Employment Contracts and Laws in United Arab Emirates

1. What are the legal requirements for an employment contract in United Arab Emirates?


The legal requirements for an employment contract in United Arab Emirates include the following:

1. Offer and Acceptance: The contract must be based on a mutual offer and acceptance between the employer and the employee.

2. Written Form: All employment contracts must be in writing, in either English or Arabic, and signed by both parties.

3. Duration of Contract: The contract should state the start and end date of employment unless it is a permanent contract.

4. Job Title and Description: The contract should clearly state the job title, duties, responsibilities, and work location of the employee.

5. Working Hours: The normal working hours per day are 8 hours or 48 hours per week. Any additional hours may require overtime pay.

6. Probation Period: An employment contract may include a probation period of up to six months during which either party can terminate the contract without notice.

7. Remuneration: The contract should outline the salary and benefits provided to the employee including bonuses, commissions, allowances, insurance coverage, etc.

8. Termination Notice: Both parties must agree on a notice period for termination of employment before the expiry date of the contract.

9. Termination Clause: The contract should specify reasons for termination such as resignation, retirement, dismissal, redundancy or mutual agreement.

10. End of Service Benefits: An employment contract must specify end-of-service benefits provided to employees upon completion of their service such as gratuity pay, leave salary, repatriation costs, etc.

11. Non-Competition Clause: Employers may include a non-competition clause prohibiting employees from working with competitors or starting their own business in similar fields during or after their employment with them.

12. Confidentiality Agreement: Employers may have employees sign a confidentiality agreement to protect company information from being disclosed to third parties during or after their employment term.

13. Visa Sponsorship Clause: Since expatriates need visas to work in UAE, the contract must clearly state who will be responsible for obtaining and paying for the employee’s visa.

14. Agreement on Other Terms: Employers may include any other terms and conditions in the contract that are not in violation of UAE labor laws.

15. Legal Requirements: The employment contract must comply with all relevant laws and regulations of UAE.

It is important for both parties to ensure that the employment contract accurately reflects their rights and obligations to avoid any legal disputes in the future. It is recommended to seek legal advice before signing an employment contract in United Arab Emirates.

2. Is it mandatory for an employment contract to be in writing in United Arab Emirates?


Yes, it is mandatory for an employment contract to be in writing in United Arab Emirates. According to the UAE Labour Law, all employment contracts must be in writing and signed by both the employer and the employee. This includes important details such as job title, salary, working hours, benefits, and other terms and conditions of employment. Having a written employment contract helps protect the rights and interests of both parties and serves as evidence in case of any disputes.

3. Can an employer modify the terms of an employment contract without the employee’s consent in United Arab Emirates?


No, an employer cannot modify the terms of an employment contract without the employee’s consent in United Arab Emirates. Any changes to the contract must be mutually agreed upon by both parties and should be done in accordance with UAE labor laws. The contract is a legally binding agreement between the employer and employee, and any modifications to it must follow proper procedures and be approved by both parties.

4. Are there any specific laws or regulations governing part-time contracts in United Arab Emirates?


Yes, part-time contracts are governed by the UAE Labour Law, specifically Articles 42-50. The law states that a part-time contract is one where an employee works for less than eight hours per day or less than 48 hours per week.

Some key points related to part-time contracts in the UAE include:

1. Rights and Benefits: Part-time employees have the same rights and benefits as full-time employees, including leave entitlements, overtime pay, end-of-service benefits, and access to healthcare and social security.

2. Hourly Wages: Part-time employees are entitled to receive wages at a rate comparable to full-time workers performing similar duties.

3. Contract Duration: Part-time contracts can be for a fixed term or indefinite, with the duration depending on the nature of the work.

4. Probation Period: A probation period can be agreed upon in a part-time contract but cannot exceed six months.

5. Work Hours: Part-time employees cannot be made to work more than five consecutive hours without a break of at least half an hour.

6. Annual Leave: Part-time employees are entitled to annual leave on a pro-rata basis according to the number of days worked during the year.

7. Health and Safety: Employers must ensure that part-tiime employees receive proper training and necessary protective gear for their safety on the job.

8. Termination: Both parties can terminate a part-tiime contract by giving notice as specified in the contract or by mutual agreement.

9. End-of-Service Benefits: Part-tiime employees are also entitled to end-of-service benefits if their contract is terminated after completing at least one year of service.

It is important for both employers and employees to comply with these laws when entering into part-tiime contracts in the UAE.

5. What are the maximum working hours allowed under a standard employment contract in United Arab Emirates?


The maximum working hours allowed under a standard employment contract in the United Arab Emirates is 8 hours per day or 48 hours per week. This excludes breaks and rest periods, which should be at least one hour for every five consecutive hours of work. Overtime work is also limited to a maximum of 2 hours per day, unless it is necessary due to unforeseen circumstances or emergency situations.

