LaborLaw UAE

The Labour Law of the United Arab Emirates 1
1. Introduction
Labour matters i n the UAE are governed by Federal Law No. 8 of 1980 Regulati ng Labour Relati ons
as amended by Federal Laws No. 24 of 1981, No.15 of 1985 and No.12 of 1986 ( the Law) .
To whom does the Law apply?
Accordi ng to Arti cle 3 of the Law, the Law appli es to all staff and employees worki ng i n the UAE,
whether UAE nati onals or expatri ates. However, there are certai n categori es of i ndi vi duals who
are exempted from the Law as li sted below:
1. Staff and workers employed by the federal government, government departments of the
member emi rates, the muni ci pali ti es, publi c bodi es, federal and local publi c i nsti tuti ons and
those staff and workers employed i n federal and local governmental projects.
2. Members of the armed forces, poli ce and securi ty uni ts.
3. Domesti c servants.
4. Agri cultural workers and persons engaged i n grazi ng ( thi s exempti on does not i nclude
persons who are employed i n corporati ons whi ch process agri cultural products and/or those
who are permanently engaged i n the operati on or repai r of machi nes requi red for
agri culture) .
Free Zone areas may be subject to an i ndependence ordi nance otherwi se the Law i s appli cable.
Are partners in a business considered as employees?
A partner i n a busi ness i s not consi dered an employee and i s therefore not requi red to obtai n a
labour card from the Mi ni stry, as outli ned below. For i mmi grati on purposes therefore, a forei gn
partner wi ll be sponsored by the enti ty he i s a partner i n, as an i nvestor rather than as an
employee and wi ll deal wi th the i mmi grati on authori ti es di rectly rather than through the Labour
O ffi ce, provi ded that hi s name i s on the busi ness enti tys li cence. However, i f the partner holds
an employee posi ti on addi ti onal to hi s partner status, he wi ll be consi dered as an employee for
the work he i s doi ng i n the company.
O n the other hand, employees worki ng on a commi ssi on basi s are consi dered as employees even
i f they are partners i n the fi rm they are worki ng for .
Are employees in the free zones subject to the Law?
Although the Law sti pulates that all employees other than the ones li sted above are subject to i t,
i n practi ce employees i n the free zones, such as the Jebel Ali Free Zone and the Dubai Ai rport
Free Zone, are subject to the rules and regulati ons of the free zone concerned and mai ntai n thei r
own employment contracts whi ch often contai n provi si ons whi ch are contrary to the Law.
2 The Labour Law of the United Arab Emirates
Thi s i s consi dered acceptable, as free zones, li ke the Jebel Ali Free Zone and the Dubai Ai rport
Free Zone, often act as sponsors i n the employment of employees i n the free zones and as they
are government enti ti es they are thus not subject to the Law. Such employees are seconded by
the free zones to compani es establi shed i n the free zones i n return for, amongst other thi ngs, a
bank guarantee whi ch i s requi red to secure the employees dues and any end of servi ce benefi ts
whi ch may be payable on termi nati on of thei r employment contracts. However, although the free
zones are techni cally the employees sponsor, the employees do mai ntai n thei r ri ght of acti on
agai nst thei r employers before the courts.
I n addi ti on, as di scussed i n secti on 19 below, when a new busi ness i s bei ng establi shed i t has to
be regi stered wi th the Mi ni stry pri or to the recrui tment of staff. But, i n the free zones thi s
requi rement i s si de-stepped. I nstead, the free zone authori ty sponsori ng the employees, refers
di rectly to the i mmi grati on authori ti es and not to the Mi ni stry. Thi s i s not to say that di sputes
between employees and thei r employers i n the free zones wi ll not fi rst be heard at the Mi ni stry.
The Mi ni stry may entertai n such clai ms and there i s nothi ng as yet under UAE law precludi ng that
unless the Free Zone Authori ty has a speci al ordi nance governi ng the relati onshi p between
employee and employer.
What aspects of the employer/ employee relationship does the Law deal with?
The Law covers all aspects of the employer-employee relati onshi p ( Chapter 12) , i ncludi ng matters
related to employment contracts, restri cti ons on the employment of juveni les and women,
mai ntenance of records and fi les, wages, worki ng hours, leave, safety and protecti on of
employees, medi cal and soci al care, codes of di sci pli ne, termi nati on of employment contracts, end
of servi ce benefi ts, compensati on for occupati onal di seases, labour i nspecti ons, penalti es and
employment related acci dents, i njuri es and death.
The UAE does not allow the formati on of trade uni ons.
2. Enforceability of the Law
By whom is the Law enforced?
The Law i s federal and i s therefore appli cable to all the emi rates of the federati on. I t i s enforced
by the Mi ni stry of Labour and Soci al Affai rs ( the Mi ni stry) . Labour related li ti gati on i s adjudi cated
by the federal and local courts of the UAE. However, all di sputes relati ng to labour matters must
fi rst be referred to the Mi ni stry. I f ei ther of the parti es i nvolved ( employer or employee) i s
unhappy wi th the Mi ni strys deci si on and the matter cannot be settled ami cably, the di spute may
then be referred by the Mi ni stry to court, wi thi n two weeks from the date i n whi ch the complai nt
was fi led, after whi ch ei ther party may revert to the court di rectly.
3. The Conditions for Employment
What are the primary pre-requisites for employment?
I n order to employ any expatri ate employee i n the UAE, an appli cati on must be made to the
Mi ni stry of Labour & Soci al Affai rs. The appli cati on has to be approved by the Mi ni stry pri or to
the employee enteri ng the UAE. I t should be noted that new busi nesses are requi red to regi ster
or open a fi le wi th the Mi ni stry before they can recrui t staff ( as di scussed i n secti on 19) . I n addi ti on
to obtai ni ng the Mi ni strys approval to employ non-UAE nati onals, certai n i mmi grati on procedures
need to be followed as explai ned below.
Where the i ntended employee i s a UAE nati onal, an employment contract may be entered i nto at
any ti me. Employment contracts for non-nati onals must be drawn i n the format approved by the
Mi ni stry on an appli cati on made by the employer. Employment contracts for nati onal employees
need not, however, be i n wri ti ng and the terms and condi ti ons of employment may be proved by
any means of proof admi ssi ble by law. A labour permi t for an expatri ate employee wi ll not be
i ssued by the Mi ni stry of Labour unless a formal wri tten labour contract i s fi led wi th the Mi ni stry.
What are the immigration requirements for expatriate employees?
After an employer obtai ns the Mi ni strys approval to employ an expatri ate as explai ned above, i t
i s then necessary for hi m to complete the requi red i mmi grati on procedures. Thi s i nvolves the
appli cati on for an employment vi sa on the i ntended employees behalf, i n whi ch case the i ntended
employer wi ll assume the role of the expatri ates sponsor. Sponsorshi p i s a condi ti on precedent
to the entry of all forei gners i nto the UAE.
I n summary, four steps need to be taken i n addi ti on to obtai ni ng the Mi ni strys approval for the
employment of expatri ates i n the UAE. These are the followi ng:
( 1) The sponsor ( employer) obtai ns an employment vi sa for the employees entry i nto the UAE.
( 2) The employee undergoes a medi cal test.
( 3) A labour card for the employee isobtai ned from the Mini stry of Labour and Social Af f a i r s .
( 4) A resi dence permi t for the employee i s obtai ned. Resi dence permi ts are usually granted for
peri ods of three years, however the i mmi grati on authori ti es may i ssue them for lesser peri ods
subject to a one year mi ni mum.
Employment Visa
I n order to obtai n an employment vi sa the followi ng documents need to be submi tted to the
concerned i mmi grati on authori ti es by the i ntended employer i n the UAE.
1. The employees passport copy.
2. The employees degree certi fi cate ( notari sed by the UAE Embassy abroad and Mi ni stry
of Forei gn Affai rs i n the UAE.
3. The completed prescri bed appli cati on form ( i n Arabi c and Engli sh) .
4. The ori gi nal establi shment ( i mmi grati on) card of the sponsor and a copy.
5. A copy of the busi nesss trade li cence.
6. The appropri ate fee ( currently Dhs.200) .
Under certai n ci rcumstances i t may be necessary to seek addi ti onal approval from the labour offi ce
to employ an employee.
