UAE

LABOR
LAWS
• Introduction
• Type of employment contracts
• Probation Period
• Minimum Wage by Law
• Leaves
• Working Hours Key Topics
• Overtime / Calculation
• Disciplinary / Performance Issues
• New Law for permits and separation
• End of Service
• Gratuity Calculation
• Retirement and Pensions
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Why labor laws?
 Introduction
• Labor matters in the UAE are governed by Federal Law
No. 8 of 1980 Regulating Labor Relations as amended by
Federal Laws No. 24 of 1981, No.15 of 1985 and No.12 of
1986 (the “Law”).

• There are special Labor related regulations applicable

in some of the free zones in the UAE, such as the JAFZ.

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 Introduction
• To whom does the law apply?

• What aspects of the employer

employee
relationship does the law deal with?

5
 To whom does the law apply in
the United Arab Emirates
According to Article 3 of the Law, the Law applies to all staff
and employees working in the UAE, whether UAE nationals
or expatriates.

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Categories of individuals who are exempted from
the Law as listed below:
• Staff and workers employed by the federal government, government
departments of the member emirates, the municipalities, public
bodies, federal and local public institutions and those staff and
workers employed in federal and local governmental projects.
• Members of the armed forces, police and security units.
• Domestic servants ( there law and rules are different)

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 Work Permits - Sectors
Permits for working with public sector (federal ministries, government entities, rulers and their
representatives’ courts and the entities which are not governed by the Labor Law)

Permits for working with the private sector

Permits for working as license holders (investors and partners)

Permits for working for individuals, such as servants,

private drivers, farmers, shepherds, etc.

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 Employment Contract
Employment permits are valid for two/ three years subject to renewals for similar periods.

Arabic and English are two main languages in each job

offer, Labor contract and annexes presented to the worker

There are other 9 languages soon will be available besides

English and Arabic.

The other approved nine languages are Bengali, Chinese, Dari, Hindi, Malayalam, Nepalese, Sri
Lankan, Tamil and Urdu, languages.
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 Employment Contract
The information required by law to be specified in an employment contract is the
following:
– Wages/remuneration payable.
– Date of the employment contract.
– Date of commencement of the employment contract.
– Nature of the contract (limited or unlimited).
– Nature of the work.
– Duration of the contract (for fixed term contracts).
– The location of employment.
– Others ( Notice period, training cost, competitions aspect etc.)

The Labor office at the Ministry maintains standard employment contracts in Arabic and
English, where the employer and the employee need only fill in the blanks. It is however not
compulsory for the parties to use or file these contracts at the Ministry and may instead
draft and lodge their own employment contracts at the Ministry providing they do not
contain provisions which are contrary to the Law and are in the Arabic language. 10
 Limited/ Fixed Term Contract
• It has a commencement and completion date.
• Its term cannot be in excess of a period of 4 years. It can, however, be renewed
through mutual consent, express or implied for a similar or lesser period.
• The employment will terminate at the end of the contract period, unless
renewed by mutual consent.
• If the employer or employee terminates the contract for reasons other than
those specified in Article 120 of the Law he will be liable to pay compensation
to the employee. This compensation is determined on the basis of the wages
due for a period of three months or for the remaining period of the contract,
whichever is less, unless an article in the contract states otherwise.

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 New Changes in Contracts – Jan 2016
• Standard Work Contract

– Previously, when an employee was hired, the terms and conditions

of the initial offer may vary from the employment contract
required to be signed at the commencement of the job.
– Unfortunately, when an employee had relocated and was about to
start a new job, it may have be too late to make any changes, and
in other cases, such changes were overlooked.

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 New Changes in Contracts – Jan 2016
• 2016:
– The new law makes it mandatory to provide a clear and detailed
initial offer letter to the potential employee that the employee can
then carefully review, including their duties and responsibilities.
– This initial offer letter and the contract must match in their terms
and conditions. The employee will then have a clear idea of what
their role is going to be.
– The employment offer must be executed by the employee and
lodged at the Ministry of Labor and an entry permit shall not be
issued until this is done.
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 New Changes in Contracts – Jan 2016
– Any changes, alterations, additions or deletions to the employment
contract must be approved first by the Ministry of Labor. This
update provides assurance to employees who can feel at ease that
the terms and conditions will not change at the last instance or
unilaterally without their consent.

– These new changes shall also apply to individuals who live in the
UAE and are starting a new job. This also ensures that new
employees do not relocate to the UAE on false promises.

