Labour Card UAE 2025: Everything You Need to Know

For business owners, HR professionals and entrepreneurs setting up or managing companies in the UAE

Introduction

A labour card is the UAE’s digital work permit, the official record that lets someone work legally for your company. It’s not just HR paperwork. It ties into visas, payroll, compliance, and even your company’s financial audits. If your labour cards aren’t valid or up to date, you risk fines, blocked payroll, visa problems, and headaches during any sale, audit, or liquidation.

If you’re running or planning a business in the UAE, you will come across the term labour card more than once. It’s not a nice-to-have; it’s a legal requirement. In 2025 the environment around labour cards is evolving, the digital platforms are stronger, the compliance expectations are tighter, and the implications (for Business Setup, mainland vs free zone, accounting, tax, liquidation) are real. Here’s what you need to know as someone responsible for staff, visas and company operations.

Broadly, a labour card underpins the right of an employee to work legally, ties into hiring quota, company compliance, employee visa management and forms part of your corporate governance and risk picture. In the sections that follow we’ll break down what a labour card is, what’s new in 2025, how it works in mainland vs free-zone entities, how to apply/renew/cancel, why it matters for your accounting / tax / CFO services / business evaluation workflows, and what happens when things go wrong.

What a Labour Card Is, and Why It Matters in 2025

The term ‘labour card’ now refers to the digital work permit record issued by MOHRE, replacing the older physical card system, is the formal authorisation for an employee to work in the UAE under the supervision or sponsorship of an employerUnder MOHRE the work permit (sometimes known as the ‘labour card’) is issued after the employer obtains the hiring quota or permit and the employee completes the required steps (passport copy, medical fitness, etc.). According to the Ministry of Human Resources & Emiratisation (MOHRE) and Under Article 6 of Federal Decree-Law No. 33 of 2021 (UAE Labour Law), private-sector employers under MOHRE cannot recruit or employ a worker unless a valid work permit is issued. Why this matters for you as business-owner/HR/entrepreneur:

• Without valid labour cards your employees cannot legally work; this raises risk of fines, visa cancellation, and reputational cost.
  
• It connects to your hiring quotas, your staff visa pipeline, your cost base (visas + permits) and your compliance obligations.
  
• Because the UAE is moving fast on digital labour market regulation, manual processes are being replaced, so staying ahead means fewer delays.
  
• For accounting services, tax consultants, CFO services: labour card status influences payroll legitimacy, employee cost capture, VAT/TAX compliance, audit trail and corporate evaluation or liquidation scenarios.
  
• For business setup (Mainland Business Setup in UAE vs Business Set Up in UAE Free zone) the procedure and responsibility vary, so you need clarity.
  

Understanding the UAE Labour Card (2025 Update)

Purpose & legal significance under MOHRE

Under Article 6 of Federal Decree-Law No. 33 of 2021 (and its Executive Regulations) an employer may not recruit or employ a worker unless a work permit is issued by MOHRE. The ‘labour card’ refers to this authorised permit that enables legal employment. The labour card is that authorisation. It records: employee’s name, nationality, job title (occupation), employer name/establishment number, work permit number, issue/expiry dates. 

What’s new in 2025

• MOHRE has launched digital permit platforms (for example the Work Bundle- The UAE’s ‘Work Bundle’ initiative—gradually rolling out across emirates—integrates work permits, Emirates ID, and residency visa processes into a single digital application.) enabling issuance and verification of work permits online; physical cards are now largely replaced by digital records. You now download or print from MOHRE’s digital services.
  
• Application, renewal and cancellation processes are being streamlined: digital portals/apps, less dependence on PROs or manual submission.
  
• Fees differ by permit type and category. According to the UAE Government portal, work permit fees typically range between AED 250 and AED 3,450, depending on the employee’s skill level, company category, and MOHRE classification.
  
• Employer accountability and integration with other government systems: more insistence on accurate digital records (linked to wage protection, immigration, free-zone authorities) and stronger enforcement of labour-law compliance.
  
• For the free-zone context: While mainland uses MOHRE, free zones may issue their employment cards through their own authority, with slightly different rules. (Still critical to integrate into your corporate compliance).
  

What this really means is: if you don’t update your processes (digital-first, accurate documentation, integrated with your accounting/HR systems) you risk non-compliance and increased administrative cost or delay.

How Labour Cards Tie into Business Setup Structures

Mainland Business Setup in UAE

• For a mainland entity, after you obtain your commercial licence, you apply to MOHRE for an establishment card, decide your visa quota for employees, then apply for each employee’s work permit/labour card.
  
• Labour cards are directly tied to your mainland establishment number. If your labour cards are not valid, you may face issues with MOHRE inspections, delays in visa stamping, or fines.
  
• Affects your hiring plan, staff cost forecasting (important for accounting services and CFO services), and your tax footprint (for example corporate tax base can be influenced by number of employees, their contracts, visa type etc).
  
• For Corporate TAX & VAT & TAX consultancy services: labour cost constitutes significant deductions/allowances and being compliant ensures that employee costs are defensible.
  

