UAE is considered to be one of the best places for employees and employers to thrive in their careers. They have one of the best infrastructure, environment, and technological advancements for individuals to succeed. One such aspect is their labor laws, If you are coming to the UAE for the first time for business or for employment opportunities, you must know these laws. Do not worry if you are unaware of these laws as through this blog, we will equip you with all the necessary information regarding the labour laws in the UAE. From understanding what the UAE Labour Law covers to employment contracts, we will cover everything from A to Z!
Who Comes Under UAE Labor Law ?
The UAE labor law guarantees a fair and equal interest for both, employees and employers. The following are the domains which come under the UAE labor law:
- Private Sector Employees: The UAE labor law covers all private employees working in any private companies and organizations in the UAE.
- Full-Time and Part-Time Workers: Protection for both, full-time and part-time employees, have been given with specific provisions for each category.
- Expatriates and Nationals: It does not matter whether you are a UAE national or an expatriate, the UAE labor law won’t discriminate and ensure fair treatment and protection for all.
- Domestic Workers: The UAE labor law does not leave behind anyone, even domestic workers like housemaids, drivers, and others, get special coverage by the labor law, securing them from exploitation and enabling them with their rights and responsibilities.
- Free Zone Employees: This is where things get tricky; even though these free zones have their own regulations, they aren’t fully applicable here. However, there are a number of aspects of the labor law that still apply to employees working in these zones, ensuring consistency and protection.
Employment Contracts
As mentioned above, only private employees are covered by the UAE labor law, so it would be best if we discuss the employee contract types. Below, we have bifurcated the employee contract type in the UAE into 3 main categories, along with their specifications. Have a look:
Limited Contract
- Duration: It is temporary in nature and remains valid only for a specific period of time.
- Benefits: Many a time it includes a return flight and some other benefits, which vary from term of contract to contract.
- Renewal: It has a provision to be renewed upon mutual agreement.
Unlimited Contract
- Duration: Unlimited, as the name suggests, is an indefinite employee contract with no fixed end date.
- Benefits: This type of contract includes a lot of benefits, such as annual leave, medical insurance, and gratuity.
- Termination: In order to terminate, an unlimited contract requires notice or just cause.
Key Provisions for Wages and Salaries
After understanding the major coverage for types of employees and different contracts under UAE labor law, it is time to shed some light upon the key provisions for wages and salaries for people working in the UAE, with no exception of any kind of category.
- Minimum Wage: Even though there is no mention of any kind of minimum salary an employee would get in the UAE, but it ensures employees receive a base salary to cover basic expenses.
- Payment Frequency: In order to ensure employees can pay necessary bills and live freely, the UAE labor laws mandate regular salary payments, typically in a month.
- Overtime Pay: UAE labor law clearly mentions that employers are entitled to pay a premium for work done by employees beyond permitted weekly working hours.
End-of-Service Gratuity: If an employee has worked in a firm for a specific period of time, the UAE labor laws guarantee a financial benefit upon contract termination, based on salary and service length.
Employer Obligations and Responsibilities
If you are coming to the UAE for any kind of job role you are joining a firm being a UAE nation, you must know one thing; your employer has several key obligations and responsibilities to ensure compliance with the UAE labor laws. Grasp the below-given points so that you must be aware of your rights and free from any kind of exploitation:
- Contractual Obligations: This is the first and the basic necessity of an employer to provide its employees with a written employment contract, with proper mentioning of job terms, salary, conditions, and other necessary information.
- Wages and Payments: An employer will always be required to pay salaries on time according to the UAE labor laws. They can use the Wage Protection System (WPS) to ensure transparency.
- Non-Discrimination: Employers are obligated to treat all employees fairly, without discrimination based on nationality, gender, or religion.
- Workplace Safety: If you are an employee in the UAE, you are entitled to have a safe and secure workspace. It should have cleared all the norms and should stick to safety regulations to prevent accidents and injuries.
- Working Hours and Leave: The UAE labor laws clearly state that an employer must comply with legal limits on working hours. As an employee, you must be given regular breaks, paid annual leave, and sick leave.
Conclusion
So, we have come to the end of our UAE labor laws topic. We hope you have understood all the in-depth details we have provided you. Use them to your advantage to protect yourself from any kind of ill-treatment by your employer. Also, you must share it with all the people you know who are planning to come to the UAE for work or are working here but are unaware of these labor laws. See you next time, in some other blog with some other topic!
Frequently Asked Questions (FAQs)
1. Who is covered by UAE Labour Law?
The law covers private sector employees, full-time and part-time workers, expatriates, nationals, and domestic workers.
2. What are the main types of employment contracts?
Limited and unlimited contracts are the main types, with distinct rules on duration, benefits, and termination.
3. Is there a minimum wage in the UAE?
No official minimum wage exists, but the law ensures a base salary to cover basic expenses.
4. How often must employers pay salaries?
Employers must pay salaries monthly, ensuring timely payments according to UAE labor laws.
5. What is the Wage Protection System (WPS)?
WPS is a system ensuring transparency and timely salary payments by transferring wages to employees’ bank accounts.
6. Are employees entitled to overtime pay?
Yes, employees must receive premium pay for work beyond the standard weekly hours.
7. What is end-of-service gratuity?
A financial benefit paid upon contract termination, based on the employee’s salary and length of service.
8. What are an employer’s contractual obligations?
Employers must provide a written employment contract detailing job terms, salary, and conditions.
9. How are discrimination and equality addressed?
Employers must treat all employees fairly, without discrimination based on nationality, gender, or religion.
10. What are the rules for working hours and leave?
Employers must comply with legal limits on working hours and provide regular breaks, annual leave, and sick leave.
Priya, a Digital Marketer and Content Writer with 4 years of experience, creates valuable guides for UAE expatriates at UAEFresher. A passionate traveler, she has visited the UAE numerous times, bringing her love for exploration into her informative content for newcomers and residents.