UAE HR Glossary

UAE-specific HR terms (WPS, end-of-service gratuity, Emiratisation, Nafis, GPSSA, MoHRE, DIFC, ADGM) and global HR concepts (OKR, KPI, ATS) — explained in plain English with examples and UAE Labour Law citations.

A D E F G I L M N O Q R S T U W

A

The Abu Dhabi Global Market — Abu Dhabi's financial free zone established in 2015, operating under its own English-common-law-based legal system, with distinct employment regulations, ADGM Courts as the dispute forum, and its own mandatory workplace-savings scheme replacing federal end-of-service gratuity.

Article 42 (UAE Labour Law)

The provision in Federal Decree-Law No. 33 of 2021 governing standard with-notice termination of UAE private-sector employment — the lawful path for redundancy, performance-based, or business-need separations, with full notice and end-of-service gratuity payable.

Article 44 (UAE Labour Law)

The provision in Federal Decree-Law No. 33 of 2021 listing the specific grounds on which a UAE employer can dismiss an employee summarily — without notice and with forfeiture of end-of-service gratuity — for gross misconduct.

Article 51 (UAE Labour Law)

The provision in Federal Decree-Law No. 33 of 2021 that prescribes End-of-Service Gratuity calculation for UAE private-sector expatriate employees — 21 days' basic per year for years 1-5, 30 days for year 6+, capped at 24 months of total gross.

D

The DIFC Employee Workplace Savings plan — a defined-contribution savings scheme launched February 2020 that replaces traditional end-of-service gratuity for DIFC employees, with monthly employer contributions to a master-trustee-administered investment fund.

The Dubai International Financial Centre — a Dubai financial free zone operating under its own English-common-law-based legal system, with a distinct employment-law regime, mandatory workplace-savings scheme (DEWS), and the DIFC Courts for dispute resolution, sitting entirely outside MoHRE jurisdiction.

E

The UAE's national workforce-localisation policy requiring private-sector employers to hire and retain UAE National employees at progressively rising annual quotas, enforced through MoHRE with steep per-employee fines for non-compliance and incentivised through the Nafis programme of salary top-ups and training subsidies.

End-of-Service Gratuity (EOS)

The UAE's statutory lump-sum severance benefit, payable to expatriate private-sector employees on termination after at least one year of continuous service, calculated on basic salary under Article 51 of Federal Decree-Law No. 33 of 2021.

Establishment Card

The MoHRE / GDRFA-issued credential identifying a UAE employer as a registered labour establishment — required for hiring, contract registration, work-permit issuance, and WPS submission.

F

A UAE-designated economic area offering 100% foreign ownership, sectoral specialisation, and either federal or zone-specific employment law — with 40+ free zones across the country supporting trade, finance, tech, media, manufacturing, and other industries.

G

The General Pension and Social Security Authority — the UAE federal authority administering retirement, disability and survivor pensions for UAE National employees, replacing end-of-service gratuity for nationals through monthly employer-and-employee pension contributions on a statutorily defined wage base.

I

The International Bank Account Number — UAE's standardised 23-character bank account identifier required for WPS, IBFT, and virtually every inter-bank transaction. Format: 'AE' + 2 check digits + 3-character bank code + 16-digit account identifier.

Inter-Bank Funds Transfer

The UAE inter-bank payment infrastructure used alongside WPS for non-salary employee payments — gratuity payouts, expense reimbursements, performance bonuses, and final-settlement closures, with same-day or next-business-day settlement under the UAE Central Bank's clearing system.

L

The MoHRE-issued credential evidencing a private-sector employer-employee relationship in the UAE — historically a physical card, since 2017 issued electronically and linked to Emirates ID, with the 15-digit labour-card number remaining the primary identifier across WPS, contracts and labour-dispute proceedings.

Limited Contract

A fixed-term UAE employment contract with a defined start and end date — the default contract format since the 2022 reforms made limited contracts the universal MoHRE-registered standard, replacing the older limited-vs-unlimited dichotomy.

