The United Arab Emirates (UAE) is one of the most dynamic countries in the Middle East, known for its robust economy and diverse workforce. To maintain fairness and harmony in the workplace, the UAE government has implemented comprehensive labour laws that govern the rights and responsibilities of employers and employees. This guide delves into the essential aspects of the UAE Labour Law and answers some frequently asked questions to ensure compliance and clarity for all stakeholders.
Key Features of UAE Labour Law
1. Applicable Legislation
The primary legal framework governing employment relationships in the UAE is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into effect on February 2, 2022. It applies to all private sector entities in the UAE, except those operating in free zones with their own employment regulations.
2. Employment Contracts
- Fixed-Term Contracts: All employment contracts must be fixed-term, with a maximum duration of three years. These can be renewed or extended.
- Written Agreements: Contracts must be documented in writing, outlining job roles, compensation, and other terms.
3. Working Hours
- The standard working hours are 8 hours per day or 48 hours per week.
- During Ramadan, working hours are reduced by 2 hours per day for Muslim employees.
- Overtime: Employees working beyond the standard hours are entitled to overtime pay, which is calculated at 125% of the basic hourly wage. For overtime between 10:00 PM and 4:00 AM, the rate increases to 150%.
4. Leave Entitlements
- Annual Leave: Employees are entitled to 30 days of paid leave annually.
- Sick Leave: Up to 90 days per year, including 15 days fully paid, 30 days at half pay, and the remaining unpaid.
- Maternity Leave: Female employees are entitled to 60 days of leave (45 days fully paid, 15 days at half pay).
- Paternity Leave: Fathers are granted 5 days of paternity leave within the first six months of the child’s birth.
5. Termination and End-of-Service Benefits
- Probation Period: The probation period may extend for a maximum duration of 6 months.
- Notice Period: A minimum of 30 days’ notice is required for termination, increasing based on service length.
- Gratuity Payment: Employees who complete at least 1 year of service are entitled to an end-of-service gratuity,
6. Anti-Discrimination and Equal Pay
The UAE Labour Law prohibits workplace discrimination based on race, color, sex, religion, nationality, or disability. It also enforces equal pay for equal work between men and women.
How PREMIA TNC Can Help Your E-Commerce Business
Navigating UAE Labour Law can be complex, especially for businesses entering the region or expanding their operations. Premia TNC, a trusted business consultancy, offers a range of services to ensure your company complies with the latest labour regulations while streamlining your HR and employment processes.
Our Services Include:
Employment Contract Drafting and Review
Premia TNC ensures your employment contracts align with UAE Labour Law requirements, such as fixed-term contracts, clear compensation structures, and leave entitlements.
HR Policy Development
We help businesses create compliant and customized HR policies covering working hours, overtime, and workplace safety to ensure seamless operations.
Labour Law Consultation
Our experts provide tailored advice on UAE Labour Law, helping you understand your obligations as an employer and your employees’ rights.
End-of-Service Gratuity Calculations
We assist in calculating end-of-service benefits accurately, ensuring compliance with legal standards and avoiding disputes.
Compliance with Anti-Discrimination Laws
Premia TNC helps businesses implement practices that adhere to anti-discrimination and equal pay regulations, fostering a fair and inclusive work environment.
Payroll Management and Leave Tracking
Our payroll services ensure accurate salary calculations, overtime pay, and leave entitlements, minimizing errors and ensuring compliance.
Labour Law Updates and Training
Stay ahead of regulatory changes with our regular updates and training sessions designed for HR teams and management.
Support for Startups and Foreign Companies
For companies new to the UAE, we provide end-to-end support, including company incorporation, workforce planning, and labour law guidance.
Why Choose Premia TNC?
- Expert Knowledge: With years of experience in the UAE market, our team is well-versed in local laws and best practices.
- Tailored Solutions: We offer customized services that meet the specific needs of your business and industry.
- Comprehensive Support: From setup to ongoing compliance, we provide holistic solutions to ensure your business runs smoothly.
- Cost-Effective Services: Our efficient processes and expertise help you save time and money while maintaining full compliance.
