Dubai

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Employment Laws

Sections

a. Working Hours

  • Standard 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, calculated at 125% of the regular hourly rate (or 150% for overtime between 10:00 PM and 4:00 AM, except for shift workers).
  • Rest Periods: Employees are entitled to a 1-hour break after 5 consecutive hours of work.
  • Reduced Hours During Ramadan: Muslim employees typically work 2 hours less per day during the holy month of Ramadan.

b. Employment Contracts

  • Types of Contracts: Employment contracts must be in writing and can be:
    • Limited-term contracts: Fixed duration, typically up to 3 years (renewable).
    • Unlimited-term contracts: No fixed duration (phased out under the 2021 law; all contracts must now be limited-term).
  • Language: Contracts must be in Arabic (with translations if needed) and registered with the Ministry of Human Resources and Emiratisation (MOHRE).
  • Probation Period: Cannot exceed 6 months. During this period, either party can terminate the contract with 14 days' notice.

c. Wages

  • Minimum Wage: As of now, there is no official minimum wage in the UAE, but wages must be agreed upon in the employment contract.
  • Payment: Salaries must be paid in UAE dirhams (AED) through the Wage Protection System (WPS), a government-monitored electronic system.
  • Deductions: Employers cannot deduct wages except for specific reasons (e.g., fines, loan repayments, or social security contributions).

d. Leave Entitlements

  1. Annual Leave:
    • Employees are entitled to 30 calendar days of paid leave per year after completing 1 year of service.
    • For less than 1 year of service, leave is calculated on a pro-rata basis.
  2. Sick Leave:
    • Employees are entitled to 90 days of sick leave per year:
      • First 15 days: Full pay
      • Next 30 days: Half pay
      • Remaining 45 days: Unpaid
    • A medical certificate is required.
  3. Maternity Leave:
    • Female employees are entitled to 60 days of maternity leave:
      • First 45 days: Full pay
      • Next 15 days: Half pay
    • Additional 45 days unpaid leave can be requested if needed.
  4. Paternity Leave:
    • Fathers are entitled to 5 days of paid paternity leave within the first 6 months of the child’s birth.
  5. Public Holidays:
    • Employees are entitled to paid leave on official UAE public holidays (e.g., Eid, National Day).

e. Termination Procedures

  • Notice Period:
    • Minimum 30 days' notice is required for termination by either party.
    • For employees with less than 5 years of service, the notice period is capped at 30 days. For longer service, it can extend to 90 days.
  • End-of-Service Gratuity:
    • Employees are entitled to a gratuity payment upon completing 1 year of service:
      • 21 days' basic salary for each year of service (first 5 years).
      • 30 days' basic salary for each additional year.
    • Gratuity is calculated based on the last drawn basic salary.
  • Unlawful Termination:
    • Termination is considered unlawful if it is based on discrimination, pregnancy, or filing a complaint against the employer.

3. Work Permits and Residency Visas

a. Work Permit Application Process

To legally work in Dubai, expatriates must obtain a work permit and a residency visa. The process is typically handled by the employer. Below are the steps:

  1. Offer Letter:
    • The employer provides a job offer letter, which must be signed by the employee.
  2. Work Permit Application:
    • The employer applies for a work permit through MOHRE.
    • Cost: Approx. AED 300–5,000, depending on the company’s classification.
  3. Medical Fitness Test:
    • The employee undergoes a medical test (blood test and chest X-ray) at an approved health center.
    • Cost: Approx. AED 300–500.
  4. Emirates ID Application:
    • The employee applies for an Emirates ID, which serves as the official identification card.
    • Cost: Approx. AED 100–300.
  5. Residency Visa Stamping:
    • The residency visa is stamped in the employee’s passport.
    • Cost: Approx. AED 1,000–2,000.

b. Employer Obligations

  • Employers must:
    • Bear the costs of the work permit and visa.
    • Provide health insurance for employees.
    • Ensure timely payment of wages through the WPS.
    • Provide a safe and healthy working environment.

4. Cultural and Local Considerations

  • Workplace Etiquette:
    • Respect for local customs and traditions is essential. For example, avoid discussing sensitive topics like religion or politics.
    • Dress modestly in the workplace.
  • Public Behavior:
    • Public displays of affection and inappropriate behavior are not tolerated.
  • Ramadan:
    • During Ramadan, non-Muslim employees should avoid eating, drinking, or smoking in public during fasting hours.
  • Language:
    • While Arabic is the official language, English is widely used in business settings.

5. Key Takeaways for Employees and Employers

  • For Employees:
    • Ensure your employment contract is registered with MOHRE.
    • Familiarize yourself with your rights, including leave entitlements and end-of-service benefits.
    • Always maintain a valid work permit and residency visa.
  • For Employers:
    • Comply with MOHRE regulations and provide employees with their legal entitlements.
    • Avoid unlawful termination or discrimination.
    • Stay updated on changes to labor laws to avoid penalties.

6. Penalties for Non-Compliance

  • Employers who fail to comply with labor laws (e.g., delayed salary payments, failure to provide work permits) may face fines ranging from AED 5,000 to AED 50,000 per violation.
  • Employees working without a valid work permit may face deportation and a ban from re-entering the UAE.

This guide provides a structured overview of employment laws in Dubai. For specific cases or legal advice, consult a licensed legal professional or contact MOHRE directly.