UAE Employment Law: A Complete 2026 Guide

UAE labour law continues to evolve, and for HR teams the impact extends well beyond policy awareness. Every update shapes how contracts are drafted, how salaries are processed, how leave is tracked, how employees are onboarded, and how compliance records are maintained across entities and locations.

UAE private-sector employment is governed primarily by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship, as amended by subsequent decree-laws, and applies to all private-sector employers and employees, excluding federal and local government bodies, the armed forces, security services, and domestic workers.

The Ministry of Human Resources and Emiratisation (MoHRE), the UAE's central labour authority, oversees compliance enforcement, labour dispute resolution, work permit issuance, and Emiratisation targets across the UAE private sector. MoHRE's circulars and resolutions continuously shape what compliance looks like on the ground.

This guide breaks down the key areas of UAE labour law that HR teams should monitor, with practical action points for HR operations, payroll, and compliance leaders.

What UAE Labour Law Means for HR Teams

For organisations in the UAE private sector, UAE labour law affects every stage of the employee lifecycle, from offer release and contract creation to payroll, leave management, grievance handling, and exit processing. Treating compliance as a one-time legal task is a common mistake; in practice, it is an ongoing operational responsibility that lives inside HR workflows.

• HR operations: Maintain consistent, compliant workflows across departments, entities, and locations.
• Payroll teams: Ensure salary processing aligns with WPS requirements and documented pay structures.
• HR administrators: Keep employment contracts, work permits, policy acknowledgements, and employee records updated and retrievable.
• CHROs and HR leaders: Use workforce visibility and strategic workforce planning to identify compliance gaps, process delays, and operational risk before they escalate.

Key UAE Labour Law Areas HR Teams Should Track to Stay Compliant

The table below summarises the core areas of UAE labour law and the operational focus each demands from HR and payroll teams.

Key provisions of UAE labour law and their corresponding HR operational focus areas

Key UAE Labour Law Areas in Detail

Each section below covers a major area of UAE employment law in detail, with HR action points. References throughout apply to Federal Decree-Law No. 33 of 2021 and its amendments unless stated otherwise.

1. Employment Contracts

Employment contracts are legally binding records that define the employment relationship. They establish salary, responsibilities, notice periods, termination terms, and dispute resolution provisions. For HR teams, they should be treated as core employee lifecycle documents, stored alongside related offer letters, work permits, salary details, renewal dates, and notice period terms.

Federal Decree-Law No. 33 of 2021 mandates that all private-sector employment contracts be fixed-term, replacing unlimited contracts permissible under the previous Federal Law No. 8 of 1980. Each contract must state a defined term of up to three years, although it may be renewed or extended multiple times with no cap on the total number of renewals.

As of 2026, every employment relationship regulated by MoHRE is legally considered fixed-term; any remaining legacy unlimited contracts should have been converted.

In the UAE, employment contracts fall into two main categories:

• Private-sector employment contracts: Governed by Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, which provides the Executive Regulations.
• Public-sector employment contracts: Subject to separate rules under UAE human resources law.

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2. Federal Decree-Law Updates (No. 33 of 2021, No. 14 of 2022, No. 20 of 2023, and No. 9 of 2024)

Federal Decree-Law No. 33 of 2021 governs all employment relationships in the private sector, setting out:

• Working hours: maximum eight hours per day and 48 hours per week, with a two-hour per day reduction during Ramadan.
• Weekly rest: a mandatory rest day on full pay.
• Rules on termination of employment, non-compete clauses, and probationary periods (maximum six months).
• Anti-discrimination, anti-harassment, and equal pay for the same work.
• Prohibitions on forced labour, psychological violence, and the confiscation of employee documents.

Federal Decree-Law No. 14 of 2022 introduced flexible work models, including remote, part-time, temporary work, and freelance employment, reflecting structural changes in UAE labour relations.

Federal Decree-Law No. 20 of 2023 provided further clarity on notice periods, leave policies, and the use of digital platforms for enforcing labour rights.

