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U.S. News
01 May 2025

UAE Celebrates Labor Day With Focus On Worker Welfare

As the UAE marks Labor Day, new reforms enhance worker rights and health coverage across the region.

As the United Arab Emirates (UAE) prepares to celebrate Labor Day on May 1, 2025, the nation reaffirms its deep respect and appreciation for its diverse labor force. Dr. Abdulrahman Al Awar, the Minister of Human Resources and Emiratization, extended his congratulations to all workers, emphasizing their vital role in the country's sustainable development and ambitious future goals.

In a statement to WAM, Dr. Al Awar highlighted that the UAE’s observance of Labor Day reflects its appreciation for workers from over 200 nationalities, showcasing the country’s ongoing efforts to foster a positive work environment. He articulated that the ministry continues to advance initiatives that promote a culture of appreciation and care for workers, while reinforcing the principles of social protection. These efforts are aimed at contributing to Emiratization and sustainable development, aligning with strategic objectives to enhance the flexibility and competitiveness of the UAE labor market.

The overarching aim, he noted, is to attract and retain top Emirati and international talent by providing a safe, appealing, and dynamic work environment, supported by a robust governance framework that aligns with the UAE Vision 2031.

Dr. Al Awar pointed out that the UAE has become a global model in ensuring the health, safety, and welfare of its labor force, balancing the rights of workers and employers alike. Initiatives such as the Emirates Labor Market Award inspire ongoing innovation and dedication among workers, thereby increasing their job satisfaction and reinforcing their value to the economy. He also emphasized the ministry’s commitment to consistent engagement with workers, including during holidays and celebrations, to promote their social integration.

As of January 2025, the UAE labor market achieved a significant milestone by integrating health insurance coverage for private sector employees and domestic workers in the Emirates of Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah, and Fujairah into the nationwide health insurance system. This achievement marks the realization of 100 percent health insurance coverage for the entire workforce across the UAE labor market, showcasing the UAE's commitment to worker welfare.

International Labour Day is not only a time to celebrate the achievements of workers but also an opportunity to spotlight the bold policy shifts and legal reforms that are transforming the Middle East's world of work. Under the theme 'Safety and Health of Workers,' this year's observance emphasizes the importance of creating safe and healthy working environments.

As we look at the broader region, notable reforms have emerged. Saudi Arabia, for instance, made significant amendments to its Labour Law effective February 19, 2025. These changes, announced by the Ministry of Human Resources and Social Development, reflect the Kingdom's commitment to building a more transparent, inclusive, and competitive labor market in alignment with its Vision 2030 goals.

The revised law introduces amendments to 38 existing articles, eliminates seven, and adds two new provisions, each designed to strengthen contractual clarity, worker protections, and market efficiency. Noteworthy updates include expanded leave provisions, clearer resignation and termination policies, and enhanced overtime compensation. Employees are now entitled to 5 days of paid bereavement leave in the event of a sibling's death, and maternity leave has been extended to 14 weeks (98 days), up from the previous 10 weeks (70 days).

Moreover, employees working beyond the standard 48 hours per week or 8 hours per day are entitled to 150% of their basic wage as overtime pay. Companies employing more than 50 workers are required to develop and submit annual training plans, emphasizing the upskilling of Saudi nationals in high-demand sectors as part of the Saudisation strategy.

In Oman, new guidelines for part-time work were established on January 13, 2025, under Decision No 13/2025, issued by HE Dr. Mahad bin Saeed bin Ali Baowain, the Minister of Labour. This regulation aims to enhance employment prospects by offering flexible job opportunities exclusively for Omani nationals. Under the new decision, part-time work is defined as employment where the worker's hours are fewer than those of regular employees. Part-time workers must work a minimum of 4 hours per day and no more than 25 hours per week, with an hourly wage set at RO3.

While these reforms mark significant progress, there are still laws under debate across the Middle East, as countries strive to build more resilient and inclusive labor markets. In Bahrain, for instance, a proposal to overhaul the National Employment Programme has sparked legislative debate. This proposal recommends that Tamkeen, the Labour Fund, cover 100% of employee wages during the wage support period, up from the current 30–70%. While some lawmakers support this initiative as a step toward workforce stability, others caution it could lead to increased dependency on government subsidies rather than fostering sustainable employment practices.

As we celebrate International Labour Day, it is clear that the Middle East is making significant strides in improving workers' rights and shaping a more equitable labor market. The policies and reforms introduced in the UAE, Saudi Arabia, and Oman reflect a commitment to enhancing the lives of workers while aligning with global standards. However, these changes are just the beginning. It is crucial for leaders and policymakers to not only implement these reforms but to continuously assess and refine them to ensure they foster long-term workforce stability and inclusivity.

As we reflect on the progress made, let's commit to pushing forward with innovative policies that prioritize fair treatment, protection, and opportunity for all workers across the region. Together, we can continue to build a labor market that supports both economic growth and the well-being of every worker.