Dubai has a rather highly-developed system of employment with a truly diverse population. No matter whether you are an employer or employee, basic knowledge of the Employment and Labor Law of Dubai is essential to create a healthy, effective and legal work relationship between an employer and its employees. From contracts to termination procedures, the legal aspect is very comprehensive. Here's a breakdown of everything you might need to know regarding Dubai's employment regulations.

Why Understanding Employment Law Matters

“Knowing the law is the best way to protect yourself and ensure a fair workplace for everyone.”

That is why the knowledge of local labor laws is very important for both employers and employees in Dubai, where a large part of the population is expatriates. It will also prevent people from falling foul of the law or facing penalties, including fines, as well as losing employment. Seeking advice from Dubai advocates can provide clarity and ensure compliance.

UAE’s employment laws comprise of Federal Law No. 8 of 1980, also known as the UAE Labor Law, has been amended in recent years. It applies to all employees of federal companies and organizations both Emirati and foreign workers excluding those in free zones like DIFC.

Key Aspects of Dubai’s Employment Law

1. Employment Contracts

A written employment contract is not just a formality; it’s a legal necessity. Under UAE Labor Law, all employers are required to provide written contracts that clearly outline the terms and conditions of employment. If you need guidance on drafting or reviewing a contract, consulting a law firm in Dubai can ensure it meets all legal requirements.

The contract must specify the following:

• Job description: Clearly define the role and responsibilities.
• Salary and benefits: What the employee will earn, including allowances, bonuses, and any in-kind benefits like housing or transportation.
• Contract duration: Whether it’s a fixed-term or indefinite contract.
• Work hours: The typical working hours and any overtime expectations.

Example:

An employee in Dubai was hired under a verbal contract and later found themselves embroiled in a legal dispute over unpaid overtime. A written contract could have prevented this issue by clearly defining work hours and compensation.

2. Working Hours and Overtime

Under the UAE Labor Law, the standard workweek is capped at 48 hours, typically divided into six 8-hour days. However, working hours can vary depending on the industry and specific job role. If you need advice on working hours or overtime policies, consulting a legal firm in Dubai can help ensure compliance.

During the holy month of Ramadan, working hours are reduced to six hours per day for all employees, regardless of their contractual terms. Employers are also required to pay overtime for work performed beyond the standard hours at a rate of 1.25 times the regular wage.

“Work-life balance isn’t just a nice-to-have; it’s a right guaranteed by the law.”

3. Salaries and Benefits

Salary disputes are one of the most common issues in employment law. The UAE Labor Law stipulates that employers must pay employees on time, in full, and in the currency agreed upon in the contract. This also includes allowances for housing, transport, and other agreed benefits.

End-of-Service Benefits (Gratuity)

Employees who work for a minimum of one year are entitled to an end-of-service gratuity, which is a lump sum paid to the employee upon termination of the contract. This benefit is calculated as follows:

• 21 days’ salary for each year of the first five years of service.
• 30 days’ salary for each subsequent year of service.

This gratuity is calculated based on the employee’s last drawn salary.

4. Termination and Resignation

Terminating an employment contract or resigning is not as simple as just giving notice. Both the employer and employee must follow specific procedures laid out by the law.

• Termination by Employer: If the employer decides to terminate the contract, they must have a valid reason as per the UAE Labor Law, such as employee misconduct or underperformance. In such cases, the employer is required to provide notice as per the contract terms, usually 30 days. For unjust termination, employees can file for compensation.
• Termination by Employee: Employees also have the right to resign, but they must follow the appropriate notice period stipulated in the contract, which is usually 30 days. If the employee leaves without proper notice, they may face a penalty or a deduction from their end-of-service benefits.

5. Health and Safety Regulations

Employers are legally obligated to maintain a safe working environment for their employees. According to the UAE’s Federal Law No. 8 of 1980, companies must ensure that workplaces are free from hazards and provide all necessary equipment to protect workers from accidents or injury.

• Employers must provide personal protective equipment (PPE) when required.
• Adequate training must be provided for employees who handle dangerous equipment or hazardous materials.
• Employees are entitled to medical care and compensation for work-related injuries or illnesses.

Employment Law in Free Zones: A Special Case

If your business operates in a free zone like the DIFC, be aware of distinct legal differences. The DIFC has its own employment laws, offering more flexibility on employee rights, such as working hours, termination, and overtime. It also has a separate dispute resolution process through DIFC Courts.

Dispute Resolution and Employee Rights

The UAE has a clear process for handling employment disputes. Employees who feel unfairly treated can file a complaint with the Ministry of Human Resources and Emiratisation, and unresolved cases may go to labor courts. Employees in free zones like DIFC can also seek resolution through the DIFC Courts, where DIFC lawyers specialize in commercial and employment disputes.

Conclusion: Safeguarding Your Rights in Dubai

"Knowledge is power, and knowing your rights ensures a smooth career."

If you have problems with your employment contract or workplace rights, you need professional legal advice.

Call to Action

For more guidance about your rights in Dubai's Employment Law or you're disputing with one in the office, call out our Dubai lawyers and legal consultants for an advisory. Find a helping hand through Alqada Claim Recovery Services today!