Federal Decree-Law No. 9 of 2024 (effective 31 August 2024) introduced the most significant enforcement changes in recent years:

• Per-violation penalties raised to AED 1 million, multiplied by the number of workers affected, up to a maximum of AED 10 million.
• The limitation period for labour claims extended from one year to two years from the date the cause of action arises.
• MoHRE may now issue binding resolutions for employment disputes not exceeding AED 50,000, carrying executive instrument force.
• MoHRE may order employers to continue paying an employee's salary for up to two months during dispute resolution proceedings.

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3. Regulating Labour Procedures

UAE labour procedures give employees defined channels to raise grievances and give employers structured mechanisms to resolve labour disputes before they reach the UAE labour courts. MoHRE plays a central role in this process: it examines disputes, attempts amicable settlement, and, under Federal Decree-Law No. 9 of 2024, may now issue binding resolutions for claims of AED 50,000 or below.

• Employees can submit concerns through the MoHRE website or the MoHRE Smart App.
• If MoHRE cannot resolve a dispute within 14 working days, roughly a three-week period, the matter proceeds automatically to the UAE labour courts, which must schedule a hearing within three working days and deliver a judgement within 30 days.
• During resolution, MoHRE can require employers to continue paying employees' salaries for up to two months.
• Trade unions and collective bargaining are not currently permitted in the UAE private sector; all employment disputes run through MoHRE channels and the courts.

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4. Wage Protection System (WPS)

The Wage Protection System (WPS) was implemented to support timely salary payments for private-sector employees. In 2026, WPS compliance requirements have tightened significantly. Employers must pay employees through certified UAE banks and financial institutions; failure to comply results in fines and suspension of the work permit for new employees.

The most significant 2026 update: MoHRE Ministerial Resolution No. 340 of 2026 (effective 1 June 2026) requires all private-sector companies to process leave salary calculation through WPS by the 1st of every month. The previous 15-day grace period has been removed entirely, repealing the older Resolution No. 598 of 2022. For payroll teams, this means leave salary processing is now a hard monthly deadline, not an optional window.

WPS coverage now extends to domestic workers, and a Grievance Committee continues to resolve disputes about delayed wages or illegal deductions.

Effective payroll automation reduces manual errors and gives payroll teams a clear view of exceptions, one reason why payroll is a critical HR function in regulated markets like the UAE.

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5. Licensing and Regulating Recruitment Agencies

All recruitment agencies in the UAE must be licensed by MoHRE, provide confirmed and verified job offers and employment contracts, and protect the rights of both domestic and international workers.

HR teams that rely on external recruitment agencies for sourcing expatriate workers bear an obligation to verify agency compliance before engagement. Using an unlicensed agency is not a mitigating factor in MoHRE enforcement; the liability sits with the hiring organisation.

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6. Work Permits, Contracts, and Job Offer Forms

Whether an employee is joining for the first time, changing jobs, or renewing a visa:

• A work permit is compulsory for all employees working in the UAE private sector.
• The employee must sign a job offer letter in both Arabic and English before a contract may be issued.
• Employment begins only after the contract is registered with MoHRE; the contract must be submitted within 14 days of arrival or status change.
• When an employee moves to a new employer, an updated permit must be obtained.

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7. Worker Protection Insurance System

Workers in the UAE are covered under a low-cost insurance plan that provides special protection for injuries, unpaid wages or salaries, and repatriation expenses in the event of employer default. This coverage applies across occupations, from domestic workers to blue-collar professionals, and forms part of the broader framework of worker safeguards under UAE labour law.

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8. Rules for Domestic Workers

Domestic workers in the UAE hold enhanced labour rights under Federal Decree-Law No. 9 of 2022 (Concerning Domestic Workers), as amended by Federal Decree-Law No. 21 of 2023.

Key entitlements include one mandatory rest day each week, 30 days of paid annual leave, 12 hours of daily rest with eight hours of uninterrupted sleep, compensation for termination without a valid reason, and access to complaint mechanisms through MoHRE.

Domestic worker salaries must also be processed via WPS or an approved equivalent channel, aligning their pay protections with those of broader private-sector companies.

