Important UAE labour law clauses every worker should know

Labour Laws

The UAE has a comprehensive legal framework that covers various aspects of employment, including working hours, wages, leave entitlements, and termination procedures. For instance, article 120 UAE labour law pertains to the probationary period for new employees.

In this blog, we will discuss some of the most crucial UAE labour law clauses every worker should know.

Working Hours and Overtime

If an employee is required to work beyond their normal working hours, they are entitled to overtime pay. This must be at a rate of at least 25% more than their regular hourly wage. Overtime is only permitted for up to two hours per day, and no more than 12 hours per week. 

According to UAE labour law, the maximum number of working hours for employees in the private sector is eight hours per day or 48 hours per week. However, this can be extended to nine hours per day for some industries like hospitality and healthcare. 

Wages and Deductions

Employers are required to pay their employees at least once a month, and the payment must be made within ten days of the end of the pay period.

All employees in the UAE must receive a written contract of employment that includes details of their salary and any benefits they are entitled to. 

Employers are prohibited from making any deductions from an employee’s salary without their written consent. 

Annual Leave

An employee can take their annual leave after completing six months of continuous employment. However, the employer can require the employee to take their leave at a specific time, provided they give the employee at least two weeks’ notice.

Employees in the UAE are entitled to a minimum of 30 days of annual leave per year, including weekends and public holidays. This entitlement increases to 45 days if the employee has been with the same employer for five years or more.

Sick Leave

Employees in the UAE are entitled to sick leave if they are unable to work due to illness or injury. The duration of the sick leave entitlement depends on the length of the employee’s service:

  • Employees who have been with the same employer for less than three months are entitled to sick leave for up to two weeks.

  • Employees who have been with the same employer for more than six months are entitled to sick leave for up to 90 days.

During sick leave, the employee is entitled to full pay for the first 15 days. After that, they are entitled to half pay for the next 30 days and no pay for the remaining period of sick leave.

End of Service Benefits

When an employee’s contract comes to an end, they are entitled to end-of-service benefits. 

  • Employees who have worked for less than one year are entitled to receive a gratuity payment of 21 days’ basic salary.

  • Employees who have worked for more than five years are entitled to receive a gratuity payment of 30 days’ basic salary for each year of service up to the first five years, and 21 days’ basic salary for each additional year of service.

  • Employees who have worked for between one and five years are entitled to receive a gratuity payment of 30 days’ basic salary for each year of service.

The gratuity payment is calculated based on the employee’s last salary before termination, excluding any allowances or benefits. 

Termination Procedures

There are specific procedures that employers must follow when terminating an employee’s contract.

Firstly, the employer must provide written notice to the employee, stating the reason for termination and the date on which the contract will end. The notice period must be at least 30 days, or as stated in the employment contract.

Secondly, the employer must provide the employee with a certificate of employment, which includes details of their length of service, job title, and salary.

Thirdly, if the employee has completed at least one year of continuous service, the employer must also provide them with end-of-service benefits, as discussed above.

Workplace Health and Safety

Employees also have a responsibility to follow health and safety procedures and report any hazards or accidents to their employer. Failure to do so can result in disciplinary action being taken against them.

Wrapping Up

If you have any concerns about your employment rights or feel that your employer is not complying with the relevant labour laws, you should seek legal advice from legal consultants in Dubai. It’s essential to protect your rights as an employee and ensure that you are being treated fairly and lawfully in the workplace.

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