Labour law

Understanding UAE Labour Law: Your Comprehensive Guide

Whether you’re just stepping into the UAE job market, recently initiated your career journey, or have been a seasoned professional for a while, staying updated with the UAE Labour Law is crucial. It not only empowers you to assert your rights confidently but also ensures you steer clear of any inadvertent breaches. After all, ignorance is seldom bliss! Having a solid grasp of the hours you’re expected to work, the leave entitlements you’re eligible for, and various other facets of your employment is indispensable.

Deciphering the Basics of UAE Labour Law

If you’re employed in the private sector in the UAE, your rights and obligations are defined by Federal Law No. 8 of 1980, commonly known as the Labour Law, overseen by the Ministry of Human Resources and Emiratisation. This regulatory body governs all aspects of employer-employee relations and ensures the preservation of labor rights within the private sector.

Key Provisions of UAE Labour Law

Work Hours

The Labour Law in the UAE stipulates a standard workday of 8 hours, totaling 48 hours per week, in the private sector. However, in the hospitality industry, these hours are flexible, extending up to 9 hours per day with prior approval from the Ministry. Conversely, government entities and agencies operate for 7 hours on all weekdays. Furthermore, shifts exceeding 7 hours under strenuous or unsuitable conditions are deemed illegal. During the holy month of Ramadan, daily work hours are reduced by two hours.

Overtime

Employees are entitled to receive up to a 25% increment in compensation for any work performed beyond the regular hours on a per-hour basis. If overtime occurs during late hours, between 9 pm and 4 am, this increment could double to 50%. However, employers must substantiate the necessity for requiring employees to work additional hours in order to remunerate them accordingly.

Leave Entitlements

Fridays serve as Sundays in the UAE, necessitating adjustments to your weekly off-days, except for daily wage laborers. In exceptional circumstances where work is scheduled on a Friday, employees are entitled to receive overtime pay of at least 50%, in addition to their regular day’s wages.

Compensatory Off

Employees who work during public holidays or their designated vacations are entitled to compensatory leave days and an additional 50% of their basic pay for the day. If employers fail to provide compensatory leave, they must offer a 150% overtime compensation as per Article 81 of the Labour Law.

Public Holidays

A tentative list of holidays is provided to facilitate planning for personal time, travel, and other activities throughout the year.

Annual Leave

Employees in the UAE accrue 2 days of leave per month if they have completed more than 6 months but less than a year of service. Following the first year, employees become eligible for a full month, i.e., 30 days, of annual leave, inclusive of public holidays, weekends, and sick leave.

Ensuring Your Rights and Well-being

  • Employees are entitled to receive their basic salary and housing allowance during annual leave.
  • Leave cannot be carried over beyond two consecutive years.
  • Employees can opt to encash their leave entitlement during the notice period upon resignation, provided they haven’t utilized their full annual leave.

Sick Leave

Long-term employees are eligible for up to 90 days of sick leave, with the initial 15 days being fully paid. Subsequently, for the next 30 days, employees receive half pay, with the remaining 45 days being unpaid. As per UAE Labour Law, employees must inform their employer of their illness within two days of absence and undergo a medical examination if required by the company’s HR department to verify the legitimacy of the claim. Termination or dismissal during sick leave is prohibited, but this protection applies only for the duration of the 90 days.

Extended Sick Leave

If an employee’s illness prevents them from returning to work, they may resign within the first 45 days of their leave, provided they furnish a medical certificate from the company’s medical practitioner. Employers are obligated to settle any outstanding wages due for the initial 45 days of leave.

Special Leaves

  • Hajj Leave: Employees planning to perform Hajj are entitled to 30 days of unpaid leave without jeopardizing their employment status.
  • Maternity Leave: Female employees with at least one year of service are entitled to 45 days of fully paid maternity leave. However, those with less than a year of service receive half pay. Additionally, this leave can be extended by 10 days, albeit unpaid. Nursing mothers are entitled to two paid breaks of 30 minutes each per day for up to 18 months.
  • WPS (Wages Protection System): Salaries must be disbursed via wire transfer to bank accounts authorized by the Central Bank of UAE. Complaints regarding wages should be directed to the MoHRE or submitted via eNetwasal.

Tip Entitlement

Employees are entitled to gratuity after completing a minimum of one year of continuous service. The gratuity is calculated based on the basic salary, excluding allowances. Under both limited and unlimited contracts, employees are entitled to 21 days’ full pay per year for service between one and five years, and 30 days’ pay per year for service exceeding five years.

By understanding and abiding by the provisions of the UAE Labour Law, both employers and employees can foster a fair and harmonious work environment while ensuring the protection and well-being of all parties involved.

Leave a Reply

Your email address will not be published.