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As companies across the UAE begin announcing reduced working hours ahead of Ramadan 2026, legal experts are reminding employers that shorter days during the holy month are not merely a goodwill gesture; they are a legal requirement under federal labour law for most private sector businesses.

Under UAE law, private sector working hours during Ramadan are subject to mandatory statutory regulation, and employers who fail to implement the reduction may face penalties, overtime liabilities, and labour disputes.

According to Igor Abalov, Managing Partner at Lawford Legal Advisors FZ-LLC, the obligation to reduce working hours during Ramadan is clearly set out in the UAE’s labour framework.

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“Under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, working hours during Ramadan are not left to the employer’s discretion,” Abalov said. “Article 17(4) expressly provides that Ramadan working hours are determined by the Executive Regulations.”

Igor Abalov

Those regulations, as per Cabinet Resolution No. 1 of 2022, require a mandatory reduction of two working hours per day during Ramadan for private sector employees.

“This rule applies to all private sector employees under the Ministry of Human Resources and Emiratisation (MoHRE), regardless of religion or whether an employee is fasting,” Abalov explained. “Failure to apply the reduction constitutes a breach of UAE labour law.”

What happens if companies don’t reduce hours?

If an employer maintains normal working hours during Ramadan, it is considered a legal violation, Abalov said, and may trigger multiple consequences.

“First, the employer may face administrative penalties imposed by MoHRE, including fines, depending on the seriousness and duration of the violation and the number of employees affected,” he said.

Beyond regulatory penalties, companies may also face financial liability toward employees.

“Where employees work beyond the reduced Ramadan hours, those additional hours are treated as overtime,” Abalov explained. “Overtime must be compensated under Article 19 of the Decree-Law, based on the employee’s basic wage.”

Does working beyond Ramadan hours count as overtime?

Yes. Legal experts stress that during Ramadan, the reduced working day becomes the normal legal working time.

“Any hours worked beyond the reduced Ramadan schedule are classified as overtime,” Abalov said. “Daytime overtime must be paid at not less than 25 per cent above the normal hourly rate, and nighttime overtime at not less than 50 per cent.”

If work is performed on a contractual rest day, the law requires either a compensatory day off or payment with an uplift of at least 50 per cent. “These payments are mandatory and cannot be waived by internal company policy or agreement,” he added.

Employees who are affected can also file complaints with MoHRE, which has the authority to inspect workplaces, record violations, and order corrective measures.

Are there any exceptions?

While the Ramadan reduction applies broadly across the private sector, there are limited exceptions.

Certain categories of employees, such as senior executives with decision-making authority, board members, maritime crews, and employees in continuous shift-based operations, may be exempt from standard working-time rules under the Executive Regulations.

In addition, employers operating in financial free zones with independent employment regimes, such as DIFC and ADGM, are subject to separate labour laws. In DIFC, for example, Muslim employees may not be required to work more than six hours per day during Ramadan, while non-Muslim employees remain subject to general working-time limits. Government entities are also governed by separate federal and emirate-level regulations.

How companies plan ahead

Beyond legal compliance, many UAE companies plan Ramadan working hours weeks or months ahead to support employee wellbeing and sustain performance.

Ussama Khan, Assistant Professor of Organisational Behaviour at London Business School, said reduced hours during Ramadan help offset fatigue linked to fasting and disrupted sleep.

“Long working hours eventually reduce performance,” Khan said. “Shorter days during Ramadan help employees maintain focus and well-being.”

As a result, many organisations now build Ramadan schedules into annual workforce planning rather than treating them as last-minute adjustments.

Ussama Khan. Photo supplied by London Business School 

What do employees say?

For many employees, reduced hours are not just a legal safeguard but a personal necessity.

Ahmed Ehab, who works in the construction sector, said shorter days make it possible to manage fasting, prayers, and mental well-being.

“Less working hours mean less rushing and less guilt,” he said. “I can pray properly, reach home with energy left, and actually feel the spirit of Ramadan instead of just surviving the day.”

He added that leaving earlier also improves safety and stress levels. “When I reach home earlier, I still have focus and energy, and even driving feels easier.”

Non-Muslim employees say the adjusted schedule benefits them too. Ajanta, a UAE resident, said Ramadan working hours create a calmer, more empathetic workplace. “Even though we aren’t fasting, we usually skip lunch breaks and leave earlier, which gives us more time with family,” she said.

“The office atmosphere is more supportive and caring,” she added. “Everyone makes sure fasting colleagues are comfortable, and that empathy carries through the whole team.”

As Ramadan approaches, legal experts stress that reduced working hours are not optional for most private-sector employers but a statutory obligation under UAE labour law. When applied thoughtfully, the shortened schedule not only ensures compliance but also supports productivity, well-being, and a more balanced workplace for all employees.

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