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9. Occupational Health and Safety

Workplace safety in the UAE is a statutory requirement under UAE policy. Employers must provide appropriate safety equipment, arrange periodic health screenings particularly in high-risk roles, and carry liability for injuries caused by negligence.

MoHRE's annual Midday Break regulation bans outdoor work under direct sunlight from 12:30 pm to 3:00 pm between 15 June and 15 September each year; non compliance can result in immediate fines and permit-related consequences.

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10. Free Zone Employment Laws (DAFZA, DIFC, and Others)

Special economic free zones such as DAFZA and JAFZA operate under the same federal labour law as the UAE mainland. Financial free zones such as DIFC and ADGM run their own employment frameworks, though fundamental worker protections remain in force across all jurisdictions.

Contracts must comply with applicable free-zone labour standards; the WPS and Worker Protection Insurance System remain in scope; dispute resolution runs through each zone's own authority rather than MoHRE.

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11. Leave Entitlements

UAE labour law defines a structured set of leave entitlements for private-sector employees. Getting these right is one of the more operational compliance tasks HR teams face, because each leave type carries distinct pay rules, eligibility conditions, and documentation obligations.

11a. Paid Annual Leave

After completing the probationary period, employees are generally entitled to 30 calendar days of paid annual leave per year. During probation, leave may only be taken with employer approval.

11b. Sick Leave

After the probationary period, employees may take up to 90 consecutive or intermittent days of sick leave per year, structured as follows:

• First 15 days: full pay.
• Following 30 days: half pay.
• Remaining days within the 90-day period: unpaid.

Dismissal during the 90-day sick leave window is prohibited, except in limited circumstances where the illness results from substance misuse or deliberate safety violations. Employees on sick leave cannot be terminated solely for their absence.

11c. Maternity Leave

Female employees in the UAE private sector are entitled to 60 calendar days of maternity leave: the first 45 days at full pay, followed by 15 days at half pay. No minimum service period applies; the entitlement exists from the date of joining. Leave may begin up to 30 days before the expected delivery date.

On return, mothers receive nursing breaks totalling one hour per day for six months after delivery. Maternity leave does not reduce entitlement to annual or sick leave.

11d. Parental Leave

Both male and female private-sector employees are entitled to five working days of paid parental leave, usable within six months of the child's birth. This leave is in addition to maternity leave for female employees. Proof of birth is required, and the leave cannot be refused by the employer.

11e. Compassionate Leave

Paid compassionate leave applies upon bereavement: five calendar days for the death of a spouse, and three calendar days for the death of a parent, child, sibling, grandparent, or grandchild. The entitlement applies regardless of service length or role.

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12. Termination of Employment and End of Service Gratuity

Termination of employment in the UAE is governed by Articles 42 to 53 of Federal Decree-Law No. 33 of 2021. HR teams should understand notice requirements, valid grounds for dismissal, and end of service gratuity calculation rules before initiating any exit process.

12a. Notice Periods

Under Article 43, either party may terminate a fixed-term contract by providing written notice to the other. The minimum notice period is 30 calendar days; the maximum is 90 calendar days, depending on what is stipulated in the employment contract. Both parties must fulfil their contractual duties throughout the notice period.

During a probationary period, the notice requirement is 14 days for employer-initiated dismissal, and 30 days if the employee resigns to join a new employer.

12b. Termination Without Notice

Under Article 44, an employer may terminate employment in limited circumstances without serving a notice period, including gross misconduct, serious safety violations, or a criminal conviction resulting in a sentence of three months or more. Any such valid reason for dismissal must be documented; where an employee's performance is cited, a prior warning process is strongly recommended.

12c. Early Termination Compensation

If an employer terminates a fixed-term contract before expiry without a valid reason, the employee is entitled to compensation equivalent to three months' full pay or the value of the remaining contract period, whichever is lesser. A mutual agreement to end the contract before the term expires is permissible, provided it is documented in writing.

