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UAE

LABOUR LAW
GENERAL
PROVISIONS
Language Usage
• Arabic is mandated for all records,
contracts, files, data, etc.
• Instructions and circulars to
employees must also be in Arabic.
• Arabic prevails if the employer uses
a foreign language alongside Arabic.
Exclusions

Certain categories of employees are exempt from the law, including


• Federal government employees and employees of governmental
departments.
• Members of armed forces, police, and security.
• Domestic servants in private households.
• Farming and grazing workers, excluding certain categories.
Priority Payment

• Actions initiated by employees, or their


beneficiaries are exempt from court fees
at all stages.
• Cases are to be dealt with swiftly. Plaintiffs
may be ordered to pay expenses upon
non-admission or dismissal.
Exemption from Court
Fees
• Payments due to employees or their
beneficiaries have priority charge on
all employer's property.
• They must be paid immediately after
legal expenses, sums due to the
public treasury, and Sharia's alimony.
Dispute Resolution
• Disputes are initially handled by the
competent Labour Department for
amicable settlement.
• If no settlement is reached, the
Department refers the dispute to court
within two weeks.
• The court schedules a hearing within
three days and may summon a Labor
Department representative.
• Claims must be brought to court within
one year from the date of accrual.
Nullificatio
Conditions conflicting with the
n of law are null and void unless they
are more advantageous to the
Contrary worker.
Conditions
Calendar System
• Periods and dates mentioned in the law
are based on the Gregorian calendar.
• A calendar year is considered 365 days,
and a month is considered 30 days
unless stated otherwise in the
employment contract.
EMPLOYMEN
T OF
WORKERS
Right to Work
• Work is considered a fundamental
right for UAE nationals.
• Non-nationals can only work within
the UAE under conditions outlined
in the law and its executive orders.
Preference in Employment
When UAE nationals are unavailable, preference in employment is
given to
• Workers from other Arab nationalities.
• Workers from other nationalities.
• The Labour Department must
Establishmen establish a section for national
employment.
t of • Functions include procuring suitable
Employment job opportunities for nationals,
assisting employers in hiring
Section nationals, and maintaining a register
of unemployed nationals seeking
employment..
Recruitment of Nationals
• Employers can hire unemployed
nationals but must notify the Labour
Department within 15 days, providing
details such as the employee's name,
age, wage, and registration certificate
number.
Employment of Non-
Nationals
• Non-nationals require prior approval from the
Labour Department and an employment permit.
• Conditions for obtaining a permit include
possessing professional competence or
educational qualifications needed by the country
and meeting residence regulations.
• Approval is granted only if no unemployed
nationals can perform the required work.
• Work permits for non-nationals can be canceled
under certain conditions, including prolonged
unemployment or failure to meet initial
conditions.
Special
Section for A special section for the employment of
non-nationals is established within the
Non- Ministry of Labour and Social Affairs,
with its functions specified in ministerial
Nationals resolutions.
Regulation of
Employment Agencies
• Only licensed individuals or entities, typically nationals,
can serve as agents for the recruitment or supply of
non-national workers.
• These agencies are subject to supervision and control
by the Ministry of Labour and Social Affairs.
• Employment agents cannot demand fees from workers
for employment or charge them for expenses incurred,
except as prescribed or approved by the Ministry.
• The Minister of Labour and Social Affairs prescribes
rules, procedures, and forms for private and public
employment agencies, including conditions for
licensing and occupational classification tables.
EMPLOYMEN
T FOR
CHILDREN
Minimum Age for Employment
• Children under the age of 15 cannot be employed.
Documentation Requirement

•Before employing a child, the employer must obtain


• Birth certificate or age estimation certificate.
• Certificate of medical fitness.
• Written consent from the child's guardian or trustee.
• Employers must maintain a special
Record register of employed children,
Keeping containing details such as name,
age, guardian or trustee's name,
place of residence, date of
employment, and job.
Night Work Prohibition

