uae labour law _faq

8/7/2019 UAE Labour Law _FAQ

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Index:Table of Contents1 . Int roduct ion 22 . Enforceabi l ity of th e Law 33. The Condi t ions for Employment 3

4 . Employme nt Contracts 45. Probation Periods 56. Wages 67. Employment of juveni les 78 . Wo rk ing Hours 89. Leave Entit lements 9

9.1 Annu al Leave 99.2 Off ic ial Hol idays 109.3 Sick Leave 109.3 Materni ty Leave 10

1 0. Employee Records 121 1 . Safety Regu lations 1212 D isc ip l inary Code 141 3. Accidents at W ork 15

1 4 . Termina t ion of Contract 1715 . Repatriat ion of Employees 211 6. Payment of Gratuity 211 7. Dispute Sett lement 251 8. Labour Inspections 26Appendix 1 Oc cup ation al Diseases 27Appe ndix 2 Permanent Disabi l i ty Rat ing 29Appe ndix 3 Term of Dist r ibut ion of Death Compensat ion Am ong 30


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1 . INTRODUCTION

Labour matters in the UAE are governed by Federal Law No. 8 of 1980 Regulating Labour Relations as amended by FederalLaws No. 24 of 1 9 8 1 , No .l 5 of 1985 and N o. l 2 of 1986 (the "Law"). There are special labour related regulat ions applicab lein some of the free zones in the UAE, such as the jebel Ali Free Zone.

To whom does the Law apply?According to Article 3 of the Law, the Law applies to all staff and employees working in the UAE, whether UAE nationals orexpatriates. However, there are certain categories of individuals who are exempted from the Law as listed below:1 . Staff and workers employed by the federal government, government departments of the member emirates, the

municipalit ies, public bodies, federal and local public inst itut ions and those staff and workers employed in federal andlocal governmental projects.

2 . Members of the armed forces, police and security units.3. Dom estic servants.4 . Agricultural workers and persons engaged in grazing (this exemption does not include persons who are employed in

corporations which process agricultural products and/or those who are permanently engaged in the operation or repair ofmachines required for agriculture).

Are partners in a business considered as employees?A partner in a business is not considered an employee and is therefore not required to obtain a labour card from the UAEMinistry of Labour and Social Affairs (the "Ministry"), as outlined below. For immigration purposes therefore, a foreign partnerwill be sponsored by the entity he is a partner in, as an investor rather than as an employee and will deal with the immigrationauthorities directly rather than through the Labour Office, provided that his name is on the business entity's licence and subjectto a minimum investment requirement in the ent ity. However, if the partner holds an employee posit ion addit ional to hispartner status, he will be considered as an employee for the work he is doing in the company.On the other hand, employees working on a commission basis are considered as employees even if they are partners in theentity they are working for.Are employees in the free zones subject to the Law?Although the Law stipulates that all employees other than the ones listed above are subject to it, in practice employees in thefree zones, such as the Jebel Ali Free Zone and the Dubai Airport Free Zone, are subject to the rules and regulations of thefree zone concerned and maintain their own em ployme nt contracts. Howe ver, as mentioned above, the Law wil l st i l l applyand the provisions in the employm ent con tract must be in accordance with the Law. Moreover, i t should be noted that freezone employees are sponsored by the relevant free zones and not by their employers.Such employees are seconded by the free zones to compan ies established in the free zones in return for, am ongst other things,a bank guarantee which is required to secure the employees' dues and any end of service benefits which may be payable ontermination of their employment contracts. However, although the free zones are technically the employees sponsor, theemployees do maintain their right of action against their employers before the courts.

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In addition, as will be discussed in section 19 below, when a new business is established it has to be registered with theMinistry prior to the employment of staff.. The free zones authority sponsoring the employees, refer directly to the immigrationauthorities and no t to the Minis try. This is not to say that disputes between e mployee s and their employe rs in the free zoneswill not first be heard at the Ministry. The Ministry may entertain such claims and there is nothing as yet under UAE lawprecluding that unless the Free Zone Authority has a special ordinance governing the relationship between employee andemployer.

What aspects of the employer/ employee relat ionship does the Law deal with?The Law covers all aspects of the employer-employee relationship (Chapter 12), including matters related to employmentcontracts, restr ict ions on the employment of juveniles and women, maintenance of records and f i les, wages, working hours,leave, safety and protect ion of employees, m edical and social care, codes of discipline, termina tion of em ploymen t contracts,end of service benefits, compensation for occupational diseases, labour inspections, penalties and employment relatedaccidents, injuries and d eath.The UAE does not allow the forma tion of trade unions.

2 . ENFORCEABILITY O F THE LAWBy whom is the Law enforced?The Law is federal and is therefore applicable to all the emirates ofthe federation. It is enforced by the Ministry. Labour relatedlitigation is adjudicated by the federal and local courts of the UAE, however, all disputes relating to labour matters must firstbe referred to the Ministry. If either of the parties involved (employer or employee) is unhappy with the Ministry's decisionand the matter cannot be settled amicably, the dispute may then be referred by the Ministry to co urt , within two weeks fromthe date in which the complaint was f i led, after which either party may revert to the court directly.

3. TH E CO ND ITIO NS FOR EMPLOYMENTWhat are the primary pre-requisites for employment?Jn order to employ any expatriate employee in the UAE, an applicat ion must be made to the Ministry. The ap plicat ion has tobe approved by the Ministry prior to the employee entering the UAE. It should be noted that new businesses are required toregister or open a file with the Ministry before they can employ staff (as will be discussed in section 19). In addition toobtaining the Ministry's approval to employ non-UAE nationals, certain immigrat ion procedures need to be followed asexplained below.There is also a requirement for certain employers to submit to the Ministry a bank guarantee as security for end of servicesbenefits and repa triation costs related to their employ ees. This procedure is also app licab le to employers in most o ft h e freezones in the UAE.Where the intended employee is a UAE national, an employment contract may be entered into at any t ime. Employmentcontracts for non-nationals must be drawn in the format approved by the Ministry on an applicat ion made by the employer.Employment contracts for nat ional employees need not, however, be in writ ing and the terms and condit ions of emp loymen tmay be proved by any means of proof admissible by law. A labour permit for an expatriate employee will not be issued bythe Ministry unless a formal w rit ten labour contract is f iled wi th the M inistry.

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4 . EMPLOYMENT CONTRACTSW hat are the perm it ted terms in emp loyment contracts?Tw o types of employmen t contracts are allowed in the UAE - l imited em ployme nt contracts or f ixed term contracts, whic h arecontracts for a specif ied durat ion with specif ic commencement and complet ion dates, and unlimited contracts where theemployee continues to work for the employer from a specif ic date unt i ! such t ime as the em ployme nt co ntract is terminatedby either party after giving prior notice.

W hat is the di f ference between a f ixed term and an unl im ited term employm ent contract?A f ixed term contract has the follo win g characteristics:1 . I t has a commencement and complet ion date.2 . Its term cannot be in excess of a period of 4 years. It can, however, be renewed through mutual consent, express or

implied for a similar or lesser period.3. The employm ent w il l terminate at the end of the contract period, unless renewed by mutual consent.4 . If the employer terminates the contract for reasons other than those specified in Article 120 of the Law (see p.25 below),

he w il l be l iable to pay compensation to the em ployee. This compensation is determined on the basis of the wages duefor a period of three months or for the remaining period of the contract, whichever is less, unless an article in the contractstates oth erwise .

5. If the contract is termina ted by the employee for reasons other than those stipulated under Article 121 of the Law, theemployee wil l be l iable to compensate the employer against any loss result ing from the termination. The amount ofcompensation payable is calculated on the basis of the employee's salary for one month and a half or the salary payablefor the remaining period of the contract, whichever is less, unless the contract states otherwise.

The characteristics of an unlimited term contract on the other hand are as follows:1 . The contract provides a commencement date but no complet ion date.2. A contract will be considered "unlimited" if: (i) it is an oral contract; (ii) it is not for a specified period; (iii) it was for a

specified period but the parties continued to act on its terms and conditions after its expiry, without any written contractspecifying the com plet ion date; (iv) the purpose of the employm ent is to comp lete wo rk not estimated within a specif iedtime-frame; or (v) it is by its nature renewable and the contract continues after the work agreed upon is completed.

3. The contract may be terminated by mutual agreement or by either of the part ies providin g the other with a minim um of30 days notice of termination.

4 . The contrac t may be termina ted for a justified cause at any time on giv ing at least 30 days notice of term inatio n. The noticeperiod may be less for employees working on a daily basis.

5. The notice pe riod may be extended for a period exce eding 30 days. It w ou ld then not be acceptable for the parties towaive this notice period.???

6. The employee's wages during the not ice period should be paid in full for the ent ire not ice period served.7. In the event that no notice has been given, the party wh o ough t to have given the notice must compensate the other w ith


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the payment of at least 30 days wage in lieu of the notice pe riod .8. If the employee violates one of the provisions of Art icle 1 20 of the Law, the employer may terminate the employee's

contract without not ice.9. The employe e may terminate the emp loyme nt contract with out no t ice if the circumstances listed in Art icle 1 21 of the Law

are applicable (see p. 25 below).1 0. The employee wi l l be ent it led to com pensation if the termination of the contract was for an unjust if ied cause. The court

may award the employee damages against the employer, provided that the damages awarded do not exceed three m onth'swages, as calculated on the basis of the last wage paid to the employee.

