Uae labour law defined key terms in uae labour law. Employment issues in the uae are governed by federal law no. When calculating the potential maximum esg, it should be noted that any unpaid leave will not be counted towards the length of service. The following is the work law, as distributed by the uae ministry of labor, with respect to endofservice gratuity pay. Labour regulations in the uae are governed by the uae labour law federal law no. The uae labour law is dynamic and is subject to change. Any job or position involves regular working hours, official leaves, and vacations. As per article 123 of the uae labour law, if arbitrary dismissal is proven, the court will order the employer to pay a compensation to the employee. May 01, 2018 this law applies to all uae employees. Sep 02, 20 this gratuity is subject to a cap equal to the aggregate of two years of basic salary. Uae labour law gratuity calculation as per article 2 of the uae federal labour law, and in respect to the endofservice gratuity we quote the following. If an employee has served more than 5 years, he is entitled to full 21 days basic salary as gratuity pay.
Gratuity calculator,gratuity calculation in uae,uae gratuity. Besides the uae labor employment law and you must read mol resolutions that. Oct 27, 20 overview of uae labour law and employee relations. Uae labour law article 1 repeated added by federal law no. The new uae labour law that has come into effect changes 3 main aspects of the uae labour law. In the case of an employment agreement for a unilimited term, an employee who completes one year or more in continuous service shall be entitled to gratuity at the end of their. Title two employment of workers and youth and women labour.
Apr 12, 2016 the uae labour law sets out a prescriptive formula for calculating gratuity and whilst it does not expressly state that this benefit is payable in relation only to service in the uae this is. The uae labour law has set the number of working hours per week at 48 hours, and employers who compel workers to exceed this limit without paying them are violating labour rules. Work is a right of this united arab emirates nationals. This gratuity is subject to a cap equal to the aggregate of two years of basic salary. We valued your time but unfortunately we cannot find an exact result for the keyword that you searched. Your employment contract will detail your working conditions, as set by the law everything from annual leave to working hours, gratuity to maternity leave. Uae labour law encourages employees to remain in their employment for a reasonable period. End of service benefits comparison of gratuity under the uae. The labour law in the uae stipulates that the work time is eight hours a day for a maximum six days a week. Only the arabic version is valid in a uae court of law though. Difc employment law, on the other hand, grants vacation leave of twenty 20 working days per year to the employees who have been employed for at least. If the worker is engaged on probation and is dismissed during the.
Article 37 of the uae labour law says a worker may be employed on probation for a period not exceeding six months, during which the employer without. Please ensure to doublecheck with the latest uae labour law stipulations by contacting the ministry of. It is or was available in english online at the uae ministry of labour mol website and in bookshops, and is. May 11, 2017 the uae labour law has set the number of working hours per week at 48 hours, and employers who compel workers to exceed this limit without paying them are violating labour rules. Make sure you know how to calculate your endofservice gratuity pay correctly. The hierarchy of importance stipulated above ie, uae nationals first, followed by nationals of. Gratuity is calculated based on the latest drawn basic wage. The difc laws also calculate the gratuity as 21 days of basic salary. The uae labour law has been supplemented over the years by cabinet resolutions and. Employment of workers children and women section i. According to article 3 of the law, the law applies to all employees and workers in the uae including uae nationals and expatriates. Get this publication free you may also be interested in.
End of service gratuity in the uae explained global. According to article 3 of the law, the law applies to all staff and employees working in the united arab emirates, whether uae national or expatriate. The accompanying content originates from the uae ministry of labors uae labor law. Mar 30, 2009 as per article 2 of the uae federal labour law, and in respect to the endofservice gratuity we quote the following. Check how to calculate the end of service gratuity and. Dmcc has prepared the following sample calculations for your guidance in the event of termination of limited and unlimited types of employment contracts. Article 10 in the event of nonavailability of national workers, preference shall be given to. Employment law essentials hr practitioner perspective saliha latif head of hr 2.
Fmc mergers and acquisitions in canada 49 labour relations and employment considerations introduction when acquiring the shares or assets of a canadian private or public company, a number of employment issues need to be addressed. The general practice among companies in the uae is to have a beneficiary form to be. New uae labour law 20172018 download pdf basically, the uae labour law speaks about the following. End of service benefit eosb calculation the end of service benefit eosb calculation is a key employment issue for employees and employers across the uae, including our member companies. Check article 4 of the labour law here to get clarification on what this. No gratuity for these employees in uae uae labours. Labor law in the united arab emirates, it is essential that you know your rights as an employee or you are at least familiar with some of the things in the uae labour law for you not to simply sign away a document without knowing. Jan 15, 2017 under article 37 of the difc law, difc employees benefit from a longer maternity leave than mainland company employees. Apr 10, 2017 the uae labour law covers all the essential regulations with respect to remuneration, end of service benefits, terminations, leaves holidays, and types of labour contracts.