• Children cannot be made to work at night in industrial enterprises,


defined as the period from 8 p.m. to 6 a.m., lasting at least twelve
consecutive hours.
Prohibition of Hazardous Work
Children cannot be employed in any job considered hazardous or
detrimental to health, as defined by the Minister of Labour and Social
Affairs after consulting relevant authorities.
Maximum Working Hours
1. Children's maximum working hours are six per day,
with breaks for rest, food, or prayer totaling at least one
hour.
2. Breaks must be arranged so that no child works for
more than four successive hours, and no child remains
at the workplace for more than seven successive hours.
Overtime and Rest Days

Children cannot be required to work overtime, stay at the workplace


after prescribed hours, or work on rest days.
Employment
of Women
Prohibition of Night Work
• Women cannot be required to work at night, defined as a period of not less
than eleven successive hours, including the period from 10 p.m. to 7 a.m.
Exceptions to Night Work Prohibition

Night work prohibition exceptions include


• Work disruptions due to force majeure.
• Executive managerial and technical staff.
• Work in specified health services or other businesses where women are
not engaged in manual work.
Prohibition
of Women cannot be employed in
Hazardous hazardous, arduous, physically or morally
detrimental work, as defined by the
or Minister of Labour and Social Affairs after
consulting relevant authorities.
Detrimenta
l Work
Maternity Leave

Female workers are


After maternity
entitled to maternity
leave, a female
leave with full pay
worker may be
for 45 days, Those with less than
absent without pay
including both pre one year of service
for up to 100
and postnatal are entitled to half
consecutive or non-
periods, if they have pay.
consecutive days
completed at least
due to pregnancy-
one year of
related illness.
continuous service.
Nursing Breaks

For 18 months following delivery, female workers nursing their child


are entitled to two additional breaks each day, not exceeding half
an hour each, in addition to any prescribed rest period. These
breaks are considered part of working hours without wage
reduction.
Equal Pay

Female workers are entitled to equal pay as male workers if they


perform the same work.
Punitive Responsibility

Employers or their representatives, along with guardians, husbands,


or trustees who consent to the employment of children or women
contrary to the law, are held punitively responsible for compliance.
INDIVIDUAL
EMPLOYMEN
T CONTRACT
Written Contract
Requirement

Employment contracts must be


written in duplicate, with one copy
given to the worker and the other to
the employer. In the absence of a
written contract, terms can be
established through admissible
means of evidence.
Contract Specifications

Contracts must specify the date of conclusion, the start date of work,
type and location of work, duration of the contract (if definite), and the
wage amount.
Probation Period

• Workers may undergo a probation period not exceeding six


months, during which the employer can terminate services
without notice or severance pay.
• Probation can only occur once with the same employer, and if
completed successfully, the period counts towards the worker's
total service. the law.
Term of Employment Contracts
• Contracts can be for a definite or indefinite term, with definite term contracts
not exceeding four years, but renewable by mutual agreement.
• Contracts are considered indefinite if they are not written, concluded for an
unspecified period, continued after expiration without a written agreement,
or continued after completion of specific work without specific duration.
• If parties continue performing the contract after its initial term or completion
of work without explicit agreement, the contract is deemed extended with
the same conditions except for the term.
Liability in Subcontracting

If an employer subcontracts operations or parts thereof to a third


party, the third party is solely liable for the entitlements of
employees engaged in such subcontracted work as per the
provisions of the law.
Records and
Files
Requirements
For Employers of Five
or More Workers