1 1 . Compensation for damages, if any, awarded to the employee for unreasonable dismissal are without prejudice to theemployee's entitlement to end of service gratuity and payments in lieu of notice, if notice had not been properly given.

What information should be stated in an employment contract?The only information required by law to be specif ied in an employment contract is the following:1 . Wages/remunerat ion payable.2. Date of the employment contract .3. Date of comm encem ent of the employm ent contract.4 . Nature of the contract ( l imited or unlimited).5. Nature of the wo rk.6. Du ration of the contra ct (for fixed term contracts).7. The locat ion of emp loymen t.The labour off ice at the Ministry m aintains standard employm ent contracts in Arabic and English, where the employer andthe employee need only fill in the blanks. Jt is however not compulsory for the parties to use or file these contracts at theMinistry and may instead draft and lodge their own employment contracts at the Ministry providing they do not containprovisions which are contrary to the Law and are in the Arabic language.

5. PR OB ATIO N PERIODSWhat are the rules regarding employment for a probationary period?I t is com mon pract ice in the UAE to employ persons on an init ial probationary p eriod. Du ring the probation period , both theemployer and the employee may terminate the employment contract with immediate effect without providing a valid reasonor notice. In such cases, the employer will not be liable to pay end of service benefits or compensation to the employee.According to Art icle 37 ofthe Law, the probation period can be for a maximum period of six months.

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Is the probation period included for the purposes of calculating gratuity and other terminal benefits?Once completed, the probation period is considered as part of the overall employment term and is taken into account whencalculating gratuity and other terminal benefits.Are employers l iable to pay repatriation and other benefits for termination of employment during theprobat ion per iod?All wages and benefits accrued during the probation period must be paid along with repatriat ion costs. The employer is,however, not required to pay end of service gratuity or compensation in lieu of notice or damages should the employmentcontract be terminated witho ut n ot ice during the probationary p eriod. I f the employee , however, resigns during his probationpe riod wi tho ut a good cause he is liable to pay his ow n repa triation cost.

Can the probationary period be waived?The part ies to the contract may agree to commence employment without probation as it is not compulsory under the Law.Further, it is left to the discretion of the parties to agree upon the actua l term of the probation ary period subject to a m axim umof six months.

6 . WAGESWhat constitutes wages under the Law?Wages according to the Law are def ined as follows:"All payments made to the worker on a yearly, monthly, weekly, daily, piece work, or production, or commission basis, inreturn for the work he performs under the contract of employment, whether such payments are made in cash or in kind .Remuneration shall include the cost of living allowance. It shall also include any grant given to the worker as a reward for hishonesty or efficiency if such amounts are provided for in the contract of employment or in the internal regulations of theestablishment or have been granted by custom or common practice to such an extent that the workers of the establishmentregard them as part of their remuneration and not as donations."

What is the difference between 'total wage' and 'basic wage'?The term "basic wage" is an employee's wage excluding all al lowances of whatever nature and is specif ied in the labourcontract as such. Total wage on the other hand, is an employee's wage inclusive of all al lowances p rovided such asaccommodation and travel allowances.Basic wage is significant when calculating end-of-service gratuity, which is determined on the basis of an employee's last basicwage received as opposed to the employee's total wage received.The employer/ministry wil l calculate gratuity on the basis of the basic wage, which as mentioned above excludes housing,transpo rtation and any allow anc e. How ever, recent case law has demo nstrated that the Courts support the position thatcommission supplements an employee's basic salary, if it is specified in the employee's employment contract.

Does the Law prescribe a minimum wage?

No minimum wage has been prescribed by (aw to date, however, an employee with a monthly salary of less than Dhs.4,000(plus accom moda tion a llowance), w il l not be able to sponsor his spouse or children for the purpose of residing in the country.

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These are immigration regulations and do not form part of the Law.In addition, in order to sponsor a house-maid or domestic help in the UAE there is a minimum basic wage requirement ofDhs.6,000 per month.How are wages paid?Wages may be paid on a monthly, weekly, or daily basis. The parties may mutuaWy agree on the manner in which wages arepaid or rem itted. Wages may be paid in the UAE or elsewhere.

In wha t curren cy are wages paid?Wages may be paid in any currency and the parties may agree on the actual currency paid. Although this is the situation inpractice , the Law does however stipulate that wages should be paid in the national curren cy. Neither the Law nor any otherlaw in the United Arab Emirates restricts repatriation or transfer of monies.

Does the Law require evidence of payment of wages?Where there is a dispute, an employer will be required to prove written evidence that the employee has been paid his wagesalong with any applicable allowances. However, the employee can prove the non-payment of wages by any means stated inthe UAE Federal Law of Evidence. Therefore, it is necessary for the employer to maintain adequate records and booksrecording the payment of wages and allowances, fail ing w hich there may be an assumption that the wages were not paid.

7. EMPLOYMENT OF JUVENILESDoes the Law restrict the employment of any category of persons?1 . The employment of juveniles (of either sex) under the age of 15 is prohibited. Before employing a juvenile, employers

must obtain copies of the follo win g documents from him/her and retain them in the juvenile's personal f i le:(a) A birth certif icate or age estimation c ertif icate issued by a specialised physicia n certif ied by the concerned health

authorities.(b) A certif icate of physical fitness for the nature of the propose d wor k, issued by a specialised physician c ertif ied by the

concerned authorities.(c) Writ ten consent from the juvenile's guardian.

2 . Furthermore, the employment of juveniles is prohibited under the following circumstances:(a) At night in an industrial undertaking .(b) In hazardous jobs or in wo rk wh ich is harm ful to hea lth.(c) W her e wo rkin g hours exceed six hours per day (one or more breaks must be provided w ith in the stipulated six hours).(d) W ork ing ove rtime under any circumstances or to remain at the place of wo rk after wo rkin g hours.

(e) Working on holidays.

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; 3. In addit ion lo the above, the emp loymen t of wom en at night between the hours of 10.00 pm and 7.00am is proh ibited,except in the following situat ions:(a) W here w ork ceases due to a force majeu re;(b) Employees in tech nica l and administrative position s.

(c) Hea lth workers in health services and other jobs as determ ined by the Ministry , prov ided fema le employees do notusually perform manual labour.It is also prohibited to employ women in hazardous or difficult work and other duties harmful to health or morals, or in otherjobs as may be specified by the Ministry.

8 . W O R K I N G H O U R SWhat are the prescribed working hours?The ma ximu m prescribed w orkin g hours for an adult employee is eight hours per day or forty-eight hours per week. Howe ver,the working hours may be increased to nine hours per day in the case of persons employed in trades, hotels, cafeterias, andas guards. Persons who hold executive/administrat ion posit ions however are expected to work long hours without overt imepay.

W ou ld travel ing to and from w ork be included in wo rking hours?The t ime traveling to and from work is not included in the calculat ion of working hours.

Are breaks included during working hours?Employees may not work for more than five consecutive hours per day without breaks for rest, meals and prayer. However,the resting and the meal breaks are not includ ed in calculat ing wo rking hours. In factories, where people work day and nightshifts or jobs where, for technical and economical reasons, continued attendance is required, the Ministry specifies the mannerin which employees may take intervals for rest, prayer and meals.

In wh at s ituations does overtime exist and on wha t basis is overtime pay calculated?I f the nature of the job requires an employee to work overt ime, the employee is ent it led to overt ime pay whic h is equivalentto the wage paid du ring ordinary w orkin g hours plus an addit ional a mount of not less than 2 5% of the wage for the over t imeperiod . However, if the employee's overt ime falls between the hours of 9.00pm and 4.00am, he wil l be ent it led to overt imepay which is equivalent to the salary payable during norma! working hours plus an increase of not less than 50% of his wagefor the overt ime period worked.If circumstanc es require the em ployee to wo rk o n a Friday, he is entitled to receive a rest day in lieu to be taken at a later dateor be paid his basic wage plus an addit ional 50 % (minimum ) of that wage. Ho wever, employees cannot be asked to wo rk t woconsecutive Fridays unless their wages are calculated on a daily basis.

In any case, overtim e sh ould not exceed tw o hours per day, unless it is necessary to prevent substantial loss, a serious acciden t

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, or to remove traces of such an accide nt or reduce its effect.However, the above provisions are not applicable to the following persons:(1) Persons in senior positions, or in adm inistrative supervisory roles, if such persons have similar auth ority over employees

as the employ er.(2) Crews of naval ships and marine employe es wh o enjo y special privileges because of the nature of their wo rk. Th is does

not include port employees engaged in loading and unloading and other related work.

9. LEAVE ENTITLEMENTS9.1 Ann ual Leave

What are an employee's annual leave entit lements?For every year of service, an employee is entitled to annual leave of not less than the following:1 . Two days leave for every month if his service is more than six months and less than one year.2. A minimum of thirty days annually, if his service exceeds one year. At the end of his service the employee is entitled to

annual leave for the fraction of the last year he spent in service.Ann ual leave is usually calculated on the basis of a calendar mo nth rather than by w orkin g days. If an employee however failsto report back to work after the expiry of his leave period, his remuneration will automatically be forfeited for the days he isabsent.

What would be payable to the employee during his annual leave?An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receivesin the normal working month exclusive of any bonuses received.

Who determines when the annual leave commences and its duration?The employer has the right to determine when an employee is allowed to take his annua! leave and whether (if required) heis entitled to divide the leave into two parts.

