There was a law that came into effect in 1980. It was originally a law called Federal Law No. 8 of 1980. This has remained the main UAE labor law for many years.

However, a new law, Federal Decree Law No. 33 of 2021, was introduced in February 2022. This new law replaced the previous one and brought in many changes to address the evolving job market.

So, let’s dive deeper and understand what are some of its important considerations.

Working Days and Hours:

According to UAE labor law, the working hours will vary depending on whether you work in the private or government sectors. 

If you are working in the private sector, your working hours will be 48 hours a week, considering 8 hours each day. However, in Ramadan the working hours will be reduced by 2 hours. Every employee is also entitled to a break if they continue to work for a maximum of 5 hours. It’s important to note that the break will be less than 1 hour and this period will also not be included in the working hours of the day. 

If someone is working in a Government sector, the working hours will also be 8 hours a day, usually from 7:00 AM to 3:00 PM (Monday to Thursday). Friday timings will vary such as 7:00 AM to 12:00 PM. It means you will be working 4 days a week and Friday will be half a day. Still, there are some exceptions to this rule, such as Sharjah, where an employee works 4 days a week only (Friday, Saturday, and Sunday are off days).

Leave and Holidays:

To promote work-life balance, UAE labor law also enforces some leaves and holidays for employees. 

For instance, if you are working in the private sector, you are entitled to the following leaves;

1. Annual Leave: You are entitled to receive a leave of 30 days that will be fully paid, but only if you have completed one year of service with that organization. Meanwhile, if you haven’t completed the 1 but 6 months year, then you are eligible for the maximum of 2 leaves a day. 
2. Sick Leave: You can get a sick leave for a maximum of 90 days from the employer in case of emergency. While the first 15 days will be fully paid, and for the next 30 days of leave, you will receive half of the pay. However, if the leave extends from this duration, then you will not receive any of the payment. In all cases, it’s important to inform the employer and present the medical report from the respective authority. 
3. Study Leave: If you have been studying at a UAE-certified university and working with an employer for the last 2 years, then congrats! You are also entitled to 10 days of study leave to prepare for exams. 
4. Umrah Leave or Leave to complete Hajj: A special leave to complete Umran or Hajj is also granted to the employees. However, you must know that it can be an unpaid leave for a maximum of 30 days and can be given just once in the employment period. It all depends on the employer, too. 
5. Maternity leave: A female can get maternity leave for up to 60 days. While in the first 45 days are fully paid, and the next 15 days are entitled to half-paid leave.
6. Parental leave: UAE became the first ever Arab country who give parental leave. It can start from the day the child is born till the next 6 months. 

Termination Policy:

Both employers and employees must provide written notice to the other party if they wish to terminate the contract. This notice period typically ranges from 30 days to 90 days, depending on the employment contract and the employee’s wage structure.

However, the termination can happen for various valid reasons, but they must be documented. With that, the termination can even occur without any prior notice, but there must be a valid reason, such as bankruptcy. 

Work Permit Rules:

The UAE labor law is clear on the need for work permits and visas for foreign workers. 

Following are some of the key points of it. 

1. If you legally want to work in UAE then the employer and employee both must have a work permit and residency visa. Without them, you can’t work in UAE – it’s mandatory.
2. Once the job offer is accepted, then, the employer is responsible for contacting and applying to the Ministry of Human Resources and Emiratisation (MOHRE) and getting a work permit from the employee. 
3. Note that the work permit acts as an initial entry permit that allows the employee to enter the UAE for a limited period (usually 60 days). During this time, the employer finalizes the residence visa, which also includes an Emirates ID card. It’s important to comply with this rule because a residence visa is what grants the legal right to live and work in the UAE for a specific period (typically 1 to 3 years).

Probation Notice:

The probation period remains the same at 6 months for both parties. However, the new UAE labor law has imposed some regulations on both parties. 

For instance, an employer can terminate an employee’s contract during the probation period. In such cases, the employer doesn’t need to provide any reason, but they must provide written notice at least 14 days before the last working day.

However, if an employee is joining another company within the UAE, then he must give written notice at least 30 days before to the current employer.

Employment Disputes

In the newly amended UAE labor law, it’s clearly mentioned that if there is a dispute between both parties for a minimum of AED 50000, then MOHRE will act as a judge. It will be his responsibility to settle the matter with the decision. 

Remember that the MOHRE judge has the same powers as any court judge. However, if any of the parties is not satisfied with the decision, then they can also file an appeal against the order, but it should be done within 15 days only.

Entitlement on Death:

Under UAE labor law, an employee is also entitled to 5 days of calender leave in case of a spouse’s death and 3 days of leave on the death of siblings, child, parent, grandparents, or child. 

It is also described as a compassionate leave in the law. 

End of Service Benefits:

The UAE Government has just introduced a new end-of-service gratuity scheme under which any payment or contractual entitlement must be made within 14 days. 

Under this scheme, the employer can also offer an option to employees to contribute to a monthly investment fund instead of receiving a lump sum gratuity payment upon termination. The ultimate aim of this scheme was to provide safety to the employees against inflation and to help them bear the consequences of resignation. 

Final Verdict:

The considerations mentioned above are the summary of a new UAE labor law that states the basic rules and regulations to protect the rights of both parties. If you need any sort of help or further clarification regarding any of the rules, we are always here to help. 

Reach out to us using our Contact Us page or comment below. 

         

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Corporate Tax Services and Your Business

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Conclusion

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