O nce the employment vi sa i s obtai ned, a copy should be sent to the employee and the ori gi nal
lodged at the ai rport at least one hour before the employees arri val i nto the country.
Medical Test
For the purposes of fulfi lli ng the necessary i mmi grati on requi rements that i s, obtai ni ng a labour
card and a resi dence permi t the employee must, after arri vi ng i nto the country, undergo a medi cal
test and subsequently obtai n a medi cal certi fi cate and a health card. The purpose of the test i s to
ensure that the employee does not have any seri ous di seases or i llnesses, parti cularly contagi ous
ones. The medi cal test should be conducted at the government hospi tal i n the place where the
employees employment vi sa was i ssued. The employee should take the followi ng wi th hi m when
he goes for hi s medi cal test:
1. A copy of hi s passport.
2. A copy of the employment vi sa.
3. T wo passport si ze photographs.
4. The appropri ate fee ( currently Dhs.500 i ncludi ng the medi cal card) .
Labour Card
O nce a medi cal certi fi cate has been i ssued, an appli cati on for a labour card should be made to
the Mi ni stry of Labour & Soci al Affai rs wi thi n 30 days of the employees entry i nto the UAE by
submi tti ng the followi ng documents:
1. The completed prescri bed appli cati on form ( Arabi c and Engli sh) .
2. The contract of employment between the employee and the employer .
3. T wo passport pi ctures of the employee.
4. The medi cal certi fi cate.
5. A copy of the busi nesss trade li cence.
6. The busi nesss Mi ni stry of Labour card.
7. The appropri ate fee ( currently Dhs.200) .
Residence Permits
O nce the labour card has been obtai ned and the employees medi cal test i s sati sfactory, an
appli cati on for a resi dence permi t should be made to the concerned i mmi grati on authori ti es by
submi tti ng the followi ng documents:
1. The labour card;
2. The completed prescri bed appli cati on form ( typed i n Arabi c and Engli sh) ;
3. The ori gi nal medi cal certi fi cate;
4. The employees ori gi nal passport;
5. The ori gi nal employment vi sa i ssued to the employee;
6. A copy of the sponsors passport ( i f the sponsor i s an i ndi vi dual) ;
7. A copy of the busi nesss trade li cence;
8. A copy of the busi nesss i mmi grati on card;
9. Three passport si ze photographs of the employee;
10. The appropri ate fee ( currently Dh.300 or Dh.400 i f the appli cati on i s urgent) .
The above requi rements should be sati sfi ed wi thi n a total peri od of 60 days from the employees
entry i nto the UAE vi a hi s employment vi sa. However, i t i s advi sable to complete these
requi rements wi thi n 30 days of the employees entry i nto the UAE.
I n the event that the above requi rements are not sati sfi ed wi thi n the prescri bed ti me li mi ts stated
above, a fi ne of Dhs.100 wi ll be payable for each day unti l the procedures are sati sfi ed.
4. Employment Contracts
What are the permitted terms in employment contracts?
Two types of employment contracts are allowed i n the UAE - li mi ted employment contracts or
fi xed term contracts, whi ch are contracts for a speci fi ed durati on wi th speci fi c commencement and
completi on dates, and unli mi ted contracts where the employee conti nues to work for the
employer from a speci fi c date unti l such ti me as the employment contract i s termi nated by ei ther
party after gi vi ng pri or noti ce.
What is the difference between a fixed term and an unlimited term employment contract?
A fi xed term contract has the followi ng characteri sti cs:
1. I t has a commencement and completi on date.
2. I ts term cannot be i n excess of a peri od of 4 years. I t can, however, be renewed through
mutual consent, express or i mpli ed for a si mi lar or lesser peri od.
3. The employment wi ll termi nate at the end of the contract peri od, unless renewed by mutual
consent.
4. I f the employer termi nates the contract for reasons other than those speci fi ed i n Arti cle 120
of the Law ( see p.25 below) , he wi ll be li able to pay compensati on to the employee. Thi s
compensati on i s determi ned on the basi s of the wages due for a peri od of three months or
for the remai ni ng peri od of the contract, whi chever i s less, unless an arti cle i n the contract
states otherwi se.
5. I f the contract i s termi nated by the employee for reasons other than those sti pulated under
Arti cle 12l of the Law, the employee wi ll be li able to compensate the employer agai nst any
loss resulti ng from i ts termi nati on. The amount of compensati on payable i s calculated on the
basi s of the employees salary for one month and a half or the salary payable for the
remai ni ng peri od of the contract, whi chever i s less, unless the contract states otherwi se.
The characteri sti cs of an unli mi ted term contract on the other hand are as follows:
1. The contract provi des a commencement date but no completi on date.
2. A contract wi ll be consi dered unli mi ted i f: ( i ) i t i s an oral contract; ( i i ) i t i s not for a
speci fi ed peri od; ( i i i ) i t was for a speci fi ed peri od but the parti es conti nued to act on i ts terms
and condi ti ons after i ts expi ry, wi thout any wri tten contract speci fyi ng the completi on date;
( i v) the purpose of the employment i s to complete work not esti mated wi thi n a speci fi ed
ti me-frame; or ( v) i t i s by i ts nature renewable and the contract conti nues after the work
agreed upon i s completed.
3. The contract may be termi nated by mutual agreement or by ei ther of the parti es provi di ng
the other wi th 30 days noti ce of termi nati on ( or any other agreed noti ce peri od) .
4. The contract may be termi nated for a justi fi ed cause at any ti me on gi vi ng 30 days noti ce of
termi nati on. The noti ce peri od may be less for employees worki ng on a dai ly basi s.
5. The noti ce peri od may be extended for a peri od exceedi ng 30 days. I t would then not be
acceptable for the parti es to wai ve thi s noti ce peri od.
6. The employees wages duri ng the noti ce peri od should be pai d i n full for the enti re noti ce
peri od served.
7. I n the event that no noti ce has been gi ven, the party who ought to have gi ven the noti ce
must compensate the other wi th the payment of one months wage i n li eu of the noti ce
peri od.
8. I f the employee vi olates one of the provi si ons of Arti cle 120 of the Law, the employer may
termi nate the employees contract wi thout noti ce.
9. The employee may termi nate the employment contract wi thout noti ce i f the ci rcumstances
li sted i n Arti cle 121 of the Law are appli cable ( see p. 25 below) .
10. The employee wi ll be enti tled to compensati on i f the termi nati on of the contract was for an
unjusti fi ed cause. The court may award the employee damages agai nst the employer ,
provi ded that the damages awarded do not exceed three months wages, as calculated on
the basi s of the last wage pai d to the employee.
11. Compensati on for damages, i f any, awarded to the employee for unreasonable di smi ssal ar e
wi thout prejudi ce to the employees enti tlement to end of servi ce gratui ty and payments i n
li eu of noti ce, i f noti ce had not been properly gi ven.
What information should be stated in an employment contract?
The only i nformati on requi red by law to be speci fi ed i n an employment contract i s the followi ng:
1. Wages/ remunerati on payable.
2. Date of the employment contract ( i ts si gnature date) .
3. Date of commencement of the employment contract.
4. Nature of the contract ( li mi ted or unli mi ted) .
5. Nature of the work.
6. Durati on of the contract ( for fi xed term contracts) .
7. The locati on of employment.
The labour offi ce at the Mi ni stry mai ntai ns standard employment contracts i n Arabi c and Engli sh,
where the parti es ( the employer and the employee) need only fi ll i n the blanks. I t i s however not
compulsory for the parti es to use or fi le these contracts at the Mi ni stry and may i nstead draft and
lodge thei r own employment contracts at the Mi ni stry provi di ng they do not contai n provi si ons
whi ch are contrary to the Law and are i n the Arabi c language.
5. Probation Periods
What are the rules regarding employment for a probationary period?
I t i s common practi ce i n the UAE to employ persons on an i ni ti al probati onary peri od. Duri ng
the probati on peri od, both the employer and the employee may termi nate the employment
contract wi th i mmedi ate effect wi thout provi di ng a vali d reason or noti ce. I n such cases, the
employer wi ll not be li able to pay end of servi ce benefi ts or compensati on to the employee.
