The UAE employment law encompasses a wide range of rules and regulations that are designed to establish and maintain a fair and productive working environment for employees and employers alike such as: working hours, employee rights, employment contracts, dispute resolution, overtime, leave entitlements, official holidays, maintenance of employee records, safety standards and procedures for handling work-related injuries, minimum wage, as well as termination of service and end-of-service benefits. The law is intended to ensure that workers are treated with respect and dignity and that their rights are fully protected. Employers are also expected to comply with the law and provide their employees with a safe and healthy workplace.
The UAE employment law also aims to ensure the efficiency of the labour market by attracting the highest competencies and skills from workers at all levels. This is achieved through the provision of training and development opportunities, as well as by establishing fair and transparent recruitment and selection processes.
Irrespective of whether they are UAE nationals or expatriates, the laws governing employment apply to all staff and employees working within the UAE. However, there are a few categories that are exempt from the general rules and have their own distinct set of regulations. These include staff and workers employed by the Federal government departments of the member-emirates, public bodies, municipalities, federal and local public institutions, as well as members of the armed forces, police, and security units. Additionally, domestic servants and agricultural workers also have their own unique rules that govern their employment.
The Various Types of Work Arrangements under the UAE Labor Law
In the UAE, the Labor Law recognizes various types of work arrangements that have been established to adapt to the ever-changing needs of the labour market. These arrangements are continually being improved and modified to ensure that they remain relevant and effective.
Currently, the following work arrangements are recognized under the UAE Labor Law:
- Full-time employment, where the employee works for one employer on a full-time basis.
- Part-time employment, where the employee works for one or more employers for a set number of hours or days per week or month, as agreed upon in the employment contract.
- Temporary work, which involves hiring an employee to complete a specific project or assignment, with the contract ending once the job is completed.
- Flexible working, which allows employers to adjust working hours or days based on business requirements.
- Remote work, which enables employees to work outside of the traditional office space, either fully or partially.
- Job sharing, where tasks and responsibilities are divided among employees based on a predetermined agreement. The regulations for part-time employment also apply to job sharing arrangements.
Contracts
To prevent any potential disagreements between employees and employers, it is crucial to ensure that specific information is included in the employment contract before signing it. The UAE Labor Law mandates certain details that must be incorporated in the contract and it must meet specific requirements. Firstly, the contract must comprise of two copies; one for the employer and the other for the employee. This ensures that both parties are aware of the terms and conditions agreed upon in the contract.
Secondly, the contract should enable the employee or their representative to verify the amount of wages and benefits they are entitled to, in compliance with the labor law. This ensures transparency and fairness in the working relationship.
Thirdly, the employment contract is valid for a maximum of three years. After the contract’s expiration, it can be renewed under a new contract. If the contract is renewed, the period after the initial agreement is regarded as an extension of the original working period and is added to the employee’s total length of service.
The essential information that must be included in the employment contract, according to the UAE labour law, comprises the following:
- Name and address of the employer.
- Name and nationality of the employee.
- Date of birth, identification proof, and qualifications of the employee.
- Date of joining the company.
- Workplace address.
- Working hours and rest days.
- Duration of the probationary period.
- Length of the trial period.
- Duration of the employment contract.
- Agreed salary, including increments and allowances.
- Annual leave entitlement and duration.
- Termination procedure.
Rights of Labour
- Right to Annual Leave
All workers in the UAE are entitled to annual leave, which must be taken on public holidays. The amount of leave a worker is entitled to depends on the length of their service. For example, a worker who has been with the same employer for six months to a year is entitled to two leaves for each month of service, while a worker who has been with the same employer for more than a year is entitled to the same. If a worker is terminated, they are entitled to annual leave for a fraction of their last year of service.
Other types of leaves specified by the labour law in the UAE include maternity leave, paternal leave, sick leave, bereavement, national service leave, and study leave. Maternity leave allows new mothers to take a minimum of 60 days off, 45 of them with pay and 15 with half pay, while fathers are entitled to 5 days of parental leave. Maternity leave can also be extended up to 45 days without pay. Sick leave is granted for up to 90 days, with full pay for the first 15 days and half pay for the next 30 days. Bereavement leave is granted for 5 days in the event of the death of a spouse and 3 days in the event of the death of other family members. National service leave is provided with proof of national service, and study leave allows employees enrolled in a state-approved educational institution 10 days to sit for exams if the service period with the employer exceeds two years.
- Pay and Compensation
Rights of workers in the UAE include the right to receive regular pay, which must be paid on the workday, at the worksite, and in the national currency. Workers employed on an annual or monthly pay package must receive payment at least once a month. Additionally, employers cannot force employees to buy products or services from their own company or facilities.
Other protections for workers include the provision of an air ticket to their home country, payment for the full notice period, and overtime payment above the limits of UAE labour law. It is important to note that all earned salaries must be paid up to date, and any attempts to withhold pay or violate these labour laws are illegal and subject to penalties.
- Gratuity
Even if an employee resigns, they’re still entitled to receive gratuity pay, which is calculated based on the most recent salary, excluding bonuses and allowances. However, this entitlement may vary depending on the type of contract the employee has with the employer. There are two types of contracts: limited or fixed-term contracts and unlimited contracts. Under a limited or fixed-term contract, an employee agrees to work for a set period, and if they resign before the end of that period, they may face consequences such as a labour ban, loss of labour rights, or even having to pay compensation to the employer. In contrast, under an unlimited contract, different rules apply, but both the employer and employee must comply with the notice period stipulated in the contract.
- Visa
In addition to ensuring that workers are paid their wages on time and in the correct currency, employers in the UAE are also responsible for covering the cost of their employees’ residency visas. It is illegal for an employer to require their employees to pay for or reimburse the cost of their visas at any time, even if the employment contract is terminated. Employers who violate this law may face legal consequences.
In the case of resignation or termination of contract, and after the termination of the employee’s work visa, employees have the right to a grace period. If an employee’s contract is cancelled, they are entitled to a 30-day grace period to obtain a new residence permit or leave the country.
- Working Hours
According to UAE labour law, the maximum working hours for an adult employee should not exceed 8 hours per day or 48 hours per week. However, for certain industries such as trade, hotels, cafeterias, and security services, the working hours can be extended up to 9 hours per day. During Ramadan, regular working hours are reduced by 2 hours. It’s important to note that these laws aim to protect workers’ rights and prevent exploitation in the workplace.
- Probation and Notice Periods
The probation period for an employee should not exceed six months, and it cannot be extended further. If the employee continues working for the company after the probation period, that time is counted as part of their service. During the probation period, if the employer wishes to terminate the employee’s contract, they must give 14 days’ written notice.
If an employee wishes to change jobs during the probation period and join another company in the UAE, they must give their current employer written notice of at least one month. If an employee resigns during the probation period with the intention of leaving the job and the UAE, they must provide 14 days’ prior written notice.
For limited-term contracts for employees who have finished their probation period, the notice period is usually required that the notice is given at least 30 days prior to the end of the contract. In the case of unlimited-term contracts, the notice period can vary from 30 to 90 days, depending on the terms of the contract and the employee’s length of service.
- Compensation for Unfair Termination
In the UAE, if an employee is terminated without cause, they are entitled to compensation which cannot exceed three months’ remuneration. This remuneration is calculated based on the last pay received by the employee prior to dismissal, including their basic salary and any monthly allowances. The Court may also take into account any regular or guaranteed bonus or commission payments when determining the employee’s remuneration.
CALL
LOCATE