Maintain a special file for each worker


containing
• Name, job, age, nationality,
residence, marital status.
• Date of employment, wage,
adjustments, penalties.
• Occupational injuries, diseases,
termination reasons and date.
Create a leave card for each worker
divided into sections for annual, sick,
and other leaves, recording all leave
taken by the worker.
For Employers of 15 or
More Workers
Maintain specific records and documents at each workplace or
branch
• Wage register - Lists workers by date of employment, with
details of daily, weekly, or monthly pay, fringe benefits,
piecemeal or commission pay, days of work, and
termination date.
• Occupational injuries register - Records all work-related
injuries and occupational diseases as soon as known.
• Basic work rules - Specify daily work timings, weekly rest,
official holidays, and measures to prevent work-related
injuries and fire hazards. These rules must be displayed at
the workplace and endorsed by the Labour Department
within 30 days of submission.
• Disciplinary rules - Displayed at the workplace, detailing
disciplinary actions for defaulting workers and the
conditions for imposition. Like basic work rules, they
require endorsement by the Labour Department within 30
days of submission.
Wages
Calculation for Piecework
For workers employed on a piecemeal basis, the daily wage is
calculated as an equivalent to the average wage received for actual
days of work during the preceding six months.
Proof of wage payment must be in the
Evidence of form of documentary evidence,
admission, or oath. Agreements contrary
Payment to this are null and void.
Restrictions on
Deductions
• Workers cannot be forced to buy food or
commodities from a specific shop or employer's
produce.
• Deductions from wages are limited and can only be
made for specific reasons such as loan repayment,
social security contributions, fines for offenses, or
damages to employer property, with restrictions on
the amount that can be deducted.
Worker Consent for
Payment Category
Employers cannot transfer a monthly-
paid worker to a different payment
category (daily, weekly, hourly, or
piecemeal) without the worker's written
consent.
Minimum Wage
Regulations
• The minimum wage and cost-of-living index are to
be fixed by federal decree based on a proposal
from the Minister of Labour and Social Affairs,
approved by the Council of Ministers.
• Proposals for minimum wage adjustments consider
consultation with relevant authorities, labor
organizations, and cost of living indices studies to
ensure sufficiency for basic needs.
• Minimum wage rates take effect from the date of
publication of the decree in the official Gazette.
Working
Hours
Normal Working Hours

• Maximum normal working hours for


adult workers are eight hours per day
and 48 hours per week.
• Daily working hours may be increased
to nine hours in specific businesses
designated by the Minister.
• Breaks for rest, meals, and prayer
must be provided, totaling at least
one hour, and not included as part of
working hours.
• Regulations for breaks in factories,
workshops, and continuous processes
are specified by the Minister.
Overtime
• Work exceeding normal hours is
treated as overtime.
• Overtime pay includes the normal
wage plus a supplement of at least
25% for hours worked beyond normal
hours.
• For overtime worked between 9 p.m.
and 4 a.m., a supplement of at least
50% of the normal wage is required.
• Maximum actual overtime hours per
day is two, unless essential to prevent
substantial loss or serious accidents.
Weekly Rest Day
• Friday is the normal weekly rest day for
all workers except daily-paid workers.
• Workers required to work on Friday
must be compensated with a substitute
rest day or paid their basic wage plus a
supplement of at least 50%.
• No worker, other than daily-paid, can
be required to work more than two
successive Fridays.
Exemptions
Certain categories exempted from these regulations include
senior executive managerial or supervisory positions specified by
the Minister and crew members of marine vessels under special
conditions.
Timetables and Posting

• Employers must post timetables showing weekly rest days,


working hours, and rest periods at main entrances and
workplaces for all workers' classes.
• A copy of this timetable must be filed with the competent labor
department. If the workplace doesn't observe the statutory
weekly day off, a timetable showing the weekly rest day for
each class of workers must be posted.
LEAVES
Entitlement to Leave
with Full Pay
Workers are entitled to various leaves with full
pay, including New Year's Day, religious
holidays, and National Day.
• Annual leave entitlement is based on
years of service, with a minimum of two
days per month for service between six
months and one year, and 30 days per
year for service over one year.
Commencement and
Division of Annual Leave
• Employers may determine the start date
of annual leave and may divide it into
two periods if necessary.
• Holidays and sick leave falling within
annual leave are considered part of the
annual leave.
Payment and
Compensation for
Annual Leave
• Workers receive their basic wage and housing
allowance during annual leave.
• If a worker works during annual leave due to
work necessity, they receive normal wage plus
an allowance in lieu of leave.
• Dismissed or resigning workers are entitled to
payment for accrued annual leave days.
Preparation for
Annual Leave
• Employers must pay workers their full
wage plus prescribed leave pay before they
go on annual leave.
• Workers required to work on public
holidays receive substitute leave or
additional pay.
Sick Leave Provisions