M

Midday Break (Summer Outdoor Ban)

The MoHRE-mandated annual suspension of outdoor work in direct sunlight between 12:30 PM and 3:00 PM during the UAE summer months (mid-June to mid-September) — a flagship occupational-safety regulation aggressively enforced through inspections of construction, landscaping, and similar outdoor industries.

The Ministry of Human Resources and Emiratisation — the UAE federal authority that regulates private-sector employment, issues work permits, registers contracts, operates the Wage Protection System and enforces labour law for everything outside the financial free zones DIFC and ADGM.

N

The UAE federal initiative providing salary supplements, training subsidies, child allowances, and pension-contribution coverage to UAE Nationals working in the private sector — designed to make private-sector employment competitive with public-sector pay and accelerate Emiratisation.

National Service

The mandatory UAE federal programme requiring UAE National male citizens aged 18-30 to complete military or alternative civil service — typically 11-16 months, with employer obligations to hold open the employee's role and continue benefits during service.

O

Premium pay for hours worked beyond the UAE Labour Law standard of 8 per day or 48 per week — 25% premium for ordinary overtime, 50% premium for night/weekend/holiday work, with specific rules for Ramadan and outdoor sectors.

Q

Qualifying Scheme (DIFC / ADGM)

A DFSA- or FSRA-approved defined-contribution workplace savings plan that replaces traditional end-of-service gratuity for employees in DIFC and ADGM — with monthly employer contributions calculated on basic salary and invested for the employee's benefit through approved master trustees.

R

Ramadan Working Hours

The statutory 2-hour daily reduction in working hours during the Holy Month of Ramadan under Article 65 of UAE Labour Law — converting the standard 8-hour day to 6 hours and the 48-hour week to 36, with full salary maintained.

S

SIF (Salary Information File)

The bank-specific electronic file format employers use to submit monthly salary instructions to a UAE WPS Agent — required by MoHRE and the UAE Central Bank for every Wage Protection System payment cycle.

T

MoHRE's digital platform for Emiratisation reporting, UAE National headcount registration, and Nafis programme administration — the operational interface where private-sector employers track and demonstrate compliance with UAE National hiring quotas.

The MoHRE-approved network of accredited service centres across the UAE that process private-sector labour transactions on behalf of employers — work permits, labour-card issuance, contract attestation, visa cancellations, and ongoing MoHRE compliance filings.

The UAE business licence authorising a company to operate, hire employees, and conduct defined commercial activities — issued by the relevant emirate's Department of Economy for mainland businesses or by the free-zone authority for free-zone establishments.

U

UAE Labour Law (Federal Decree-Law No. 33 of 2021)

Federal Decree-Law No. 33 of 2021 — the current UAE federal labour law for private-sector employment, effective February 2022, replacing the legacy 1980 framework with modernised rules on contracts, working hours, leave, gratuity, termination, anti-discrimination, and flexible-work arrangements.

A citizen of the United Arab Emirates holding a UAE passport and Emirates ID — central to the country's Emiratisation policy, eligible for GPSSA pension benefits and Nafis programme support, and not subject to end-of-service gratuity under Article 51.

UAE PDPL (Personal Data Protection Law)

Federal Decree-Law No. 45 of 2021 — the UAE's first comprehensive federal personal-data protection framework, effective from January 2022, broadly aligned with EU GDPR but with UAE-specific lawful-basis categories and a more activist regulator role through the UAE Data Office.

Unlimited Contract

The legacy UAE open-ended employment contract type with no fixed end date — effectively retired for new MoHRE-jurisdiction hires after the February 2022 reforms made limited contracts universal, though pre-2022 unlimited contracts remain valid for existing employees.

W

WPS (Wage Protection System)

The UAE's mandatory electronic salary-disbursement framework, jointly administered by MoHRE and the UAE Central Bank, requiring private-sector employers to route monthly salaries through approved banks (WPS Agents) using a bank-formatted Salary Information File within prescribed timelines.

A UAE Central Bank-licensed financial institution — bank or exchange house — authorised to receive employer salary instructions and disburse them to employee accounts under the Wage Protection System, with reporting back to MoHRE.