I f however, work circumstances require keeping the employee at work during the whole or part of his annual leave and theleave has not been carried over for the follo win g year, the emp loyer sh ould pay the employee his wage in addit ion to a leaveallowance for the days he worked equal to his basic wage.In all cases, no employee should be required to work durin g his annual leave more than once during two consecutive years.In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay theemployee the annual leave wages.

W hen should an nual leave wages be paid?The employee should be paid his full wage before taking his annual leave, plus the wage of the leave days he has accrued.


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Is the em ployee entit led to p aym ent in l ieu of leave if his services are terminated?The employee is entitled to payment of his wages for the annual leave period not taken if his employment is terminated, orhe resigns after serving the period of notice determined by law. Such payment is calculated on the basic wage received at thet ime the leave was due including any housing or accommodation allowance where applicable. Some employers also includetransportat ion allowance in the calculat ion, although this is discret ionary rather than compulsory.Nevertheless, according to judgments delivere d on the m atter, an employe e may o nly cla im remunerat ion for the annual leavenot taken for the last two years of employment at the rate of the wages paid during that time. Any leave days not taken priorto that period are therefore t ime barred and the employee is precluded from claiming remunerat ion against them (providingthe employer relies on this time bar provision in the event of a claim).

Is going to H aj for pi lgrimag e co nsidered pa rt of the annual leave?The employer must give the employee once during his employment a special leave without pay to go for Haj (pilgrimage)which should not exceed 30 days. This period is not part of the employee's annual leave or any other leave which he isentit led to.9.2 Of f ic ia l Hol idaysW hic h off icial holidays are an employee entit led to take?An employee is ent it led to an off icial holiday with full wage on the following occasions:

Occasion Time Of f1 . Hij r i New Year's Day one day2. Gregorian New Year's Day one day3. Eid Al Fitr (end of Ramadan) tw o days4 . Eid Al Adha and Wa qf three days5. Prophet Moh amm ed's Birthday one day6. Isra and Ai Mi raj one day7. National Day one dayThe holidays listed above are applicable to all employees whether they are working in the public or private sectors. However,public sector employees may be granted additional days off to those specified on the above occasions, which are announcedfrom t ime to t ime.It is therefore open to private sector employees to grant their employees a holiday on the above occasions or to pay theminstead. The date(s) on w hic h the above off icial holidays fall depend on the Ministry's announcements, w hic h are publishedin the local newspapers shortly before they occur.Are off icial holidays excluded from the calculation of leave?The calculation of the duration of annual leave includes holidays specified by law or by agreement, or any day taken forexample due to sickness, if they fall within the leave period and are deemed to be part thereof.9.3 Sick leav eIs the employee entitled to sick leave?

The employee must report to the employer any injuries or i l lnesses preventing him from working within a maximum periodof two days.

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/ The employee is no t en t i t led to any pa id s ick leave dur ing the p roba t ion per iod . However , a f te r a per iod o f th ree monthscon t inu ous serv ice fo l lo w in g the p roba t ion p er io d , the em plo yee is en t i t le d to s ick leave (con t in ous o r in te rm i t ten t ) wages asf o l l o w s :

(1 ) Fu l l wa ge fo r the f i rs t 15 days .(2) Ha l f wa ge fo r the nex t 30 days .(3 ) A n y f o l l o w i n g p e r i o d w i l l b e w i t h o u t w a g e .

Ho we ve r , i f the emplo yee 's i l lness is d i rec t ly caused by h is misco ndu c t ( fo r exa mp le by excess ive d r ink ing) , he is no t en t i t ledto any wages dur ing the s ick leave .

I t shou ld be no ted tha t the employee shou ld p rov ide ev idence o f h is i l lness war ran t ing s ick leave by an o f f i c ia l med ica lc e r t i f i c a te .

Ca n t h e e mp lo y e e re s i g n f r o m e mp lo y me n t d u r i n g t h e s i c k l e a v e p e r i o d ?

Th e e mp lo y e e ma y re s i g n f r o m e mp lo y me n t d u r i n g t h e s i c k l e a v e p e r i o d a n d b e fo re t h e c o mp le t i o n o f 45 d a y s s p e c i f i e d b ylaw , p rov ide d the reason o f res igna t ion is app rove d by a phys ic ia n . In th is s i tua t io n , the empl oye r must pay the em ploy ee a l lthe wages he is en t i t led to , un t i l the end o f the 45 days re fe r red to abo ve .Can the employer d ismiss an employee f rom serv ice dur ing h is s ick o r annua l leave?

Th e e m p lo y e r m a y n o t d i s m iss a n e m p lo y e e f r o m s e rv ic e d u r i n g h i s s i c k l e a ve o r a n n u a l l e a v e . Du r i n g t h i s p e r i o d a n y n o t i c efo r t e rm in a t i o n w i l l b e c o n s id e re d n u l l a n d v o i d .

Ho w e v e r , t h e e mp lo y e r is e n t i t l e d to t e rm in a te t h e e mp lo y m e n t c o n t ra c t i f t h e e mp lo y e e h as e x h a u s te d h is f u l l s i c k l e av e a n dis no t f i t to re tu rn to work . In such cases , the employee wi l l be en t i t led to h is fu l l g ra tu i ty and end o f serv ice en t i t lement ina c c o rd a n c e w i t h t h e L a w.

Fur thermore , the employee wi l l no t be en t i t led to wages fo r the days tha t he has no t repor ted to work a f te r the end o f h is leave(whe ther s ick leave o r ann ua l leave) . Th is w i l l no t p re jud ice the r igh ts o f the emplo yer to te rmina te the emplo yee 's co n t rac ti f the employee fa i l s to repor t back to work wi th in seven consecu t ive days f rom the da te he was due back .

9 .4 M a te r n i t y L e a ve

W ha t mate rn i ty leave is a fem ale emp loy ee en t i t led to?

A wo rk in g w om an is en t i t led to 45 days matern i ty leave w i th fu l l pay w h i ch inc ludes the per iod be fo re and a f te r the de l ive ry ,p rov ided she has served con t inuous ly fo r no t less than one year . The matern i ty leave is g ran ted wi th ha l f pay i f the womanhas no t comple ted one year o f serv ice .

At the end o f the ma tern i ty leave , a wo rk in g wo m an has the r igh t to ex tend her matern i ty leave fo r a m ax im um per io d o f 10days wi th ou t pay . Th is unp a id leave can be con t inu ous o r in te r rup te d , i f the in te r rup t ion is caused by i llness w h i ch p reventsh e r f r o m c o m in g t o wo rk . Th e i l l ne s s mu s t b e c o n f i rme d b y a c e r t i f ie d g o v e rn m e n t p h y s i c i a n l i c e n c e d b y th e c o mp e te n t h e a l t ha u t h o r i t y .

Ma tern i ty leave in e i ther o f the above cases is no t dedu c ted f ro m any o ther leave tha t a fem ale em ploy ee is en t i t le d to .

Du r i n g t h e 1 8 mo n th s f o l l o w in g d e l i v e r y , a f e ma le e m p lo y e e w h o n u rs e s h e r c h i l d h as t h e r i g h t t o h a v e tw o d a i l y i n t e rv a l swh ich do no t exceed ha l f an hour each fo r the purpose o f nurs ing her c h i l d . These add i t iona l in te rva ls a re cons idered par t o fh e r wo rk i n g h o u rs a n d n o d e d u c t i o n i n wa g e s c a n b e ma d e .

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Paternity leave is not provided for under the Law.

1 0. EMPLOYEE RECORDSWhat types of records must be kept by the employer?There are different conditions stipulated under the Law vis a vis the maintenance of records by employers. These primarilydepend on the number of employees employed as out l ined below.An employer who employs f ive employees or more must adhere to the following:(1) Keep a file for every employee d etailin g his name, trade or profession, age, nationa lity, place of residence, marital status,

date of commencement of service, wage and any change in it , vacation, i l lness and injuries, the date of termination ofservice and the reason for termination.

(2) A "leave card " for every employee wh ich should be kept on fi le and divided into three sect ions for annual leave, sickleave and other leave. The employee or anyone acting on his behalf should note on the card all leave taken by theemployee for future reference.

In addit ion to the above, an employer w ho em ploys 1 5 employees or more must keep in every place of w or ke r branch thereofthe following records and documents:(1) A record of payroll l ist ing the employees' names according to the date of their recruitment along with the daily, w eekly

or m onth ly wages, allowanc es or payments for piece wor k, com mission payments as we ll as lengths of service and jobtermination dates.

(2) A record for work injuries listing work injuries or occupational diseases established immediately after the employer isinformed.

(3) The basic rules and regulations for wor k shou ld be displayed in a perma nent, visible place, at the work site showin g thebasic regulations for work including working hours, weekly holidays, official holidays, and the necessary safetyprecautions to avoid work hazards and fire dangers. The implementation of these regulations and any amendments theretomust be sanctioned by the M inistry wi thin 30 days from the date of submission.

(4) The business' regulations relating to disc iplina ry measures must be permanen tly displayed in the place of wo rk. This mustoutline measures which may be taken against those who violate the regulations.

The imp lemen tat ion of these regulations and the amendments thereto must be sanctioned by the Ministry with in 30 days fromthe date of submission.