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 Probation Period
• The probation period of the employee shall not exceed six
months and shall not be extended for another term.
• The probation period is optional

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 Article-9

• Probation period-14 days notice for the employer

• Probation period- 30 days notice for the employee
Changes • Cost of employment change will be born by new
employer (recruitment cost/contract cost)

in 2022 • One year ban if employee leaves without

information
• Paid holiday can be taken during probation(article-
29)
 Article-9
Cost of employment
Probation period-14 Probation period- 30 change will be born by
days notice for the days notice for the new employer
employer employee (recruitment
cost/contract cost)

One year ban if Paid holiday can be

employee leaves taken during
without information probation(article-29)
 Min Wage by Law?
• No minimum wage has been prescribed by law to date.
• However, an employee with a monthly salary of less than
Dhs.4,000 (plus accommodation allowance), will not be
able to sponsor his spouse or children for the purpose of
residing in the country.
• These are immigration regulations and do not form part of
the Law.
• In addition, in order to sponsor a house-maid or domestic
help in the UAE there is a minimum basic wage
requirement of Dhs.6,000 per month. 18
 Leaves
Types of Leave

• Annual
• Sick
• Maternity
• Unpaid
• Haj Leave
• Others
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 Annual Leave
For every year of service, an employee is entitled to annual leave
of not less than the following:

– A minimum of thirty days annually, if his service exceeds one year.

– An employee is paid his basic wage plus the housing allowance, if
applicable, and any other allowances which he receives in the normal
working month exclusive of any bonuses received.
– The employee is entitled to payment of his wages for the annual
leave period not taken if his employment is terminated, or he
resigns after serving the period of notice determined by law
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 Sick Leave
• Full wage for the first 15 days.

• Half wage for the next 30 days.

• Any following period will be without wage.

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 Maternity Leave
• A working woman is entitled to 45 days maternity leave with full pay
which includes the period before and after the delivery, provided she
has served continuously for not less than one year. The maternity leave
is granted with half pay if the woman has not completed one year of
service.

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 Article-30

• Increased from 45 days to 60 days

• Followed by 15 days of half paid

Maternity • Another 45 days in case of complications related

to birth

Leave • Nursing period reduced to 6 months

• New mother of infants with special needs get
another 30 days paid leave with additional 30
days without pay
 Unpaid Leave
• Maximum 30 days with employers approval and
proper reasoning

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 Hajj Leave
• The employer must give the employee once during
his employment a special leave without pay to go for
Haj (pilgrimage) which should not exceed 30 days.

• This period is not part of the employee’s annual leave

or
any other leave which he is entitled to.

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 Working Hours
• Regular – 8 ( 9 hours for few as per job defined like hotels/
watchman and etc)

• Ramadan – 6 Hours

• An entity may apply a schedule of one, two, or three shifts per day in
accordance with its work requirements and circumstances, provided
that the total working hours do not exceed 48 hours per week.

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 Overtime

• Weekdays(1.25 times per hour

basic )
Overtime • Weekend (1.50 times per hour
basic )

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 Safety & protection
• Safety gears
• Display instructions
Article •
•
First aid box per 100 employees
Physicians every 6 months
• Hazardous (written instructions)
91-101 •
•
Termination for alcohol @ work
For distant locations transportation, residence,
food, water, recreation, first aid
 Disciplinary / Performance
Issues
1st written
3rd and final
warning with
Verbal 2nd written written
defined
Discussions warning warning with
timelines to
notice
revisit

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 Immediate Termination – By Employer
If the employee adopts a false identity or nationality or if he submits

forged documents or certificates.

If the employee is appointed under a probationary period and dismissal occurred during or at the end
of said period.

If he commits an error causing substantial material loss to the employer provided that the latter
advises the Labor department of the incident within 48 hours from having knowledge of the same.

If the employee violates instructions concerning safety of the place of business

provided that such instructions are displayed in writing at conspicuous places and
in case of an illiterate employee the latter be informed verbally of the same.
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 Immediate Termination – By Employer
If he divulges any secrets of the establishment where he is employed.

If he is awarded final judgement by the competent court in respect of an offence

prejudicing honour, honesty or public morals.

If during working hours he is found drunk or under the influence of drug.

If in the course of his work he commits an assault on the employer, the manager or
any of his colleagues.

If he absents himself without lawful excuse for more that twenty intermittent days
or for more than seven successive day during one year.
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 Immediate Termination – By Employee
• An employee may terminate his contract of employment
without notice in either of the following cases (as per
Article 121 of the Law):

– 1. If the employer has not fulfilled his obligation towards him as

provided in the contract or in the Law, for instance where an
employer does not pay his employee his wages on time.

