The UAE's labour law is a comprehensive set of rules for the relationship between an employer and employee. Working hours, leave entitlements, end-of-service bonuses, health and safety regulations, and employment termination are just a few of the employment-related issues addressed by the law. Employers are obligated to follow the law, and any violation could result in penalties, fines, or legal action.
The law specifies the mandatory minimum employment standards for a variety of workers, including expatriates, nationals, and domestic workers. The requirements for a valid employment contract as well as the rights and responsibilities of both parties are among the other topics covered in this section. Written employment contracts that specify the terms and conditions of employment are required to be provided by employers.
Under the labor law, employers must provide a written employment contract outlining the terms and conditions of employment. This contract should include job title, remuneration, working hours, leave entitlement, duration of employment etc.
Recruitment process should adhere to non-discrimination principles and employers are encouraged to prioritise hiring of Nationals as a Nationalization drive in most of the countries.
For non-UAE nationals to work in the country, they require a valid work visa sponsored by their employer. Employers are responsible for obtaining work permits and sponsoring employees' residency visas. The process typically involves submitting necessary documentation to the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). Work visas are usually tied to specific employers and are valid for a fixed term, renewable upon contract renewal.
End of service gratuity is a part of the end of service benefit that is given to an employee at the end of the employment service.
It is a lump sum amount that is paid to an employee by an employer, as a token of appreciation, on the cancellation of the employee's service whether the employee resigns or gets terminated (except in case of misconduct). The gratuity amount is calculated on the basis of the employee's last drawn salary and the number of years of service. This amount in UAE is calculated on the basis of 21 days basic salary per year for the first 5 years of service and for the rest of the years will be 30 days per year.
Employees in the UAE are entitled to annual leave based on their length of service. Those with less than one year of service receive two days of leave per month, while those with over one year of service receive 30 days of paid leave per year. In addition to annual leave, employees are entitled to public holidays, including religious and national holidays, as per the UAE government's announcement.
Sick leave is a leave that is given to an employee to take rest in case the employee falls sick. This is paid leave after the completion of the probationary period. The sick leave entitlement is as follows: first 15 days in the year will be paid as full pay and the next 30 days will be half paid and if the employee is still not recovered and needs more days off, the employee will be eligible for 45 more rest days without pay. There is no encashment for this leave as the eligibility arises if you have sick leave certificate attested from the authorized medical entity (in UAE it is either DOH, DHA or MOH) mentioning the suggested rest days for employee.
Maternity leave in UAE is for 60 days, the first 45 days with full pay and the following 15 days with half pay. This leave can be taken during pregnancy or post-delivery. This leave can be extended under various conditions as mentioned in the law.
Paternity leave in UAE comes under the parental leave which is for 5 days full paid for a continuous or intermittent period, within 6 months from the date of the childbirth.
Termination of employment can occur through mutual agreement, resignation, or termination by the employer. The UAE Labour Law stipulates notice periods that both employers and employees must adhere to when terminating employment contracts. The duration of the notice period varies depending on the length of service and the contract type.
The standard working hours in the UAE are eight hours per day or 48 hours per week, with one weekly rest day. However, in certain industries, like retail and hospitality, the maximum working hours can extend to nine hours per day. Employees who work beyond their regular hours are entitled to overtime pay, which should not be less than 25% of their regular hourly wage.
Employees in the UAE are entitled to a weekly rest day, which is typically Friday. However, businesses operating in certain industries may have a different weekly rest day, as agreed upon with the Ministry of Human Resources and Emiratisation (MOHRE). If an employee is required to work on a public holiday or their designated rest day, they are entitled to either a compensatory day off or overtime pay. Overtime pay should not be less than 150% of the employee's regular hourly wage. Alternatively, employees and employers may mutually agree for the employee to receive additional pay instead of the compensatory day off.
The UAE Labour Law allows employers to impose a probationary period on newly hired employees. This period enables employers to assess the employee's suitability for the job and provides the employee with an opportunity to evaluate the work environment and job role. The maximum duration of the probationary period is six months. The employer may terminate the employee during this period by serving 14 days’ notice. Further, an employee who intends to resign and join another employer in the UAE during the probation period needs to serve one-month notice. The new employer shall compensate the current employer with recruitment or contract costs. An employee may also resign by serving 14 days’ of notice to the employer if the former intends to depart from the UAE. However, if such employee takes up new employment in the UAE within three months of termination, then the new employer needs to compensate the recruitment and contracts costs to the previous one. Upon successful completion of the probation period, the employment contract continues as a regular contract, and the notice period reverts to the standard duration.
Understanding the various articles and provisions of the UAE Labour Law is essential for employers and employees alike to ensure compliance and protect workers' rights. This glossary provides an overview of some key aspects of the law, including recruitment, visas, gratuity, leave entitlements, and termination procedures. By adhering to the provisions of the UAE Labour Law, organizations can foster a fair and transparent work environment while ensuring the welfare and well-being of their employees