Know Your Rights: A Comprehensive Guide to UAE Labor Law for Expats

The UAE's thriving economy and cosmopolitan culture attract a diverse expat workforce. Understanding the UAE's labor laws is crucial for expats to ensure a smooth and protected work experience. Here's a comprehensive breakdown of key points to keep in mind:

1) Contract Clarity

The Federal Decree-Law No. 33 of 2021, implemented in February 2022, replaced the previous open-ended contract system. Now, employment contracts are fixed-term, typically for a maximum of three years. This duration can be shorter, but if the contract isn't renewed upon expiry and both parties continue working, it automatically renews under the same terms.

Contracts must be drafted in Arabic, the official language. However, for expats, a certified English translation must be provided alongside the Arabic document. This ensures clear understanding of your rights and obligations. Carefully review both versions before signing.

 

2) Working Hours and Overtime

The standard workweek is 48 hours, spread over six days. Previously, Fridays were mandatory rest days, but now they can be working days. The law mandates at least one rest day per week, as per your contract. This could be Friday, Saturday, Sunday, or a combination depending on your employer's work schedule.

Overtime is capped at two hours per day. Ensure your contract clearly outlines how overtime pay is calculated. Common methods include hourly rate increase, a flat daily rate, or a multiplier on your base salary. Don't hesitate to clarify these details with your employer before encountering overtime situations.

 

3) Leave Allowances

UAE labor law provides for various types of leave with pay:

• Annual leave: You're entitled to a minimum of 30 days of paid annual leave per year. This can be more depending on your contract, your duration of employment and company policy.
• Sick leave: After the end of the probationary period, the worker may be entitled to a sick leave of not more than 90 continuous or intermittent days per year, with the following breakdown: the first 15 days with full pay, the subsequent 30 days with half pay, and the remaining period unpaid.
• Maternity leave: New mothers are entitled to 60 days of maternity leave, with 45 days at full wage and 15 days at half wage. They may take up to 45 days of unpaid leave if sick or their child is sick post-maternity leave. Maternity leave starts 6 months after pregnancy, regardless of childbirth outcome. Maternity leave begins from the last day of the month before expected birth, supported by a medical certificate. Other leaves remain unaffected. Termination due to pregnancy or related absence is prohibited. For 6 months post-childbirth, breaks are allowed for breastfeeding, not exceeding one hour total.
• Parental leave: A parental leave of 5 working days is granted to either the father or mother of a newly born child, allowing them to care for their child. This leave can be taken continuously or intermittently within 6 months from the date of the child's birth.
• Bereavement leave: You're entitled to paid bereavement leave for a specified duration (typically 3-5 days) in case of the death of a close family member.
• Study leave: If you're enrolled in an approved academic program, you may be entitled to study leave with or without pay, depending on your company's policy.
• Hajj and Umrah leave: Private employees are allowed to take up to 30 days of Hajj but this leave is unpaid. While Hajj leave is mandatory, there is no specification for Umrah.

 

4) Wages and End of Service

The UAE has implemented a Wage Protection System (WPS) to ensure timely payment of wages to employees. Under this system, employers are required to pay employees' salaries electronically, with strict penalties for non-compliance. Salaries must be paid in the United Arab Emirates Dirham (AED) and on time, as per your contract. The UAE government sets a minimum wage, which varies depending on your job type and experience level.

Upon termination of your employment, you're entitled to gratuity pay. No gratuity pay is provided for less than a year’s service. You can calculate your gratuity pay based on whether you have a limited or unlimited contract.

• Limited contract: A limited contract has a fixed-term. Employees with 1 to 5 years of service receive full gratuity based on 21 days of basic salary per year. Those with over 5 years of service receive full gratuity based on 30 days of basic salary per year.
• Unlimited contract: An unlimited contract does not have a defined duration of employment. For 1 to 3 years of service, total gratuity is one-third (1/3) of 21 days worth of salary, where the daily rate is the monthly wage divided by 30. For 3 to 5 years of service, gratuity is two-thirds (2/3) of 21 days salary. For service over five years, full gratuity is based on a 21-day salary multiplied by the number of years worked.

Employers are legally obligated to settle gratuity payments within a specified timeframe after termination of employment, typically within 30 days. You can calculate your gratuity pay on this Dubai Development Authority gratuity calculator.

 

5) Safety and Wellbeing

Employers have a legal obligation to provide a safe work environment and implement necessary health and safety protocols. This includes providing appropriate personal protective equipment (PPE) for hazardous jobs, ensuring workplace cleanliness, and conducting regular safety inspections.

 

Understanding these labor laws is essential for individuals working in the UAE to ensure compliance, protect their rights, and foster a fair and respectful work environment. Employers should familiarize themselves with these regulations to uphold their legal obligations and promote a culture of compliance and integrity in the workplace.

Disclaimer: These are an overview of the UAE’s labor laws, for more information please refer to Ministry of Human Resources & Emiratisation (MOHRE) as your primary point of contact for information, dispute resolution, and filing complaints. Their website, https://www.mohre.gov.ae/en/home.aspx, provides information and resources in English. They also have a customer service hotline you can call for assistance on 600590000.