– 2. If he is assaulted by the employer or his legal representative.

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 End of Service
• EOS
• Gratuity
• Leave Salary
• Annual Air fare – One way

• Gratuity Calculations
• Limited
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 Gratuity Calculations - limited Contract
Length of Service Resignation Termination
Less than 1 year Nil Nil
Full one year and less than 3 21 days basic salary per year 21 days basic salary per year
years

Full 3 years and less than 5 21 days basic salary per year 21 days basic salary per year
years

Full 5 years and above 21 days basic salary for first 21 days basic salary for first
five years five years
30 days basic salary for each 30 days basic salary for each
subsequent year subsequent year

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 Retirement and Pensions
• UAE nationals employed in both public and private sectors
are eligible for retirement pensions after fulfilling the
eligibility conditions set by Abu Dhabi Retirement
Pensions and Benefits Fund. You can find more details
about the eligibility for retirement pension on the
ADRPBF website.
• Employers are responsible for registering UAE National
employees with ADRPBF within 10 days of the date that
the employee commenced work.
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 Contributions
• The total contribution amount is 26 percent and contributions are
deducted from the salary according to the specified rates of each party
as follows:

• From the employee - 5 percent

• From the employer - 15 percent
• From Government - 6 percent

• The employer is responsible for collecting employee contributions to

be provided to the Fund. The Government pays its contribution
directly to the Fund. 36
 Collective labor disputes
• Article 154-165

30 days
7 days

15 days
Employer Conciliation Supreme
committee arbitration
committee
 Labor Inspection
• Article 166-180

• Labor Inspectors role:

• -Supervise compliance
• -Provide technical information to employer or employee
• -Notify competent authority
• Authority:
• -Can enter premises during working hrs (day/night)
• -Carry out investigation
• -Interrogate workers
• -Ask for copies of record/information
• -Take samples for health & safety
• -Notices & announcements are displayed
• *Draws monthly & annual inspection reports
Changes In UAE Labor Law
w.e.f. FEB.2022
 Article-4
Equality: avoid mentioning
nationalities

Non-discrimination: make anti-

discriminatory policies, checklists
 Article-6

No work without work permit

Employer can not charge the worker recruitment

or employment cost either directly or indirectly.
 Article-7
• full time,
New work • part time,
• temporary work,
contract types- • flexible work.

• Freelancing
New work • Condensed work week (40 hrs/3 days)
• Shared job model-Job Sharing
models- • Self-employment
 Article-8
Unlimited contract removed

Limited contract can not exceed 3 years

Frrom 1-02-2023 change all fixed term contracts

Can be renewed to fixed term only

 Article-9

Probation period-14 days notice for the employer

Probation period- 30 days notice for the employee

Cost of employment change will be born by new employer (recruitment cost/contract cost)

One year ban if employee leaves without information

Paid holiday can be taken during probation(article-29)

 Article-10

• Applied within same sector after

Non- expiry of contract
• It will not apply if the employee
compete doesn’t have access to confidential
data
clause • Max. two years of restriction
 Article-13

Housing •Create salary

allowance structure
compulsory accommodating HRA
 Article-17
One day
compulsory as • Friday is not rest day unless defined
rest day

• Can not exceed 48 hrs a week

Working hours • One hour rest is provided after 5
hours
 Article-19&22
• Overtime to paid on basic
• Salary can be paid in other (non-aed)
currencies as well
 Article-25

• Not more than 10%

Salary • We should have deduction
policy
deduction • No minimum wage but is in
plans
 Article-30

• Increased from 45 days to 60 days

• Followed by 15 days of half paid

Maternity • Another 45 days in case of complications related

to birth

Leave • Nursing period reduced to 6 months

• New mother of infants with special needs get
another 30 days paid leave with additional 30
days without pay
 Article-32
Compassionate • 5 days in case of spouse
• 3 days in case of parent, child, sibling,
leave- grandchild/grandparent

• More than 2 years of service may get 10 days of study

Study leave- leaves

Parental leave • 5 working days

 Article-40

•Suspended employees
Changes in shall get half salaries
suspension •Max. suspension-30
days
 Article-43 & 44
Contractual • Contractual notice can
work not exceed 3 months

Article 120
• Employees are paid
replaced by
Article 44 gratuity
 Article-51
Gratuity
Under one year-nil
1-5 years- 21 days
Post 5 years- 30 days
Gratuity calculation on the basic
Gratuity to be calculated on the working days (260-5days)
 Article-53
Full and final settlement within 14
days post expiry of contract
 FAQs
• http://www.mohre.gov.ae/en/faq.aspx
Thank you!