1 1 . SAFETY REGULATIONSWhat are the safety regulations and measures required by the Law?The Law specifies certain provisions regarding employee safety and health care, which are stipulated under Articles 91 to 101(inclusive). The provisions o fth e Law require the follo win g measures and procedures to be adhered to:1 . Every employer should provide his employees with suitable means of protection against: injuries, occupational diseases,

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f i r e a n d h a z a rd s wh i c h ma y re s u l t f r o m th e u s e o f ma c h in e ry a n d o th e r e q u ip me n t i n t h e wo rk p la c e . Th e e mp lo y e r s h a l la lso app ly a l l the o ther p recaut ionary measures spec i f ied by the Min is t ry o f Labour and Soc ia l Af fa i rs . The employee ,how eve r , must use the sa fe ty equ ipm ent an d c lo thes g iven to h i m fo r th is purp ose . H e sha ll a lso fo l lo w h is em plo yer 'si n s t r u c t i o n s wh i c h a im to p ro te c t h im f r o m d a n g e r .

2 . Every em plo yer sha l l d isp lay in a perm anen t and p rom ine nt p lace a t the w or k s i te de ta i led ins t ruc t ions regard ing theme a n s o f p re v e n t i n g f i r e a n d t h e me a n s o f p ro te c t i o n o f e mp lo y e e s f r o m h a z a rd s t o wh i c h t h e y ma y b e e x p o s e d t o d u r i n gwork . These ins t ruc t ions sha l l be in Arab ic and i f necessary ano ther language unders tood by the employees .

3 . Every em ploy er sha l l make ava i la b le a f i rs t a id k i t o r k its con ta in ing m ed ic in es , bandages and o ther fi rs t a id mate r ia l asd i r e c te d b y t h e M in i s t r y .

4 . Ev e ry e mp lo y e r mu s t e n s u re t h e wo rk p la c e i s k e p t c l e a n a n d we l l v e n t i l a t e d . Ea c h e mp lo y e e s h o u ld h a v e a d e q u a tel i g h t i n g a n d re s t r o o ms , a n d b e p ro v id e d w i t h s u i t a b le d r i n k i n g wa te r .

5 . An em plo ye r sha l l ass ign one o r mo re phys ic ians to exa min e tho rou gh ly those o f his em ployee s wh o are expo sed to theposs ib i l i t y o f con t rac t ing one o f the occupat iona l d iseases l i s ted in the schedu le a t tached to the Law (see Schedu le 1be low) . At leas t once every s ix months "a t r i sk " employees shou ld be examined and resu l ts recorded on the i r f i les .

6 . Th e e mp lo y e r s h a l l p ro v i d e i ts e mp lo y e e s w i t h t h e me a n s o f me d i c a l c a re t o t h e s ta n d a rd d e te rm in e d b y t h e M in i s t r y i nc o n s u l t a t i o n w i t h t h e M in i s t r y o f He a l t h .

7 . The em plo yer o r h is dep uty sha l l in fo r m the em ploy ee o f the dangers o f h is jo b and the means o f p ro t ec t io n tha t he mus tt a k e . He sha l l a lso d isp lay de ta i led w r i t ten sa fety ins t ruc t ions a t the wo rk p remises .

8 . No e m p lo y e r , d e p u t y , o r a n y p e rs o n w i t h a u th o r i t y o v e r e mp lo y e e s s h a l l b r i n g o r a l l o w o th e rs t o b r i n g a n y k i n d o fa l c o h o l i c d r i n k s f o r c o n s u mp t i o n o n wo rk p re mis e s . He s h a l l a l s o p ro h ib i t a n y p e rs o n t o e n te r o r r e ma in i n t h ee s ta b l i s h me n t wh i l e i n t o x i c a te d .

Every employer employ ing persons in remote a reas no t served by pub l ic t ranspor ta t ion sha l l p rov ide them, a t the cos t o f thee mp lo y e r t h e f o l l o w in g s e r v i c e s :

1 . Su i t a b le t r a n s p o r ta t i o n ;

2 . S u i t a b l e a c c o m m o d a t i o n ;

3 . Su i t a b le d r i n k i n g wa te r ;

4 . Sui tab le f o o d ;

5. First a id serv ice s; an d

6 . Mea ns fo r en te r ta inm ent and spor ts ac t iv i t ies .

There a re a lso add i t iona l hea l th and sa fe ty regu la t ions employers must adhere lo wh ich a re s t ipu la ted in var ious laws . Forins tance , those invo lved in the indus t r ia l sec to r o r the f ree zones in the UAE wi l l be sub jec t to such regu la t ion .

Co n t ra c t i n g c o m p a n ie s a re s u b je c t t o Mu n i c i p a l i t y r u l e s . Th e Pu b l i c Sa fe ty Un i t o f t h e En v i r o n me n ta l Pro te c t i o n a n d Sa fe t ySe c t i o n i n t h e En v i r o n me n t De p a r tme n t o f Du b a i Mu n i c i p a l i t y p ro v i d e t h e p ro c e d u re s f o r p ro te c t i o n a n d Sa fe t y a t b u i l d i n gcons t ruc t ion s i tes .

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12. DISCIPLINARY CODEWhat is the nature of the disciplinary code in the Law?

The Law, which provides for various discipl inary measures which an employer or his representative may impose on theemployees of the business. These comprise the following:

1 . Warnings.

2 . Fines .

3. Suspension from work with a decrease in wages for not more than 10 days.

4 . The prevention or postponement of periodic allowances in establishments where such allowances exist.

5. The deprivation of promotions in establishments where promotions exist.

6. Termination of service without prejudice to the payment of all end of service benefits.

7 . T e r m i n a t i o n of serv ice and the f o r f e i t u re o fa l l or s o m e of his g ra tu i t y . Th i s p u n i s h me n t c a n n o t be i m p o s e d for any reasono th e r t h a n t h o s e me n t i o n e d in A r t i c l e 120 of the Law.

Th e Min i s t r y s h o u ld be a d v i s e d w i t h r e g a rd to any of the a b o v e -me n t i o n e d me a s u re s b e in g imp o s e d .

W h a t is the m a x i m u m f i n e an e m p l o y e r can imp o s e on his e m p l o y e e ?

A f ine may be a f i x e d sum of m o n e y or an a m o u n t e q u i v a l e n t to the e m p l o y e e ' s w a g e for a c e r t a i n p e r i o d . A f i n e for onev i o l a t i o n can not exceed f i ve day 's wages , and in any one month to ta l f ines can not e x c e e d an a m o u n t e q u i v a l e n t to f i ve day 'sw a g e s .

If a f i n e is i m p o s e d , who s h o u ld k e e p the m o n e y d e d u c t e d f r o m the e mp lo y e e 's wa g e s ?

A f i n e imp o s e d on an e m p l o y e e s h o u l d be entered in to a specia l register which states the reason or the c i r c u ms ta n c e si n v o l v e d , the n a m e of the e m p l o y e e c o n c e r n e d and his w a g e . A s p e c ia l a c c o u n t s h o u ld be k e p t for these f ines , the m o n t h l yto ta l of w h i c h s h o u l d be spent on the s o c ia l we l f a re of all e m p l o y e e s of the bus iness .

H o w o f t e n and for wh a t l e n g th of t i m e can an e m p l o y e r d e p r i v e an e m p l o y e e of p e r i o d i c a l l o wa n c e s or p ro mo t i o n s ?

A n y p u n i s h m e n t d e p r i v i n g an e m p l o y e e of his p e r i o d i c i n c e n t i v e s may not be i m p o s e d m o r e t h a n o n c e w i t h i n one year . Ina d d i t i o n , an e mp lo y e e 's i n c e n t i v e s s h o u ld not be p o s t p o n e d for mo re t h a n six m o n t h s .

F u r t h e r m o r e , no e m p l o y e e s h o u l d be d e p r i v e d of mo re t h a n one p r o m o t i o n . The p u n i s h e d e m p l o y e e s h o u l d be p r o m o t e d int h e f i r s t s u c c e e d in g o p p o r tu n i t y if he satisfies the n e c e s s a ry c o n d i t i o n s .

W h a t are the l im i t a t i o n s and the c o n d i t i o n s r e q u i r e d by the Law p e r ta i n i n g to the use of d isc ip l inary codes?

A n e m p l o y e r may not imp o s e any d i s c i p l i n a r y me a s u re s on an e mp lo y e e u n le s s the f o l l o w i n g c o n d i t i o n s are met:

1 . No d i s c i p l i n a r y a c t i o n can be taken aga ins t an e m p l o y e e as a resul t of s o m e t h i n g he c o m m i t t e d o u t s i d e the p la c e of w o r k ,unless it is re la ted to w o r k , the e m p l o y e r or the ma n a g e r in c h a rg e of the w o r k .

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2. No more than one punishment can be imposed for one violat ion. A disciplinary punishment cannot be accompanied witha deduction of part of the employee's wages.

3. None o fth e punishments detailed above can be imposed on an employee unless he is informed of his violat io n in w rit ingand given a chance to defend himself . His statement and defence should be noted and writ ten in his f i le, and thepunishment imposed should be detailed.

4 . An employee must be informed in writ ing ofthe punishment imposed on him, stat ing its type and amount and the reasonfor the punishment.5. No employee can be accused of an offence after the lapse of 30 days of its discovery. In addition, no disciplinary action

can be imposed after the lapse of 60 days from the end of the investigation regarding the violation and the confirmationof its occurrence.

6. The Ministry should be informed of the violat ion in writ in g.Under what condit ions can an employer suspend an employee from work?