Accordi ng to Arti cle 37 of the Law, the probati on peri od can be for a maxi mum peri od of si x
months. I t i s not permi ssi ble for an employer to employ any person on probati on for more than
one peri od.
Is the probation period included for the purposes of calculating gratuity and other
terminal benefits?
O nce completed, the probati on peri od i s consi dered as part of the overall employment term and
i s taken i nto account when calculati ng gratui ty and other termi nal benefi ts.
Are employers liable to pay repatriation and other benefits for termination of
employment during the probation period?
All wages and benefi ts accrued duri ng the probati on peri od must be pai d along wi th repatri ati on
costs. The employer i s, however, not requi red to pay end of servi ce gratui ty or compensati on i n
li eu of noti ce or damages should the employment contract be termi nated wi thout noti ce duri ng
the probati onary peri od. I f the employee, however, resi gns duri ng hi s probati on peri od wi thout a
good cause he may be li able to pay hi s own repatri ati on cost.
Can the probationary period be waived?
The parti es to the contract may agree to commence employment wi thout probati on as probati on
i s not compulsory under the Law. Further, i t i s left to the di screti on of the parti es to agree upon
the actual term of the probati onary peri od subject to a maxi mum of si x months.
6. Wages
What constitutes wages under the Law?
Wages accordi ng to the Law are defi ned as follows:
All payments made to the worker on a yearly, monthly, weekly, dai ly, pi ece work, or producti on,
or commi ssi on basi s, i n return for the work he performs under the contract of employment,
whether such payments are made i n cash or i n ki nd. Remunerati on shall i nclude the cost of li vi ng
allowance. I t shall also i nclude any grant gi ven to the worker as a reward for hi s honesty or
effi ci ency i f such amounts are provi ded for i n the contract of employment or i n the i nternal
regulati ons of the establi shment or have been granted by custom or common practi ce to such an
extent that the workers of the establi shment regard them as part of thei r remunerati on and not as
donati ons.
What is the difference between total wage and basic wage?
The term basi c wage i s an employees wage excludi ng all allowances of whatever nature and i s
speci fi ed i n the labour contract as such. Total wage on the other hand, i s an employees wage
i nclusi ve of all allowances provi ded such as accommodati on and travel allowances.
Basi c wage i s si gni fi cant when calculati ng end-of-servi ce gratui ty, whi ch i s determi ned on the
basi s of an employees last basi c wage recei ved as opposed to the employees total wage recei ved.
Does the Law prescribe a minimum wage?
No mi ni mum wage has been prescri bed by law to date. However, an employee wi th a monthly
salary of less than Dhs.4, 000 ( plus accommodati on allowance) , wi ll not be able to sponsor hi s
spouse or chi ldren for the purpose of resi di ng i n the country. These are i mmi grati on regulati ons
and do not form part of the Law.
I n addi ti on, i n order to sponsor a house-mai d or domesti c help i n the UAE there i s a mi ni mum
wage requi rement of Dhs.6000 per month.
How are wages paid?
Wages may be pai d on a monthly, weekly, or dai ly basi s. The parti es may mutually agree on the
manner i n whi ch wages are pai d or remi tted. Wages may be pai d i n the UAE or elsewhere.
In what currency are wages paid?
Wages may be pai d i n any currency and the parti es may agree on the actual currency pai d.
Although thi s i s the si tuati on i n practi ce, the Law does however sti pulate that wages should be
pai d i n the nati onal currency.
Nei ther the Law nor any other law i n the Uni ted Arab Emi rates restri cts repatri ati on or transfer of
moni es.
Does the Law require evidence of payment of wages?
Where there i s a di spute, an employer wi ll be requi red to prove that the employee has been pai d
hi s wages along wi th any appli cable allowances. Such evi dence must be i n wri ti ng. However, the
employee can prove the non-payment of wages by any means stated i n the UAE Federal Law of
Evi dence. Therefore, i t i s necessary for the employer to mai ntai n adequate records and books
recordi ng the payment of wages and allowances, fai li ng whi ch there may be an assumpti on that
the wages were not pai d.
7. Employment of Juveniles
Does the Law restrict the employment of any category of persons?
1. The employment of juveni les ( of ei ther sex) under the age of 15 i s prohi bi ted. Befor e
employi ng a juveni le, employers must obtai n copi es of the followi ng documents from
hi m/her and retai n them i n the juveni les personal fi le:
( a) A bi rth certi fi cate or age esti mati on certi fi cate i ssued by a speci ali sed physi ci an certi fi ed
by the concerned health authori ti es.
( b) A certi fi cate of physi cal fi tness for the nature of the proposed work, i ssued by a
speci ali sed physi ci an certi fi ed by the concerned authori ti es.
( c) Wri tten consent from the juveni les guardi an.
Furthermore, the employment of juveni les i s prohi bi ted under the followi ng ci rcumstances:
( a) At ni ght i n an i ndustri al undertaki ng.
( b) I n hazardous jobs or i n work whi ch i s harmful to health.
( c) Where worki ng hours exceed si x hours per day ( one or more breaks must be provi ded
wi thi n the sti pulated si x hours) .
( d) Worki ng overti me under any ci rcumstances or to remai n at the place of work after
worki ng hours.
( e) Worki ng on holi days.
2. I n addi ti on to the above, the Employment of women at ni ght between the hours of 10.00pm
and 7.00am i s prohi bi ted, except i n the followi ng si tuati ons:
( a) Where work sei zes due to a force majeure;
( b) Employees i n techni cal and admi ni strati ve posi ti ons.
( c) Health workers i n health servi ces and other jobs as determi ned by the Mi ni stry, provi ded
female employees do not usually perform manual labour .
I t i s also prohi bi ted to employ women i n hazardous or di ffi cult work and other duti es
harmful to health or morals, or i n other jobs as may be speci fi ed by the Mi ni stry.
8. Working Hours
What are the prescribed working hours?
The maxi mum prescri bed worki ng hours for an adult employee i s ei ght hours per day or forty-
ei ght hours per week. However, the worki ng hours may be i ncreased to ni ne hours per day i n
the case of persons employed i n trades, hotels, cafeteri as, and as guards. Persons who hold
executi ve/admi ni strati on posi ti ons however are expected to work long hours wi thout overti me
pay.
Would travelling to and from work be included in working hours?
The ti me travelli ng to and from work i s not i ncluded i n the calculati on of worki ng hours.
Are breaks included during working hours?
Employees may not work for more than fi ve consecuti ve hours per day wi thout breaks for rest,
meals and prayer. However, the resti ng and the meal breaks are not i ncluded i n calculati ng
worki ng hours. I n factori es, where people work day and ni ght shi fts or jobs where, for techni cal
and economi cal reasons, conti nued attendance i s requi red, the Mi ni stry speci fi es the manner i n
whi ch employees may take i ntervals for rest, prayer and meals.
In what situations does overtime exist and on what basis is overtime pay calculated?
I f the nature of the job requi res an employee to work overti me, the employee i s enti tled to
overti me pay whi ch i s equi valent to the wage pai d duri ng ordi nary worki ng hours plus an
addi ti onal amount of not less than 25% of the wage for the over ti me peri od. However, i f the
employees overti me falls between the hours of 9.00pm and 4.00am, he wi ll be enti tled to overti me
pay whi ch i s equi valent to the salary payable duri ng normal worki ng hours plus an i ncrease of
not less than 50% of hi s wage for the overti me peri od worked.
I f ci rcumstances requi re the employee to work on a Fri day, he i s enti tled to recei ve a rest day i n
li eu to be taken at a later date or be pai d hi s basi c wage plus an addi ti onal 50% ( mi ni mum) of
that wage. However, employees cannot be asked to work two consecuti ve Fri days unless thei r
wages are calculated on a dai ly basi s.
I n any case, overti me should not exceed two hours per day, unless i t i s necessary to prevent
substanti al loss, a seri ous acci dent or to remove traces of such an acci dent or reduce i ts effect.
However, the above provi si ons are not appli cable to the followi ng persons:
( 1) Persons i n seni or posi ti ons, or i n admi ni strati ve supervi sory roles, i f such persons have
si mi lar authori ty over employees as the employer .
