Labor Law of UAE,points you need to know - FHS Law Firm

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Labor Law of UAE,points you need to know

It is essential to understand the country’s labor regulations. It helps in clarifying questions about working hours, yearly leave, and various other employment-related issues. The rules further include specifics about maternity leave, sick leave, employee records, safety requirements, termination of employment, and gratuity payments at the end of service. Let’s examine some of the key components of the UAE Labor Law.

o   Days and hours of work

Employers must give their workers at least one rest day on any day of the week; Fridays are no longer the only days that must be designated as mandatory rest days. However, there may be possible variances from these requirements under the Executive Rules and Regulations, which limit the working hours to no more than 56 a week. The maximum working hours remain at eight hours per day/48 hours per week (on a six-day working week)

o   Yearly Leaves

Employees must now use their annual leave in the year in which it is accrued; they are no longer permitted to carry over unused days into the following holiday season, unless the employer has given their permission (or, in very rare cases, when they have prevented the employee from using their leave in the year in question). Unused days are automatically canceled without payment. Unused leave days are only paid out under extraordinary circumstances or in relation to yearly leave days gained in the year of end of work, and the basis of payment is just the basic salary.

o   Sick Leaves

Employees are entitled to a maximum of 90 days of sick leave annually, according to the legal requirements. For the first 15 days, they will be paid in full. The following 30 days, they will be paid in half, and the final 45 days will be unpaid.                              The employee has two days at most to inform the employer of his illness, per the UAE Labor Law. The employee may be subjected to a medical examination by the employer in order to confirm the employee’s condition and the validity of their leave.

Who are unable to take a paid sick leave

  Throughout the trial period

  If the disease is caused by the employee’s behavior, such as drinking alcohol or using drugs

  If the employee works for another employer during the sick leave

o   Maternity & Parental Leaves

The maternity leave under the New Law are paid as follows: the first 45 days are at full salary, while the final 15 days are at half pay. Additionally, the female employee is entitled to an extra 30 days of paid leave following the conclusion of maternity leave if she gives birth to a sick kid or a child with special needs whose health condition requires ongoing support. Parental Leave is still provided under the New Law, allowing both male and female employees to take five days off within six months of the birth of a child.

o   Public Holidays

  Hijri New Year – 1 day

  Gregorian New Year – 1 day

  Eid-ul-Fitr – 2 days

  Arfa day and Eid-ul-Azha – 3 days

  Prophet Mohammed’s birthday – 1 day

  Isra and Miraj  – 1 day

  Martyr’s Day – 1 day

  National Day – 1 day

o   Reduction in  working hours

In the summer, it is against the law for construction and industrial workers to work during the hottest parts of the day. Any company that is found to have employees working past the permitted break hour may be fined. Employees are also allowed to take every day off during the holy month of Ramadan for 2 hours less of work.

o   Medical Insurance

  Health insurance costs should be covered by the company; they cannot be taken out of an employee’s paycheck.

  Pass the health insurance card to the employee.

  Take into account the cost of the employee’s emergency care and medical attention.

o   Contracts for Fixed-Term Employment

All employees must have fixed-term employment contracts with a maximum duration of three years that may be renewed for an additional similar amount of time. However, if the employee decides they do not wish to continue, they must give the employer a letter of non-renewal. This will let the employer know that a renewal is not essential. A limited term employment contract must, at the very least, have the following information, according UAE Labor Law:

  Date of expiration

  Initial day

  Work category

  Location of the job

  Amount of the reward

  Time frame

o   Notice of the trial period

All new hires must complete a trial period in the UAE. The trial period’s length may range from three to six months, depending on the company’s specific regulations.

In the United Arab Emirates, a worker’s performance is assessed during a trial period before being appointed to a permanent position. While on probation, the employee is subject to a strict assessment and performance evaluation. If the candidate is determined to be competent for the position after screening, the company will retain them as a permanent employer.

Termination from a position

If the employer wishes to terminate the Agreement prior to the expiration of the Limited Term, the employee has the right to “early termination pay” of at least three months’ pay in accordance with UAE Labor Law, which includes income and a Limited Agreement Gratuity (or the balance of the Limited Term if there are fewer than three months left in the Limited Term). With the assistance of a skilled employer group, this pay is straightforward to get. Employees, on the other hand, have the option of terminating the contract. The employee is required by law to provide the employer with “early termination compensation” in the amount of half of three months’ worth of wages, unless the employment contract provides.

o   Rewards at the end of a service

  The employee will not be eligible for any gratuity pay if they voluntarily leave their position before one year has passed.

  If the employee completes one year of continuous service, he is entitled to a gratuity for the portion of the year that was served.

  The final gratuity is determined based on the employee’s basic salary, which was the last pay to which they were entitled. Therefore, it won’t include benefits like housing, transportation, utilities, furnishings, etc.

  The employer may take money out of the employee’s gratuity if the worker owes the company any money.

o   Benefits of UAE Labor law

  Employees’ pension plans.

  Health insurance for employees.

  Paid time off.

  Legal leaves.

  Leaves for maternity and paternity.

  Compensation, such as a travel refund.


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