12d. End of Service Gratuity

Expatriate workers and UAE nationals who complete at least one year of continuous service are generally entitled to end of service gratuity, calculated on their final basic salary, excluding housing, transport, and other allowances:

• 21 days' basic salary for each year of service within the first five years.
• 30 days' basic salary for each year beyond five years.
• Total service gratuity is capped at the equivalent of two years' wages.

All outstanding wages, entitlements, and service gratuity must be settled within 14 calendar days of the termination date. Under the 2024 amendments, non compliance with this deadline can result in fines of up to AED 1 million.

Given the extended two-year limitation period for labour claims introduced by Federal Decree-Law No. 9 of 2024, termination records should be retained well beyond the exit date.

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13. Anti-Discrimination, Equal Pay and Workplace Protections

Article 14 of Federal Decree-Law No. 33 of 2021 establishes comprehensive workplace protections for all private-sector employees, regardless of nationality, gender, religion, or social origin. HR teams are responsible for ensuring these protections are embedded in policy and reflected in day-to-day practice.

13a. Equal Pay and Equal Opp%ortunities

The law mandates equal pay for the same work, regardless of gender. No employee may be paid less than another for performing equivalent responsibilities on the basis of gender, race, national or social origin, or disability. HR teams should conduct periodic pay reviews to identify and correct disparities before they become formal complaints.

13b. Protection from Discrimination

Discrimination on the basis of gender, race, colour, religion, nationality, national or social origin, or disability is prohibited at every stage of the employment relationship, from recruitment and promotion to training and termination of employment.

13c. Sexual Harassment and Psychological Violence

Sexual harassment, bullying, and verbal, physical, or psychological violence against employees are prohibited and actionable under UAE labour law. Employers with 50 or more employees must maintain written grievance and disciplinary policies. Employees are required to report incidents to MoHRE within five days of occurrence.

13d. Forced Labour

Forced labour in any form is illegal in the UAE. Employers cannot confiscate passports, withhold personal documents, or compel overtime hours beyond the legal limits. Violations are subject to criminal prosecution in addition to labour penalties.

13e. Dismissal Protection

Employees who raise a complaint, exercise a legal right, or take maternity leave are protected from retaliatory dismissal. Termination in these circumstances is unlawful; compensation of up to three months' salary may be awarded.

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Resolutions and Circulars: Recent Updates in UAE Labour Law

HR teams across the UAE private sector should stay alert to the following areas of active regulatory focus heading into 2027.

1. Emiratisation

Private-sector companies with 50 or more employees must meet a 10% Emiratisation target by 31 December 2026, up from 8% at end-2025. Non-compliant companies pay AED 9,000 per month for each unfilled Emirati position (AED 108,000 annually per vacancy).

Emiratisation targets are designed to expand job opportunities for UAE nationals across the UAE private sector; fictitious Emiratisation schemes now carry penalties that can reach eight figures.

2. UAE National Minimum Wage

From 1 January 2026, the minimum wage for UAE nationals in the private sector is AED 6,000 per month.

Companies had until 30 June 2026 to align; from 1 July 2026, non-compliant companies face work permit suspensions, and those employees do not count toward Emiratisation targets. Nafis subsidies offset some costs through 2026; budget planning for full Emirati employment costs from 2027 is recommended.

3. Domestic Workers

Regulations on maximum working hours and rest entitlements continue to tighten. Employers must provide accommodation and meals, and salaries must be paid monthly through WPS or an approved equivalent.

4. WPS and Payroll Compliance

Ministerial Resolution No. 340 of 2026 requires leave salary processing through WPS by the 1st of every month. There is no grace period. Non compliance with WPS requirements remains one of the most frequently cited triggers for permit suspension and fines.

5. Penalty Framework

Cabinet Resolution No. 9 of 2024 raised the per-violation ceiling to AED 1 million, multiplied by the number of workers in violation cases up to AED 10 million. Labour claim limitation periods have been extended to two years.

International Agreements Under UAE Labour Law

The UAE has signed multiple global treaties aligned with international labour standards, which form the backdrop to domestic regulations and MoHRE policy.