An e mployee may be temporari ly suspended from w ork w hen he is accused of com mitt ing a deliberate crime such as physicalassault , property damage, a f inancial crime, crimes of honour or going o n str ike.The suspension should take effect from the date the concerned authority is informed o fth e incident unt i l a decision is takenby them regarding the incident. Further, an employee is not entitled to his wages during the suspension period. If the verdictrelieves the employee from standing trial or acquits him, he should be reinstated in his work and given his full wage for thewhole of the suspension per iod.Therefore, it is always advisable to take and record the minutes of meetings held with employees, which should be signed byboth parties and submitted to the Ministry when necessary.

1 3. ACCIDENTS AT WORKWh at is considered as a work accident?A work accident is an accident which has been suffered by an employee at his place of work or while travell ing to or fromhis place of work.What is the procedure for reporting labour accidents and occupational diseases?If the employee suffers a work related accident or an occupational disease, the employer or his representative must report theaccident immed iately to the police and the Ministry or one of its branches under whose jurisdict ion the place of work falls.The information should include the employee's name, profession, address, nat ionality, a brief descript ion ofthe incident andits circumstances, and the medical measures or treatment provided.Would the employer be prosecuted for an accident or an injury to an employee?Upon receiving the information from the employer, the police should perform the necessary investigations and state in theirreport the testimony taken from any witnesses, the employer or his representative, and the injured person if his conditionallows him to testify. The report should specifically state whether or not the accident was work related, whether it took placeintent ion ally, or as a result of misbehavior on the part of the em ployee.

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If the report concludes that one of the employer's personnel or managers were at fault or negligent, they may be prosecutedin a crimina l co urt for the act or omission if such an act or omission amounts to a crime .Would the employer be l iable for compensation?In case of work accidents and occupational diseases, the employer should undertake to pay the cost of the employee'streatment in a government or private clinic unt i l the employee recovers or his disabil i ty becomes certain. Howe ver, anemployee cannot demand to be treated in a specif ic cl inic or in a clinic outside the UAE.The treatment includes hospital and sanitary fees and costs of surgical operations, small-rays and laboratories fees in additionto the cost of medica t ion and rehabil i tat ion equ ipment and art if icial parts for those whose disabil i ty is proven . The emp loyermust also pay the travel expenses needed for the employee's treatment.What would the employer pay if the employee were not able to perform his work after the accident?If the injury prevents the emp loyee from performing his job dut ies, the employer should pay him a grant equivalent to his wageduring the treatment period or for six months, whichever is less. If the treatment takes more than six months, then the grantcan be reduced by half for an add itiona l six months or until the employe e recovers, his disa bility becomes certain or or inthe event of his death, which ever comes f irst.How much would the employer pay the employee during his treatment?The fina ncia l grant made by the emp loyer is calcu lated on the basis of the last wage the emp loyee was p aid in respect of thosewho are paid monthly, weekly, daily or hourly, and on the basis ofthe average wage for those who are paid on a piece workbasis.W ou ld the em ployee be entit led to compensation for permanent/part ial d isabil i ty other than his wages?The employee wil l not be ent it led to claim compensation from the employer other than for his wages and compensation forhis permanent/partial disability according to the ratios stated in List No. 2 of the Law (Schedule 2 below), and multiplied bythe value of death compensation described in the preceding paragraph. This is, of course, without prejudice to the em ployee'srights to claim compensation against any third parties who may have participated in causing the accident or the disabilitysuffered by the employee.

Is the employee's fam ily ent it led to c laim compensation?The employee's family is not entitled to claim compensation unless the accident caused the death of the employee or hispermanent disab il i ty. The compensation payable is equivalent to the basic wage ofth e e mployee for a period of two months.The compensation payable is subject to a minimum of Dhs. 18,000 and a maximum of Dhs.35,000. I t is calculated on thebasis of the last wage the employee was paid before his death and divided among the inheritors according to the rulescontained in List No. 3 ofthe Law which is provided in Schedule 3 below.

W ho w il l be considered as the heirs of the employee in terms of receiving compensation?In applying the rules of the Law, the family of the deceased are those who are dependent on the deceased for their livelihoodentirely or mainly vis a vis the deceased's income at the time of his death. They must qualify by being included in one of thefollowing categories:1 . W i d o w .

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2. Children who are; sons under 17, and those under 24 who are enrolled as regular students in an inst itut ion of learning,and sons who are physically or mentally unable to earn their l iving. The word "son" includes sons of the husband or thewife who were under the care of the deceased employee at the t ime of his death.

3. Unm arried gir ls, includin g unm arried daughters of the husband or the wife who were under the care of the deceasedemployee at the t ime of the death.

4 . Parents,5. Brothers and sisters acc ordin g to the con dition s set for sons and daughters.It is also possible for the heirs of the deceased to file a civil action under tort against a person who has caused injury or deathto the employee under the general provisions of tort, if the act was a tortious one.Before commencing an act ion, the support ing documentat ion such as the statement from the police must be submitted withthe Statement of Claim.W ou ld de liberate self- injury by the employee e ntit le him to receive compensation or sick leave?

If i t were evidence d in a report provided by the Ministry or the police that the employee had intent iona lly caused the injuryin order to receive compensation or medical leave, then the employee wil l not be ent it led to either compensation or sickleave, and would be l iable to face criminal charges.

1 4 . TERMINATION OF CONTRACTWhen can a contract of employment be terminated?An employment contract can be terminated in any of the following circumstances:1 . If the two parties agree to cancel the contract, provided that the employee consents to this in writing.2. If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the

rules of the Law.3. By one of the parties whe re the contract has an unspe cified term, pro vide d that the parties observe the provisions o f the

Law referred to previously regarding notice and the acceptable reasons to cancel the contract without prejudice.Would an employment contract be terminated by the death of the employer or the disabil i ty of the employee?An employer's death does not constitute the termination of a labour contract, unless the subject of the contract is related tohim personally. However, the contract wil l be terminated upon an employee's total disabil i ty (without prejudice to his end ofservice benefits).However, if the employee's disabil i ty is part ial and he is able to perform other work which suits his health, the employershould transfer the employee to such other work if the employee so requests, and should give him wages equal to those paidfor similar work.Under what circumstances can an employer terminate the employment contract without not ice and with immediate effect?An employer may dismiss an employee without not ice in any of the following cases (as per Art icle 120 of the Law):

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1 . If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certif icates.2 . I f the employee was appointed under proba tion and the termination happened during that period or at its end.3. I f the employee com mits a mistake causing the employer a substantial f inancial loss, provided the emp loyer informs the

Minist ry of the inc ident wi th in 48 hours .4 . If the employee violates instructions relating to safety in the place of work, provided those instructions were written and

displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.5. If the em ployee fails to carry out his basic duties as stated in the contract and continues to do so in spite of a writte n

interrogation and a warning that his service will be terminated if he repeats his misconduct.6. If he discloses a secret of the establishment for wh om he is wo rkin g.7. I f he is conclusively convicted by the concerned cou rt of a crime invo lving hono ur, honesty and public m orals.8. I f he is found drunk or intoxicated by drugs during workin g hours.

9. I f he commits a physical assault on the employer or manager or one of his colleagues durin g wo rk.1 0. If he becomes absent without a legitimate reason for more than 20 intermittent days or more than seven continuous days

with in one year.Can an employee terminate a contract witho ut not ice?An employee may terminate his contract of employment without not ice in either ofthe following cases (as per Art icle 121 ofthe Law):1 . If the employer has not fulfilled his obligation towards him as provided in the contract or in the Law, for instance where

an employer does not pay his employee his wages on t ime ,2. If he is assaulted by the employer or his legal representative.Would changes in the structure of a business or its ownership constitute a termination of an employment contract?If there is a change in the structure of a business or its ownership, any contract valid during the time the change is made willremain va lid and the service considered continuou s. Both the previous and the new employer are joint ly responsible for sixmonths from the date of the alteration in executing the obligations relating to the contract of the employee in the period priorto the change.After the end of this six-month period, the new employer is solely responsible for the employees of the business.Can an employee, after the termination of his contract, be employed by another employer in the UAE?If the nature of the position held by the employee allows him to know his employer's clients or the trade secrets of theemployer, the employer may stipulate in the contract that after the end of his contract, the employee shall not compete withhim or share in any competing project. The employee has to be 21 years old at the time of signing the contract for thisagreement to be legal. The agreement shall be as far as time, place and nature of work are concerned limited to what isnecessary to protect the legal interests of the employer. However, if there is no agreement to the contrary, an expatriateemployee may work for a new employer provided that his profession is listed in one of the categories exempted from theautomatic six month or one-year ban provisions out l ined below.


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Ac c o rd in g t o t h e 19 9 9 a me n d me n t t o t h e L a w, c e r t a i n e mp lo y e rs a re r e q u i r e d t o s u b mi t t o t h e M in i s t r y a b a n k g u a ra n te e a ssecur i ty fo r end o f serv ice benef i ts and re pa t r ia t ion cos ts re la ted to the i r emp loyee s . In the even t o f ban krup tcy , the e mp loy eri s r e q u i r e d t o e n c a s h t h e g u a ra n te e a n d p ro v id e t o t h e e mp lo y e e .

W ha t a re the c iv i l / c r im ina l respon s ib i l i t ies o f an em ploy er i f h is em plo yee is on som ebo dy e lse 's v isa?

