A labour system that exists in some nations, including the United Arab Emirates, in which employees work in designated areas such as free zones or economic zones is known as zone labour. By providing various incentives such as tax breaks and simplified business regulations, these zones are intended to encourage economic growth and attract foreign investment. The work regulations and guidelines in these zones are frequently not the same as those in that frame of mind of the nation, and businesses in these zones are frequently excluded from specific work regulations.
Companies that are registered within the zone typically employ workers in these zones, and their employment contracts are governed by the zone's laws. In terms of the provisions they contain, such as working hours, leave entitlements, and end-of-service benefits, these contracts may differ from those signed by employees working outside the zone. To ensure compliance and avoid any potential legal issues, it is essential for both employees and employers to comprehend the labour laws and regulations that apply in these zones.