UAE has experienced exceptional developments and outstanding economic growth over the years. This makes the UAE the most attractive tourist destination in the world.
They have caught the attention of global investors, professionals, entrepreneurs, and multinational corporations. Nonetheless, a friendly environment is not possible without a robust and detailed legal framework. Learn more about legal framework through our legal professionals.
The UAE has emphasized this and introduced several UAE labor laws. Primarily, the stress is laid upon the private sector to ensure compliance for employees working in the private sector.
It is essential to understand and comply with the Labor Laws for the private sector in the UAE. It helps in maintaining a productive, fair, and just working environment. However, the employment laws are often subject to change. Therefore, seeking professional assistance from Dubai law firms is crucial.
A Detailed Overview of Labor Law in the Private Sector:
They are mainly governed by the Federal Decree Law No. 33 of 2021. It is also called the UAE Labor Law. It is replaced by the Federal Law No. 8 of 1980. This modern regulation reflects the government's dedication to employees’ safety.
Besides, it ensures that employees in the Private sector work under transparent, fair, and balanced working conditions. It protects the employees' and employers' rights and interests.
The Labor Law is applicable in all emirates. It is even applied on free zones with the exceptions of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). These 2 have their independent employment legislation.
Core Provisions of the UAE Labor Law:
According to the labor law, it is compulsory to have employment contracts in the private sector. They should have a fixed term and must not exceed 3 years.
However, there is a possibility of renewal. This brings more clarity to the employee-employer relationship. Moreover, it also offers a greater level of flexibility than ever before.
Seasoned Lawyers in Dubai often help companies in the private sector. They provide drafting services to them. They prepare and review the employment contracts. They also ensure that the agreements are aligned with the updated legal requirements. As a result, it promises the protection of all parties involved.
Standard working hours and overtime:
Another key provision is related to the standard working hours and overtime in the UAE’s private sector. According to the UAE labor laws, the standard working hours are limited to 8 hours per day or 48 hours per week.
In Ramadan, the working hours are reduced to 2 hours per day. Furthermore, any work beyond this standard is termed as overtime. According to the UAE labor laws, this overtime must be compensated.
The overtime compensation includes the additional pay, which is calculated at 125 % of the regular wage. Additionally, any overtime that falls between 10 pm and 4 am will be compensated at the rate of 150 %.
Leave Entitlements:
The employees working in the private sector get leave entitlements. They get annual leave for a minimum of 30 days for employees who have served for over 1 year.
In addition, sick leaves are up to 90 days per year. This will vary according to the pay structures, considering the full payment, half pay, and unpaid leaves.
Maternity leaves are normally given to female employees for 60 days. This includes the paid and unpaid leaves. Further, paternity leave is available for 5 days within the first 6 months of the child’s birth.
All the above-mentioned provisions are for the betterment and welfare of the employees working in the Private sector. This promotes work-life balance and also grants them their due leave entitlements.
Termination and Severance Pay:
Termination procedures should follow the due process as mentioned by the legislation. It does not include the notice periods and valid grounds for dismissal. Moreover, the standard notice period is between 30 and 90 days. It depends on the employment contract.
In case an employee is dismissed without any solid and valid reasoning, they may claim unfair dismissal. They can consult a lawyer in Dubai to seek compensation. They can assist in pursuing a legal action.
Moreover, once the employment relationship is completed, the eligible employees can get the service gratuity. It is mainly based on the years of service.
Equal Opportunities and Anti-Discrimination:
According to the UAE labor law, there are certain provisions to combat discrimination and workplace harassment. It also promotes equal workplace opportunities for the employees.
The discrimination can be based on race, class, caste, color, sex, religion, nationality, background, ethnicity, or disability. Any form of discrimination is strictly prohibited in the UAE.
Employers in the UAE are also encouraged to hire Emiratis under the UAE Emiratisation policy. However, a huge number of expatriates are working in the country.
Seek Legal help for dispute resolution:
It is quite common to face workplace disputes. Therefore, the UAE has built a well-structured mechanism to resolve them. The Ministry of Human Resources and Emiratisation (MOHRE) plays a significant role in dealing with disputes and disagreements.
They often provide mediation services. However, if the matter remains unresolved, it can be escalated to the UAE courts. Dubai law firms have a team of specialized lawyers who can represent clients in the complex legal procedures. Besides, attorneys in Dubai work to ensure the rights of employees are protected.
The UAE labor laws are often subject to change, which requires expert legal advice in case of disputes. The law firms in Dubai offer invaluable services to individuals and businesses. They provide them with drafting services and also ensure compliance with the employment agreements.
Furthermore, they offer legal assistance during MOHRE proceedings. They represent the clients in the UAE labor courts and also offer strategic legal opinions.
FAQs:
1. According to the UAE Labor Law, who is covered in the private sector?
It includes all the employers and workers operating within the UAE private sector. Under the UAE labor laws, the labor force and employers also come under DIFC and ADGM. However, the domestic helpers and workers are mainly governed by a separate set of laws.
2. Can any employer terminate their employee without sending a prior notice?
Yes, it is permissible in a few instances, for example, in the case of gross misconduct. Otherwise, employers must send prior notice as per the contractual terms and conditions. The prior notice is normally for 30 to 90 days.
3. What are the standard working hours for workers in the private sector in the UAE?
Typically, the standard working hours are 8 hours per day or 48 hours per week. However, during Ramadan, the working hours get reduced by 2 hours per day.
4. How is overtime calculated according to the Labor Law in the UAE?
Overtime is paid at 125% of the standard pay. Moreover, if the overtime is between 10 PM and 4 AM, then it is compensated at 150% of the regular wage.
5. Are the expatriate workers entitled to receive end-of-service gratuity?
Yes, the expatriates who have completed at least 1 year of continuous service will receive end-of-service gratuity. It is calculated based on basic salary and service years.
6. In what ways can an employee report labor violations or disputes?
Any employees in the UAE can launch a complaint with the Ministry of Human Resources and Emiratisation (MOHRE). However, if it remains unresolved, they can escalate the matter to the UAE courts. Here, the role of law firms in Dubai is consequential.
7. What protections are there against any discrimination or harassment in the workplace?
UAE Labor Law explicitly prohibits any kind of harassment or discrimination. It can be based on class, background, race, color, sex, religion, nationality, or disability. Nonetheless, the victims can seek legal recourse.
8. Can business consult Dubai law firms for employment matters?
Dubai law firms offer a range of expert legal advice. They can ensure compliance with the UAE labor laws and employment regulations. They assist them with drafting matters concerning legal court proceedings.