A f i n e o f AED 10 ,0 0 0 w i l l b e imp o s e d a n d t h e e mp lo y e r w i l l b e b a n n e d f r o m e mp lo y in g a d d i t i o n a l e mp lo y e e s o r d o in ga n y th i n g e l s e i n r e la t i o n t o immig ra t i o n . Th e b a r w o u ld b e l i f t e d o n c e t h e Emp lo y e r i s n o l o n g e r i n v i o l a t i o n o f th e L a w.Wh a t e mp lo y me n t b a n p ro v i s i o n s a p p l y u p o n t h e t e rm in a t i o n o f a n e mp lo y me n t c o n t ra c t?

A o n e -y e a r b a n w i l l b e imp o s e d ( s ta mp e d ) o n a n e m p lo y e e 's p a s sp o r t b y t h e Immig ra t i o n De p a r tme n t u p o n t e rm in a t i o n o fe m p lo y m e n t i f t h e e m p lo y e e v i o l a te s t h e e m p lo y me n t c o n t ra c t , t h e L a w, o r t h e l a b o u r re g u la t i o n s . A s i x -m o n th b a n w i l l b eimp o s e d ( s ta mp e d ) u p o n t e rm in a t i o n o f e mp lo y me n t o n t h o s e wh o d o n o t f a l l u n d e r o n e o f t h e c a te g o r i e s o f p ro fe s s io n a l spermi t ted to t rans fe r the i r v isas .

A s ix - mo nth b an is typ ic a l and a person wh o wishes to be ree mp loye d must wa i t un t i l the per iod o f s ix mo nths has passed .

The fo l lowing ca tegor ies a re exempted f rom the s ix -month ban and permi t ted to t rans fe r the i r res idence v isas to a news p o n s o r :

(a) Engineers.

(b) Do c to r s , Pharmac is ts and Ho sp i ta l At tendants .

(c ) Agr icu l tu ra l Ins t ruc to rs .

(d ) Teachers .

( e) Qu a l i f i e d Ac c o u n ta n t s a n d Au d i t o r s .

(f) Qu a l i f i e d Ad m in i s t r a t i o n o f f i c i a l s .

(g) Te chn ic ian s in sc ien t i f i c e lec t ron ics and labora to r ies .

(h ) Dr ivers l i censed to d r ive heavy t ranspor t veh ic les and (buses) . Th is is in case o f t rans fe r r ing the sponsorsh ip f rom ac o m p a n y o r e s ta b li s h me n t t o i ts c o u n te rp a r t o r t o a n y g o v e rn m e n ta l b o d y .

( i) Em ployees o f p r iva te o i l com pan ies a re en t i t led to t rans fe r the i r sponsorsh ip f rom one com pa ny o r es tab l ishmen t to i tsc o u n te rp a r t o r t o a n y g o v e rn me n ta l b o d y .

Pro v ided a lways ( whe re the t rans fe r is f rom a p r iva te sec to r pos i t io n to ano ther p r iva te sec to r pos i t ion) tha t :

(a ) Th e emp loy ee m a in ta in s the same pos i t io n ( tha t i s , in the same pro fess ion) wi t h the new em plo yer as he used to o cc up ywi t h h i s p re v io u s e mp lo y e r ;

(b) Th e em plo yee has a va l id res iden t permi t s tam ped on h is passpor t;

( c) Th e e mp lo y e e h a s c o m p le te d a t l ea st o n e y e ar o f c o n t i n u o u s e m p lo y me n t w i t h h i s p re v io u s e mp lo y e r ; a n d

(d) The em plo yee has ob t a in ed the conse nt o f the sponsor to trans fe r h is sponsors h ip to the new em plo yer .

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Acco rding to the 1999 amendm ent to the Law, certain emp loyers are required to submit to the Ministry a bank guarantee assecurity for end of service benefits and repatriation costs related to their employe es. In the event of bankru ptcy, the em ploy eris required to encash the guarantee and provide to the employee.What are the civil/criminal responsibilit ies of an employer if his employee is on somebody else's visa?A f ine of AED 10,000 wil l be imposed and the employer wil l be banned from employing addit ional employees or doinganything else in relat ion to im migra t ion. The bar wo ul d be l i f ted once the Employer is no longer in violat ion of the Law .What employment ban provisions apply upon the termination of an employment contract?A one-year ban wil l be imposed (stamped) on an employee's passport by the Immigrat ion Department upon termination ofemployment if the employee violates the employment contract, the Law, or the labour regulat ions. A six-month ban wil l beimposed (stamped) upon termination of employment on those who do not fall under one of the categories of professionalspermitted to transfer their visas.A six- month ban is typical and a person who wishes to be reemployed must wait until the period of six months has passed.The following categories are exempted from the six-month ban and permitted to transfer their residence visas to a newsponsor:(a) Engineers.(b) Doc tors, Pharmacists and Ho spital Attendants.(c) Agricultural Instructors.(d) Teachers.(e) Qu alif ied Accountants and Auditors.(f) Qu alif ied Adm inistrat ion off icials.(g) Tech nicians in scientific electronics and laboratories.(h) Drivers licensed to drive heavy transport vehicles and (buses). This is in case of transferring the sponsorship from a

company or establishment to its counterpart or to any governmental body.(i) Employees of private oil comp anies are entitled to transfer their sponsorship from one com pan y or establishment to its

counterpart or to any governmental body.Provided always (where the transfer is from a private sector position to another private sector position) that:(a) The emp loyee maintains the same position (that is, in the same profession) with ,th e ne w em ploye r as he used to oc cup y

with his previous employer;(b) The emp loyee has a va lid resident permit stamped on his passport;(c) The employee has completed at least one year of continuous emp loyme nt wit h his previous emp loyer; and(d) The emplo yee has obta ined the consent of the sponsor to transfer his sponsorship to the new e mp loyer .

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How ever, the follow ing circumstances are exceptions to the above rules:(a) W here the transfer of em ploy me nt is from one bran ch to another branch of the same compan y, establishment or a branc h

owned by the same employer.(b) Where the transfer of employment was due to the transfer of the ownership of the company, establishment or branch

thereof to the ownership of another company, establishment or person.(c) W here the sponsor has breached his liabilit ies w hi ch resulted in the closing of the establishment.(d) Wh ere a court judgment is delivered for the bankruptcy or win din g and termination of act ivit ies of the establishment.(e) W here the origin al sponsor has died and his heirs do not intend to contin ue ru nnin g the establishment.The above rules have been stipulated by Ministerial Decree No. 360 of 1997 To Issue the Executive Bylaw of the Federal LawNo. (6) of 1973 Concerning the Entry and Residence of Expatriates. However, the Ministry or immigration, may, at their owndiscret ion, grant exceptions.W hic h acts wou ld result in the termination of an employm ent contract, and result in the employee being banned from wo rkingin the UAE for one year?The following acts by the employee would render the employee banned from working in the UAE for a year.1 . I f the employee leaves his employment without a just if ied cause before the end of a specif ied there in the employment

contract; or2. In the case of an unlimited contract without giving one month's not ice of termination; or3. The emp loyee leaves his em ploym ent before the lapse of one mon th's notice ; or4 . The employee violates Art icle 120 ofthe Law; or5. The employee works w ith another employer full/part t ime at the same t ime as wo rkin g for his original e mployer.These sanctions wou ld o nly be applied if a com plaint was f i led by the employer requesting such.Follow ing the termination of his employme nt contract, wh en sh ould an employee cancel his dependent 's visas?Upon termination of his employment contract, an employee has to apply for the cancellation of his dependent's visas (spouse,children & domestic help) before his employer submits an application for the cancellation of his visa. This is not necessary inthe event of a transfer of sponsorship.Is the employer obliged to give an end of service certif icate at the end of the employee's service?At the end of an employee's service, and subject to his request, an employer is obliged to provide him with a servicecertif icate . This certif icate is free of charge and should state the date the em ployee com men ced service, the last day of service,the total service perio d, the nature of wor k carried out by the employee, his last wage and any allowances, if applicab le.The employer should also return to the employee all materials deposited with him, such as certif icates, papers, instrumentsetc.

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3. In the case of a limit ed con tract, compe nsation e quivale nt to the period un til the end of the contract, or three mo nth'swages, whichever is shorter.

4 . Payments equivalent to the balance of unutilised leave or any part thereof.5. Payments for overtim e or any balance of wages due and not yet paid.

6. End of service gratuity calculated on the durat ion of the employm ent.7. 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.

What does the term end of service gratuity mean in terms of compensation?In the case of an employm ent agreement for a unil im ited term, an employee w ho completes one year or more in co ntinuousservice shall be entitled to gratuity at the end of their service. The gratuity shall be calculated as follows:

(1 ) 2 1 days wages for each year of the first five years.(2) 30 days wages for each additio nal year on co nd ition that the total of the gratuity does not exceed the wages of tw o years.

How is gratuity calculated?Gratuity is calculated on an annual basis or part thereof provided that the employee has actually completed one year ofemployment with the employer or more. Days of absence from work without pay are not included in calculat ing the lengthof service. However, he will be entitled to end of service gratuity for fractions of a year he spent in service provided that hehas completed at least one year in continuous employment.

On what basis is gratuity calculated?W ith ou t preju dice to w hat is stipulated by the policies of some establishments in the granting of pensions or retiremen t benefitsto employees, gratuity for those who are paid monthly, weekly or daily wages is calculated according to the employee's lastreceived basic wage before the employment was terminated. This wage is the basis for calculating the gratuity for the wholeperiod of an employee's employment.