6. In case of termination, what severance pay is owed to an employee under a fixed-term contract in United Arab Emirates?


Under the United Arab Emirates (UAE) Labor Law, there is no specific provision for severance pay for employees on a fixed-term contract. However, the law does provide for end of service gratuity, which serves as a form of severance pay for all employees, including those on fixed-term contracts.

End of service gratuity is calculated based on the employee’s basic salary and length of service. For employees who have completed at least one year but less than five years of continuous service, they are entitled to 21 days of basic salary for each year of service. For those who have completed more than five years of continuous service, they are entitled to 30 days of basic salary for each year beyond the fifth year.

In addition to end of service gratuity, other forms of compensation may be applicable in cases where the employer terminates the employee without a valid reason or breaches the terms and conditions stated in the employment contract. This may include compensation for notice periods or breach of contract.

It is important to note that any contractual terms or company policies regarding severance pay must not conflict with provisions under UAE labor laws. They must also be clearly stated in the employment contract and approved by relevant authorities.

Employers are required to pay any owed end of service gratuity within seven days from the date of termination. Failure to do so may result in additional penalties imposed by UAE labor authorities.

It is recommended that employees consult with legal advisors or their local labor office if they have any doubts about their rights in case of termination under a fixed-term contract in the UAE.

7. Are employees entitled to annual leave and sick leave under their employment contracts in United Arab Emirates?


Yes, employees in United Arab Emirates are entitled to both annual leave and sick leave under their employment contracts. The specific amount of annual leave and sick leave may vary depending on the employee’s contract, position, and length of service with the company. However, all employees are entitled to a minimum of 30 calendar days of annual leave per year, as well as paid sick leave for up to 15 days per year. Any additional benefits or entitlements should be outlined in the employee’s contract or the company’s policies.

8. Can employers include non-compete clauses in employment contracts and are they enforceable in United Arab Emirates?


Employers in the United Arab Emirates (UAE) are generally allowed to include non-compete clauses in employment contracts. However, the enforceability of these clauses depends on certain conditions:

1. Validity: Non-compete clauses must be agreed upon by both parties and must be included in the employment contract. Additionally, they should specify a clear time period, geographical limitation, and scope of activities that the employee is restricted from engaging in.

2. Duration: The maximum duration for non-compete clauses is limited to 2 years after the termination of employment.

3. Scope: The scope of activities restricted by the non-compete clause must be reasonable and directly related to the employee’s job duties with their current employer.

4. Geographical limitation: The restriction should only apply to areas where the employee worked during their employment or have knowledge of trade secrets or confidential information.

5. Compensation: In exchange for agreeing to a non-compete clause, employees must receive some form of compensation from their employer during the restricted period.

If these conditions are met, non-compete clauses can be enforced by employers in UAE. However, employers must keep in mind that even if these conditions are met, courts may still choose to disregard or modify non-compete clauses if they are deemed unreasonable or overly restrictive.

It is important for both employers and employees to carefully review any non-compete clauses before signing an employment contract to ensure that they are fair and reasonable for both parties.

9. Is it legal for employers to ask employees to work on public holidays without extra pay under their contracts in United Arab Emirates?


In the United Arab Emirates, employers are generally required to provide employees with paid time off on public holidays. Under the UAE Labour Law, there are 13 specified public holidays, and employees who are required to work on these days may be entitled to receive extra pay or a day in lieu.

However, there may be exceptions for certain types of jobs or industries, such as those that involve continuous operations or providing necessary services (e.g. healthcare). In these cases, employers can agree with their employees in their contracts to work on public holidays without receiving additional compensation. This should be clearly stated in the employment contract and agreed upon by both parties.

It is important for employers to comply with relevant labor laws and regulations when asking employees to work on public holidays. Failure to do so may result in penalties or legal action against the employer. Employees also have the right to refuse working on a public holiday if it is not explicitly stated in their employment contract.

Additionally, some free zones in the UAE may have their own regulations regarding working on public holidays, so it is advisable for employers and employees to check with their respective free zone authorities for any specific rules or allowances.

Overall, it is best for employers and employees to discuss and agree upon terms related to working on public holidays before signing an employment contract.

10. What is the minimum wage requirement stated by law for an employment contract in United Arab Emirates?


The minimum wage requirement for an employment contract in the UAE is 2,000 AED per month or 24,000 AED per year. This applies to all categories of workers, including domestic workers. However, some free zones may have different minimum wage requirements.

11. Does a probation period need to be specified in an employment contract in United Arab Emirates, and if so, what is its duration limit?


