Dubai’s rapid growth as a global business hub has made it a melting pot of diverse cultures and a hotspot for career opportunities. As the city continues to attract talent from around the world, understanding Labour Law Dubai becomes crucial for both employees and employers. At MacDebtCollection, we are committed to providing detailed insights into the rights and obligations of both parties under the UAE Labour Law. This guide covers everything you need to know, from employment contracts and working hours to termination policies and dispute resolution.
1. Overview of UAE Labour Law
The UAE Labour Law is primarily governed by Federal Decree-Law No. 33 of 2021, which replaced the previous law to offer more flexible and modern regulations. The law is applicable across all emirates, including Dubai, and covers both the private sector and free zones, with some exceptions like the DIFC and ADGM, which have their own regulations.
Key objectives of the law include:
- Ensuring fairness and protection for employees.
- Providing clarity for employers on their rights and responsibilities.
- Promoting a balanced and sustainable work environment.
2. Employment Contracts in Dubai
Types of Contracts:
Under the updated Labour Law, all employment contracts must be fixed-term, not exceeding three years, but they can be renewed. Unlimited contracts are no longer allowed. Contracts should clearly state job title, salary, working hours, leave entitlements, and termination conditions.
Probation Period:
The probation period must not exceed six months, and employers are required to provide a written notice of 14 days if they wish to terminate the contract during this period.
Key Takeaway:
Employees should carefully review their contracts and seek legal advice if any terms appear unclear or unfair.
3. Working Hours and Overtime
Standard Hours:
The maximum working hours are 48 hours per week and 8 hours per day. During Ramadan, working hours are reduced by 2 hours daily.
Overtime Compensation:
Employees who work beyond standard hours are entitled to overtime pay at 125% of their hourly wage or 150% if they work between 10 PM and 4 AM.
Key Takeaway:
Employers must maintain transparent records of working hours to avoid disputes.
4. Leave Entitlements
Annual Leave:
Employees are entitled to a minimum of 30 days of paid annual leave after completing one year of service. Those with less than a year of service are eligible for 2 days of leave per month.
Sick Leave:
After the probation period, employees are entitled to 90 days of sick leave per year, which includes:
- 15 days fully paid
- 30 days half-paid
- 45 days unpaid
Maternity and Paternity Leave:
- Maternity Leave: 60 days (45 days fully paid + 15 days half-paid).
- Paternity Leave: 5 days of paid leave within six months of childbirth.
5. Termination and End of Service Benefits
Termination Conditions:
Employers can terminate employees with a valid reason, following a notice period of 30 to 90 days. Dismissal without notice is permitted only for serious misconduct as defined by the law.
Gratuity Pay:
Employees who have completed one year of service are entitled to end-of-service gratuity, calculated as:
- 21 days of basic salary for each of the first five years.
- 30 days of basic salary for each additional year.
Gratuity is forfeited only in cases of gross misconduct or if the employee resigns before completing one year of service.
6. Wage Protection System (WPS)
Implemented by the Ministry of Human Resources and Emiratisation (MOHRE), the Wage Protection System ensures that employees receive their salaries on time through registered banks. Employers failing to comply face penalties, including fines and business suspensions.
7. Anti-Discrimination and Harassment Policies
The law strictly prohibits discrimination based on race, gender, religion, nationality, or disability. Sexual harassment and bullying are also banned in the workplace, with provisions for legal action against violators.
8. Resolving Labour Disputes
Filing a Complaint:
Employees can file complaints with the MOHRE if they believe their rights have been violated. Mediation is the first step, followed by potential escalation to the Labour Court if a resolution isn’t reached.
Legal Assistance:
At MacDebtCollection, our legal experts specialize in resolving labour disputes efficiently. We offer comprehensive support, from preparing documentation to representing clients in negotiations and court proceedings.
9. Key Amendments in the 2021 Labour Law
- Flexible Work Models: Introduction of part-time, temporary, and freelance contracts.
- Equal Pay: Mandates equal pay for men and women for the same role.
- Non-Compete Clauses: Must be reasonable in terms of time, geography, and scope.
10. How MacDebtCollection Can Help
Navigating Dubai’s labour laws can be complex. MacDebtCollection offers specialized services to help both employees and employers understand and uphold their rights and responsibilities. Our expertise includes:
- Reviewing employment contracts.
- Advising on compliance with UAE Labour Law.
- Representing clients in disputes and legal proceedings.
Contact us today to learn more about how we can assist you in resolving labour issues quickly and effectively.
Conclusion
Understanding Labour Law in Dubai is essential for a harmonious workplace. With continuous updates and evolving regulations, staying informed is key. MacDebtCollection is here to guide you through every step, ensuring your rights are protected and your business remains compliant.
For expert advice on Dubai Labour Law, contact MacDebtCollection now!