Would a commission or payment by percentage be considered a basic wage?According to a court ruling delivered by the UAE court , except for allowances and bonuses, any amount payable to anemployee as wages including wages paid by percentage basis, commissions, or for performance will be considered as wageand wil l be taken into considerat ion in calculat ing gratuity.

Would an employee who was employed prior to the Law coming into force be entit led to gratuity?According to the UAE law, employees who were working prior to the date the Law came into force wil l not be ent it led togratuity for the period preceding the Law. This is without prejudice to any entitlements or payments they were entitled to underother laws or regulations applicable. However, gratuity for those employees under the Law is calculated thereafter on the date

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the Law came into force.

Can the employer deduct any payment from the gratuity payable to the employee?The employer may deduct any amount owed to him by the employee such as outstanding loans from the employees end ofthe service gratuity. If there is any dispute over the payment of gratuity or the amount of gratuity payable, the matter shouldbe referred to the Ministry for med iat ion.

Is the amount calculated for gratuity affected if the employee resigns from employment?An employee employed under a contract for an unlimited period who resigns after a continuous service of not less than oneyear and not more than three years is entitled to one third of the end of service gratuity provided above. If the period ofcontinuous service is more than three years and less than five years he is entitled to two thirds of the gratuity.If his continuous service is more than five years, he is entitled to the full gratuity.If an employee who is employed under a contract for a limited period on the other hand chooses to resign before the end ofthe contract, he is not entitled to end of service gratuity unless his continuous service exceeds five years.Under what circumstances can an employee be deprived of his end of service gratuity?An employee may be deprived of his end of service gratuity if he has been dismissed for one of the reasons stated in Article120 of the Law , or if he terminated his employm ent to avo id such dismissal.Under w hat circumstances wil l an employee be entit led to gratuity if he terminates his employmen t contract witho ut not ice?Under Art icle 121 ofthe Law, an employee wil l be ent it led to gratuity on termination without not ice in either of the followingcircumstances:(1) The employer has failed to comply with his obligat ions towards the employee, as provided for in the employment contract

or in the Law.(2) The emp loyee w as assaulted by his emp loyer or his legal representative.The above applies to employees who have been continuously employed for a minimum period of one year, regardless ofwhether the contract of employm ent is for a f ixed or un limited term.If the establishment or company has a pension scheme, which is beneficial to the employee, is this a substitution for thepayment of gratuity?If the employer has a pension scheme applicable to all the employees of the business, such a scheme must be published andknown to all employees, and must specify that it will be a substitute to the gratuity rules outlined in the Law. It must also bemore bene ficial to the employees than the gratuity provision oft he Law. Otherwise the employee may benefit from b oth unlessthe employee agreed or consented to the scheme in question.

Is there a pensions and social security scheme in the UAE?The Pensions & Social Securities Law, Federal Law No. (7) of 1999, concerns UAE nationals employed in both the public andprivate sectors. It provid es, amongst other things, for certain contributio ns to be made by the employee a nd the employ er tothe Public Authority of Pensions and Social securities. For a person employed In the public sector these contributions areequivalent to 5% of the contributory pension salary to be paid by the employee and 1 5% of the contributory pension salary

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payable by the employer. As for the private sector, the government shall bear 2.5 % o fth e 1 5% share payable by the employeras contribut ions to the Authority.The Pensions & Social Services Law also provides for the amo unt to be paid as a pension to elig ible UAE nationals on reachin gthe retirement age of 60, or disability pension in the case of an employee becoming disabled and unable to work. It furthercovers the amount of pension payable to beneficiaries on the demise of a secured person.

Can the employee and the employer agree to pay gratuity for the termination of the employmentcontract for a preceding period?The employer and the employee may, upon mutual agreement, decide upon the payment ofthe employee's gratuity for theyears that he has already served his employer. A new contract will then be entered into between the parties.The employee's employment with the employer is st i l l considered as a continuous period for the purpose of calculat inginterest, or, at the time when he resigns, calculating the employee's total years of service with the employer.

Where an employee has worked for an employer in two or more countr ies, wi l l he be ent i t led togratuity?This wil l depend on a number of factors such as the terms ofth e e mploym ent contract, the law ofth e cou ntry the em ployme ntis being conducted in and the general practice of the employer. For instance, many multinationals which transfer theiremployees to another country pay the end of service benefits applicable at the time of transfer. In such cases, the transfer isessentially considered as new employment for the purposes of gratuity payments.The matter will however depend on the facts of each case as it is not covered by the Law but rather is addressed in certainjudgments. Therefore, it should not be assumed that if an employee is transferred to another country that the UAE law willcont inue to apply or that his employment contract wi l l cont inue to be enforced. The Law is considered as a matter of pub licpolicy and thus certain cases may be different in other jurisdictions. In addition, the country the employee is being transferredto may contain different regulations regarding the transfer of employees to and from other jurisdictions.Therefore, the law of the country the employee is transferred to may prevail and give regard (or otherwise) to the employee'sprevious em ploy me nt con tract. In such cases therefore it is advisable to seek independe nt advice on the matter.It is also not possible to apply a foreign law to a UAE employment contract. If the governing law in the employment contactis UAE law and f i led with the Ministry, then gratuity w il l be calculated from the commenc ement date of that contract. Thiscontract wil l take precedence over any other contract with a foreign governing law.Can an employee mortgage or assign payment of his gratuity?It is possible to mortgage or assign payment of an employee's gratuity to the employer or to a third party by mutual agreement,provided that in the agreement with a third party, the employer and the employee agree to this in writ ing with anunderstanding of all parties that the employee may forfeit his right to gratuity which is not yet due if he violates a provisionof the Law.In any event, , an employee's gratuity can only be assigned subject to the employee becoming entitled to it.Wh en does gratuity become due and payable?Gratuity wil l only become due and payable on the termination of an employment contract .

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Are the end of service gratuity and other dues payable to the employee considered priority debts?The employee's wages, overtime, and any other benefits, including end of service gratuity, are considered to be a preferentialdebt for which the employee shall have a l ien over any movable or immovable property owned by the employer rankingsecond to government charges, judicial fees and family a limony payments.

1 7 . DISPUTE SETTLEMENTIn case of a dispute between the employee and the employer, how can either of them proceed with acase?Wh ere there is a dispute between the employee and the emp loyer, an app licat ion must be made to the Ministry in the em iratein whi ch the em ployer's establishment is located. The comp laint must be submitted in writ in g to the complaints departmentat the Ministry, sett ing out a summary of the facts, calculat ion oft he amoun t due, and enclosing a copy of the labour co ntract .The applicat ion wil l be f i led with the Ministry upon payment of AED.100 registrat ion fee.The emp loyer or the employee w il l be summo ned to state teir respective cases before the labour office at the Min istry wh omust make a recommendation within two weeks from the date in which the applicat ion is f i led. Should the party fail to settlethe dispute as recommended by the Ministry, the matter will then have to be referred to court to be lit igated in the normalmanner. In such a case, the Ministry will issue a summary of the facts of the case, and a memorandum together with itsrecomm endation, and the arguments put forwa rd by b oth part ies. With in three days from the date the applicat ion is received,the court will schedule a hearing and summon the other party to hear the matter.

How effective are foreign employment contracts in the UAE?Such contracts are enforceable and valid as contracts executed in the UAE. However, if there is an additional local contractand a dispute arises, the provisions in the contract which are more favourable to the employee wil l probably be upheld,prov iding there is evidence in support of the provision in question.In terms of the gratuity payable, where there are two contracts, the employee may only benefit from one.The enforceable contract will in most cases be the one filed with the Ministry and gratuity calculated according to the salaryspecif ied in the UAE employment contract .Should the application to the labour off ice and the court be made within a specif ied t ime l imit?A comp laint by either the employer or the employee must be made to the labour off ice w ithin one year from the date in w hichthe amount or the ent itlement becomes due otherwise it wi l l be t ime bared. In other word s, the one-year t ime period does notstart running from the date of termination, but rather from the date the amount becomes due and unpaid.In calculating time according to the Law, the Gregorian calendar is used. Years are calculated as 365 days and months as 30days. However, filing an action before the Ministry will suspend the time from running. If the Ministry fails to transfer the caseto court within two weeks, the employee may then proceed to court without referral from the Ministry .

Is the employer or the employee l iable to pay court fees if the matter is referred to court?Employees are exempt from paying court fees. This exemption also applies if an appeal is filed at the court of appeal.However, should a matter fail to be settled at the Ministry, an employer who elects to proceed with court action must paycourt fees, wh ich are normally based on a percentage of the amo unt in dispute.

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Is there a differe nt rule for c omp laints f i led by a group of employees against one emp loyer?The Law provides slightly different provisions regarding claims made by a number of employees of the same establishmentwho file a complaint against their employer. It may take longer to be settled at the Ministry and the Ministry may form acommittee to settle such disputes.

1 8. LABOU R INSPECTIONSIs the Ministry or any other competent authority entit led to inspect establishments or commercialentities established in the UAE?The Labour Inspection Department at the Ministry and the personnel employed therein may undertake labour inspections atany establishments or commercial entities, and have been given the power to do so by the Law. The inspector however shouldcarry an identification card issued by the Ministry, and is entitled to enter premises for inspection. Employers and their agentsshould present the labour inspectors with all the necessary facilit ies and information to perform their duties and shouldconsent to any summons to appear before them, or should send a delegate to appear on their behalf if they are required to doso .

