After February 20, 2023, I embarked on a journey to study the Employment Law in the UAE, a field that governs the relationship between employers and employees while ensuring fairness and compliance with legal standards. The UAE Labour Law, primarily established under Federal Decree-Law No. 33 of 2021, provides a structured framework for employment practices across the private sector. My study has led me to explore various critical aspects of this law, which I outline below.
Key Aspects of UAE Employment Law
1. Employment Contracts
Employment relationships in the UAE are defined by legally binding contracts. The law categorizes these contracts into fixed-term (limited) contracts and unlimited contracts. However, with recent amendments, the UAE has primarily shifted to fixed-term contracts, with a maximum duration of three years, renewable.
2. Working Hours and Overtime
- The standard workweek in the UAE consists of 8 hours per day or 48 hours per week.
- During Ramadan, working hours are reduced by 2 hours per day for Muslim employees.
- Overtime work is compensated at an additional 25% to 50% of the employee’s hourly wage, depending on the timing and nature of the extra hours worked.
3. Wages and Salary Protection
- The Wage Protection System (WPS) is a key measure ensuring that salaries are paid electronically, reducing wage-related disputes.
- While the UAE does not enforce a universal minimum wage, certain categories of workers, such as domestic workers, have regulated wage structures.
4. Leave and Holidays
- Employees who complete one year of service are entitled to 30 days of annual paid leave.
- Public holidays, as declared by the UAE government, are fully paid.
- Sick leave is granted for up to 90 days per year, with a payment structure that includes full, partial, and unpaid leave depending on the duration of the illness.
- Maternity leave is 60 days, with the first 45 days fully paid and the remaining 15 days at half pay.
5. Termination and End-of-Service Benefits
- Notice periods for terminating an employment contract range from 30 to 90 days.
- Employees completing at least one year of service are entitled to end-of-service gratuity, calculated based on their tenure and final salary.
6. Emiratization and Work Permits
- The UAE government actively promotes Emiratization policies, requiring private companies to hire a certain percentage of UAE nationals.
- Foreign workers need a valid work permit and residence visa, which is typically sponsored by their employer.
7. Employee Rights and Workplace Protection
- UAE labour laws prohibit discrimination based on gender, race, religion, or disability.
- Harassment and unfair dismissal are strictly regulated to ensure workplace safety.
- Employees facing disputes can lodge complaints with the Ministry of Human Resources and Emiratization (MOHRE).
Conclusion
Through my studies, I have gained a deep understanding of UAE Employment Law, which plays a crucial role in maintaining a balanced and fair working environment. The continuous reforms, including the push for Emiratization and enhanced worker protections, indicate that the UAE is committed to creating a progressive employment landscape that attracts businesses and talent from around the world.
My journey in studying UAE employment law continues, and I look forward to exploring further developments in this evolving field.