Business Set Up in UAE Free Zone

• Free-zone entities are governed by the respective free-zone authority (for example Dubai Multi Commodities Centre DMCC or others). They issue employment cards which serve a similar function as labour cards.
  
• The process, costs and validity may differ (some free zones issue cards valid 1-3 years).
  
• But you still need to ensure that your employees are covered by valid employment cards (or equivalent) because for Business Evaluation, Company Liquidation or ICV Certification this becomes part of your compliance history.
  
• Free-zone companies sometimes overlook the link between labour/employment compliance and their broader audit/tax/valuation or certification process. Don’t.

Note: DIFC and ADGM operate under their own employment laws, separate from MOHRE, though they maintain similar work permit systems through their registries.

Why it matters for Accounting Services, Tax Consultants, VAT & TAX Consultancy Services

• Payroll entries must have valid backing (labour card number/permit). Auditors will check this.
  
• Your corporate tax return (for example UAE Corporate TAX from 2023 onwards) will need employee cost validation, invalid labour cards may raise red flags.
  
• For VAT registrants, in case of staff benefits or cost allocations, the personnel must be legitimate employees.
  
• If you’re undergoing Business Evaluation (to raise capital or for internal audit) or Company Liquidation, your labour compliance history (including valid labour cards) will be considered.
  
• If you seek In‑Country Value (ICV) Certification, part of the appraisal is your employment records. Invalid labour cards or missing documentation could reduce your ICV score.
  

Application and Renewal Process

Here’s a step-by-step that you (as employer/HR) can use.

Application (Mainland)

1. Ensure your company has a valid commercial licence and establishment card with MOHRE.
   
2. Check your visa quota for the employee.
   
3. The employee signs an employment contract (English & Arabic) as required.
   
4. Employers apply for the work permit through MOHRE’s portal: upload employee passport copy, photo, qualification (if required), medical fitness certificate.
   
5. Once permit is approved, proceed with a medical test, Emirates ID biometrics, residence visa (if overseas hire). Then MOHRE issues the labour card (digitally).
   
6. Download/print the labour card (via MOHRE portal/app) and provide the employee with proof. 

Renewal

Renewal may also require a medical fitness test if the employee’s residence visa is expiring or being renewed at the same time.

• Begin renewal ideally at least 30 days before expiry.
  
• Upload updated documents: renewed contract (if required), valid residence visa, passport copy, photo.
  
• Pay the renewal fee. Digital processing. Receive updated labour card.
  

Cancellation / End of Employment

• When an employee’s contract ends, transfers, resigns etc: employer must cancel labour card/work permit via MOHRE services.
  
• Ensure records show the process is complete (important for compliance during audits or liquidation).
  

Documents & Timelines & Costs

• Documents: passport copy, residence visa copy, photo, contract, medical certificate, employer establishment number.
  
• Timelines: Operational guides suggest the combined process of work-permit approval, medical, Emirates ID biometrics and residence-visa stamping may take 2-4 weeks in standard cases, though this depends heavily on employer compliance and free-zone vs mainland jurisdiction.
  
• Costs: Vary significantly. Example: issuance ranges from AED 250 to AED 3,450 depending on category/permit type.
  

Labour Card & Compliance

Here’s why you must treat labour cards as part of your compliance ecosystem — not just HR.

Impact on payroll, taxation, employee records

• If you’re providing Accounting Services or CFO Services, your payroll entries must reflect employees with valid labour card/work permit, or else you risk audit issues.
  
• Tax consultants look at employment costs: if labour cards invalid, deductions may be challenged in Corporate TAX review.
  
• For VAT & TAX Consultancy Services: if you claim personnel-associated expenses (training, benefits), link to valid employment and documentation.
  
• The labour card links to the employee’s Emirates ID, to your wage protection system (WPS) compliance, and to immigration records. Missing or invalid labour card = gap in your employment lifecycle.
  

For business structures, evaluations, liquidation, ICV certification

• When you carry out Business Evaluation (for sale, audit, investment) your employment compliance (labour cards, valid contracts) is a risk factor.
  
• If you consider Company Liquidation: clearing of employment liabilities, ensuring labour cards cancelled, visas cancelled, becomes part of the exit checklist. Missed labour card cancellations = lingering liability.
  
• For ICV Certification: your score takes into account local employment, compliance and traceability of workforce. Labour cards form part of that record.
  

When Things Go Wrong

What happens if you ignore or mishandle labour card obligations?

Common compliance mistakes

• Labour card not issued within required time after recruitment.
  
• The Labour card expired and was not renewed.
  
• Employee working although labour card/work permit cancelled or invalid.
  
• Labour card details (job title, employer, expiry) mismatched with actual employment and visa.
  
• Some free-zone companies incorrectly apply mainland labour-card workflows when in fact free-zone employment cards fall under the relevant free-zone authority’s regulations. This oversight can lead to compliance gaps in employment-records, cost capture or visa obligations.
  

Legal and financial consequences

• Both employer and employee risk penalities. For example, failure to have a valid labour card/work permit means the employee is working illegally.
  
