 12 of 2024 set settlement amounts for work permit offences
In depth: Kuwait
In forceKuwait employment contracts, probation, notice and annual leave (2026)A Kuwaiti employment contract must be in writing and in Arabic, and a fixed term runs for one to five years. Probation can last up to 100 working days, once per employer, and either side can end it without notice. An open-ended contract needs at least three months' written notice for monthly-paid staff, and every employee gets at least 30 working days' paid annual leave a year, earned after six months in the first year.9 July 2017 (annual leave set at 30 working days)
In forceKuwait end-of-service indemnity: how it is calculated (2026)In Kuwait a monthly-paid employee earns an end-of-service indemnity of 15 days' wage for each of the first five years and one month's wage for each year after, capped at one and a half years' wage (Article 51). It is worked out on the full wage, including periodic allowances, and is paid without deducting the employer's social-security contributions. An employee who resigns gets nothing under three years, half from three to five years, two thirds from five to ten years and the full amount from ten years (Article 53).6 May 2018 (no-deduction rule applied back to 2010)
In forceKuwait payroll and social security: salary payment, PIFSS and residence rules (2026)In Kuwait, monthly-paid staff must be paid at least once a month and no later than seven days after the wage falls due, and an employer with five or more workers must pay wages into the workers' local bank accounts. Kuwaiti employees are insured with PIFSS: the employer pays 10% to the basic fund on salary capped at KD 1,500, plus supplementary, pension increase and unemployment shares. Expatriates pay no social security, and their residence depends on Decree-Law No. 114 of 2024.28 November 2024 (new residence law for foreigners)
In depth: Oman
In forceOman employment contracts, probation, notice and leave: the 2023 Labour Law rulesIn Oman the contract must be written in Arabic, or carry an Arabic copy, and fixed terms run up to 5 years. Probation is capped at 3 months for monthly-paid staff and 2 months for others, and notice on an indefinite contract is 30 days for monthly-paid staff and 15 days for others. Staff work up to 8 hours a day and 40 a week, and get at least 30 days' annual leave.25 July 2023: Labour Law issued
In forceOman end-of-service gratuity and the new savings system: what employers pay (2026)Until the savings system starts, an employer in Oman owes expatriate staff a gratuity of at least one month's basic wage for each year of service, pro rata, on the last basic wage. From a date the Social Protection Fund's board sets, and no later than 19 July 2027, the employer pays 9% of the monthly basic wage into the savings system instead. Gratuity already earned before that date is still owed.19 July 2027 at the latest: savings system replaces the gratuity
In forceOman payroll and Social Protection Fund contributions: what employers pay (2026)For an Omani employee, the employer pays 11% of monthly wage for pensions and the employee 7.5%, plus 1% employer contributions each for work injury, maternity and sick leave insurance and 0.5% from each side for employment security. Contributions are due by the 15th of the following month. Wages must be paid into a bank account in Oman, within 3 days of the end of the pay period.19 July 2026: sick leave insurance branch in force
In forceOmanisation rules: what the 2023 Labour Law requires of employers (2026)Oman's 2023 Labour Law requires every private employer to employ Omanis. The Minister of Labour sets the Omanisation percentage for each sector, activity and profession and lists the jobs reserved for Omanis. Falling short costs a fine of OMR 500 to OMR 1,000 for each Omani who should have been employed, and employing a non-Omani in a reserved job is a criminal offence.25 July 2023: Labour Law issued
In depth: Qatar
In forceQatar employment contracts, probation, notice and leave (2026)In Qatar the contract must be written and authenticated by the Ministry, probation is capped at six months and used once per employer, and notice after probation is one month in the first two years and two months after that. Annual leave is at least three weeks a year, or four weeks from five years' service. Since June 2026 a non-compete can last up to two years, but only with Ministry approval.25 June 2026
In forceQatar end-of-service gratuity: how it is calculated (2026)A worker in Qatar with at least one full year of service is owed an end-of-service gratuity of no less than three weeks' basic wage for each year, with part years paid pro rata. It is worked out on the last basic wage, not total pay, and must be paid with the other final dues by the end of the next working day after the contract ends.25 June 2026
In forceQatar WPS, payroll and social insurance: when and how to pay (2026)Since 8 September 2026, wages for staff paid monthly in Qatar fall due on the first day of each month and must reach the worker's local bank account through the Wage Protection System within seven days. Basic pay cannot be below QAR 1,000 a month. For Qatari staff the employer also pays 14% of salary into social insurance and deducts 7% from the employee, by the fifth of the following month.8 September 2026
In forceQatarization: how private-sector job localisation works in Qatar (2026)Qatarization runs under Law No. 12 of 2024, in force since 17 April 2025. It sets no fixed share of Qatari staff. Instead, employers must give Qatari jobseekers first claim on jobs, then the children of Qatari mothers, report every vacancy to the Ministry of Labour within a month and fill any jobs the Ministry reserves for those groups.17 April 2025
Latest news
UAE Emiratisation charge of AED 10,000 a month takes effect
What happened
From 1 July 2026, a UAE company that misses its Emiratisation target pays AED 10,000 a month for each role it should have filled with a UAE national. The target for companies with 50 or more staff was due by 30 June 2026.