Workers report
Employers may If a worker resigns
illnesses within two
No wage is payable terminate a worker due to illness, they
days and are entitled to
for sick leave who fails to report are entitled to
sick leave after
caused by worker back after wages for the
probation, with varying
misconduct. exhausting sick remaining sick
periods of full and half
leave. leave period.
pay.
Special Leave and Prohibitions

Workers are entitled Workers cannot work


to special leave for another employer
without pay for during annual or sick
performing pilgrimage. leave.
Forfeiture and Dismissal During Leave

• Workers who fail to resume work after leave forfeit their wage for the
period of absence.
• Employers cannot dismiss workers or serve notices of dismissal while the
worker is on leave provided under this section.
Workers’ Safety,
Protection, Health
And Social Care
Safety Measures

• Employers must provide safety measures


to protect workers against occupational
hazards, fire, and other risks.
• Detailed instructions on fire prevention
and hazard protection must be displayed
in the workplace.
First-Aid and Medical
Care

• Employers must provide first-aid boxes


and medical facilities.
• Regular medical examinations are
required for workers exposed to
occupational diseases, with findings
reported to the labor department.
Workplace Conditions

• Workplaces must be clean, ventilated,


well-lit, and equipped with drinking
water and toilets.
• General precautions and health-related
safety measures for firms employing
workers are prescribed by the Minister.
Information and Prohibitions

• Employers must inform workers of occupational hazards and protective


measures.
• Alcohol consumption and drunkenness in the workplace are prohibited.
Worker Responsibilities

• Workers must comply with safety instructions, use protective devices,


and avoid acts that endanger health and safety.
• Employers may impose penalties for violations of safety regulations.
Services for Remote
Areas
• Employers in remote areas must
provide suitable transportation, living
accommodations, drinking water, food
supplies, first-aid facilities, and
recreation facilities.
• The cost of these services is borne by
the employer and cannot be charged
to the workers.
DISCIPLINA
RY RULES
Employers may impose various
disciplinary measures, including
warnings, fines, suspension from
Disciplinary work with reduced pay, denial or
deferment of periodical
Measures allowances or promotions,
dismissal with or without
severance pay.
Regulations
• Circumstances for imposing
disciplinary penalties must be
specified in the disciplinary
regulations.
• The Minister of Labour and
Social Affairs may issue a
model table of disciplinary
actions and rewards for
employers to follow.
Fines

• Fines must not exceed five days' wage for any single offense.
• Proceeds from fines are used for the social welfare of workers.
• Periodical allowance may only be
Periodical denied once per year and deferred
Allowance and for up to six months.
• Denial of promotion may only occur
Promotion for one promotion cycle.
External Conduct and
Notification

• Disciplinary measures for acts committed


outside the workplace are limited to those
related to work or the employer.
• Workers must be notified in writing of
charges, allowed to defend themselves, and
penalties must be documented in their
personal file.
Time
• Charges must be made within 30 days of
Limits and detecting the offense, and penalties
imposed within 60 days of the inquiry's
Suspension conclusion.
• Workers may be suspended without pay if
s accused of serious offenses but must be
reinstated with full pay if found not guilty.
TERMINATIO
N OF
EMPLOYMEN
T
• Employment contracts can terminate by
Grounds mutual agreement, upon expiry of the
term, or for valid reasons by either party.
for • Death or total disability of the worker
terminates the contract.
Terminatio • Compensation is due if the contract is
revoked by either party without valid
n reasons.
• Specific grounds for dismissal without
notice are outlined, including misconduct,
criminal conviction, and absenteeism.
• Either party must provide a
Notice Period notice period before
and termination.
Compensation • Compensation in lieu of notice
is payable if the notice period is
not served.
• The notice period varies
depending on the length of
service.
• Termination is considered arbitrary
Arbitrary if unrelated to work or prompted
by a valid complaint against the
Terminatio employer.

