UAE Labor Law | Communication Legal Translation
The New Labour Law (Federal Decree Law No. 33 of 2021 on Regulating the Labor Relations) came into force in 2 February 2022, to represent a quantum leap on regulation of labor relations and to make the UAE an attractive environment for business persons and professional in view of the new immigration regulations. It is for the first time the employment is separated from immigration status in the UAE.
Enforcement of the UAE Labor Law
The Federal Decree Law and its Implementing Regulations applies to businesses, employers and employees working in the UAE private sector in each of the seven emirates and its free zones, but it does not apply to Dubai International Financial Center and Abu Dhabi Global Market.
Employment Contract, Work Models and Work Permits | UAE Labour Law
Only fixed term contract can be concluded under UAE Labor Law whilst six work models are introduced, including:
- Full time;
- Remote Work; and
- Job Sharing
The Federal UAE Labor Law also provides the employers and employees with the optimal opportunities they seek in employment world by introducing 12 type of work permits:
- Work Permit (recruiting)
- Work Transfer Permit
- Family-Visa Holder Permit
- Temporary Work Permit.
- One-Mission Work Permit
- Part Time Work Permit
- Juvenile Work Permit
- Student Training and Employment Permit.
- UAE /GCC National Work Permit.
- Golden-Visa Holder Work Permit.
- UAE National Trainee Work Permit
- Freelancer Permit
Protection from Discrimination, Harassment and Victimization | UAE Labor Law
The UAE labor Law protects the employee against all sorts of discrimination on the basis of race, skin color, religion, national or social origin or disability, as well as against sexual harassment, bullying, any verbal, physical or psychological violence. The employee is protected against victimization (wrongful dismissal on the account that the employee has filed a complaint against the employer). The employee is also protected against any type of forced labor.
Probation period | UAE Labor Law
The probation period in the UAE Labor Law is 6 Months. It can either be terminated by the employer on 14 days’ prior notice, or by the employee on 14 days’ prior notice if the employee is leaving the UAE and on 30 days’ prior notice if the employee is leaving to join a new company in the UAE.
The old employer may claim the recruitment charges from the new employer in case the employee had left during the probation period or returned within three months to the UAE to join that new employer
Working Hours and Overtime | UAE Labor Law
The normal working hours under the UAE Labor Law is 8 hours per day or 48 hours per week and no employee may be caused to work for 5 consecutive hours without taking a break time and that during the holy month of Ramadan working hours should be reduced by two hours.
Employer may cause the employee to work for two additional hours but under no circumstance the working hours should exceed 144 hours per three weeks.
The overtime is calculated on the rate of the basic salary with the normal working hour wage plus 25% increase of that wage.
The overtime for work between 10:00pm and 4:00am, shall be calculated with the normal working hour wage plus 50% increase. Employees working under shift system are excluded. The following personnel are also excluded as well:
- Chairpersons and board directors
- Supervisors authorities that are similar the employers’.
- Ship crews or sea workers who are under special employment conditions due to the nature of their work.
- works that by technical natures need to be continued through rotating shifts, provided that working hours’ average shall not exceed (56) hour in a week.
- The preparatory or complementary works which must, of necessity, be performed outside the time limits prescribed for the work in the establishment in general.
Annual Leave | UAE Labor Law
The employee is entitled to annual leave with full salary as follows:
a. Thirty days for each complete year of service.
- Two days for each month if the service period is more than six months but less than a year.
- A leave for fractions of the last year of service, if the term or service expires before annual leave is used.
Part-time employee is entitled to annual leave as per the actual working hours of service (specified in the employment contract) and it can be calculated ─
- as figure:
The total number of actual part-time working hours transferred to working days and divided by the working days in a year and then multiplied by the annual leave period as prescribed by the law.
- as percentage (%)
The total number of actual part-time working hours in a year divided by the number of working hours in the full time employment contract in a year multiplied by 100.
Maternity Leave | UAE Labor Law
- The female employee shall be entitled to a maternity leave for (60) sixty days, as follows:
- The first (45) forty-five days will be granted with full pay.
- The next (15) Fifteen days will be granted with half pay.
- A female employee who has exhausted her maternity leave may be absent from work without pay for a maximum period of 45 consecutive or nonconsecutive days if such absence is due to an illness, sustained by her or her baby due to pregnancy or childbirth, preventing her from resuming her work
- A female employee who gives birth to a sick baby or a baby with a disability whose mental state requires a constant companion according to a medical report issued by the medical authority, has the right to a leave of (30) thirty days with full pay starting from the expiry date of the maternity leave, and she has the right to extend the leave for a period of (30) thirty days without pay.
Sick Leave | UAE Labor Law
- The employee is not entitled to a paid sick leave during the probation period.
- After expiration of the probation period, the employee may receive sick leave for a period not exceeding (90) ninety days, consecutive or nonconsecutive, for each year, provided that it is calculated as follows:
- The first (15) fifteen days will be granted with full pay.
- The next (30) thirty days will be granted with half pay.
- The subsequent period of leave will be granted without pay.
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