Yes, a probation period needs to be specified in an employment contract in the United Arab Emirates. The maximum duration limit for a probation period is six months, as stated in Article 37 of the UAE Labour Law. The probation period can also vary depending on the nature of the job and the agreement between the employer and employee, but it cannot exceed six months.

12. Can employers terminate employees without cause under the terms of an indefinite contract in United Arab Emirates?


Yes, employers in the United Arab Emirates can terminate employees without cause under the terms of an indefinite contract. However, the employer will be required to provide a valid reason for termination and follow proper procedures as per the country’s labor laws. Employers may also have to pay compensation to the employee depending on their length of service and other factors.

13. Is there a mandatory notice period that employers must give before terminating an employee’s contract in United Arab Emirates?


Yes, employment contracts in the United Arab Emirates typically have a notice period clause that outlines the mandatory notice period employers must give before terminating an employee’s contract. The notice period is usually between one month to three months, depending on the length of the employee’s service and the terms agreed upon in their employment contract. Employers must give employees sufficient notice before terminating their contract as per UAE labor law. Failure to provide proper notice can result in legal consequences for the employer.

14. Are there any limitations on trial periods that can be included in employment contracts under the law of United Arab Emirates?

There are no specific limitations on trial periods in employment contracts under the law of United Arab Emirates. However, it is generally recommended to keep the duration of a trial period reasonable and within the norms of the industry and profession. Additionally, any terms related to termination or dismissal during the trial period should be clearly stated in the contract and comply with relevant labor laws in UAE. It is advisable to seek legal advice before including a trial period clause in an employment contract.

15. How do collective bargaining agreements impact individual employment contracts within a company operating in United Arab Emirates?


Collective bargaining agreements (CBAs) can impact individual employment contracts in several ways within a company operating in the United Arab Emirates. The following are some examples:

1. Binding effect: When a CBA is signed between an employer and a trade union, it becomes binding on all employees covered by the agreement. This means that individual employment contracts must comply with the terms and conditions set out in the CBA.

2. Mandatory provisions: In UAE, CBAs must comply with certain mandatory provisions such as minimum wage, maximum working hours, leave entitlements, etc. These provisions also apply to individual employment contracts within the company.

3. Modification of individual contracts: When a new CBA is negotiated and signed, it may include changes or amendments to existing individual employment contracts if agreed upon by both parties. For example, a new CBA may increase salaries or change working hours for employees covered under it.

4. Implied terms: A CBA may also contain implied terms which are not explicitly stated but are understood to be part of the contract through custom or practice. These implied terms may affect individual employment contracts within the company.

5. Dispute resolution: Collective bargaining agreements typically have procedures for resolving disputes between employers and employees covered by the agreement. If an individual employee has a dispute with their employer, they may refer to the procedures outlined in the CBA for resolution.

6. Scope of coverage: CBAs often outline which job roles or categories are covered under the agreement. In cases where an employee’s job role falls under multiple categories and therefore multiple CBAs, there may be conflicts between their individual contract and one or more collective agreements.

Overall, collective bargaining agreements have a significant impact on individual employment contracts within a company operating in United Arab Emirates as they establish minimum standards of employment and regulate working conditions for employees covered by them.

16. Can employers transfer employees from one location to another within the country without amending their existing contracts?


Yes, employers can transfer employees from one location to another within the country without amending their existing contracts. This is known as an intra-country transfer and does not require a contract amendment as long as the terms and conditions of employment remain the same. However, it is recommended that both parties document the transfer in writing for reference and clarity.

17.Are there any restrictions on employing foreign nationals under regular or temporary contracts inUnited Arab Emirates?


Yes, there are certain restrictions on employing foreign nationals under regular or temporary contracts in the United Arab Emirates (UAE). These restrictions vary depending on the individual’s nationality and the type of employment contract.

1. Nationality Restrictions: The UAE government has a quota system in place which limits the number of foreign workers that can be employed by a company based on its size and industry. This quota system aims to promote the recruitment and training of UAE citizens. Additionally, certain positions may require employers to prioritize hiring Emirati nationals over foreign workers.

2. Work Permit/Residence Visa: All foreign nationals must obtain a work permit and residence visa in order to legally work in the UAE. This process is typically initiated by the employer who must submit a request for a work permit, also known as an entry permit, to the Ministry of Human Resources and Emiratization (MOHRE). Once approved, the employee can then apply for their residence visa.

3. Labor Contract: Foreign employees must have a signed labor contract with their employer before they can apply for a residency visa. The contract must be written in Arabic and should include details such as job description, salary, benefits, working hours, etc.

4. Legal Age: Foreign workers must be at least 18 years old to work in the UAE.

5. Education Requirement: Certain professions may require foreign workers to have relevant educational qualifications in order to obtain a work permit.