What it means for you
If you employ 50 or more people in the UAE, check how many skilled roles are held by UAE nationals. Missing the target now costs AED 120,000 a year for each missing hire.
Source: Emirates News Agency (WAM). We check this page every week. Last checked .
Answer.cite this
Employment law in the Gulf is set country by country. The UAE's mainland and most of its free zones follow Federal Decree-Law No. 33 of 2021, while the DIFC and ADGM financial free zones have their own employment laws. Saudi Arabia follows its Labor Law, last amended with effect from 19 February 2025. Oman replaced its labour law in 2023, Bahrain's private sector follows Law No. 36 of 2012, and Qatar and Kuwait have their own labour laws. Across the region, expatriates from outside the GCC do not join the state pension system that covers citizens; instead most countries require an end-of-service payment when employment ends, although Bahrain has moved this to monthly employer contributions and Oman is moving to a savings system. Every Gulf state also has a policy to raise citizen employment, such as Emiratisation in the UAE and Saudization in Saudi Arabia. This hub compares the six countries and explains who handles each duty if you hire through Teamed.
The big picture
Rules change often across the region. Saudi Arabia's Labor Law amendments took effect on 19 February 2025, the UAE raised its Emiratisation charge to AED 10,000 a month from 1 July 2026, and Oman started a sick leave insurance branch on 19 July 2026.
Is there one employment law for the Gulf?
No. Each Gulf state has its own labour law, and in the UAE the DIFC and ADGM financial free zones have their own as well. What you owe an employee depends on the country, and sometimes the zone, where they work.
What do foreign employees get when they leave?
Most Gulf states require an end-of-service payment based on length of service and final wage. The UAE, Saudi Arabia, Qatar and Kuwait use a gratuity or award paid by the employer at the end. Bahrain has switched to monthly employer contributions to its Social Insurance Organisation, and Oman will move to a savings system no later than 19 July 2027.
What are the local hiring quotas?
Every Gulf state has a policy to raise citizen employment. The UAE, Saudi Arabia, Oman and Bahrain set quotas or targets for private employers. The UAE's Emiratisation targets apply to companies with 50 or more staff, and to smaller companies in named sectors. Saudi Arabia's Nitaqat system grades companies into bands by their Saudization rate. Oman sets Omanisation percentages by ministerial decision, and Bahrain sets a Bahrainisation target rate by activity. Qatar's Law No. 12 of 2024 lets the Ministry reserve jobs for Qataris without a fixed percentage. Kuwait runs its own Kuwaitization rules under Law No. 19 of 2000.
Where should employers start?
Confirm which law applies to each person, then check the local hiring quota and how end-of-service pay builds up. Those three decide most of the cost and risk of employing someone in the Gulf.
Frequently asked questions
Which Gulf countries does this cover?
The six Gulf Cooperation Council states: the UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain. Each has its own guide, and the UAE and Saudi Arabia have deeper topic guides too.
Where can I see what changed and when?
The timeline page lists confirmed milestones for all six countries in date order, each with an official source and a note on who handles it if you hire through Teamed.
Do these pages give legal advice?
No. They summarise the current position from official sources and are reviewed as the law changes. Check your own situation with the labour ministry of the country concerned or a qualified professional.
A note from Teamed
Gulf employment law is set country by country, and every state has its own quota for hiring citizens. When Teamed is your legal employer, we hold that complexity: compliant contracts, end-of-service pay and payroll for the country each person works in.
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