• ILO and UN Frameworks: The UAE collaborates with the International Labour Organisation and the United Nations to uphold fair labour standards, migrant and expatriate worker rights, and protection from exploitation.
• Equal Remuneration Convention: Promotes equal pay for equal work regardless of gender or nationality across both private-sector and public-sector employment.
• Abolition of Forced Labour Convention: Makes it illegal to confiscate employees' passports or compel overtime beyond legal limits.
• Discrimination (Employment and Occupation) Convention: Prohibits discrimination based on race, religion, gender, nationality, or social origin, and forms part of MoHRE's anti-harassment frameworks.
• Minimum Age Convention: Sets the legal minimum employment age at 15, protecting children from child labour.
• Worst Forms of Child Labour Convention: Enforces measures against child exploitation in any form.
• Night Work (Women) Convention: Night shifts for women remain voluntary and require employers to ensure safety and transportation arrangements.

How UAE Labour Law Connects to the Hire-to-ReHire Employee Lifecycle

Compliance must be embedded into every workforce process, from hiring and onboarding through payroll, performance, exit, and rehire:

• Hire: Offer letters, work permits, employment contracts, and recruitment documentation.
• Onboard: Policy acknowledgement, employee documentation, orientation, and role setup. A structured employee onboarding experience ensures every mandatory step is captured and recorded.
• Manage: Working hours, attendance, leave, payroll, WPS, and grievances.
• Protect: Equal opportunities, anti-discrimination, occupational health, and employee safeguards.
• Exit: Notice periods, termination documentation, final settlement, and handover records.
• Rehire: Record continuity, previous employment documentation, and compliance history.

Benefits of UAE Labour Law Compliance Software

UAE labour law compliance software helps organisations keep HR and payroll processes aligned with changing employment regulations while reducing manual compliance work. Here are the key benefits that make it an essential investment for teams in the UAE.

1. Reduced Compliance Risk and Penalties

Non compliance with WPS, contract, or permit requirements can trigger fines and work-permit suspension. Compliance software helps HR teams centralise documentation, monitor deadlines, and evidence adherence, reducing the exposure that comes with manual, spreadsheet-based tracking across multiple entities.

2. Consistent, Audit-Ready Records

When contracts, offer letters, permits, payroll data, and grievance records live in one system, HR teams can respond to MoHRE queries or internal audits without scrambling for documents.

Consistency across departments and locations matters particularly for organisations with both mainland and free-zone entities.

3. Faster, More Accurate Payroll

WPS-aligned payroll depends on accurate salary structures and timely processing. Automation reduces manual errors, flags exceptions, and keeps salary records aligned with regulatory requirements, freeing payroll teams to focus on control rather than correction.

4. Improved Workforce Visibility for Leaders

CHROs and HR leaders gain visibility into leave trends, documentation gaps, permit expiries, and payroll exceptions. This data supports risk management based on actual workforce patterns rather than reactive responses after issues surface.

5. Lower Administrative Burden

Automated reminders for contract renewals, work-permit updates, onboarding tasks, and exit workflows reduce the transactional load on HR administrators, allowing HR teams to focus on higher-value work.

Key Features of Modern UAE Labour Law Software

Meeting UAE labour law requirements depends on more than regular software updates. The right platform should automate compliance across payroll, leave, attendance and employee records while giving HR teams complete visibility into every process. These are the key features to look for:

1. Centralised Employee Records

Look for a single source of truth that stores contracts, offer letters, work permits, policy acknowledgements, and lifecycle history, with bilingual document support for Arabic and English requirements.

2. WPS-Ready Payroll Controls

Payroll modules should map salary structures, generate WPS-compliant files, log payments, and flag delayed or failed disbursements. This matters particularly in sectors such as BFSI, healthcare, and manufacturing where MoHRE scrutiny is high.

3. Attendance and Working-Hours Tracking

Accurate time capture underpins compliance with the eight-hours-per-day and 48-hour-per-week limits. Robust attendance management software supports consistent recordkeeping across shifts, locations, and work models.

4. Leave Management Aligned to Statutory Entitlements

An online leave management system should reflect statutory annual, sick, maternity, parental, and compassionate leave rules, manage approvals, and keep audit-ready leave records tied to each employee.

