TRW & Co · Disputes and arbitration
Limitation Periods in the UAE: Commercial, Civil and Employment Claims
The limitation period UAE claimants face depends on the claim. Commercial claims between merchants are generally barred five years after the debt fell due, general civil claims carry 15 years and onshore employment claims two years from the end of employment. The new Civil Transactions Law changed several specific periods from 1 June 2026, including for claims already running.
Key pointThe five-year commercial period has applied since 2 January 2023 and cut back claims already running, so many receivables businesses still treat as safe under the old ten-year rule are now close to, or past, their deadline.
At a glance
Commercial: five years
Obligations between merchants are time-barred five years after the due date under the 2022 Commercial Transactions Law, down from ten years before 2023.
Civil: fifteen years
The general civil period remains 15 years under the new Civil Transactions Law, unless a specific provision sets a different period.
Employment: two years
Onshore employment claims must be filed within two years of the employment ending; DIFC employment claims generally within six months.
2026 transitional rules
New limitation rules apply to periods running on 1 June 2026; a shortened period runs from that date unless the old deadline is sooner.
Stop the clock properly
Filing a claim or arbitration and a debtor's acknowledgement interrupt time; negotiations alone do not, and standstills are unreliable onshore.
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There is no single limitation period UAE claimants can rely on. Onshore, claims between merchants arising from their commercial dealings are generally time-barred five years after the obligation fell due, ordinary civil claims carry a 15-year general period, and employment claims must be brought within two years of the employment ending. The DIFC and ADGM apply common-law style periods, typically six years for contract claims.
The picture changed twice in quick succession: the Commercial Transactions Law cut the commercial period from ten years to five from 2 January 2023, and the new Civil Transactions Law, in force from 1 June 2026, changed several specific periods and applies its rules to claims already running. This guide maps the main periods, explains how time is stopped and sets out what to check now, as of October 2026.
The short answer: the main limitation period UAE rules
- Commercial claims between merchants. Five years from the due date of the obligation, under the Commercial Transactions Law, unless a shorter period applies.
- General civil claims. 15 years, under the Civil Transactions Law, unless a specific provision says otherwise.
- Claims in tort. A short period running from when the injured party knew of the harm and who caused it, with a long-stop; the new law left this rule unchanged.
- Professional fees. Three years for fees of lawyers, doctors, engineers and brokers, down from five under the 1985 law.
- Latent defects in goods sold. One year from delivery, up from six months.
- Employment claims. Two years from the end of the employment relationship, onshore.
- DIFC and ADGM. Generally six years for contract claims, with different rules for deeds, tort and fraud.
Two features of onshore law surprise foreign counterparties. First, UAE law speaks of a claim "not being heard" after the period expires, rather than the right disappearing; the defendant must raise the point. Second, the parties have traditionally had little freedom to agree a different period, so English-style standstill agreements need care.
The legal framework
Limitation in onshore UAE law is scattered across several statutes:
- The Civil Transactions Law. Federal Decree-Law No. 25 of 2025 replaced the 1985 Civil Code from 1 June 2026. It contains the general 15-year period, the tort period, specific periods such as professional fees and latent defects, and the transitional rules.
- The Commercial Transactions Law. Federal Decree-Law No. 50 of 2022, in force since 2 January 2023, sets the five-year period for obligations between merchants and specific periods for some commercial contracts and instruments.
- The Labour Law. Federal Decree-Law No. 33 of 2021, as amended in 2024, sets the two-year period for employment claims. The government's labour disputes page explains the complaint route.
- Sector laws. Insurance, transport, maritime and other specialist legislation contain their own periods, often shorter than the general rules.
Our guide to the new UAE Civil Transactions Law covers the wider reforms, and our page on commercial litigation in the UAE explains how limitation fits into a claim strategy.