6. Medical Examination: All foreign workers are required to pass a medical exam before they can obtain their residence visa.

7. Sponsorship System: In the UAE, all foreign workers must have a local sponsor (usually their employer) who is responsible for their visa sponsorship and legal status in the country.

It is important for employers to familiarize themselves with these restrictions and ensure that they comply with all necessary procedures when employing foreign nationals in the UAE.

18.What discrimination policies should be included and enforced within all employment contracts according toUnited Arab Emirates’s laws?


According to United Arab Emirates’s labor laws, the following discrimination policies should be included and enforced within all employment contracts:

1. Non-Discrimination Policy: Employers must ensure that there is no discrimination during any stage of the employment process, including recruitment, hiring, training, promotion, and termination. Discrimination on the basis of race, nationality, religion, age, gender, marital status or disability is strictly prohibited.

2. Equal Pay: Employees should be paid equally for work of equal value regardless of their gender or any other discriminatory factor.

3. Harassment and Bullying Policy: Employers must have a clear policy against harassment and bullying in the workplace. This includes sexual harassment and any form of physical or verbal abuse that creates a hostile work environment.

4. Disability Accommodation: Employers must provide reasonable accommodations for employees with disabilities to allow them to perform their job duties effectively.

5. Maternity/Paternity Leave: Employers should provide maternity leave for female employees and paternity leave for male employees as per the UAE Labor Law.

6. Anti-Retaliation Policy: Employees should be protected from any retaliation by employers for reporting discrimination or participating in an investigation related to discrimination.

7. Age Restrictions: Employment contracts cannot specify an age limit as a requirement for a job unless it relates directly to the nature of work or complies with government regulations.

8.Confidentiality Clause: All information related to an employee’s nationality, race gender or personal beliefs must be kept confidential by the employer.

9.Fair Performance Evaluations: Performance evaluations should be based on objective criteria and not influenced by discriminatory factors such as race or religion.

10.English Language Requirement: Employment contracts can only require knowledge of English language if it relates directly to job requirements or is necessary for communication purposes within the organization.

It is important for employers to clearly communicate these discrimination policies to their employees and strictly enforce them. Any violation of these policies should be dealt with appropriately and reported to the relevant authorities if necessary. Employees should also be made aware of their rights and procedures for reporting any discrimination in the workplace.

19.Can an employee be subject to disciplinary action or termination for breaches of their employment contract in United Arab Emirates?

Yes, an employer in the United Arab Emirates (UAE) has the right to discipline or terminate an employee for breaches of their employment contract. The specific consequences for these actions are outlined in the UAE Labor Law.

According to Article 120 of the Labor Law, an employee may be subjected to disciplinary action if they violate any of their employment obligations or fail to comply with instructions or regulations set by the employer. Disciplinary actions can include warnings, salary deductions, suspension from work without pay, and termination of employment.

Additionally, Article 88 states that an employer may terminate an employee’s contract without notice or severance pay if the employee commits a serious breach such as dishonesty, fraud, or disclosure of confidential information.

It is important for both employers and employees to understand their rights and obligations under the employment contract and follow proper procedures when taking disciplinary actions.

20. What legal protections are available to employees who report violations of their contracts or labor laws by their employer in United Arab Emirates?


According to the United Arab Emirates (UAE) labor law, employees who report violations of their contracts or labor laws by their employer are protected from any retaliation or discrimination by their employer.

1. Whistleblower Protection:
The UAE has a dedicated whistleblowing law, Federal Law No. 4 of 2016, which provides legal protection to employees who report misconduct or criminal activities in the workplace. This law prohibits employers from taking any adverse actions against employees who have reported such violations.

2. Protection against Discrimination:
The UAE labor law also protects employees from any form of discrimination, including retaliatory acts, as a result of reporting violations by their employer. This includes discrimination based on race, gender, religion, age, or nationality.

3. Legal Remedies:
If an employee faces retaliation or discrimination for reporting violations by their employer, they have the right to file a complaint with the Ministry of Human Resources and Emiratization (MOHRE). The MOHRE has the authority to investigate such complaints and take necessary actions against the employer if found guilty.

4. Contract Protections:
Employees in the UAE also have contractual protections against arbitrary termination. If an employee’s contract is terminated without cause after they have reported a violation by their employer, they may be entitled to compensation for wrongful termination.

5. Right to File a Lawsuit:
In addition to filing a complaint with MOHRE, employees have the right to file a lawsuit against their employer for any violations of labor laws or contractual agreements.

In summary, there are various legal protections available to employees in UAE who report violations of their contracts or labor laws by their employers. It is important for employees to know and understand their rights and seek legal assistance if needed when facing retaliation or discrimination for reporting such violations.