Ramadan 2026 UAE Labour Law Compliance Guide for Employers

Ramadan is a critical period for businesses operating in the UAE. Beyond cultural sensitivity and employee well-being, legal compliance during Ramadan is mandatory under UAE Labour Law.

With Ramadan in the UAE beginning today (subject to official moon sighting confirmation), employers must proactively review and align their HR policies, attendance systems, payroll processes, and overtime calculations to ensure full compliance and avoid violations or penalties.

Under Federal Decree Law No. 33 of 2021, the UAE government has clearly defined working hour reductions, overtime eligibility, and payroll obligations during Ramadan. These rules apply equally to all private sector employees, regardless of religion or fasting status.

At DOTS HR UAE, we help organizations remain 100% MoHRE compliant through an all in one HRMS, payroll software, and attendance management system built specifically for UAE labour law not generic international standards.

This guide explains everything employers must know about Ramadan 2026 UAE labour law compliance, along with how automation eliminates risk.

Ramadan Working Hours UAE 2026  Labour Law Requirement

According to Federal Decree Law No. 33 of 2021, working hours during Ramadan must be reduced by two (2) hours per day for all private sector employees.

This is not optional, not company-specific, and not dependent on fasting status.

Key Labour Law Highlights

• Ramadan working hours UAE private sector are legally mandated
  

• Applies to all employees (fasting and non-fasting)
  

• Salary cannot be reduced under any circumstances

• Enforced strictly by MoHRE regulations
  

• Applies across all industries, including retail, construction, healthcare, IT, logistics, and hospitality

     Example

• Normal working hours: 8 hours per day
  

• Ramadan working hours: 6 hours per day
  

Even if an employee voluntarily works longer hours, those additional hours may qualify as overtime, depending on the total daily working time.

Failure to implement reduced working hours is a direct UAE labour law violation and is one of the most common triggers for MoHRE penalties during Ramadan.

DOTS HR attendance software automatically applies Ramadan shift rules, ensuring reduced hours are enforced across biometric, mobile, and face recognition attendance systems without manual changes or errors.

Ramadan Overtime Rules UAE  Payroll Compliance

Because daily working hours are reduced during Ramadan, overtime eligibility begins earlier compared to normal months.

Many companies make serious payroll mistakes during Ramadan by continuing normal overtime thresholds, which results in underpayment and legal exposure.

Ramadan Overtime Calculation UAE

Under UAE Labour Law:

• Day overtime:
  Basic wage + 25%
• Night overtime (10:00 PM – 4:00 AM):
  Basic wage + 50%
• Week off
  Basic wage + 50%

Overtime calculations must be based strictly on basic salary, not gross salary.

Common Payroll Mistakes During Ramadan

• Using normal (non-Ramadan) working hour thresholds

• Attendance systems not updated for Ramadan shifts

• Manual overtime calculations in Excel

• Payroll mismatches between attendance and WPS files

• Incorrect night overtime classification

These errors often surface during MoHRE audits, even months later.

DOTS HR payroll software UAE seamlessly integrates attendance, overtime, and payroll, automatically recalculating overtime based on Ramadan working hours. This ensures accurate salary processing, employee trust, and full MoHRE audit readiness.

MoHRE Inspections & Fines UAE 2026

In 2026, MoHRE inspections in the UAE will be largely digital and automated. Authorities cross verify:

• Attendance records

• Payroll data

• Overtime calculations

• WPS submissions

• Employment contracts

Any inconsistency especially during Ramadan can trigger penalties.

Non Compliance Penalties

• AED 5,000 to AED 50,000 per employee
  

• Penalties apply to:
  • Incorrect Ramadan working hours

  • Payroll mismatches

  • Overtime violations

  • Attendance inconsistencies

  • Missing or manipulated records

Companies using manual HR systems or disconnected tools face significantly higher risk during inspections.

 DOTS HR HRMS UAE maintains MoHRE ready digital records, secure attendance logs, payroll reports, and automated audit trails protecting your business from fines and legal disputes.

Workplace Productivity During Ramadan UAE

Compliance alone is not enough. Successful UAE companies also focus on productivity, employee engagement, and operational continuity during Ramadan.

Ramadan Shift Planning UAE

High performing organizations adopt strategic Ramadan shift planning, such as:

• Early shifts (e.g., 7:30 AM – 1:30 PM)

• Compressed schedules

• Department specific shift models

• Rotational duty rosters

Studies and workplace data show that peak productivity during Ramadan occurs between 9:00 AM and 12:00 PM.

DOTS HR’s shift management and duty roster system supports:

• Multi shift Ramadan schedules

• Automatic validation against UAE labour law

• Role-based approvals

• Department wise optimization

This ensures legal compliance without compromising business output.

 Remote & Flexible Work During Ramadan

MoHRE actively encourages flexible working arrangements during Ramadan, particularly for roles that allow remote execution.

MoHRE Supported Flexibility Includes:

• Flexible working hours

• Remote or hybrid work models

• Adjusted reporting schedules

DOTS HR Enables:

• Mobile attendance with geolocation
  

• Remote employee tracking

• AI face attendance from approved locations

• Manager approvals via mobile app

• Real-time attendance dashboards

This allows businesses to support employee well-being while maintaining full attendance transparency and compliance.

Why UAE Companies Trust DOTS HR

DOTS HR UAE is not a generic HR software. It is purpose built for UAE labour law compliance, MoHRE regulations, and WPS payroll standards.

DOTS HR Features

• HRMS (Human Resource Management System) software UAE

• Payroll software UAE

• Attendance management system UAE

• AI face attendance

• Ramadan overtime automation

• WPS compliant payroll processing

• MoHRE audit ready reports

• WhatsApp HR assistant for employees & HR teams

• Secure cloud-based data storage in compliance with UAE norms

By automating compliance, DOTS HR eliminates manual errors, legal risks, and payroll disputes, making it the most trusted HR, payroll, and attendance solution for UAE businesses.

Final Compliance Checklist for Ramadan 2026 UAE

•  Reduce working hours by 2 hours per day

•   Do not reduce employee salaries

•   Apply Ramadan overtime rules correctly

•   Update attendance systems before Ramadan starts

•   Maintain accurate payroll & WPS records

•   Prepare for MoHRE digital inspections

•   Use automated HRMS instead of manual processes

 With Ramadan 2026 approaching, now is the time to ensure your systems are legally compliant, audit ready, and employee friendly.

DOTS HR UAE ensures your business stays compliant not just during Ramadan, but all year round.