Key periods compared
| Claim type | Period | Source | Runs from |
|---|---|---|---|
| Obligations between merchants in their commercial business | 5 years (previously 10) | Commercial Transactions Law 2022 | Due date of the obligation |
| General civil claims, including many contract claims between non-merchants | 15 years | Civil Transactions Law 2025 | When the right became due |
| Fees of lawyers, doctors, engineers and brokers | 3 years (previously 5) | Civil Transactions Law 2025 | When the fee fell due |
| Latent defects in goods sold | 1 year (previously 6 months) | Civil Transactions Law 2025 | Delivery |
| Onshore employment claims | 2 years (previously 1) | Labour Law as amended in 2024 | End of employment |
| DIFC employment claims | Generally 6 months | DIFC Employment Law | Termination |
| DIFC contract claims | 6 years | DIFC Contract Law | Accrual of the cause of action |
| ADGM contract claims | 6 years (12 for deeds) | English Limitation Act 1980 as applied in ADGM | Breach |
Classification matters. A supply contract between two licensed companies will usually fall under the five-year commercial period. The same claim against an individual guarantor who is not a merchant may fall under civil rules. A claim against a professional adviser may be framed as fees, contract or tort, each with a different clock. Identify the strongest classification early, and plan on the shortest plausible period.
Specialist periods to check separately
The general rules are only the starting point. Insurance claims, carriage of goods, maritime claims, claims on commercial paper and claims relating to defects in buildings all carry their own periods in specialist provisions, and several are short. Before relying on the general limitation period UAE law provides, check whether a specialist law applies to the contract or the instrument in question.
Corporate claims need the same care. Claims against managers and directors, challenges to shareholder resolutions and claims under the Commercial Companies Law have their own time limits, some measured in months. Our guide to directors' and managers' personal liability explains those regimes.
The 2026 transitional rules
The new Civil Transactions Law is generally not retrospective, but its limitation rules apply to periods still running on 1 June 2026. Where the new law shortens a period, the shorter period runs from 1 June 2026, unless the time left under the old law would expire sooner, in which case the old deadline applies.
Take a professional fee. Under the 1985 law it carried five years; the new law allows three. A fee that fell due in late 2024 would previously have been claimable until late 2029. From 1 June 2026, the new three-year period runs to 1 June 2029, which comes first, so that is the deadline. A fee that fell due in early 2024 keeps its old deadline in early 2029, because that expires sooner.
Where the new law lengthens a period, such as for latent defects in sales, whether a period already running benefits from the extension is less clear. The prudent course is to work to the shorter date.
The 2023 commercial change worked the same way. Claims between merchants that were running on 2 January 2023 under the old ten-year rule were cut to the new five-year period, unless less time remained under the old one. Many of those claims have now expired or will expire soon, which makes an audit of older receivables worthwhile.
How to stop the clock
The limitation period UAE law sets is not absolute. Under the general rules of civil law, time can be interrupted or suspended in defined circumstances:
- Filing a claim. Bringing a claim before a competent court interrupts time. A claim filed before a court without jurisdiction may still have effect, but do not rely on that. Filing a request for arbitration under a valid arbitration agreement is generally treated as stopping time for the claims it covers.
- Acknowledgement by the debtor. An express or implied acknowledgement of the debt, such as a signed statement of account, a part payment or a request for time to pay, generally restarts the clock.
- Lawful excuse. The statutory wording bars claims brought after the period "without lawful excuse". Incapacity and genuine impossibility can suspend time, but courts read this narrowly.
Procedural tools that preserve rights
Where a debt is fixed and in writing, a payment order is a fast way to put a claim before the court. A bounced cheque can go straight to execution; see our guide to the cheque bounce law. Where assets are at risk, interim measures also require the main claim to follow within short deadlines.
A signed acknowledgement of debt is the cheapest limitation protection available. When a customer asks for more time, ask for a dated, signed statement confirming the balance and the new payment date. It restarts time and becomes the best evidence in any later payment order or claim.