In this post you will be able to download latest uae labour law 2018 in pdf. The uae labour law ministry of human resources and emiratisation. Gratuity calculated on last basic salary news khaleej. Azhari legal consultancy is widely experienced in structuring and drafting labour agreements for locals and expatriates. Please ensure to doublecheck with the latest uae labour law stipulations by contacting the ministry of labour.
Article 65 of uae labour law states that the ordinary workhours for an adult worker is eight hours per day, i. Understanding your worker rights is an essential piece of living and working in the uae. Providing that the employee has been employed for at least 1 year and has met the required notification requirements specified in the law, she will be entitled to a minimum maternity leave of 65 working days. This law applies to all uae employees understanding your employee rights is a very important part of living and working in the uae. As per the article 2 of uae labour law, it is mentioned that. The employee who has completed one year or more in the continuous service, is entitled to the end of service remuneration at the end of his service. Labour employment law small companies to business owners and employees generally have to navigate the complex and somewhat unique labour law of the uae.
The court will assess the value of compensation taking into account the type of work, the extent of damage incurred to the employee and the duration of the employment. Repatriation expenses as per the law or the employment contact, subject to the employee not being in violation or in breach of either the law or the employment contract. A worker who has completed a period of one or more years of continuous service shall be entitled to severance pay on the termination of his employment. There are no general restrictions in federal law 81980, as amended. The ministry of labour entitles the employee who completed two years in service with the employer to transfer to a new employer without the need for no objection certificate but for this purpose it required that the. Gratuity in uae, end of service calculator, gratuity calculator uae. An unlimited contract term is openended and may be terminated for various reasons under the uae labour law. Since the issues in share acquisitions are very different from asset purchases. Annual leave uae labour law, article 75 every worker shall, within each year of service, be granted a period of annual leave of not less than. Gratuity calculated on last basic salary news khaleej times. New uae labour law 2017 2018 pdf,uae labor law employment. Work is a right of the united arab emirates nationals. Non nationals may not engage in any work within the state except in accordance with the conditions stipulated in this law and its executive orders.
Search for labour law uae pdf download in our website welcome to, your partner for building up a career in dubai uae which also includes other areas of united arab emirates uae like sharjah, abu dhabi, al ain, ras al khaimah, fujairah, um al quwain. Federal law no 8, for 1980, on regulation of labour relations 2. Learn the differences between limited term contract and unlimited term contract in the uae labour law. The uae labour law sets out a prescriptive formula for calculating gratuity and whilst it does not expressly state that this benefit is payable in. Others may not by employed in the united arab emirates except as provided for in this law and its executive orders. Uae labour law article the provisions of uae labour law uae labour law article 128 and 129 exempt nonnational employee who obtains prior approval of the minister of labour and social affairs before taking up another employment with the approval of the original employer.
This can be extended to nine hours but this extra hour must be. Non payment of salary if you find yourself in the situation where you have not been paid including women on maternity leave, you can file a case with the uae labour department which. The uae labour law caps the total amount of end of service gratuity at two years worth of salary. The gratuity entitlement cannot be waived or contracted out of, but it can be replaced by a. A guide to employment law across the mena region sharkawy. Gratuity calculator,gratuity calculation in uae,uae. Employment of workers article 9 work is an inherent right of the nationals of the united arab emirates. Under uae labour law, all national holidays made by law or agreement, weekends andor sick days, if any, will be part of the annual leave if such days fall within the period of annual leave. The full text version of the uae labor law including its amending texts is available on the site. An unlimited contract has only a start date without any end date. Nov 24, 2009 repatriation expenses as per the law or the employment contact, subject to the employee not being in violation or in breach of either the law or the employment contract.
This page will be continuously updated to communicate any new advancements to the uae labor law. Below is the original text of the uae federal labour law with the section on gratuity payments. How to calculate uae gratuity pay employment gulf news. Uae labour law which contain the rights of each and every person who is residing or working in any state of emirates under uae law and. The uae labour law covers all the essential regulations with respect to remuneration, end of service benefits, terminations, leaves holidays, and types of labour contracts. We have noticed a trend where employers enhance their end of service gratuity to retain key talent. In the united arab emirates, it is essential that you know your rights as an employee or you are at least familiar with some of the things in the uae labour law for you not to simply sign away a document without knowing that the employer is already violating your right as an employee. Article 86 if a staff member resigns from service because of illness prior to the lapse regarding the very first 45.
