🇦🇪 United Arab Emirates · Federal Decree-Law 33/2021

UAE Legal Services Hub 2026

Your comprehensive reference for the Emirates justice system: End-of-Service gratuity calculator under the new Labour Law, Dubai and Abu Dhabi smart courts, mainland 100% foreign ownership, DIFC / ADGM financial zones, and key federal statutes.

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End-of-Service Gratuity Calculator (Federal Decree-Law 33/2021)

Per Article 51 — 21 days/year for first 5 years · 30 days/year thereafter · capped at 2 years' total wage

Total service period:—

Gratuity for first 5 years (21 days/year):—

Gratuity for remaining years (30 days/year):—

Capped at 2 years' wage?—

Leave encashment:—

Total net entitlement:AED 0

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Courts & Government Portals

Smart e-litigation across the Emirates

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Dubai Courts ↗

File civil/commercial cases online via the Dubai Courts smart portal.

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Abu Dhabi Judicial Department ↗

ADJD remote litigation platform for all emirate courts.

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MoHRE — Ministry of Human Resources ↗

Employment contracts, labour complaints, work permits.

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Dubai Investment Portal ↗

Business setup licensing across mainland and free zones.

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Company Formation in the UAE — Mainland vs Free Zone

100% foreign ownership onshore since June 2021 amendments to Commercial Companies Law

Mainland LLCTrade anywhere in UAE

1. Onshore LLC (Mainland Company)

100% foreign ownership permitted for most commercial/industrial activities post-2021 reform.
No minimum capital requirement by law — determined by activity licensing authority.
Can trade directly with UAE market and bid for government contracts.
Registered through DED (Department of Economic Development) in each emirate.

Financial Free ZonesCommon law jurisdictions

2. DIFC & ADGM Financial Centres

DIFC (Dubai International Financial Centre) operates its own English-language common law court system.
ADGM (Abu Dhabi Global Market) similarly offers common law framework with direct application of English law.
Ideal for fintech, wealth management, holding structures, and regional headquarters.
Tax benefits: qualifying income exempt from corporate tax for designated periods.

Other Free ZonesIndustry-specific hubs

3. Specialized Free Zones

JAFZA (Jebel Ali): logistics, manufacturing, trading near port.
DMCC (Dubai Multi Commodities): commodities, gold, diamonds.
DAFZA: aviation, technology, media.
SHAMS / SPC Free Zone: creative industries, freelancers, SMEs at low cost.

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Key UAE Statutes & Regulations

Federal Decrees and selected provisions relevant to employers & investors

Federal Decree-Law 33/2021 — Labour Law

Employment Relations Framework

• Fixed-term contracts mandatory (max 3 years renewable).

• Notice period: minimum 30 days, maximum 90 days as agreed.

• Article 47 lists permissible termination grounds without notice.

• Anti-discrimination and equal pay provisions strengthened.

Civil Code Federal Law 5/1985

Contracts & Obligations

• Pacta sunt servanda principle governs contractual relations.

• Unforeseen circumstances doctrine allows judicial adjustment.

• Fault-based tort liability requires proof of error, damage, and causation.

Commercial Companies Law Decree-Law 32/2021

Corporate Structures

• Recognised forms: PJSC (public joint stock), LLC, sole proprietorship, partnership.

LLC remains most popular for SMEs due to limited liability and flexible governance.

• Corporate governance rules apply to larger entities with mandatory board structures.

Arbitration Federal Law 6/2018

Commercial Arbitration

• Written arbitration agreement required; awards are final and binding.

• UAE is party to the New York Convention enabling cross-border enforcement.

• DIAC (Dubai International Arbitration Centre) handles most commercial arbitrations.

❓ Frequently Asked Questions — UAE Legal Hub

How is end-of-service gratuity calculated under the new UAE Labour Law?

Under Federal Decree-Law 33/2021 Article 51: 21 calendar days' basic salary per year for first 5 years, then 30 days' basic salary per year thereafter. Total gratuity cannot exceed two years' total salary. Allowances (housing, transport) are excluded from calculation basis.

Can foreigners own 100% of a mainland company in the UAE?

Yes, since the 2021 Commercial Companies Law amendments removed the requirement for Emirati majority ownership in most sectors. Certain strategic activities (defense, oil & gas, utilities) still require local partnership or special approval.

What is the difference between mainland and free zone companies?

Mainland companies can trade freely within the UAE market and bid for government contracts. Free zone companies operate within their designated zone or internationally, but need a local distributor or branch office to trade onshore. Free zones offer tax exemptions and full repatriation of profits.