What are the primary responsibil i t ies ofthe labour inspectors?A labour inspector is responsible for the following:(1) Supervising the proper enforceme nt of the provisions of the Law, pa rticularly terms of wo rk, wage s, on the job safety,

health and the specif ic regulat ions concerning the employment of juveniles and women;(2) Providing employers and employees with the inform ation and technical guidance that w il l enable them to adopt the best

means for the enforcement of the provisions of the Law.(3) Informing the concerned authority of any loop-holes whic h the enforcement provisions fail to remedy and reco mme nding

any necessary steps.(4) Recording incide nts where the provisions of the Law and the regulations have been viola ted.

Do the labour inspectors have the authority to enter commercial entit ies and premises?A labour inspector has the r ight to do the fol low ing :(1) Enter any establishment that is subject to the provisions o fth e Law at any time durin g the day or night with ou t prior n otice ,

provided that such entry is made during working hours.(2) Co ndu ct any test or inve stigation that may be necessary to ascertain the proper enforcem ent of the Law,(3) Que stion emp loyees or the employ er, exa mine ail records whic h have to be kept under the provision o f the Law, take a

sample or samples of materials used or handled in industrial activities, and ascertain that notices and pamphlets requiredto be displayed at the work site are in accordance with the provisions of the Law.

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APPENDIX 1 OC CU PA TION AL DISEASESN o .

1 .

2 .

3 .

4 .

5 .

6 .

7 .

8

9 .

1 0

Type o f d isease

Po i son i ng by l ead and i t s com pounds

P o i s o n i n g b y m e r c u r y a n d i t s c o m p o u n d s

Po i son i ng by a rsen i c and i t s com pounds

P o i s o n i n g b y a n t i m o n y a n d i t sc o m p o u n d s

P o i s o n i n g b y p h o s p h o r o u s a n d i t sc o m p o u n d s

Po i son i ng by pe t ro l eum , i t s de r i va t i vesa n d c o m p o u n d s

P o i s o n i n g b y m a n g a n e s e a n d i t sc o m p o u n d s

Po i son i ng by su l phu r and i t s com pounds

P o i s o n i n g b y p e t r o l e u m , i t s c o m p o u n d s

P o i s o n i n g b y c h l o r o f o r m o r c a r b o nt e t r a c h l o r i d e

W o r k c a u s i n g d is e a se

A n y w o r k i n v o l v i n g th e u se o r h a n d l i n g o f le a d o r c o m p o u n d sc o n t a i n i n g l ead .

A n y w o r k i n v o l v i n g , t h e u se o r h a n d l i n g o f m e r c u r y o r i tsc o m p o u n d s o r m a t e r i a l s c o n t a i n i n g m e r c u r y , a n d a n y w o r ki nv o l v i ng exposu re t o t he dus t o r gases o f m erc u ry o r o f i tsc o m p o u n d s o r m a t e r i a l s c o n t a i n i n g m e r c u r y .

An y w o r k i nv o l v i ng t he use o r hand l i n g o f a rsen i c o r i ts com po un dso r m a t e r i a l s con t a i n i ng a rsen i c , and any w o rk i nvo l v i ng exposu ret o t he dust and gases o f a rsen i c o r o f i ts co m p ou nd s o r m a t e r i a l sc o n t a i n i n g a r s e n i c .A n y w o r k i n v o l v i n g t h e u s e o r h a n d l i n g o f c o m p o u n d s a n t i m o n y ,its c o m p o u n d s o r m a t e r ia l s c o n t a i n i n g a n t i m o n y a n d a n y w o r ki nvo l v i ng exposu re t o t he dus t and gases o f an t i m ony o r o f i t sc o m p o u n d s .A n y w o r k i n v o l v i n g th e us e o r h a n d l i n g o f c o m p o u n d s p h o s p h o r u s ,it s c o m p o u n d s o r m a t e r ia l s c o n t a i n i n g p h o s p h o r o u s a n d a n y w o r ki nvo l v i ng exposu re t o t he dus t o r gases o f phospho rus o r o f i t sc o m p o u n d s o r m a t e r i a l s c o n t a i n i n g p h o s p h o r u s .

A n y w o r k i n v o l v i n g t h e h a n d l i n g o r us e o f c o m p o u n d s a n d b y p r o d u c t s p e t r o l e u m , i ts d e r i v a ti v e s a n d c o m p o u n d s a n d a n y w o r ki nvo l v i ng exposu re t o t he i r dus t o r gases .A n y w o r k i n v o l v i n g t h e u s e o r h a n d l i n g o f c o m p o u n d sm anganese , i ts com po und s o r m a t e r i a l s con t a i n i n g m anganese , andany w o rk i nv o l v i ng exp osu re t o t he gases o r dus t o f m anganese o ro f it s co m p ou nds an d any p roduc t s con t a i n i ng m anganese .A n y w o r k i n v o l v i n g th e u se o r h a n d l i n g o f s u l p h u r , i ts c o m p o u n d so r m a t e r i a l s c o n t a i n i n g s u l p h u r , a n d a n y w o r k i n v o l v i n g e x p o s u r et o gases o r dus t o f su l phu r o r i ts com po un d a l l oys .A n y w o r k i n v o l v i n g t h e h a n d l i n g o r u se o f b y - p r o d u c t s a n dc o m p o u n d s , p e t r o l e u m , i ts g as es o r b y - p r o d u c t s a n d a n y w o r ki nvo l v i ng exposu re t o such subs t ances , w he t he r i n so l i d , l i q u i d o rgas state.

A n y w o r k i n v o l v i n g th e u se o r h a n d l i n g o f c a r b o n t e t r a c h l o r i d ec h l o r o f o r m o r c a r b o n t e tr a c h l o r i d e a n d a n y w o r k i n v o l v i n gexposu re t o t he i r gases , o r t o any gases con t a i n i ng such subs t ance .

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1 1

1 2

1 3

1 4

1 5

1 6

1 7

1 8

D i seases resu l t i ng f rom r ad i um o r o t he rrad i o -ac t i ve subs t ances (X - ray )

C h ron i c d i seases o f t he sk i n and bu rns

In jur ies o f the eyes by heat and l i gh t

Lung d iseases resu l t ing f rom s i l i ca dust ,asbestos or o ther f i nes

A n t h r a x

G l a n d e r s

T u b e r c u l o s i s

Enter i c fever

A n y w o r k i n v o l v i n g e x p o s u r e t o r a d i u m o r t o r a d i o - a c t i v esubs t ances (X - ray ) any rad i o -ac t i ve m a t e r i a l s o r X - ray .Any w o rk i nvo l v i ng t he use o r hand l i ng o f o r o f t he sk i n and t heeyes . T rans f e r o f t a r ca r bo n , t a r m ach i ne s , m i ne ra l o i l , ke rosene o rcem en t f l ou r and s i m i l a r m a t e r i a ls such as dus t and t he co m po nen t sand by -p roduc t s o r depos i t s o f such i t em s .A n y w o r k i n v o l v i n g f re q u e n t o r c o n t i n u e d a n d th e i r c o m p l i c a t i o n s .Exposu re to l i gh t , heat or rays f ro m m ol te n g lass or f rom he ated orm e l t ed m e t a l s , o r expos u re t o s t rong li gh t and i n tense hea t as w o u l dresu l t i n dam age t o t he eye o r i m pa i rm en t o f s i gh t .

A n y w o r k i n v o l v i n g e x p o s u r e t o n e w l y - a s b e s t o s a n d c o t t o n d u s t ,gene ra t ed dus t o f s i l i ca o r subs t ances con t a i n i ng m ore t han 5% o fs i l i ca such as w o rk i n m i n i ng , qua r ry i n g , s tone cu t t i ng o r g r i nd i n g ,w o rk i ng i n a s t one cem en t f ac t o ry , g l ass ing m e t a l s w i t h sand o r anyo t he r ac t i v i t y i nvo l v i ng such exposu re t o asbes t os o r co t t on dus t t oan extent that such d iseases are caused.

An y w o r k i nv o l v i n g con t a c t w i t h an i m a l s i n f ec t ed w i t h th i s d i sease ,o r w i t h t he i r sk i ns , ho rns and ha i r .

A l l w o rks i nvo l v i ng con t ac t s w i t h an i m a l s i n f ec t ed w i t h t h i sd isease.

W or k a t hosp i t a l s f o r t he trea t m en t o f t h i s di sease .

W o rk a t hosp i ta ls spec ia l i se d in the t reatm ent o f th is fever .

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Appendix 2 Permanent Disabil i ty RatingNature of Disabil i ty Degree of Disabil i ty

PercentagePermanent1 . Loss o f bo t h a rm s f ro m t he shou l de rs an d l oss o f any t w o o r m o re l i m bs2 . Co mp lete loss o f s ight in bot h eyes or loss o f two eyes3 . C o m p l e t e pa ra l ys is4 . D e m e n t i a or c o m p l e t e m e n t a l d e r a n g e m e n t5 . W o u n d s a n d i n ju r i e s t o t h e h e a d o r b r a i n w h i c h c a u s e c o n t i n u o u s h e a d a c h e6 . C o m p l e t e d e f o r m a t i o n o f t h e f a c e7 . I n j u r i es and w o un ds t o t he ches t and i n t e rna l o rgans w h i c h cause a

c o n t i n u o u s a n d c o m p l e t e d e f i c i e n c y i n t h e f u n c

uae labour law _faq

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