If the employer fails to abide by obligations under article. Termination of employment contract and end of service gratuity. Given the huge number of expatriates employed in the uae, it is significant to know some of the key terms contained in the uae labour law and in many employment contracts and this article aims to outline some of these. Of 1980 is the legislation that governs uae labour law. Federal law no 8, for 1980, on regulation of labour relations chapter vii. Regular working hours for the private sector is 8 hours per day or 48 hours per week article 65. If the worker adopts a false identity or nationality or submits forged certificate or documents. Uae labour law also lists basic rule for gratuity calculation. Uae labour law limited contract and unlimited contract al.
Calculating what is in your end of service gratuity the. Under article 37 of the difc law, difc employees benefit from a longer maternity leave than mainland company employees. Uae labour law quotes are taken from the english version of the federal law no 8, 1980, on the regulation of labour relations. Anyone of both parties may terminate the employment contract under unlimited term with a 30 days notice period. Title two employment of workers and youth and women labour title three employment contracts, records and wages title four working hours and leaves title five safety, protection health and social care of workers title six disciplinary rules title seven termination of employment contract and end of service gratuity.
Terminating employment contracts the official portal of. Welcome to the united arab emirates labor law website. Below is the labour law, as published by the uae ministry of labour, with regards to endofservice gratuity pay. Here you can find information pertaining to the united arab emirates labor law both in the private sector and public sector as promulgated by the ministry of labour. We, zayed bin sultan al nahyan, president of the united arab emirates. Issues such as performance management, arbitrary dismissal and termination matters are high on the agenda. What date should be considered as joining date as per uae law. Seven termination of employment contract and end of service gratuity.
End of service benefits for employees in the private sector. Gratuity pay is calculated based on the most recent salary paid into your account without allowances andor bonuses. New uae labour law 2017 2018 pdf,uae labor law employment law. The law is clear that if an employee is leaving the job within the first three years, he is entitled to one third of the end of service gratuity as per article 7 of the uae labour law. If an employee has served between 3 and 5 years, he is entitled to twothirds 23 of 21 days basic salary as gratuity pay. Pensions and end of service benefits the official portal of the uae. In application of the provisions stated in the preceding clause, the expenses of employers repatriation shall mean the cost of his travel ticket and whatever is provided for in the employment contract or in the bylaws of the establishment, such as the. Following are the official uae labor law pdf articles that should be follow by both employer and employee which includes the full details of employment contract of workers, salaries of workers, occupational injuries during work, end of service gratuity, working hours, annual leaves, termination, resignation and much more. Deceased employees family will get endofservice dues. Federal labour law number 8 covers most of the essential rules and regulations you need to know with respect to salaries, termination, gratuity etc. You can find information pertaining to united arab emirates labor law both in the. This is an interesting contrast to the uae labour law which.
Free zones in the uae some or all, check are not covered by uae labour law unless both employee and employer agree that it applies ref. The united arab emirates labor law website also contains resources for understanding the current economic situation in the uae labor law, migrant rights, and other helpful tools to assist with further analysis of labor related functions in the country. In this context we attach importance to the fact that in particular foreign employers might be not aware of the specialities of the uae labour law, e. The basic salary shall not include any housing or other allowances.
Uae labour law download click to download if you are employed in the uae, youd have surely heard about the new uae labour law or uae employment. End of service benefits comparison of gratuity under the. What is an unlimited contract in the uae labour laws. Emiratis receive pension in accordance with federal law no. Strict enforcement of labour laws may lead to penalties for noncomplying companies january 11, 20 in brief although there are no personal income tax obligations in the united arab emirates uae, there are certain mandatory requirements that employers are expected to comply with. The wording set out in law is clear as to how the benefits should be calculated and this is what uae labour law says on the topic in article 7. When it comes to the private sector, here is what the uae labour law says regarding these matters. E visa rules 83 uae labour law 70 uae labour law news 41 dubai property law 23 uae ministry of labour 10 emirate id 9 ministry of labour 8 uae company law 8 dubai health authority 7 property law 7 visit visa 5 amnesty 2012 4 business options in the uae 4 difc law 4. Dec 16, 2010 frequently asked questions uae labour law 146 u. Understanding your employee rights is a very important part of living and working in the uae. This can be extended to nine hours but this extra hour must be deducted from work. There are special labour related regulations applicable in some of the free zones in the uae, such as the jebel ali free zone. Labour matters in the uae are governed by federal law no.
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