Standstill agreements and contractual time bars
In England and Singapore, parties often sign standstill agreements to pause limitation while they negotiate. Onshore UAE law has traditionally taken a stricter line: parties could not waive the limitation defence before it arose, nor agree a period different from the one fixed by law. Commentary on the new Civil Transactions Law suggests that approach continues.
That has two consequences. A standstill agreement governed by UAE law may not protect the claimant, so the safer course is often to file protectively, or to obtain a signed acknowledgement that restarts time. And contractual time bars, such as a clause requiring claims within twelve months of completion, need separate analysis: courts and tribunals may treat them differently from statutory limitation, and construction notice provisions raise their own questions. Our guide to construction and energy disputes covers notice time bars.
In the DIFC and ADGM, where common-law principles apply, standstill agreements are more familiar, but they should still be drafted with the forum's rules in mind. Our guide to DIFC Courts proceedings explains how claims are brought there.
A limitation review, step by step
- List the claims. Record every potential claim with the counterparty, amount, contract and key dates.
- Classify each claim. Commercial between merchants, civil, tort, employment, professional fees or a specialist category.
- Identify the forum and law. Onshore courts, DIFC, ADGM or arbitration, and the law governing limitation.
- Calculate the dates. Find the start date and apply the period, then re-run the calculation under the 2023 and 2026 transitional rules.
- Look for interruptions. Collect acknowledgements, part payments and earlier filings.
- Act on the shortest date. Secure an acknowledgement, file a payment order, start a claim or commence arbitration before the earliest plausible deadline.
- Diarise and review. Enter every deadline in a central claims diary with an owner and early warnings.
Illustrative scenario: an old receivable and a new law
This scenario is illustrative only; the parties are generic.
A Dubai trading company reviews its ledger in mid-2026 and finds a debt from another licensed trader that fell due in 2019. Under the 1993 commercial code it would have had ten years, until 2029, and its finance team assumes there is plenty of time.
On review, its adviser points out that the five-year period under the 2022 Commercial Transactions Law applied to the claim from 2 January 2023. Because five years from that date ends in early 2028, sooner than the old 2029 deadline, early 2028 is now the working deadline, and the adviser recommends acting well before it. The debtor refuses to sign an acknowledgement, so the company serves notice and prepares a payment order application rather than waiting.
A second receivable from 2023, owed by a non-merchant individual under a guarantee, is analysed separately under civil rules. The lesson is that the limitation period UAE businesses assume from habit is often the wrong one.
Risks and common mistakes
Relying on the old ten-year commercial period
Many credit policies and older legal guides still cite ten years for commercial debts. Since 2 January 2023, the period for obligations between merchants is five years from the due date, and claims already running on that date were cut back too. Receivables that are three or four years old should be treated as urgent. Audit aged debt, obtain acknowledgements where you can, and file where you cannot.
Assuming negotiation stops time
Settlement talks, meetings and emails about a dispute do not by themselves stop the clock. Only recognised events, such as filing a claim or a genuine acknowledgement of the debt, do so. A standstill letter may be ineffective onshore. If talks are dragging and a deadline is approaching, file protectively and continue negotiating in parallel; courts and tribunals regularly see claims settled after filing.
Missing the shorter employment and DIFC windows
Onshore employment claims now have two years from the end of employment, but DIFC employment claims are generally limited to six months. Employees moving between DIFC and onshore employers, and employers running group-wide HR, often apply the wrong period. Identify the employing entity and its regime before advising on any deadline; our guide to employment disputes in the UAE explains the onshore route.
Forgetting that the defendant must raise limitation
Onshore courts generally do not apply time bars of their own motion. For a claimant, that is not a reason to file late; a represented defendant will almost always raise the point. For a defendant, it means the plea must be raised clearly and early in the defence, with the dates and classification explained, or it risks being treated as waived.