( 2) Crews of naval shi ps and mari ne employees who enjoy speci al pri vi leges because of the
nature of thei r work. Thi s does not i nclude port employees engaged i n loadi ng and
unloadi ng and other related work.
9. Leave Entitlements
9.1 Annual Leave
What are an employees annual leave entitlements?
For every year of servi ce, an employee i s enti tled to annual leave of not less than the followi ng:
1. T wo days leave for every month i f hi s servi ce i s more than si x months and less than one
year.
2. Thi rty days annually, i f hi s servi ce exceeds one year. At the end of hi s servi ce the employee
i s enti tled to annual leave for the fracti on of the last year he spent i n servi ce.
Annual leave i s usually calculated on the basi s of a calendar month rather than by worki ng days.
I f an employee however fai ls to report back to work after the expi ry of hi s leave peri od, hi s
remunerati on wi ll automati cally be forfei ted for the days he i s absent.
What would be payable to the employee during his annual leave?
An employee i s pai d hi s basi c wage plus the housi ng allowance, i f appli cable, and any other
allowances whi ch he recei ves i n the normal worki ng month exclusi ve of any bonuses recei ved.
Who determines when the annual leave commences and its duration?
The employer has the ri ght to determi ne when an employee i s allowed to take hi s annual leave
and whether ( i f requi red) he i s enti tled to di vi de the leave i nto two parts.
I f however, work ci rcumstances requi re keepi ng the employee at work duri ng the whole or part
of hi s annual leave and the leave has not been carri ed over for the followi ng year, the employer
should pay the employee hi s wage i n addi ti on to a leave allowance for the days he worked equal
to hi s basi c wage.
I n all cases, no employee should be requi red to work duri ng hi s annual leave more than once
duri ng two consecuti ve years. I n other words, the employer may only defer the annual leave once
i n two consecuti ve years and at the same ti me pay the employee the annual leave wages.
When should annual leave wages be paid?
The employee should be pai d hi s full wage before taki ng hi s annual leave, plus the wage of the
leave days he has accrued.
Is the employee entitled to payment in lieu of leave if his services are terminated?
The employee i s enti tled to payment of hi s wages for the annual leave peri od not taken i f hi s
employment i s termi nated, or he resi gns after servi ng the peri od of noti ce determi ned by law.
Such payment i s calculated on the basi c wage recei ved at the ti me the leave was due i ncludi ng
any housi ng or accommodati on allowance where appli cable. Some employers also i nclude
transportati on allowance i n the calculati on, although thi s i s di screti onary rather than compulsory.
Nevertheless, accordi ng to judgments deli vered on the matter, an employee may only clai m
remunerati on for the annual leave not taken for the last two years of employment at the rate of
the wages pai d duri ng that ti me. Any leave days not taken pri or to that peri od are therefore ti me
barred and the employee i s precluded from clai mi ng remunerati on agai nst them ( provi di ng the
employer reli es on thi s ti me bar provi si on i n the event of a clai m) .
Is going to Haj for pilgrimage considered part of the annual leave?
The employer must gi ve the employee once duri ng hi s employment a speci al leave wi thout pay
to go for Haj ( pi lgri mage) whi ch should not exceed 30 days. Thi s peri od i s not part of the
employees annual leave or any other leave whi ch he i s enti tled to.
9.2 Official Holidays
Which official holidays are an employee entitled to take?
An employee i s enti tled to an offi ci al holi day wi th full wage on the followi ng occasi ons:
Occasion Time Off
1. Hi jri New Y ears Day one day
2. Gregori an New Y ears Day one day
3. Ei d A1 Fi tr ( end of Ramadan) two days
4. Ei d Al Adha and Waqf three days
5. Prophet Mohammeds Bi rthday one day
6. I sra and A1 Mi raj one day
7. Nati onal Day one day
The holi days li sted above are appli cable to all employees whether they are worki ng i n the publi c
or pri vate sectors. However, publi c sector employees may be granted addi ti onal days off to those
speci fi ed on the above occasi ons whi ch are announced from ti me to ti me by the Cabi net Mi ni sters.
I t i s therefore open to pri vate sector employees to grant thei r employees a holi day on the above
occasi ons or to pay them i nstead. The date( s) on whi ch the above offi ci al holi days fall depend
on the Mi ni strys announcements whi ch are publi shed i n the local newspapers shortly before they
occur.
Are official holidays excluded from the calculation of leave?
The calculati on of the durati on of annual leave i ncludes holi days speci fi ed by law or by
agreement, or any day taken for example due to si ckness, i f they fall wi thi n the leave peri od and
are deemed to be part thereof.
9.3 Sick Leave
Is the employee entitled to sick leave?
The employee must report to the employer any i njuri es or i llnesses preventi ng hi m from worki ng
wi thi n a maxi mum peri od of two days.
The employee i s not enti tled to any pai d si ck leave duri ng the probati on peri od. However, after
a peri od of three months conti nuous servi ce followi ng the probati on peri od, the employee i s
enti tled to si ck leave wages as follows:
( 1) Full wage for the fi rst 15 days.
( 2) Half wage for the next 30 days.
( 3) Any followi ng peri od wi ll be wi thout wage.
However, i f the employees i llness i s di rectly caused by hi s mi sconduct ( for example by excessi ve
dri nki ng) , he i s not enti tled to any wages duri ng the si ck leave.
I t should be noted that the employee should provi de evi dence of hi s i llness warranti ng si ck leave
by an offi ci al medi cal certi fi cate.
Can the employee resign from employment during the sick leave period?
The employee may resi gn from employment duri ng the si ck leave peri od and before the
completi on of 45 days speci fi ed by law, provi ded the reason of resi gnati on i s approved by a
physi ci an. I n thi s si tuati on, the employer must pay the employee all the wages he i s enti tled to,
unti l the end of the 45 days referred to above.
Can the employer dismiss an employee from service during his sick or annual leave?
The employer may not di smi ss an employee from servi ce duri ng hi s si ck leave or annual leave.
Duri ng thi s peri od any noti ce for termi nati on wi ll be consi dered null and voi d.
However, the employer i s enti tled to termi nate the employment contract i f the employee has
exhausted hi s full si ck leave and i s not fi t to return to work. I n such cases, the employee wi ll be
enti tled to hi s full gratui ty and end of servi ce enti tlement i n accordance wi th the Law.
Furthermore, the employee wi ll not be enti tled to wages for the days that he has not reported to
work after the end of hi s leave ( whether si ck leave or annual leave) . Thi s wi ll not prejudi ce the
ri ghts of the employer to termi nate the employees contract i f the employee fai ls to report back to
work wi thi n seven consecuti ve days from the date he was due back.
9.4 Maternity Leave
What maternity leave is a female employee entitled to?
A worki ng woman i s enti tled to 45 days materni ty leave wi th full pay whi ch i ncludes the peri od
before and after the deli very, provi ded she has served conti nuously for not less than one year .
The materni ty leave i s granted wi th half pay i f the woman has not completed one year of servi ce.
At the end of the materni ty leave, a worki ng woman has the ri ght to extend her materni ty leave
for a maxi mum peri od of l00 days wi thout pay. Thi s unpai d leave can be conti nuous or
i nterrupted, i f the i nterrupti on i s caused by i llness whi ch prevents her from comi ng to work. The
i llness must be confi rmed by a certi fi ed government physi ci an li cenced by the competent health
authori ty.
Materni ty leave i n ei ther of the above cases i s not deducted from any other leave that a female
employee i s enti tled to.
Duri ng the 18 months followi ng deli very, a female employee who nurses her chi ld has the ri ght
to have two dai ly i ntervals whi ch do not exceed half an hour each for the purpose of nursi ng her
chi ld. These addi ti onal i ntervals are consi dered part of her worki ng hours and no deducti on i n
wages can be made.
Paterni ty leave i s not provi ded for under the Law.
10. Employee Records
What types of records must be kept by the employer?
There are di fferent condi ti ons sti pulated under the Law vi s a vi s the mai ntenance of records by
employers. These pri mari ly depend on the number of employees employed as outli ned below.