5. Automated Compliance Reminders

Automation should trigger alerts for contract renewals, permit and visa expiries, probation deadlines, and onboarding or exit tasks, ensuring nothing critical is missed across large, multi-entity workforces.

6. Analytics and Audit Trails

Reporting should surface payroll exceptions, leave patterns, documentation gaps, and compliance risks, with full audit trails for every change to sensitive employee data.

How a Unified HCM Platform Supports UAE HR Compliance

For HR teams, compliance becomes easier to manage when employee data, payroll, attendance, leave, contracts, and workflows operate from one connected system rather than fragmented tools:

• Core HR: Maintain complete employee records, documents, and lifecycle history.
• Payroll automation: Reduce manual payroll effort and support WPS-aligned salary processing.
• Workforce management: Track attendance, shifts, working hours, and leave consistently.
• Analytics: Identify payroll exceptions, leave trends, documentation gaps, and compliance risks.
• Automation: Trigger reminders for contract renewals, work-permit updates, onboarding tasks, and exit workflows.

UAE Labour Law Compliance Checklist for HR Teams

Use this checklist to evaluate your organisation's compliance readiness:

• Review all employment contracts for fixed-term compliance.
• Verify that offer letters and contracts are stored in employee records.
• Track work permits, renewals, and visa-related documentation.
• Ensure payroll processing aligns with WPS requirements and the Resolution No. 340 of 2026 monthly deadline.
• Maintain leave, attendance, and working-hour records.
• Document grievance and dispute resolution processes.
• Keep termination, notice period, and final settlement records audit-ready within the two-year claim window.
• Confirm equal pay practices are documented and anti-harassment policies are in place.
• Review policies whenever MoHRE issues new circulars or amendments.

Why Choose ZingHR for UAE Labour Law Compliance?

ZingHR is an AI-powered hire-to-rehire HCM platform built to remove the transactional layers of HR while keeping compliance embedded in every workflow. For HR teams in the UAE, that means employee records, contracts, payroll, attendance, leave, and grievance workflows all operating from one connected system, reducing manual effort and improving audit readiness across the board.

Rather than treating UAE labour law as a periodic legal review, ZingHR helps organisations operationalise it: WPS-aligned payroll processing, automated reminders for contract and permit renewals, consistent leave and working-hour tracking, and analytics that surface compliance risk before it becomes a penalty. Across mainland and free-zone entities, that consistency is what keeps large, multi-entity workforces compliant.

ZingHR is trusted by organisations across the MEA region, including Teleperformance, Burjeel Holdings, SGS, and Shapoorji Pallonji, to manage complex, multi-entity HR compliance at scale.

Build Compliance Into Every Stage of the Employee Lifecycle

UAE labour law is more than a legal reference point. For HR teams, it shapes the way people processes are designed, documented, and executed across the employee lifecycle. The central framework, Federal Decree-Law No. 33 of 2021 as amended through Decree-Laws No. 14 of 2022, No. 20 of 2023, and No. 9 of 2024, has replaced previous federal law provisions and established fixed-term contracts, defined working hours, structured leave entitlements, and clear dispute resolution pathways through MoHRE and the UAE labour courts.

Employment contracts, payroll, leave, working hours, grievances, and exits all require accurate records, consistent workflows, and clear ownership across HR, payroll, managers, and leadership. As reforms continue into 2027, from higher penalty ceilings and binding MoHRE dispute resolutions to Emiratisation targets and the new minimum wage for UAE nationals, keeping policies and systems aligned is essential to managing risk.

Embedding compliance into a unified HCM platform reduces manual HR effort, gives teams better visibility into their workforce, and maintains audit-ready records from Hire-to-ReHire.

Book a demo to see how ZingHR helps organisations simplify UAE labour law compliance with one AI-powered HCM platform.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Organisations should consult qualified legal counsel or official UAE government sources before making employment decisions.

Last reviewed: September 2026 · Reviewed by: ZingHR HR Compliance Editorial Team