Cross-border angle
The limitation period UAE courts apply is not always the end of the analysis. Contracts with UAE counterparties are often governed by English, Singapore or Indian law. A foreign governing law may bring its own limitation rules, but an onshore court applying UAE public policy, or an enforcement court, may still raise questions. Where a foreign judgment or award must later be enforced in the UAE, separate time limits for enforcement apply. Plan the forum, governing law and enforcement route together; our guide to arbitration in the UAE explains how seat and rules interact.
What to do next: a checklist
- Audit receivables and claims older than three years against the five-year commercial period.
- Re-run every live claim under the 1 June 2026 transitional rules and record the limitation period UAE law now applies to it.
- Collect signed acknowledgements of debt when granting extra time.
- Do not rely on standstill letters for UAE-law claims without advice.
- Check employment deadlines by regime: two years onshore, six months in the DIFC.
- Keep a central claims diary with owners and early warnings.
TRW & Co advises on limitation, claim strategy and debt recovery across the onshore courts, the DIFC, ADGM and arbitration. Where representation before UAE courts is required, we work alongside locally licensed advocates and registered practitioners. To review a deadline, contact our Dubai team at info@trw.co or +971 58 942 1012.
Frequently asked questions
01What is the limitation period for commercial claims in the UAE?
Under the Commercial Transactions Law, Federal Decree-Law No. 50 of 2022, claims arising from obligations between merchants in connection with their commercial business cannot be heard if denied, without lawful excuse, once five years have passed from the due date of the obligation, unless the law provides a shorter period. The previous ten-year period applied until 2 January 2023, and claims already running on that date were generally reduced to the new five-year period unless less time remained.
02Did the new Civil Transactions Law change limitation periods?
Partly. Commentary on Federal Decree-Law No. 25 of 2025, in force from 1 June 2026, indicates that the general 15-year period and the tort period are unchanged. Professional fee claims by lawyers, doctors, engineers and brokers drop from five to three years, and latent defect claims in sales rise from six months to one year from delivery. The new limitation rules apply to periods still running on 1 June 2026, with a shortened period running from that date unless the old deadline is sooner.
03How long do I have to bring an employment claim in the UAE?
Onshore, following the 2024 amendments to the Labour Law, a claim cannot be heard if filed more than two years after the employment relationship ends. The previous rule was one year from when the right arose. Claims start with a MoHRE complaint. In the DIFC, employment claims must generally be brought within six months of termination, and ADGM applies its own rules, so identify the employing entity's regime first.
04How can I stop limitation running in the UAE?
The main ways are to file a claim before a competent court, or a request for arbitration under a valid arbitration agreement, and to obtain an acknowledgement of the debt from the debtor, such as a signed statement of account or a part payment. Negotiations alone do not stop time. Because onshore law has traditionally limited agreements to change or waive limitation in advance, standstill agreements are less reliable than filing or an acknowledgement.
05What limitation periods apply in the DIFC and ADGM?
The DIFC and ADGM apply their own laws. In the DIFC, contract claims generally must be brought within six years of the cause of action accruing, with different rules for negligence and fraud. ADGM applies the English Limitation Act 1980, giving six years for simple contract claims and twelve years for deeds, with special rules for latent damage and fraud. DIFC employment claims have a much shorter period, generally six months.
06Does a UAE court apply limitation automatically?
Generally not. Onshore law frames limitation as a bar to hearing the claim that the defendant must raise, rather than something the court applies of its own motion. A defendant should therefore plead limitation clearly and early, setting out the dates and the classification of the claim. Claimants should not rely on a defendant missing the point, since represented defendants almost always raise it.
Sources and official materials
- Federal Decree-Law No. 25 of 2025 on the Civil Transactions Law — General, tort and specific limitation periods; transitional rules
- Federal Decree-Law No. 50 of 2022 on the Commercial Transactions Law — Five-year period for obligations between merchants
- Labour disputes — Employment complaints and the claims process
- Federal Decree-Law No. 42 of 2022 on the Civil Procedure Code — Filing claims, payment orders and interim measures
- DIFC Courts — Claims governed by DIFC law
- ADGM Courts — Claims governed by ADGM law
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