An employer who employs fi ve employees or more must adhere to the followi ng:
( 1) K eep a fi le for every employee detai li ng hi s name, trade or professi on, age, nati onali ty, place
of resi dence, mari tal status, date of commencement of servi ce, wage and any change i n i t,
vacati on, i llness and i njuri es, the date of termi nati on of servi ce and the reason for
termi nati on.
( 2) A leave card for every employee whi ch should be kept on fi le and di vi ded i nto three
secti ons:
( a) The fi rst for annual leave, the second for si ck leave and the thi rd for other leave. The
employee or anyone acti ng on hi s behalf should note on the card all leave taken by the
employee for future reference.
I n addi ti on to the above, an employer who employs 15 employees or more must keep i n every
place of work or branch thereof the followi ng records and documents:
( 1) A record of payroll li sti ng the employees names accordi ng to the date of thei r recrui tment
along wi th the dai ly, weekly or monthly wages, allowances or payments for pi ece work,
commi ssi on payments as well as lengths of servi ce and job termi nati on dates.
( 2) A record for work i njuri es li sti ng work i njuri es or occupati onal di seases establi shed
i mmedi ately after the employer i s i nformed.
( 3) The basi c rules and regulati ons for work should be di splayed i n a permanent, vi si ble place,
at the work si te showi ng the basi c regulati ons for work i ncludi ng worki ng hours, weekly
holi days, offi ci al holi days, and the necessary safety precauti ons to avoi d work hazards and
fi re dangers. The i mplementati on of these regulati ons and any amendments thereto must be
sancti oned by the Mi ni stry wi thi n 30 days from the date of submi ssi on.
( 4) The busi nesss regulati ons relati ng to di sci pli nary measures must be permanently di splayed
i n the place of work. Thi s must outli ne measures whi ch may be taken agai nst those who
vi olate the regulati ons.
The i mplementati on of these regulati ons and the amendments thereto must be sancti oned by the
Mi ni stry wi thi n 30 days from the date of submi ssi on.
11. Safety Regulations
What are the safety regulations and measures required by the Law?
The Law speci fi es certai n provi si ons regardi ng employee safety and health care, whi ch ar e
sti pulated under Arti cles 91 to 101 ( i nclusi ve) . The provi si ons of the Law requi re the followi ng
measures and procedures to be adhered to:
1. Every employer should provi de hi s employees wi th sui table means of protecti on agai nst:
i njuri es, occupati onal di seases, fi re and hazards whi ch may result from the use of machi nery
and other equi pment i n the workplace. The employer shall also apply all the other
precauti onary measures speci fi ed by the Mi ni stry of Labour and Soci al Affai rs. The employee,
however, must use the safety equi pment and clothes gi ven to hi m for thi s purpose. He shall
also follow hi s employers i nstructi ons whi ch ai m to protect hi m from danger .
2. Every employer shall di splay i n a permanent and promi nent place at the work si te detai led
i nstructi ons regardi ng the means of preventi ng fi re and the means of protecti on of employees
from hazards to whi ch they may be exposed to duri ng work. These i nstructi ons shall be i n
Arabi c and i f necessary another language understood by the employees.
3. Every employer shall make avai lable a fi rst ai d ki t or ki ts contai ni ng medi ci nes, bandages
and other fi rst ai d materi al as di rected by the Mi ni stry of Labour and Soci al Affai rs.
4. Every employer must ensure the workplace i s kept clean and well venti lated. Each employee
should have adequate li ghti ng and rest rooms, and be provi ded wi th sui table dri nki ng water .
5. An employer shall assi gn one or more physi ci ans to exami ne thoroughly those of hi s
employees who are exposed to the possi bi li ty of contracti ng one of the occupati onal di seases
li sted i n the schedule attached to the Law ( see Schedule 1 below) . At least once every si x
months at ri sk employees should be exami ned and results recorded on thei r fi les.
6. The employer shall provi de hi s employees wi th the means of medi cal care to the standar d
determi ned by the Mi ni stry i n consultati on wi th the Mi ni ster of Health.
7. The employer or hi s deputy shall i nform the employee of the dangers of hi s job and the
means of protecti on that he must take. He shall also di splay detai led wri tten safety
i nstructi ons at the work premi ses.
8. No employer, deputy, or any person wi th authori ty over employees shall bri ng or allow
others to bri ng any ki nd of alcoholi c dri nks for consumpti on on work premi ses. He shall also
prohi bi t any person to enter or remai n i n the establi shment whi le i ntoxi cated.
Every employer employi ng persons i n remote areas not served by publi c transportati on shall
provi de them wi th the followi ng servi ces:
1. Sui table transportati on;
2. Sui table accommodati on;
3. Sui table dri nki ng water;
4. Sui table food;
5. Fi rst ai d servi ces; and
6. Means for entertai nment and sports acti vi ti es.
The expenses for the above servi ces are borne by the employer .
There are also addi ti onal health and safety regulati ons employers must adhere to whi ch ar e
sti pulated i n vari ous laws. For i nstance, those i nvolved i n the i ndustri al sector or the free zones
i n the UAE wi ll be subject to such regulati on.
12. Disciplinary Code
What is the nature of the disciplinary code in the Law?
There i s a di sci pli nary code i n the Law whi ch provi des for the vari ous di sci pli nary measures whi ch
an employer or hi s representati ve may i mpose on the employees of the busi ness. These compri se
the followi ng:
1. Warni ngs.
2. Fi nes.
3. Suspensi on from work wi th a decrease i n wages for not more than 10 days.
4. The preventi on or postponement of peri odi c allowances i n establi shments where such
allowances exi st.
5. The depri vati on of promoti ons i n establi shments where promoti ons exi st.
6. Termi nati on of servi ce wi thout prejudi ce to the payment of all end of servi ce benefi ts.
7. Termi nati on of servi ce and the forfei ture of all or some of hi s gratui ty. Thi s puni shment
cannot be i mposed for any reason other than those menti oned i n Arti cle 120 of the Law.
The Labour offi ce should be advi sed wi th regard to any of the above-menti oned measures bei ng
i mposed.
What is the maximum fine an employer can impose on his employee?
A fi ne may be a fi xed sum of money or an amount equi valent to the employees wage for a certai n
peri od. A fi ne for one vi olati on can not exceed fi ve days wages, and i n any one month total fi nes
can not exceed an amount equi valent to 5 days wages.
If a fine is imposed, who should keep the money deducted from the employees wages?
A fi ne i mposed on an employee should be entered i nto a speci al regi ster whi ch states the reason
or the ci rcumstances i nvolved, the name of the employee concerned and hi s wage. A speci al
account should be kept for these fi nes, the monthly total of whi ch should be spent on the soci al
welfare of the employees.
How often and for what length of time can an employer deprive an employee of periodic
allowances or promotions?
Any puni shment depri vi ng an employee of hi s peri odi c i ncenti ves may not be i mposed more than
once wi thi n one year. I n addi ti on, an employees i ncenti ves should not be postponed for mor e
than si x months.
Furthermore, no employee should be depri ved of more than one promoti on. The puni shed
employee should be promoted i n the fi rst succeedi ng opportuni ty i f he sati sfi es the necessary
condi ti ons.
What are the limitations and the conditions required by the Law pertaining to the use of
disciplinary codes?
The employer may not i mpose any di sci pli nary measures on an employee unless the followi ng
condi ti ons are met:
1. No di sci pli nary acti on can be taken agai nst an employee as a result of somethi ng he
commi tted outsi de the place of work, unless i t i s related to work, the employer or the
manager i n charge of the work.
2. No more than one puni shment can be i mposed for one vi olati on. A di sci pli nary puni shment
cannot be accompani ed wi th a deducti on of part of the employees wages.
3. None of the puni shments detai led above can be i mposed on an employee unless he i s
i nformed of hi s vi olati on i n wri ti ng and gi ven a chance to defend hi mself. Hi s statement and
defence should be noted and wri tten i n hi s fi le, and the puni shment i mposed should be
detai led.
4. An employee must be i nformed i n wri ti ng of the puni shment i mposed on hi m, stati ng i ts type
and amount and the reason for the puni shment.
