Sharjah

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Employee Rights and Benefits

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Comprehensive Guide to Employee Rights and Benefits in Sharjah, United Arab Emirates (UAE)

The UAE, including Sharjah, has a well-defined labor law framework that protects the rights of employees and ensures fair treatment in the workplace. The primary legislation governing employment in Sharjah is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (commonly referred to as the UAE Labour Law), which applies to all private-sector employees in the UAE. Below is a detailed breakdown of employee rights and benefits in Sharjah under the category of work and employment.

1. Working Hours

  • Standard Working Hours:
    • The standard working hours in Sharjah are 8 hours per day or 48 hours per week.
    • During the holy month of Ramadan, working hours are reduced by 2 hours per day for all employees, regardless of their religion.
  • Overtime:
    • Employees are entitled to overtime pay if they work beyond the standard hours. Overtime is compensated at:
      • 125% of the regular hourly wage for normal overtime.
      • 150% of the regular hourly wage for overtime worked between 10:00 PM and 4:00 AM, except for shift workers.
    • Overtime cannot exceed 2 hours per day, unless in exceptional circumstances.

2. Wages

  • Minimum Wage:
    • As of October 2023, the UAE Labour Law does not specify a national minimum wage for all employees. However, the law mandates that wages must be fair and agreed upon in the employment contract.
    • For skilled workers, the UAE government has introduced a minimum wage system based on skill levels and qualifications.
  • Payment of Wages:
    • Employers are required to pay wages through the Wages Protection System (WPS), a government-monitored electronic system that ensures timely payment.
    • Salaries must be paid in UAE dirhams (AED) unless otherwise agreed upon in the contract.

3. Leave Entitlements

  • 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 at 2 days per month after completing six months of employment.
  • 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.
    • A medical certificate is required to claim sick leave.
  • Maternity Leave:
    • Female employees are entitled to 60 days of maternity leave, broken down as:
      • First 45 days: Full pay.
      • Next 15 days: Half pay.
    • Additional unpaid leave of 45 days can be taken if the employee provides a medical certificate.
  • Paternity Leave:
    • Male employees are entitled to 5 days of paid paternity leave, which can be taken within the first 6 months of the child’s birth.
  • Public Holidays:
    • Employees are entitled to paid leave on official UAE public holidays, which include Eid Al-Fitr, Eid Al-Adha, National Day, and other Islamic and national holidays.

4. Health Insurance

  • Mandatory Health Insurance:
    • In Sharjah, employers are legally required to provide health insurance for their employees. This includes coverage for basic medical needs such as consultations, medications, and emergency care.
    • Dependents (spouse and children) are not covered by the employer’s obligation, and employees must arrange health insurance for their dependents at their own cost.
  • Costs:
    • The cost of health insurance is borne by the employer for the employee. For dependents, basic health insurance plans typically start at AED 600–800 per year.

5. End-of-Service Benefits (Gratuity)

  • Eligibility:
    • Employees are entitled to an end-of-service gratuity after completing at least 1 year of continuous service.
  • Calculation:
    • Gratuity is calculated based on the employee’s last drawn basic salary:
      • 21 days’ basic salary for each year of service for the first 5 years.
      • 30 days’ basic salary for each year of service beyond 5 years.
    • The total gratuity cannot exceed the equivalent of 2 years’ salary.
  • Termination Scenarios:
    • If an employee resigns before completing 5 years, gratuity is calculated on a pro-rata basis.
    • If the employee is terminated for misconduct (as defined under Article 44 of the UAE Labour Law), they may forfeit their gratuity.

6. Other Employee Rights

  • Employment Contracts:
    • All employees must have a written employment contract, which specifies the terms of employment, including job title, salary, working hours, and leave entitlements.
    • Contracts must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).
  • Probation Period:
    • The probation period cannot exceed 6 months. During this time, either party can terminate the contract with 14 days’ notice.
  • Equal Treatment:
    • The UAE Labour Law prohibits discrimination based on gender, race, religion, nationality, or disability.
    • Women are entitled to equal pay for equal work.
  • Termination Notice:
    • Both employers and employees must provide a 30 to 90 days’ notice period before terminating the contract, depending on the terms agreed upon in the contract.

7. Cultural and Local Considerations

  • Workplace Etiquette:
    • Sharjah is a culturally conservative emirate, and employees are expected to dress modestly and respect Islamic traditions.
    • Punctuality and professionalism are highly valued in the workplace.
  • Language:
    • While Arabic is the official language, English is widely used in workplaces. Employment contracts and official documents are often bilingual (Arabic and English).
  • Religious Practices:
    • Employers must accommodate Muslim employees’ prayer times and provide a respectful environment for religious practices.
  • Labour Disputes:
    • Employees can file complaints with the MOHRE if they face issues such as unpaid wages, unfair dismissal, or contract violations. The MOHRE provides mediation services to resolve disputes.

8. Costs and Procedures

  • Visa and Work Permit:
    • Employers are responsible for covering the costs of the employee’s residency visa and work permit.
    • The process involves:
      1. Applying for a work permit through MOHRE.
      2. Completing a medical fitness test.
      3. Issuing a residency visa through the General Directorate of Residency and Foreigners Affairs (GDRFA).
    • The total cost for these procedures is typically AED 5,000–7,000, depending on the job category and visa type.
  • Labour Card:
    • Employees must have a valid Labour Card, which is issued by MOHRE and linked to their work permit.

9. Penalties for Non-Compliance

  • Employers who fail to comply with the UAE Labour Law (e.g., delayed salary payments, lack of health insurance, or unfair dismissal) may face:
    • Fines imposed by MOHRE.
    • Suspension of their business license.
    • Legal action initiated by employees.

Conclusion

Sharjah, like the rest of the UAE, offers a robust legal framework to protect employee rights and ensure fair treatment in the workplace. Employees and employers must familiarize themselves with the UAE Labour Law to maintain a harmonious and compliant work environment. For further assistance, employees can contact the MOHRE hotline (800 60) or visit their website for detailed guidance.