Introduction
Approximately 90% of the UAE’s population is made up of expatriates. The expatriates come here in search of work or to establish a business. End up being employed or as an employer. Thus, every person must know the rights of the workers working in the country according to the laws.
Federal Decree-Law No.33 of 2021 Regarding the Regulation of Employment Relationships repealed the earlier Federal Decree-Law no. 8 of 1980. The above law deals with workers in the UAE private sector employees and not Employees of federal and local government entities, employees of the armed forces, police, security and Domestic workers. Employers are prohibited to discriminate based on race, colour, sex, religion, national or social origin or disability against workers in jobs involving similar tasks.
Important provisions of Federal Decree Law No.33 of 2021
Article 6 – Work Permit:
The employment rights start from the process of employing you by giving you a work permit.
Article 8 – Employment Contract:
After successful selection of the interview the person shall enter an employment contract by satisfying its requirements under the law.
Article 9 – Probationary Period:
After joining the work, there shall be probationary period of not more than 6 months and employer can terminate the employment by giving a notice in writing not less than 14 days before the date of termination of service and the employee can terminate his services by giving a written notice before 30 days of leaving the employer.
Article 10 – Non-Compete Clause:
This clause is only valid upto two years after the termination of employment contract .
Article 12 – This article gives power to the employer to assign a worker to another job when it is necessary to prevent the occurrence of accident or to rectify the resulting damage provided that the job is temporary in nature and may not be the work fundamentally different from what has been agreed upon in the employment contract unless worker has agreed in writing. If the new job requires the worker to change his residence then the employer shall bear all the financial costs including relocation and residence.
Article – 14 – Forced Labour:
Employer cannot force a worker to work against his will and shall not use any means to force such as making the person work by threatening with penalties, sexual harassment, bullying, or physical, mental or psychological abuse at work by any of workers colleagues.
Article 15 – Workers Entitlement at the time of his/her death:
Handover any wages, end of service benefit or any financial entitlement to the worker’s family within 10 days of the death of the worker. The worker may specify the name of the family member in writing for the purpose in advance.
Employer shall bear all costs of preparing and transporting the corpse to his home country as per family member request.
Important provisions on working hours & payment of wages
Article 17 – Working hours:
Normal working hours shall not exceed 8 hours per day or 48 hours per week.
Article 18 – Consecutive working hours:
In every 5 hours there shall be a break or breaks of a total of 1 hour and the break to not be included in the working hours.
Article 19 – Overtime:
Any work done more than normal working hours is termed as overtime. It shall not exceed more than 2 hours per day and the total working hours shall not exceed more than 144 hours in 3 weeks including overtime.
If the worker works overtime, he/she shall be paid not less than 25 % more than their basic salary. Let’s suppose AED 100/hr as basic salary, the employee shall be paid not less than AED 125/hr for the overtime.
If the worker works between 10 P.M to 4 A.M or on weekends or public holidays, the worker shall be paid not less than 50% more than their basic salary. Let’s suppose AED 100/hr as basic salary, the employee shall be paid not less than AED 150/hr for the overtime. Workers working on weekends or public holidays the worker can be given a holiday on next day or the costs mentioned above.
A worker shall not be ordered to work more than two consecutive weekends.
Article 21 – Weekend:
Not less than one paid weekend a week.
Article 22 – Type of wage, amount and its payment:
The employment contract shall include the the type of wage such as basic and accommodation and shall be in AED unless specified and agreed in writing. The amount shall be paid on the due date.
Article 23 – Calculating the salary of piecework basis:
Average income received in last 6 months preceding request or claim.
Article 25 – Deduction or withhold a salary:
No amount can be deducted except in the cases below :-
- Repayment of loans granted to the worker, within a specific limit set by the law, with the worker’s written consent and without interest.
- Reimbursement of any extra amounts paid to the worker, ensuring it doesn’t exceed 20% of their wage.
- Deductions for bonuses, retirement plans, and insurances as per the state’s laws.
- Contributions to a Savings Fund or approved loans by the Ministry.
- Payments for social projects or services provided by the employer, with the worker’s written agreement.
- Penalties for worker’s violations, limited to 5% of their wage.
- Repayment of debts decided by a court, not exceeding 25% of the worker’s wage except for alimony.
- Necessary deductions to fix damage caused by the worker’s mistake, limited to the equivalent of 5 days wage per month unless approved by a court.
- If there are many reasons for deduction or withholding from the wage, in all cases the percentage of deduction and/or withholding may not exceed 50% of the wage.
Article 26 – Enabling the Worker to Work:
The wage shall be paid in full in exchange for work and the employer shall allow the worker to carry out his work. Otherwise, it shall be obliged to pay the wage agreed upon.
Article 51 – End of Service Benefit for Full time workers:
- An emirati national will be subject to pension and social securities law in the state.
- Unpaid leave shall not be calculated for the term of calculation of this benefit and total benefit shall not exceed the total wage of two years.
- Foreign workers shall be entitled to end of service benefit, who have completed 1 or more year of continuous service.
- The calculation is done on the basic salary. If worked for less than 5 years then will get basic salary of 21 days for each year worked.
- After 5 years, a wage of 30 days for each year worked past 5 years.
Let’s assume X (Foreign worker) has a basic salary of AED 30,000 at the end of service and has worked for 10 year. He shall be entitled to base pay of 21 days for each year till 5 years which is equal to 105 days pay or AED 105,000 and will be entitled for 30 days base pay for each year worked after 5 years which is equal to pay of 150 days. Total end of service benefit will be equal to basic salary of 255 days for a term of 10 year or AED 255,000 for 10 years.
Article 53 – Pay workers their entitlements within 14 days after the end of contract term.
Conclusion
In navigating the complex landscape of employment laws in the UAE, understanding the basics is essential for both employers and employees alike. With the recent enactment of Federal Decree-Law No.33 of 2021, there’s a comprehensive framework in place to safeguard the rights and obligations of workers in the private sector. From the crucial initial steps of obtaining a work permit to the intricate details of overtime pay and end-of-service benefits, each provision underscores the commitment to fairness and equity in the workplace.
As we conclude this exploration, it’s evident that these laws serve as pillars supporting a harmonious work environment where rights are respected, and duties are fulfilled. Whether you’re an expatriate seeking opportunities or an employer aiming for compliance, knowledge of these regulations empowers you to navigate the employment landscape with confidence and integrity. If you find yourself facing discrimination, unfair termination, unpaid wages, or any other form of workplace injustice, I encourage you to reach out to us at help@daralhaqooq.com for specialized legal professionals in employment laws. Your voice matters, and there are dedicated professionals ready to listen, advocate, and fight for your rights.