5. No employee can be accused of an offence after the lapse of 30 days of i ts di scovery. I n
addi ti on, no di sci pli nary acti on can be i mposed after the lapse of 60 days from the end of
the i nvesti gati on regardi ng the vi olati on and the confi rmati on of i ts occurrence.
6. The Labour offi ce at the Mi ni stry should be i nformed of the vi olati on i n wri ti ng.
Under what conditions can an employer suspend an employee from work?
An employee may be temporari ly suspended from work when he i s accused of commi tti ng a
deli berate cri me such as physi cal assault, a fi nanci al cri me, cri mes of honour, or goi ng on stri ke.
The suspensi on should take effect from the date the concerned authori ty i s i nformed of the
i nci dent unti l a deci si on i s taken by them regardi ng the i nci dent. Further, an employee i s not
enti tled to hi s wages duri ng the suspensi on peri od. I f the verdi ct reli eves the employee from
standi ng tri al or acqui ts hi m, he should be rei nstated i n hi s work and gi ven hi s full wage for the
whole of the suspensi on peri od.
Therefore, i t i s always advi sable to take and record the mi nutes of meeti ngs held wi th employees,
whi ch should be si gned by both parti es and submi tted to the Labour O ffi ce when necessary.
13. Accidents at Work
What is considered as a work accident?
A work acci dent i s an acci dent whi ch has been suffered by an employee at hi s place of work or
whi le travelli ng to or from hi s place of work.
What is the procedure for reporting labour accidents and occupational diseases?
I f the employee suffers a work related acci dent or an occupati onal di sease, the employer or hi s
representati ve must report the acci dent i mmedi ately to the poli ce and the Labour Department or
one of i ts branches under whose juri sdi cti on the place of work falls. The i nformati on should
i nclude the employees name, professi on, address, nati onali ty, a bri ef descri pti on of the i nci dent
and i ts ci rcumstances, and the medi cal measures or treatment provi ded.
Would the employer be prosecuted for an accident or an injury to an employee?
Upon recei vi ng the i nformati on from the employer, the poli ce should perform the necessary
i nvesti gati ons and state i n thei r report the testi mony taken from any wi tnesses, the employer or
hi s representati ve, and the i njured person i f hi s condi ti on allows hi m to testi fy. The report should
speci fi cally state whether or not the acci dent was work related, whether i t took place i ntenti onally,
or as a result of mi sbehavi or on the part of the employee.
I f the report concluded that one of the employers personnel or managers were at fault or
negli gent, he may be prosecuted i n a cri mi nal court for the act or omi ssi on i f such an act or
omi ssi on amounts to a cri me.
Would the employer be liable for compensation?
I n case of work acci dents and occupati onal di seases, the employer should undertake to pay the
cost of the employees treatment i n a government or pri vate cli ni c unti l the employee recovers or
hi s di sabi li ty becomes certai n. However, an employee cannot demand to be treated i n a speci fi c
cli ni c or i n a cli ni c outsi de the UAE.
The treatment i ncludes hospi tal and sani tary fees and costs of surgi cal operati ons, X-rays and
laboratori es fees i n addi ti on to the cost of medi cati on and rehabi li tati on equi pment and arti fi ci al
parts for those whose di sabi li ty i s proven. The employer must also pay the travel expenses needed
for the employees treatment.
What would the employer pay if the employee were not able to perform his work after
the accident?
I f the i njury prevents the employee from performi ng hi s job duti es, the employer should pay hi m
a grant equi valent to hi s wage duri ng the treatment peri od or for si x months, whi chever i s less. I f
the treatment takes more than si x months, then the grant can be reduced by half for another si x
months or unti l the employee recovers, hi s di sabi li ty becomes certai n, or he di es, whi chever
comes fi rst.
How much would the employer pay the employee during his treatment?
The fi nanci al grant made by the employer i s calculated on the basi s of the last wage the employee
was pai d i n respect of those who are pai d monthly, weekly, dai ly or hourly, and on the basi s of
the average wage for those who are pai d on a pi ece work basi s.
Is the employees family entitled to claim compensation?
The employees fami ly i s not enti tled to clai m compensati on unless the acci dent caused the death
of the employee or hi s permanent di sabi li ty. The compensati on payable i s equi valent to the basi c
wage of the employee for a peri od of two months. The compensati on payable i s subject to a
mi ni mum of Dhs. 18, 000 and a maxi mum of Dhs.35, 000. I t i s calculated on the basi s of the last
wage the employee was pai d before hi s death and di vi ded among the i nheri tors accordi ng to the
rules contai ned i n Li st No. 3 of the Law whi ch i s provi ded i n Schedule 3 below.
Would the employee be entitled to compensation for permanent/partial disability other
than his wages?
The employee wi ll not be enti tled to clai m compensati on from the employer other than for hi s
wages and compensati on for hi s permanent/parti al di sabi li ty accordi ng to the rati os stated i n Li st
No. 2 of the Law ( Schedule 2 below) , and multi pli ed by the value of death compensati on
descri bed i n the precedi ng paragraph. Thi s i s, of course, wi thout prejudi ce to the employees
ri ghts to clai m compensati on agai nst any thi rd parti es who may have parti ci pated i n causi ng the
acci dent or the di sabi li ty suffered by the employee.
Who will be considered as the heirs of the employee in terms of receiving compensation?
I n applyi ng the rules of the Law, the fami ly of the deceased are those who are dependent on the
deceased for thei r li veli hood enti rely or mai nly vi s a vi s the deceaseds i ncome at the ti me of hi s
death. They must quali fy by bei ng i ncluded i n one of the followi ng categori es:
1. Wi dow.
2. Chi ldren who are: sons under 17, and those under 24 who are enrolled as regular students
i n an i nsti tuti on of learni ng, and sons who are physi cally or mentally unable to earn thei r
li vi ng. The word son i ncludes sons of the husband or the wi fe who were under the car e
of the deceased employee at the ti me of hi s death.
3. Unmarri ed gi rls, i ncludi ng unmarri ed daughters of the husband or the wi fe who were under
the care of the deceased employee at the ti me of the death.
4. Parents.
5. Brothers and si sters accordi ng to the condi ti ons set for sons and daughters.
I t i s also possi ble for the hei rs of the deceased to fi le a ci vi l acti on under tort agai nst a person
who has caused i njury or death to the employee under the general provi si ons of tort, i f the act
was a torti ous one.
Would deliberate self-injury by the employee entitle him to receive compensation or sick
leave?
I f i t were evi denced i n a report provi ded by the labour offi ce or the poli ce that the employee had
i ntenti onally caused hi s own i njury i n order to recei ve compensati on or medi cal leave, then the
employee wi ll not be enti tled to ei ther compensati on or si ck leave, and would be li able to face
cri mi nal charges.
14. Termination of Contract
When can a contract of employment be terminated?
An employment contract can be termi nated i n any of the followi ng ci rcumstances:
1. I f the two parti es agree to cancel a contract, provi ded that the employee consents to thi s i n
wri ti ng.
2. I f the contract term has come to an end, unless the contract has been expli ci tly or i mpli ci tly
extended accordi ng to the rules of the Law.
3. By one of the parti es where the labour contract has an unspeci fi ed term, provi ded that the
parti es observe the provi si ons of the Law referred to previ ously regardi ng noti ce and the
acceptable reasons to cancel the contract wi thout prejudi ce.
Would an employment contract be terminated by the death of the employer or the
disability of the employee?
An employers death does not consti tute the termi nati on of a labour contract, unless the subject
of the contract i s related to hi m personally. However, the contract wi ll be termi nated upon an
employees total di sabi li ty ( wi thout prejudi ce to hi s end of servi ce benefi ts) .
However, i f the employees di sabi li ty i s parti al and he i s able to perform other work whi ch sui ts
hi s health, the employer should transfer the employee to such other work i f the employee so
requests, and should gi ve hi m wages equal to those pai d for si mi lar work.
Under what circumstances can an employer terminate the employment contract without
notice and with immediate effect?
An employer may di smi ss an employee wi thout noti ce i n any of the followi ng cases ( as per Arti cle
120 of the Law) :
1. I f the employee assumes a personali ty or a nati onali ty other than hi s own, or has submi tted
fake documents or certi fi cates.
