It’s no secret that the legal system in the UAE has a number of features. And it is quite important to know the features when you are going to hire someone or be hired.
Employment relationships in the UAE are regulated by the Labour Law of 1980 (hereinafter the Law), there are additions and adjustments in the form of decrees and resolutions of the Cabinet of Ministers and the supervising Ministry. As a general rule Free zones have the right to issue their own rules and regulations for the regulation of labour relationships, which nevertheless must not conflict with the Law.
The law is sufficiently detailed, its norms regulate the issues of working time, annual leave, termination of labor relations and some other issues related to work.
Here are some of the key provisions of the labour law:
Term of the contract.
The contract can be Fixed-term and Open-ended. There is a general rule if a contract was concluded for a certain period, and the parties continued their legal relationships after it finished, then this contract is transformed and will be considered to be concluded for an Open-ended.
The maximum probation period may be 6 months. At this stage, the parties can terminate the contract either without notice or the notice period will be very shortened (from 3 to 7 days). The employee in this case is not entitled to severance pay. Neither party should give reasons for terminating a contract.
The law does not establish a minimum wage but specifies that wages should cover the basic needs of employees. It should be borne in mind that in practice, workers can be provided with housing, transportation, food, etc. are compensated. All these moments should be reflected in the contract. The employer, at his own expense, obligatory provides health insurance to the employee.
A day off in the UAE is Friday. If the contract provides for a five-day working week, then as a general rule, the days off will be Friday and Saturday.
In the UAE there are 8 official holidays, 12 non-working days, which the employer is obliged to pay. But there is no rule about transfer t of non-working days, so if the holiday falls on a Friday, it can not be transferred to the next business day. An employee is generally entitled to 30 calendar days of paid leave after working for one year.
Termination of employment.
Labour relations can be terminated on the initiative of both the employee and the employer, as well as by mutual consent. As a general rule of the parties, the notice period is 30 days. The law sets out an exhaustive list of cases where the contract is terminated without prior notice.