WORKING HOURS
Article 65 of the UAE Labour Law identifies the normal business working hours within the private sector which is set out as 8 hours per day or 48 hours per working week. Working hours can be increased to 9 hours per day for businesses once approval is received from MoHRE. Most business employees working a 9 hour day are within the hospitality, consultancy, and food and beverage industry.
The only entities not governed by Labour Law are Government entities where employees operate for 7 hours per working day.
Employees that are working in arduous, unhealthy working conditions and industries are also restricted to work for 7 hours per day and it is prohibited to work longer and over the 7 hours.
Within the private sector, during the month of Ramadan normal working hours are reduced by two hours daily.
OVERTIME
Once an employee is requested to work beyond normal working hours this is considered as overtime. The employee is entitled to pay equal to normal working hours’ remuneration plus 25 per cent of that pay. It may increase to 50 per cent if overtime is completed between the time period of 9pm to 4am.
OFFICIAL LEAVE AND VACATIONS
Officially the weekend starts on Saturday and this typically applies to all workers, excluding those workers on daily wages. If it calls for an employee to work overtime during a Saturday, the employee will be entitled for normal working hours’ pay and an increase of not less than 50% of that sum.
PUBLIC HOLIDAYS
All employees are entitled for paid leave during the following 8 public holidays:
- Hijri New Year – 1 day
- Gregorian New Year – 1 day
- Eid Al Fitr – 2 days
- Waqfa day and Eid Al Adha – 3 days
- Prophet Mohammed’s birthday – 1 day
- Isra and Miraj or the Ascension Day – 1 day
- Martyr’s Day – 1 day
- National Day – 1 day
ANNUAL LEAVE
Each employee is entitled to annual leave and this typically applies as:
- 2 days per month, if they have fulfilled six months of service but less than one year
- 30 days annual leave, if they have finished one full year of service.
SPECIAL LEAVE
An employee might be approved special leave without pay, it may not exceed 30 days for the performance of Hajj during their employment service. This may be granted only once in the course of their total years of employment.
SICK LEAVE
During a period of employment an employee is able to take sick leave of not more than 90 days per year subject to conditions stipulated in the law. The sick employee will receive full pay for the first 15 days, half pay for the next 30 days and no pay for the rest 45 days.
MATERNITY, CHILDCARE LEAVE
Female employees are eligible to 45 full day’s pay for maternity leave so long as she has fulfilled at least one year’s employment service. Where an employee has not yet completed one year of service will be entitled to half pay for maternity leave. Furthermore, the female on maternity leave has the capacity to extend her leave at an unpaid rate for up to a maximum 10 days.
During the first 18 month following delivery of the baby, the female employee nursing their child is able to have two paid rest intervals per day, which do not exceed 30 minutes, in order to complete this task. Working fathers are not provided paternity leave under UAE Labour Law.
PROHIBITION OF ALCOHOL ON WORK PREMISES
No employer or employee may bring or allow others to bring any kind of alcoholic drinks for consumption on work premises.
REDUCTION IN WORKING HOURS
During the hot summer period and at the hottest time of the day construction and industrial workers are not permitted to work. Should a company enforce or have staff work during the designated break time they will be fined anywhere from AED 5,000 up to AED 50,000 per labour worker.
MINIMUM SALARY
Currently, there is no set minimum salary specified in the UAE Labour Law, however, it does reference that salaries need to cover the basic needs of a company’s employees.
Article 63 of the law states that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet.
WAGE PROTECTION SYSTEM (WPS)
WPS is a key step to guarantee and safeguard the rights of workers, and to form trust between a company and its employees. Under WPS, the salaries of employees will be transferred to employee’s accounts in banks or financial institutions that are authorized by the Central Bank of the UAE to provide a service. Employees can contact MoHRE service eNetwasal for any concerns or complaints regarding their salary.
END OF SERVICE BENEFITS
Should an employee resign of their free-will before completing one year, they will not be entitled to any form of gratuity payment. Whereas, if an employee completes one year of continuous service and resigns, they are entitled to a gratuity for the services fraction of a year.
Working out the end of service gratuity is calculated on the base of the last wage that the employee was entitled to (the basic salary). Additional allowances such as: housing and transportation etc. is not included as it will be only the main basic salary. During the end of service calculation should an employee owe any money to the company/employer, the employer can automatically deduct the amount from an employee’s total gratuity payout.
Under a limited contract – calculations for gratuity will be as follows:
- If an employee has served for less than 1 year, they are not entitled to any gratuity pay.
- If an employee has served more than 1 year but less than 5 years, they are entitled to full gratuity pay based on 21 days’ salary for each year of work.
- If an employee has served more than 5 years, they entitled to full gratuity pay based on 30 days’ salary for each year of work.
Under an unlimited contract – calculations for gratuity will be as follows:
- If an employee has served for less than 1 year, they are not entitled to any gratuity pay.
- If an employee has served more than 1 year but less than 5 years, they are entitled to 21 calendar days’ basic salary for each year of the first five years of work.
- If an employee has served more than 5 years, they are entitled to 30 calendar days’ basic salary for each additional year, provided the entire compensation does not exceed two years’ pay.
In the event where the employee under an unlimited contract resigns, calculation will be as follows:
- If an employee resigns before completing 1 year of service, they are not entitled to any gratuity pay.
- If an employee has served between 1 and 3 years, they are entitled to one third (1/3) of 21 days’ basic salary as gratuity pay.
- If an employee has served between 3 and 5 years, they are entitled to two-thirds (2/3) of 21 days’ basic salary as gratuity pay.
- If an employee has served more than 5 years, they are entitled to full 21 days’ basic salary as gratuity pay.
FREE ZONES
Employees that work in free zones are typically not governed by UAE Labour Law. Each Dubai, Abu Dhabi and North Emirates free zone (there are over 50 UAE free zones) has its own employment/labour law. Therefore, employees are subject to the regulations of their respective free zone authority.
Free zone employees are set out under a contract with the respective free zone authority. The conditions specified in the employment contract must be in accordance with the Labour Law. Free zone employees are sponsored by the respective free zone and not their employer and must comply to the respective free zone authority rules.
For more information regarding the laws that govern free zones click on the link Complying with labour laws to learn more. Get a free consultation to learn more 📧 info@creationbc.com or 📞 UAE +97148786240.