2. I f the employee was appoi nted under probati on and the termi nati on happened duri ng that
peri od or at i ts end.
3. I f the employee commi ts a mi stake causi ng the employer a substanti al fi nanci al loss,
provi ded the employer i nforms the Mi ni stry of the i nci dent wi thi n 48 hours.
4. I f the employee vi olates i nstructi ons relati ng to safety i n the place of work, provi ded those
i nstructi ons were wri tten and di splayed i n a permanent place, and the employee has been
i nformed of these i nstructi ons orally i f he i s i lli terate.
5. I f the employee fai ls to carry out hi s basi c duti es as stated i n the contract and conti nues to
do so i n spi te of a wri tten i nterrogati on and a warni ng that hi s servi ce wi ll be termi nated i f
he repeats hi s mi sconduct.
6. I f he di scloses a secret of the establi shment for whom he i s worki ng.
7. I f he i s conclusi vely convi cted by the concerned court of a cri me i nvolvi ng honour, honesty
and publi c morals.
8. I f he i s found drunk or i ntoxi cated by drugs duri ng worki ng hours.
9. I f he commi ts a physi cal assault on the employer or manager or one of hi s colleagues duri ng
work.
10. I f he becomes absent wi thout a legi ti mate reason for more than 20 i ntermi ttent days or mor e
than seven conti nuous days wi thi n one year .
Can an employee terminate a contract without notice?
An employee may termi nate hi s contract of employment wi thout noti ce i n ei ther of the followi ng
two cases ( as per Arti cle 121 of the Law) :
1. I f the employer has not fulfi lled hi s obli gati on towards hi m as provi ded i n the contract or i n
the Law, for i nstance where an employer does not pay hi s employee hi s wages on ti me.
2. I f he i s assaulted by the employer or hi s legal representati ve.
Would changes in the structure of a business or its ownership constitute a termination of
an employment contract?
I f there i s a change i n the structure of a busi ness or i ts ownershi p, any contract vali d duri ng the
ti me the change i s made wi ll remai n vali d and the servi ce consi dered conti nuous. Both the
previ ous and the new employer are joi ntly responsi ble for si x months from the date of the
alterati on i n executi ng the obli gati ons relati ng to the contract of the employee i n the peri od pri or
to the change.
After the end of thi s si x-month peri od, the new employer i s solely responsi ble for the employees
of the busi ness.
Can an employee, after the termination of his contract, be employed by another
employer in the UAE?
I f the nature of the posi ti on held by the employee allows hi m to know hi s employers cli ents or
the trade secrets of the employer, the employer may sti pulate i n the contract that after the end of
hi s contract, the employee shall not compete wi th hi m or share i n any competi ng project. The
employee has to be 21 years old at the ti me of si gni ng the contract for thi s agreement to be legal.
The agreement shall be as far as ti me, place and nature of work are concerned li mi ted to what i s
necessary to protect the legal i nterests of the employer. However, i f there i s no agreement to the
contrary, an expatri ate employee may work for a new employer provi ded that hi s professi on i s
li sted i n one of the categori es exempted from the automati c si x month or one-year ban provi si ons
outli ned below.
What employment ban provisions apply upon the termination of an employment
contract?
A one-year ban wi ll be i mposed ( stamped) on an employees passport by the labour offi ce upon
termi nati on of employment i f the employee vi olates the employment contract, the Law, or the
labour regulati ons. A si x-month ban wi ll be i mposed ( stamped) upon termi nati on of employment
on those who do not fall under one of the categori es of professi onals permi tted to transfer thei r
vi sas.
The followi ng categori es are exempted from the si x-month ban and permi tted to transfer thei r
resi dence vi sas to a new sponsor:
( a) Engi neers.
( b) Doctors, Pharmaci sts and Hospi tal Attendants.
( c) Agri cultural I nstructors.
( d) Teachers.
( e) Q uali fi ed Accountants and Audi tors.
( f) Q uali fi ed Admi ni strati on offi ci als.
( g) Techni ci ans i n sci enti fi c electroni cs and laboratori es.
( h) Dri vers li censed to dri ve heavy transport vehi cles and ( buses) . Thi s i s i n case of transferri ng
the sponsorshi p from a company or establi shment to i ts counterpart or to any governmental
body.
( i ) Employees of pri vate oi l compani es are enti tled to transfer thei r sponsorshi p from one
company or establi shment to i ts counterpart or to any governmental body.
Provi ded always ( where the transfer i s from a pri vate sector posi ti on to another pri vate sector
posi ti on) that:
( a) The employee mai ntai ns the same posi ti on ( that i s, i n the same professi on) wi th the new
employer as he used to occupy wi th hi s previ ous employer;
( b) The employee has a vali d resi dent permi t stamped on hi s passport;
( c) The employee has completed at least one year of conti nuous employment wi th hi s previ ous
employer; and
( d) The employee has obtai ned the consent of the sponsor to transfer hi s sponsorshi p to the new
employer.
However, the followi ng ci rcumstances are excepti ons to the above rules:
( a) Where the transfer of employment i s from one branch to another branch of the same
company, establi shment or a branch owned by the same employer .
( b) Where the transfer of employment was due to the transfer of the ownershi p of the company,
establi shment or branch thereof to the ownershi p of another company, establi shment or
person.
( c) Where the sponsor has breached hi s li abi li ti es whi ch resulted i n the closi ng of the
establi shment.
( d) Where a court judgment i s deli vered for the bankruptcy or wi ndi ng and termi nati on of
acti vi ti es of the establi shment.
( e) Where the ori gi nal sponsor has di ed and hi s hei rs do not i ntend to conti nue runni ng the
establi shment.
The above rules have been sti pulated by Mi ni steri al Decree No. 360 of 1997 To I ssue the Executi ve
Bylaw of the Federal Law No. ( 6) of 1973 Concerni ng the Entry and Resi dence of Expatri ates.
However, the labour offi ce or i mmi grati on may at thei r own di screti on grant excepti ons.
Which acts would result in the termination of an employment contract, and result in the
employee being banned from working in the UAE for one year?
The followi ng acts by the employee would render the employee banned from worki ng i n the UAE
for a year.
1. I f the employee leaves hi s employment wi thout a justi fi ed cause before the end of a speci fi ed
employment contract; or
2. I n the case of an unli mi ted contract wi thout gi vi ng one months noti ce of termi nati on; or
3. The employee leaves hi s employment before the lapse of one months noti ce; or
4. The employee vi olates Arti cle 120 of the Law; or
5. The employee works wi th another employer full/part ti me at the same ti me as worki ng for
hi s ori gi nal employer .
These sancti ons would only be appli ed i f a complai nt was fi led by the employer requesti ng such.
Following the termination of his employment contract, when should an employee cancel
his dependents visas?
Upon termi nati on of hi s employment contract, an employee has to apply for the cancellati on of
hi s dependents vi sas ( spouse, chi ldren & domesti c help) before hi s employer submi ts an
appli cati on for the cancellati on of hi s vi sa. Thi s i s not necessary for transfer of sponsorshi p.
Is the employer obliged to give an end of service certificate at the end of the employees
service?
At the end of an employees servi ce, and subject to hi s request, an employer i s obli ged to provi de
hi m wi th a servi ce certi fi cate. Thi s certi fi cate i s free of charge and should state the date the
employee commenced servi ce, the last day of servi ce, the total servi ce peri od, the nature of work
carri ed out by the employee, hi s last wage and any allowances, i f they exi st.
The employer should also return to the employee all materi als deposi ted wi th hi m, such as
certi fi cates, papers, i nstruments etc.
15. Repatriation of Employees
Who bears the repatriation expenses of employees?
At the end of the contract the employer i s responsi ble for the repatri ati on expenses of the
employee to the place of recrui tment or to any other place whi ch the two parti es have agreed
upon. I f the employee served wi th another employer at the termi nati on of hi s contract, the new
employer bears the cost of the employees travel at the end of hi s servi ce. However, i f the
employee i s responsi ble for termi nati ng the contract, he i s responsi ble for hi s repatri ati on costs i f
he has suffi ci ent means.
