Wondering how Emiratisation could affect your business? Curious about your rights as an employee? Well, Employment laws in the UAE are more complex than you might think. Governed primarily by the Federal Labor Law No. 33 of 2021, with exceptions for DIFC and ADGM, this requires expertise. Whether you’re an employer or an employee, understanding the critical nuances is crucial. Let’s break down what you need to know about UAE employment laws to stay compliant & avoid costly mistakes.
Emiratisation and Its Impact on Employment
The UAE’s Emiratisation initiative aims to increase the number of UAE nationals employed in the private sector. This is a significant part of the government’s agenda, enforced through various ministerial decrees. A recent decision mandates that companies with 50 or more employees increase their Emiratisation rate by 2% annually until 2026, targeting a 10% Emiratisation. Non-compliance can lead to fines, penalties, and even restrictions on the employer’s account with the Ministry of Human Resources and Emiratisation (MOHRE).
Employment Contracts and Termination Procedures
When hiring, employers must submit a standard form offer letter to obtain governmental approvals, followed by a detailed employment contract. This contract must comply with MOHRE guidelines or relevant free zone authorities, including specific terms on employment duration, probationary periods, and grounds for dismissal. For example, under Article 44, employers can dismiss employees without notice for severe infractions like falsifying documents or being under the influence of drugs at work.
Employee Rights: Article 45
Employees also have rights under Article 45 to terminate contracts if the employer breaches their obligations. Understanding these nuances and ensuring contracts are compliant requires expertise, which corporate law firms in Dubai can provide.
Post-Probation Employment Contracts
Probationary periods can last up to six months, during which either party can terminate the contract with 14 days’ notice. Post-probation, all employment contracts are fixed term, with a minimum notice period of 30 days required for termination. End-of-service gratuities are calculated based on the length of service, with employees entitled to 21 days’ wage for each of the first five years and 30 days’ wage for each subsequent year.
Key Employment Benefits and Leave Entitlements
The UAE Labor Law provides comprehensive guidelines on working hours, overtime, and various types of leave, including annual, sick, maternity, and parental leave. For instance, employees are entitled to 30 days of paid annual leave after completing one year of service, with special provisions for holidays and sick leave.
Additionally, end-of-service gratuity is a critical benefit for employees, calculated based on years of service.
Working Hours:
The standard working hours are eight hours per day or 48 hours per week. Overtime is compensated at 125% of the basic salary during regular hours and 150% if worked between 10:00 PM and 4:00 AM.
Leave Entitlements:
Employees are entitled to various types of leave, including 30 calendar days of annual leave, 90 days of sick leave (with varying pay), and specific allowances for maternity, parental, and special leave.
Dispute Resolution & Legal Support
Employment disputes in the UAE are handled by competent UAE courts, excluding DIFC and ADGM, which have their own legal systems. Having reliable legal support from experienced lawyers in Dubai is essential for effectively navigating dispute resolution processes. Whether it’s resolving contract disagreements or addressing termination issues, Dubai legal firms provide expert representation and advice.
Pre-Hire Background and Reference Checks
Employers must ensure that non-UAE nationals obtain a work permit and residence visa, typically facilitated through the employer. While specific pre-hire background checks are not mandated by the Labor Law, certain educational qualifications must be verified and attested for particular job roles. Additionally, a mandatory pre-hire medical check, including a blood test and X-ray, is required for expatriates to obtain a residency visa.
Employment laws in the UAE require a clear understanding of the regulations & proactive measures to ensure compliance. Whether you are an employer or an employee, staying informed about your rights and obligations under the Federal Labor Law is essential. For tailored advice and support, consider reaching out to a contract lawyer, especially if you need assistance with employment contracts, or lawyers in Dubai for divorce if your situation involves personal legal matters.
Conclusion
Understanding and adhering to UAE Employment Laws is vital for both employers and employees to ensure compliance and avoid costly repercussions. Emiratisation mandates, contract regulations, and various employee rights require thorough knowledge and proactive measures. If you need expert guidance and navigating this complexity effectively, consulting with legal advisors in Dubai, or lawyers in Dubai is highly recommended. Staying informed about your rights and obligations under the Federal Labor Law is essential for a harmonious and legally sound employment environment in the UAE.