n • Courts may order compensation


for arbitrarily dismissed workers,
not exceeding three months'
wages.
End of
Service Employers must provide an
end-of-service certificate to
Certificate workers upon contract expiry.

and
Employment contracts remain
Obligations valid in case of changes in the
firm's legal status.
Restrictions and Provisions for Non-
Nationals

• Non-nationals may be subject to restrictions on taking up new


employment after contract termination.
• Employers are responsible for repatriation expenses of non-
national workers at the end of their contracts.
Bank Guarantee • Employers must provide a bank
guarantee to ensure
and Protection of compliance with obligations
Workers' Rights related to repatriation expenses
and entitlements.
• Deductions from the bank
guarantee must be based on
court judgments, except for
specific entitlements owed to
workers.
SEVERANCE
PAY
Entitlement to
Severance Pay
• Workers with one or more years of
continuous service are entitled to severance
pay at the end of their employment.
• Severance pay is calculated based on the
length of service, with 21 days' wage for each
of the first five years and 30 days’ wage for
each additional year.
• Severance pay is based on the last wage
Calculation due for monthly, weekly, and daily paid
and workers, excluding certain allowances
and bonuses.
Deductions • Employers may deduct amounts owed to
them by the worker from their severance
pay.
Specific Cases and Conditions

• Severance pay may not accrue for employment cases preceding the
enforcement of the law, except for nationals, and is subject to pre-
existing rights.
• Workers who abandon their work may be entitled to reduced severance
pay depending on their length of service and circumstances.
• Workers forfeit severance pay if dismissed for specified reasons or if they
abandon employment without notice.
Provisions for Provident Fund and Retirement Schemes

• If a firm has a provident fund, workers receive either the


balance in their account or statutory severance pay,
whichever is greater.
• Workers entitled to a retirement pension can choose
between severance pay or the pension scheme,
whichever is more advantageous.
COMPENSATIO
N FOR
OCCUPATIONA
L INJURIES
Reporting
and • Employers must report work-related
injuries or occupational diseases
immediately to the police and the labor
Investigatio department.

n • The police investigate and compile a


report, which is sent to the labor
department and the employer.
Treatment Costs

Employers must pay for the treatment of work-related injuries


or diseases until the worker recovers or is proven disabled,
including hospital stays, surgeries, medication, and
rehabilitation.
• If an injury prevents a worker from
Cash Allowance working, the employer must pay
During them a cash allowance equal to their
full pay for the period of treatment
Treatment or up to six months, whichever is
shorter.
• The cash allowance is based on the
worker's last wage received.
Medical Reports and
Disputes
• After treatment, the attending physician
provides a report to both the worker and
the employer detailing the injury,
treatment, disability, and fitness for work.
• Disputes regarding the worker's fitness
for work or disability are referred to the
Ministry of Health, which forms a medical
board to assess the situation.
Compensation in Case of Death
• If a worker dies due to a work-related injury or disease, their family members
are entitled to compensation equal to the worker's basic wage for up to 24
months.
• The compensation is distributed among the deceased worker's dependents
according to specific criteria.
Compensatio
If a worker is permanently partially or
n for totally disabled due to a work-related
Disability injury or disease, they are entitled to
compensation at specified rates.
Amendments and
Exceptions
• The Minister of Labor, with the consent of
the Minister of Health, may amend
schedules concerning occupational
diseases and disability compensation
assessment.
• Workers may not be entitled to
compensation if their injury resulted from
willful misconduct, intoxication, violation
of safety instructions, refusal of medical
examination, or other specified reasons.
COLLECTIVE
LABOUR
DISPUTES
RESOLUTION
PROCESS
Definition of Collective
Labour Dispute

