Abu Dhabi

⚖️

Employment Laws

Sections

Comprehensive Guide to Employment Laws in Abu Dhabi, United Arab Emirates (UAE)

Abu Dhabi, as part of the UAE, follows federal labor laws that are applicable across all emirates. The primary legislation governing employment in Abu Dhabi is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into effect on February 2, 2022. This law applies to private-sector employees and is overseen by the Ministry of Human Resources and Emiratisation (MOHRE). Below is a detailed breakdown of employment laws and key considerations for workers in Abu Dhabi.

1. Labor Rights

The UAE labor law ensures the protection of workers' rights, including fair treatment, non-discrimination, and access to legal recourse. Key rights include:

  • Non-Discrimination: Employers cannot discriminate based on race, color, sex, religion, nationality, or disability.
  • Equal Pay: Men and women must receive equal pay for the same work or work of equal value.
  • Workplace Harassment: The law prohibits harassment, bullying, or any form of violence in the workplace.
  • Employment Contracts: All employees must have a written employment contract that specifies the terms of employment, including job title, salary, working hours, and leave entitlements.

2. Working Hours

  • Standard Working Hours: The maximum working hours are 8 hours per day or 48 hours per week.
  • Overtime: Employees working beyond standard hours are entitled to overtime pay:
    • 125% of the regular wage for overtime during regular hours.
    • 150% of the regular wage for overtime between 10:00 PM and 4:00 AM.
  • Friday and Saturday: These are the typical weekend days. If an employee works on a rest day, they are entitled to compensatory leave or additional pay.
  • Reduced Hours During Ramadan: Muslim employees are entitled to a 2-hour reduction in daily working hours during the holy month of Ramadan.

3. Wages

  • Minimum Wage: As of October 2023, there is no official minimum wage for expatriates. However, wages must be agreed upon in the employment contract and paid in full.
  • Payment of Wages: Employers are required to pay salaries through the Wage Protection System (WPS), a government-monitored electronic system.
  • Deductions: Employers cannot deduct wages except for specific reasons, such as fines, loan repayments, or social security contributions.

4. Leave Entitlements

a) Annual Leave

  • Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
  • For employees with less than one year of service, leave is calculated on a pro-rata basis.

b) Sick Leave

  • Employees are entitled to 90 days of sick leave per year, which is divided as follows:
    • First 15 days: Full pay.
    • Next 30 days: Half pay.
    • Remaining 45 days: Unpaid.

c) Maternity Leave

  • Female employees are entitled to 60 days of maternity leave:
    • First 45 days: Full pay.
    • Next 15 days: Half pay.
  • Additional unpaid leave of 45 days can be requested if required.

d) Paternity Leave

  • Male employees are entitled to 5 days of paid paternity leave, which can be taken within 6 months of the child's birth.

e) Public Holidays

Employees are entitled to paid leave on public holidays, which include:

  • New Year’s Day (January 1)
  • Eid Al Fitr (2-3 days)
  • Arafat Day (1 day)
  • Eid Al Adha (2-3 days)
  • Islamic New Year (1 day)
  • Prophet Muhammad’s Birthday (1 day)
  • National Day (December 2-3)

5. Termination Procedures

a) Notice Period

  • The notice period for terminating an employment contract is:
    • 30 days for employees with less than 5 years of service.
    • 60 days for employees with 5-10 years of service.
    • 90 days for employees with more than 10 years of service.

b) End-of-Service Gratuity

  • Employees are entitled to an end-of-service gratuity upon completing at least one year of service. The gratuity is calculated as:
    • 21 days' basic salary for each year of service for the first 5 years.
    • 30 days' basic salary for each additional year of service beyond 5 years.
  • Gratuity is capped at 2 years' total salary.

c) Unlawful Termination

  • Termination is considered unlawful if it is based on discrimination, harassment, or retaliation for filing a complaint. Employees can file a complaint with MOHRE in such cases.

6. Key Aspects for Visitors and Immigrants

a) Work Permits and Visas

  • Foreign nationals must have a valid work permit and residency visa to work in Abu Dhabi. These are typically sponsored by the employer.
  • The employer is responsible for the costs of obtaining the work permit and visa, including medical tests and Emirates ID issuance.

b) Probation Period

  • The probation period cannot exceed 6 months. During this time, either party can terminate the contract with 14 days' notice.

c) Health Insurance

  • Employers are required to provide health insurance for their employees. Dependents (spouse and children) are usually not covered, and the employee may need to arrange separate insurance for them.

d) Accommodation and Transportation

  • Some employers provide accommodation and transportation allowances. These benefits should be clearly stated in the employment contract.

e) Cultural Considerations

  • Abu Dhabi is a culturally diverse city, but it is important to respect local customs and traditions, including dress codes and public behavior.
  • Fridays are considered a holy day in Islam, and many businesses may have reduced working hours or remain closed.

7. Dispute Resolution

  • Employees can file complaints with the Ministry of Human Resources and Emiratisation (MOHRE) if they face issues such as unpaid wages, unfair dismissal, or contract violations.
  • MOHRE provides mediation services, and unresolved disputes may be referred to the Labour Court.

8. Associated Costs

  • Visa and Work Permit: Costs are typically borne by the employer, but employees should confirm this in their contract.
  • Medical Tests: Employers usually cover the cost of mandatory medical tests for visa processing.
  • Emirates ID: The cost of issuing an Emirates ID is also covered by the employer.

9. Local Considerations

  • Language: Arabic is the official language, but English is widely used in workplaces.
  • Dress Code: Modest attire is recommended, especially in government offices and public spaces.
  • Public Behavior: Avoid public displays of affection or behavior that may be considered disrespectful to local customs.

Summary

Abu Dhabi’s employment laws are designed to protect both employers and employees, ensuring a fair and transparent working environment. Visitors and immigrants should familiarize themselves with their rights and obligations under UAE labor law, ensure they have a valid work permit, and maintain cultural sensitivity while working in Abu Dhabi. For further assistance, employees can contact MOHRE or consult legal professionals specializing in UAE labor law.