Ras Al Khaimah

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Comprehensive Guide to Employment Laws in Ras Al Khaimah, United Arab Emirates (UAE)

Ras Al Khaimah (RAK), one of the seven emirates of the UAE, follows the federal labor laws of the UAE, which are governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (commonly referred to as the UAE Labour Law). This law applies across all emirates, including Ras Al Khaimah, and governs employment relationships in the private sector. Below is a detailed guide to help you navigate the work environment in Ras Al Khaimah.

1. Work Permits and Visas

To work legally in Ras Al Khaimah, expatriates must obtain a valid work permit and residency visa. These are typically arranged by the employer.

Key Steps and Costs:

  • Work Permit Application: Employers must apply for a work permit through the Ministry of Human Resources and Emiratisation (MOHRE).
  • Residency Visa: After the work permit is approved, the employer sponsors the employee for a residency visa, which is issued by the General Directorate of Residency and Foreigners Affairs (GDRFA).
  • Medical Examination: Employees must undergo a medical fitness test as part of the visa process.
  • Emirates ID: Employees must also apply for an Emirates ID, which serves as an official identification document.

Costs:

  • The employer typically bears the costs of the work permit, visa, medical tests, and Emirates ID. However, it is advisable to confirm this during the hiring process.

Important Notes:

  • Working without a valid work permit is illegal and can result in fines, deportation, or other penalties.
  • Domestic workers are governed by a separate law, Federal Law No. 10 of 2017, which outlines specific rights and obligations.

2. Employment Contracts

All employees must have a written employment contract that complies with UAE Labour Law. Contracts are registered with MOHRE and must clearly outline the terms of employment.

Key Features:

  • Types of Contracts: As of February 2022, all employment contracts in the UAE are limited-term contracts (fixed-term), with a maximum duration of three years, renewable upon mutual agreement.
  • Language: Contracts must be in Arabic, but bilingual versions (e.g., Arabic and English) are common.
  • Details Included: Job title, salary, benefits, working hours, leave entitlements, and termination conditions.

Probation Period:

  • The probation period cannot exceed six months.
  • During probation, either party can terminate the contract with a 14-day notice.

3. Working Hours

The standard working hours in Ras Al Khaimah, as per UAE Labour Law, are:

  • Normal Hours: 8 hours per day or 48 hours per week.
  • Overtime: Employees are entitled to overtime pay if they work beyond the standard hours. Overtime is compensated at 125% of the regular hourly rate or 150% for overtime worked between 10:00 PM and 4:00 AM.
  • Friday and Public Holidays: Friday is the official weekly day off. Employees working on Fridays or public holidays are entitled to compensatory leave or additional pay.

Special Considerations:

  • During Ramadan, working hours are reduced by two hours per day for all employees, regardless of religion.

4. Wages and Payment

The UAE has implemented the Wage Protection System (WPS) to ensure timely payment of salaries.

Key Points:

  • Currency: Salaries must be paid in UAE dirhams (AED).
  • Payment Method: Wages must be paid electronically through the WPS.
  • Minimum Wage: There is no official minimum wage in the UAE, but salaries must align with the terms agreed upon in the employment contract.

Deductions:

  • Employers cannot deduct wages without the employee's written consent, except for specific cases (e.g., fines, loan repayments, or social security contributions).

5. Leave Entitlements

Employees in Ras Al Khaimah are entitled to various types of leave under UAE Labour Law.

Annual Leave:

  • 30 calendar days of paid leave per year for employees with at least one year of service.
  • Employees with less than one year of service are entitled to two days of leave per month.

Sick Leave:

  • Employees are entitled to up to 90 days of sick leave per year (15 days fully paid, 30 days at half pay, and the remaining 45 days unpaid).

Maternity Leave:

  • Female employees are entitled to 60 days of maternity leave (45 days fully paid and 15 days at half pay).

Paternity Leave:

  • Male employees are entitled to 5 days of paid paternity leave within the first six months of the child’s birth.

Public Holidays:

Employees are entitled to paid leave on official public holidays, such as Eid Al Fitr, Eid Al Adha, National Day, and others.

6. Termination of Employment

Termination procedures in Ras Al Khaimah must comply with UAE Labour Law.

Notice Period:

  • The notice period ranges from 30 to 90 days, depending on the terms of the employment contract.

End-of-Service Benefits:

  • Employees are entitled to gratuity pay (end-of-service benefits) if they have completed at least one year of continuous service.
  • Gratuity is calculated as:
    • 21 days' basic salary for each year of service for the first five years.
    • 30 days' basic salary for each additional year of service beyond five years.

Unlawful Termination:

  • Termination is considered unlawful if it is based on discrimination, harassment, or retaliation for filing a complaint.

Resignation:

  • Employees can resign by providing the agreed-upon notice period. Failure to do so may result in penalties or a labor ban.

7. Labor Rights and Protections

The UAE Labour Law provides robust protections for employees.

Key Rights:

  • Non-Discrimination: Employers cannot discriminate based on race, gender, religion, nationality, or disability.
  • Harassment-Free Workplace: Employees are protected from harassment, bullying, and violence in the workplace.
  • Health and Safety: Employers must provide a safe and healthy work environment.

Dispute Resolution:

  • Labor disputes are handled by MOHRE. Employees can file complaints online or through MOHRE service centers.
  • If unresolved, disputes may be referred to the labor court.

8. Cultural Considerations

Ras Al Khaimah, like the rest of the UAE, has a diverse workforce and a strong emphasis on cultural respect.

Key Points:

  • Dress Code: Modest attire is expected in the workplace, especially for women.
  • Religious Sensitivity: Be mindful of Islamic practices, particularly during Ramadan.
  • Workplace Etiquette: Punctuality, professionalism, and respect for hierarchy are highly valued.

9. Free Zones in Ras Al Khaimah

Ras Al Khaimah has several free zones, such as the RAK Economic Zone (RAKEZ), which operate under slightly different labor regulations. Employees in free zones are governed by the rules of the respective free zone authority, but these generally align with federal labor laws.

10. Key Resources

By understanding these employment laws and cultural nuances, you can navigate the work environment in Ras Al Khaimah effectively and ensure compliance with local regulations. Always consult with your employer or legal professionals for specific advice tailored to your situation.