It refers to a dispute between an


employer and workers involving the
common interest of all or a group of
workers.
Resolution
Procedures
• Workers submit a written complaint to
the employer with a copy to the labor
department.
• The employer must respond within
seven working days.
• If no resolution is reached, the labor
department mediates.
• If mediation fails within ten days, the
dispute is referred to the conciliation
committee.
Conciliation
Committee
• Each labor department has a
conciliation committee.
• It issues decisions by majority vote
within two weeks.
• Decisions are binding if both parties
agree in writing; otherwise, they can be
appealed to the Supreme Arbitration
Board.
Supreme Arbitration
Board
• Composed of the Minister of Labor and
Social Affairs, a judge of the Federal
Supreme Court, and another appointed
member.
• It settles disputes referred to it by
majority vote, and decisions are final
and binding.
Regulation
s and
Litigation The Council of Ministers issues regulations
for litigation proceedings and efficient

Proceeding functioning of the conciliation committee


and the Supreme Arbitration Board.

s
Finality of Decisions
• Parties cannot raise a dispute again
after a final decision is made, except
with mutual agreement.
• Boards apply relevant laws, Islamic
Sharia law, and principles of equity
and natural law.
Implementation of
Decisions

Decisions of the Supreme Arbitration


Board are implemented in
collaboration with the competent
authority in each Emirate.
LABOUR
INSPECTION
REGULATION
S
Authority and
Responsibilities

• Labour inspectors ensure compliance


with labor laws, provide technical
advice, alert authorities to shortcomings,
and record violations.
• They take an oath of confidentiality and
treat complaints as confidential.
Facilities and Powers
of Inspectors
• Employers must provide facilities and
information to inspectors.
• Inspectors have the power to enter firms
without notice, conduct examinations,
interrogate, examine documents, take samples,
and ensure required notices are posted.
Regulations and
Assistance

• The Minister of Labour and Social Affairs


issues regulations for inspection operations.
• Inspectors notify employers of their arrival
unless otherwise required.
• Inspectors may request alterations for
health and safety and seek assistance from
administrative authorities and police.
• Chief labour inspectors prepare
Reporting monthly and annual reports on
inspection activities, violations, and
and proposals.
Documentation • The Ministry of Labour and Social
Affairs compiles an annual report on
inspection activities, including
statistics and violations.
Qualifications and Training

• Labour inspectors must be impartial, have no direct interest in


establishments they inspect, and pass a test of professional ethics.
• Special training courses cover inspection organization, record
auditing, legal interpretation, industrial technology, and
production efficiency.
PENALTIES
Offences • Violations of the labor law, its regulations,
or orders may result in imprisonment for
and up to six months and/or a fine ranging
from AED 3,000 to AED 10,000.

Penalties • Penalties apply to those obstructing


officials from performing their duties or
divulging work secrets by officials
entrusted with enforcing the law.
Enforcement of Fines
• Fines are not stayed and can be multiplied by the number of
affected workers, not exceeding three times the maximum limit.
• Applicable to specific violations listed in the article.
Penalties may be doubled if a
Repeat similar offence is committed
Offences within one year of a previous
conviction.
Responsibility
Penal proceedings are initiated against the firm's
manager or owner if they were aware of the offence.
• Labor departments may issue orders
Remedial to remedy violations within a
specified period, with expenses
Measures borne by the employer.
• Penal action may be deferred if
advice, guidance, and warnings are
issued first to rectify violations.
CONCLUDIN
G
PROVISIONS
Designation of Labor Departments
The Minister of Labour and Social Affairs will designate labor
departments and offices responsible for implementing the law,
specifying their territorial jurisdiction.
Status of Labor
Department Heads
and Inspectors
Heads of labor departments and
inspectors from the Ministry of Labour
and Social Affairs are considered
judicial officers for enforcing the law
and its regulations.
Fees for
Licensing Fees for employment agency licenses,
and employment visas, work permits, and
related documents will be fixed by the
Documents Minister of Labour, not exceeding AED 500,
unless exempted.

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