• Violations under the UAE Labour Law can attract fines ranging from AED 5,000 to AED 1 million depending on severity, such as employing a person without a valid work permit. 
• Delays in renewal may impact visa status, Emirates ID renewal, ability to travel out of UAE, or transfer sponsorship.
  
• In the context of Company Liquidation or Business Evaluation: unresolved employment liabilities, invalid labour cards, unsettled visas will reduce valuation, increase risk of litigation, reduce attractiveness to investors or buyers.
  
• For ICV Certification: non-compliant labour records can downgrade your certification and thus your eligibility for certain contracts or government procurement.
  

How to stay compliant

• Schedule a labour card audit: For each employee check: card issued, expiry date, work permit number matches, employee is covered for their actual job.
  
• Build this into your Accounting Services / CFO Services process: tie employee cost ledger entries to labour card numbers.
  
• Valid employment records, including proper work permits, support the workforce data used in ICV assessments for companies applying under the MOIAT program
  
• For new Business Setup (mainland or free zone): Ensure labour card strategy is part of your hiring & compliance setup.
  
• On termination or Company Liquidation: ensure labour cards and visa cancellations are done, records retained.
  
• Leverage digital dashboards/portals (MOHRE portal, UAE PASS) to track expiry, status, download cards.
  

Conclusion

Here’s the core message: A valid work permit (‘labour card’) is far more than a back-office formality. In 2025 it forms a cornerstone of your UAE business compliance architecture, linking hiring, visas, payroll, accounting, tax and exit strategy. They tie directly into your hiring, visas, payroll, accounting, tax, corporate governance, evaluation and exit strategy. Get them right and you minimise risk and reduce overhead. Ignore them and you expose your business to regulatory penalties, reputational damage and operational disruption.

Actionable advice for you now:

• Review all current employees: check labour card numbers, expiry dates, validity, link to payroll.
  
• Ensure your hiring process (whether Mainland Business Setup in UAE or Business Set Up in UAE Free zone) includes labour card workflow as a standard milestone.
  
• Integrate labour-card management into your Accounting Services / CFO Services / Tax Consultants workflow: document linking, cost capture, renewal calendar.
  
• Build a renewal/cancellation calendar (labour card expiry, visa expiry) and assign responsibility.
  
• On change of business structure (liquidation, ICV certification, business evaluation) ensure labour card records are clean and auditable.
  

Stay ahead of this and you’re managing risk. Overlook it and the cost could go beyond a fine, it could hit your business’ credibility, value and operations in the UAE.

Sources:
U.AE+2UAE Labour Law
U.AE+1
U.AE
KPM PRO Services
UAE Labour Law
Emiratisation Gateway
Emirates ID Official
Zimyo HRMS
UAE Labour Law
bayzat.com
ExpressPRO
HRSG
proservicesindubai.com
amercenter.ae
Zimyo HRMS
Emiratisation Gateway
businesslinkuae.com
Emirates ID Official
Zimyo HRMS
Source
HRSG

Disclaimer: The information in this article is based on the latest publicly available data from official UAE government sources, including the Ministry of Human Resources and Emiratisation (MOHRE) and related authorities, as of 2025. Regulations and procedures may change without prior notice. Readers are advised to verify details directly through official government channels or consult a qualified legal or HR professional before making any employment-related decisions. This article is intended for general informational purposes and should not be considered legal advice.

FAQ

1. What is a UAE Labour Card (work permit)?

A UAE Labour Card, officially known as a work permit, is a government-issued document that identifies you as a legally employed individual in the country. It’s issued by the Ministry of Human Resources and Emiratisation (MOHRE) and includes key details like your job title, employer, nationality, and labour contract information. Without a valid labour card, an employee cannot legally work in the UAE.

2. Who needs a Labour Card in the UAE in 2025?

Every employee working in the private sector under a company registered with MOHRE needs a labour card. This includes both local and expatriate workers on valid residence visas. Free zone employees, however, receive their work permits from their respective free zone authorities instead of MOHRE.

3. How do I apply for a Labour Card in the UAE?

The application is usually handled by the employer, not the employee. Once your employment contract is approved, the employer submits the application to MOHRE through its online portal or a registered typing center. Required documents include your employment contract, Emirates ID, passport copy, visa, and medical fitness certificate. After approval, MOHRE issues the labour card digitally.

4. How long does it take to issue a Labour Card?

In most cases, the labour card is issued within 5 to 10 working days after MOHRE receives all the required documents and approvals. Delays may occur if there are missing documents or pending visa formalities.

5. How long is a Labour Card valid for?

Labour cards under MOHRE are generally valid for two years, while some free-zone authorities issue employment cards with validity between one and three years. For government employees or limited-term contracts, validity can vary depending on the agreement. Once expired, the card must be renewed to maintain legal employment status.

6. How to renew a Labour Card in the UAE?

Employers are responsible for renewing the labour card before it expires. The renewal process can be done online through MOHRE’s e-services portal by submitting the updated employment contract, employee details, and renewal fees. It’s best to start the renewal at least one month before expiry to avoid fines or delays in processing.