Labour Law in the UAE – Rights and Responsibilities for Workers and Employers
Labour law connects all frameworks within a country regarding work relations and multidisciplinary systems. Balance is key in any socioeconomic setup a country uses. Whilst the employer does have primary control, they also have obligations which must be met. In the case of the United Arab Emirates (UAE) there policies guarantee absolute flexibility in the workplace. Through constant updates to sustain and keep up with the fast paced economy coupled with region law, the UAE is able to achieve this.
1. Overview of Labour Law in the UAE
It focuses on the specificities of the private community only. This includes a variety of factors such as: work hours, wages, employment contracts, bonuses, wage disputes, arbitrational orders, employment cancellation agreements and much more. Employers and employee’s relationships in the private sector is also controlled by what is commonly known as the UAE Labour Law or better yet put as Federal Law No. 8 of 1980.
2. Major Aspects of the UAE’s Labour Law
a. Job Agreements in Labour Law
As per the stipulations of the employment law, there are two major classifications of an employment contract. An employment agreement between an employer and an employee must be in writing. In this case, the employment contract can be either for an unlimited term or for a limited period. The contract should include all the necessary details such as title, position, salary, working hours, and other relevant terms.
A formal contract must be drafted and signed by both parties in order to be legally valid. As required by the law, any alterations made to the initial document must be agreed upon by the parties involved. The law also stipulates that all labor contracts should be free of terms that contravene an employee’s rights as per relevant legislation.
b. Working Hours and Rest Periods in Labour Law
As stated in the UAE labour law, there are particular set boundaries for working hours. Most employees in the UAE are required to work for a capped 8 hours per day/48 hours a week. For Muslim employees, during the holy month of Ramadan, working hours are further reduced to 6 hours a day.
An employee is also entitled to one rest day in a week, usually observed on a Friday. Rest Periods are also compulsory, even for the physically demanding jobs such as construction. Employers are required to spare the appropriate amount of time for rest for their employees, and not doing this can result in punitive action.
c. Wage and Overtime Regulations
Payment and wages policies must be followed according to the set laws in UAE labour law regulation. Payment must be done on time with no restrictions, other than not being lower than the set minimum wage by the UAE government. Payment, along with wages, must be either cash or a direct bank transfer. It is the employee’s right to receive the full salary paid during the employment period.
Employees who work beyond the stipulated hours for the day must be compensated accordingly. Overtime pay is usually set at 1.25 times the hourly rate for the initial two hours of overtime. This is followed by 1.5 times the standard pay rate for any subsequent hours worked over two hours. In addition, employers need to make sure that overtime payments are made on time.
d. Annual Leave and Public Holidays
After an employee has served a continuous period of one year, they are entitled to an annual leave of a minimum of 30 calendar days. Employees who have not served for a year are entitled to two days of leave for every month worked. In addition to this, employees are entitled to public holidays as per the official holidays of UAE. If they work on a public holiday, they should be compensated for it either by payment or time-off.
e. Termination of Employment in Labour Law
An employee who has served for an extended period is usually subject to an unique set of rules when it comes to termination. Valid grounds for termination include poor performance or misconduct. An employer is obliged to provide proper steps and documentation to justify termination; without evidence, this is not possible.
An employee who is terminated without cause may be entitled to severance pay. The employee’s length of service determines the amount of severance pay, if any, they are entitled to. Such an employee has the right to lodge a grievance with the Ministry of Human Resources and Emiratisation (MOHRE). When there are reasonable grounds to believe that the termination was judicially capricious and therefore unfair.
3. Rights of Workers in the UAE
The Law in the UAE relating to Labour in the UAE attempts to provide measures. It aims to protect workers about their safety, dignity and ensure robust measures are in place in the workplace. Here are some of the notable rights of workers:
Right to Equal Pay – Employees within the UAE are entitled to equal remuneration for equal work. There shall be no discrimination in terms of gender, race, or even nationality.
Right to Safety – Employers have the responsibility to maintain proper occupational health and safety procedures for every employee. It not limited to the provision of safety equipment and proper training.
Right to Health Insurance – Workers must be provided with health insurance by their employers, especially those in the hazardous occupation.
Right to Freedom of Association – Employees are allowed to form and join trade unions to defend their rights and interests, albeit limited in scope, unlike in other countries with more extensive trade union activities.
FAQs
1. What is the minimum wage in the UAE?
There is no unified minimum wage set for all industries in the UAE. Nonetheless, it is common that the salary will be determined by the employer and the employment contract. Subsequently, the employer will need to abide by the terms of the labour law regarding reasonable remuneration.
2. Can an employee work part-time in the UAE?
Yes, part-time work has been permitted in the UAE since the recent changes to the labor laws, so long as there is mutual consent on the employment terms between the employee and employer.
3. What happens if an employee is unfairly terminated in the UAE?
Any employee who has been dismissed unfairly has the right to complain to the Ministry of Human Resources and Emiratisation. Depending on her situation, she may also be entitled to severance pay or some amount of compensation.
4. Are there any specific rights afforded to women workers in the UAE?
Yes, women are especially protected under the UAE Labour Law about maternity leave, equal remuneration, and occupational health and safety. In addition, women also receive certain protections against discrimination.
5. How long does it take to obtain an employment visa in the UAE?
The time needed to obtain an employment visa in the UAE differs from one person to another. Most of the time it requires 5 to 7 business days if all the required documents are provided. However, it may take longer or shorter depending on the visa type and individual circumstances.
Conclusion
The UAE Labor Law outlines the rights of employees and employers in the workplace. Employees should familiarize themselves with the different provisions of the UAE Labor Law. Their rights are safeguarded so that employers can cultivate a positive workplace free of legal problems. The continuing globalization of the UAE makes it a favorable location for professionals around the world, especially with the ongoing improvements being made in the country’s labor laws.
