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The UAE labor law - legal framework and aspects

The UAE labor law - legal framework and aspects

If you are going to work abroad, it is important to know features of the UAE local labor law - it will help you to avoid unpleasant consequences and problems that may arise under immigration law. This is especially significant for the United Arab Emirates since local labor law by virtue of long history and traditions has its own specifics. Let’s try to figure them out.

 

Regulatory framework of labor law in the UAE

The regulatory framework of labor law of the United Arab Emirates was founded in early 80s, and has been continuously improved and updated since then in accordance with the changing requirements of the labor market. Specialized economic zones in Dubai and other Emirates have special status, the number of which is increasing annually. There are separate state territories, suggesting significant benefits for conducting international business.

Special UAE economic free trade zones have adopted special tax, labor and customs regulations. For instance, in certain economic zones (Financial Centre Dubai, Jebel Ali) labor law has some alterations from general federal norms.

In general, it can be noted, that labor law of the Uniuted Arab Emirates is based on the international experience and meets basic requirements of international labor relationships. At the same time, the local labor laws has distinctive aspects that are specific to Muslim countries.

Foreign labor work force in the UAE

Recruitment of foreign labor work force is subject to special terms for arranging working /employment visa and applicable permission for work. During such time, foreign employee shall sign employment contract with employer and obtain residence visa, work permit and labor card.

Persons with the UAE tourist visa or transit visa may not work in the country. Violation of such requirements may result respective liability under the applicable laws of the United Arab Emirates both for employee and employer.

IMPORTANT: when intending to work in the UAE, you have to remember: law here is of high importance and government authorities strictly control the compliance with applicable laws.

Reasons for recruiting foreign employee

The reason for recruiting a foreign national can be an appropriate employment contract between employer and foreign national. The form of such document was adopted by the Ministry of Labor of the UAE. Employment contract is executed in two languages: Arabic and English respectively.

Signing of employment contract and obtaining work visa is subject to compulsory medical check of foreign employee. Upon positive completion of the medical check, foreign employee is finally issued residence permit, work permit and labor card.

Residence visa and applicable terms

Validity period of a residence visa is two or three years; however, termination thereof may be done prior to this date. Residence visa may be canceled in the event of termination of an employment contract, deportation of foreign employees, and non-entry into the country for more than six consecutive months, etc.

Residence visa in the UAE grants foreign employees the following advantages:

  • The right of legal residence, entry and exit from the country (taking into account conditions of employment contract);
  • The right to rent property;
  • The right to own and register personal property in the UAE (in accordance with the laws of the UAE, such as vehicle registration in the name of employees, etc.).

As a rule, travel expenses for issue of labor cards, work visas and residence permits, are covered by the UAE employer.

Consequences of early termination of employment contract

If termination of the employment contract is done at the request of employer, then all relevant information will be entered into the central database of the Ministry of Labour. Foreign national, as a party to employment contract, may be subject to six months employment restriction. Therefore, when entering into employment contract with a company, one should not expect that in future it would be possible to quit and change jobs.

Probation period

If you come to the United Arab Emirates under work visa, probation period for you shall not exceed six months. Foreign nationals should remember that labor laws of the Dubai and other Emirates clearly indicate that during probation period negligent employee can be dismissed without notice. Not fulfillment of tasks on the position and other factors may serve as grounds for dismissal.

Working hours and weekends in the UAE

The UAE Labor Law defines for employees maximum eight hour working day, and within a week it is 48 hours respectively. However, in certain market segments, such as hotels, restaurants and shopping centers, the working day may be extended by one hour. Employees have one day off a week, in most cases it is Friday. For civil servants and officers of some private companies there are two days off (Saturday and Friday).

Overtime shall be paid separately; in average such payment includes payment for normal rates of hourly pay plus extra 125 per cent. If a person works between 9 pm and 4 am, he may be entitled to increase in hourly rate (150%) or extra day off.

Paid leave

Each employee is entitled to have paid leave of up to 30 calendar days. Annual leave is granted upon a year of employment. If the employee has worked for more than six months, calculation of paid leave period is made according to the following formula - each month of work is supplemented by two days holiday.

Official holidays in the UAE

Irrespective of the organizational form and designation of companies and businesses, there are calendar dates regarded as public holidays and days off, in particular:

  • Islamic New Year - 1 day;
  • Independence Day of the United Arab Emirates - 1 day;
  • New Year - 1 day;
  • Waqf and Eid Al Adha - 3 days;
  • Eid Al Fitr - 2 days;
  • Birthday of the Prophet Mohammed - 1 day.

During official holiday employees retain full wages. And at the end of six months (probation period) employee may arrange a paid sick leave. Sick leave payment is made as follows: first 15 days salary is reserved in full and subsequent 30 days are subject to 50% of salary, furthered sick leave is not compensated. Disability is confirmed by the conclusion of medical committee and relevant official document.

Medical insurance and conditions for termination of employment contract in Dubai and other Emirates

Nationals of the United Arab Emirates are issued compulsory health insurance, but health insurance for foreign employees is not expressly set forth by federal law. However, some Emirates (Abu Dhabi) require employers to issue insurance policy for foreign employees and their families residing in the UAE. Whereas other Emirates are current undergoing the reform, which requires employers to provide compulsory health insurance to employees.

Possibilities to bringing to an end employment relations and termination of contract are largely dependent on the type of contract concluded and its terms. If employment contract is has been concluded for a fixed term, termination thereof prior to its expiry may be performed under the terms of the contract; indefinite term employment agreement may be terminated at the initiative of one of the parties to the contract. The laws set forth that a party shall send notice of termination of the contract to the other party 30 calendar days prior to termination thereof.

For those who have worked in a company for two years without interruption, and in cases where the contract is terminated upon mutual consent of the parties on the grounds of relevant order of the Ministry of Labour, a six-month restriction with respect to employment in another company shall not apply.

In cases when contract is terminated due to gross violations of labor laws or terms and conditions of employment contract, restrictions with respect to employment in the UAE may be enforceable within one year.

Resolving labor disputes

Labor law has restrictions with respect to various strikes and protests. Furthermore, it is prohibited to establish trade union organizations. All disputes arising under or form labor relations shall be resolved by the Immigration Service and the Ministry of Labor of the UAE. There is a possibility to appeal the resolution of court in other instances.

Conclusion

The UAE labor market is ready to offer foreign nationals a wide range of vacancies. It is worth noting that in the United Arab Emirates there is always demand for employees of various specializations. This trend is connected with implementation of large-scale projects, which are annually executed in the UAE. A lot of vacancies are available in hospitality, tourism, construction, management and commerce, entertainment and recreation sectors. Knowledge of languages, experience and professionalism, communication, education and ability to work in different cultures is especially valued among foreign employees.