Does the repatriation of the employee mean that the employer has to also pay for
furniture and family members?
I f the employer has pai d for the travelli ng expenses of the employee, hi s fami ly and furni ture or
such provi si ons as sti pulated i n the contract, the employer wi ll then have to pay for the fami ly
and the furni ture and any expenses i ncurred therewi th. However, i f at the ti me the contract
commenced there was no agreement on payment of fami ly repatri ati on costs or furni ture shi pment
costs, and the employer di d not pay for these at the commencement of the contract, the employer
wi ll not be li able to pay the same, unless the rules wi thi n the establi shment speci fy otherwi se.
When does the employee have to vacate his accommodation if it is provided to him by the
employer?
I n cases where the employer provi des accommodati on to the employee, the employee i s obli ged
to vacate the premi ses wi thi n a maxi mum peri od of 30 days from the date hi s servi ces wer e
termi nated. The employee may not extend thi s peri od for any reason provi ded that the employer
actually pays for the followi ng:
( a) The repatri ati on expenses as agreed; and
( b) End of servi ce benefi ts and other enti tlements as provi ded i n the terms of the employment
contract or the regulati ons of the establi shment.
Where there i s a di spute between the employer and the employee, the Mi ni stry must make a
recommendati on wi thi n 2 weeks from the date the complai nt i s fi led, and i nform the employee
of the amount recommended as payable. I n such cases, the 30 day peri od wi ll commence from
the date the employee deposi ts the sai d amount. I n a si tuati on where the premi ses are not vacated,
the Mi ni stry of Labour wi ll order the evi cti on of the premi ses wi th the assi stance of the local poli ce
i n the emi rate concerned. Thi s i s wi thout prejudi ce to the employees ri ght to challenge the
amount recommended by the Mi ni stry i n court. The Mi ni strys deci si ons can be appealed to the
court by ei ther party.
I f a di spute i s pendi ng or i s not resolved and there was no recommended amount for payment or
deposi t, the employee i s enti tled to stay i n the premi ses unti l the di spute i s resolved or a judgment
deli vered i f the matter i s bei ng li ti gated.
16. Payment of Gratuity
What is the employee entitled to on the termination of his employment contract?
O n the termi nati on of the employment contract, an employee i s enti tled to the followi ng:
1. A noti ce peri od, or any amount due i n li eu of the noti ce peri od i n the case of an unli mi ted
contract.
2. I n the case of an unli mi ted contract, compensati on for unreasonable di smi ssal i f the contract
was termi nated by the employer for unreasonable cause.
3. I n the case of a li mi ted contract, compensati on equi valent to the peri od unti l the end of the
contract, or three months wages, whi chever i s greater .
4. Payments equi valent to the balance of unuti li sed leave or any part thereof.
5. Payments for overti me or any balance of wages due and not yet pai d.
6. End of servi ce gratui ty calculated on the durati on of the employment.
7. Repatri ati on expenses as per the Law or the employment contact.
What does the term end of service gratuity mean in terms of compensation?
I n the case of an employment agreement for a speci fi ed term, an employee who completes one
year or more i n conti nuous servi ce shall be enti tled to gratui ty at the end of thei r servi ce. The
gratui ty shall be calculated as follows:
( 1) 21 days wages for each year of the fi rst fi ve years.
( 2) 30 days wages for each addi ti onal year on condi ti on that the total of the gratui ty does not
exceed the wages of two years.
An employee employed under a contract of an unspeci fi ed term who resi gns after conti nuous
servi ce of not less than one year and not more than three years, i s enti tled to one thi rd of the end
of servi ce gratui ty above. I f the peri od of conti nuous servi ce i s more than three years and less
than fi ve years he i s enti tled to two thi rds of the gratui ty. I f hi s conti nuous servi ce i s more than
fi ve years, he shall be enti tled to the full gratui ty.
How is gratuity calculated?
Gratui ty i s calculated on an annual basi s or part thereof provi ded that the employee has actually
completed one year of employment wi th the employer or more. Days of absence from work
wi thout pay are not i ncluded i n calculati ng the length of servi ce. However, he wi ll be enti tled to
end of servi ce gratui ty for fracti ons of a year he spent i n servi ce provi ded that he has completed
at least one year i n conti nuous employment.
On what basis is gratuity calculated?
Wi thout prejudi ce to what i s sti pulated by the poli ci es of some establi shments i n the granti ng of
pensi ons or reti rement benefi ts to employees, gratui ty for those who are pai d monthly, weekly or
dai ly wages i s calculated accordi ng to the employees last recei ved basi c wage before the
employment was termi nated. Thi s wage i s the basi s for calculati ng the gratui ty for the whole
peri od of an employees employment.
Would a commission or payment by percentage be considered a basic wage?
Accordi ng to a court ruli ng deli vered by the UAE court, except for allowances and bonuses, any
amount payable to an employee as wages i ncludi ng wages pai d by percentage basi s,
commi ssi ons, or for performance wi ll be consi dered as wage and wi ll be taken i nto consi derati on
i n calculati ng gratui ty.
Would an employee who was employed prior to the Law coming into force be entitled to
gratuity?
Accordi ng to the UAE law, employees who were worki ng pri or to the date the Law came i nto
force wi ll not be enti tled to gratui ty for the peri od precedi ng the Law. Thi s i s wi thout prejudi ce
to any enti tlements or payments they were enti tled to under other laws or regulati ons appli cable.
However, gratui ty for those employees under the Law are calculated thereafter on the date the
Law came i nto force.
Can the employer deduct any payment from the gratuity payable to the employee?
The employer may deduct any amount owed to hi m by the employee such as outstandi ng loans,
from the employees end of the servi ce gratui ty. I f there i s any di spute over the payment of gratui ty
or the amount of gratui ty payable, the matter should be referred to the Mi ni stry of Labour for
medi ati on.
Is the amount calculated for gratuity affected if the employee resigns from employment?
An employee employed under a contract for an unli mi ted peri od who resi gns after a conti nuous
servi ce of not less than one year and not more than three years i s enti tled to one thi rd of the end
of servi ce gratui ty provi ded above. I f the peri od of conti nuous servi ce i s more than three years
and less than fi ve years he i s enti tled to two thi rds of the gratui ty.
I f hi s conti nuous servi ce i s more than fi ve years, he i s enti tled to the full gratui ty.
I f an employee who i s employed under a contract for a li mi ted peri od on the other hand chooses
to resi gn before the end of the contract, he i s not enti tled to end of servi ce gratui ty unless hi s
conti nuous servi ce exceeds fi ve years.
Under what circumstances can an employee be deprived of his end of service gratuity?
An employee may be depri ved of hi s end of servi ce gratui ty i f he has been di smi ssed for one of
the reasons stated i n Arti cle 120 of the Law, or i f he termi nated hi s employment to avoi d such
di smi ssal.
Under what circumstances will an employee be entitled to gratuity if he terminates his
employment contract without notice?
Under Arti cle 121 of the Law, an employee wi ll be enti tled to gratui ty on termi nati on wi thout
noti ce i n ei ther of the followi ng ci rcumstances:
( 1) The employer has fai led to comply wi th hi s obli gati ons towards the employee, as provi ded
for i n the employment contract or i n the Law.
( 2) The employee was assaulted by hi s employer or hi s legal representati ve.
The above appli es to employees who have been conti nuously employed for a mi ni mum peri od
of one year, regardless of whether the contract of employment i s for a fi xed or unli mi ted term.
If the establishment or company has a pension scheme which is beneficial to the
employee, is this a substitution for the payment of gratuity?
I f the employer has a pensi on scheme appli cable to all the employees of the busi ness, such a
scheme must be publi shed and known to all employees, and must speci fy that i t wi ll be a
substi tute to the gratui ty rules outli ned i n the Law. I t must also be more benefi ci al to the
employees than the gratui ty provi si on of the Law. O therwi se the employee may benefi t from both
unless the employee agreed or consented to the scheme i n questi on.
Is there a pensions and social security scheme in the UAE?
The Pensi ons & Soci al Securi ti es Law, Federal Law No. ( 7) of 1999, concerns nati onals employed
i n both the publi c and pri vate sectors. I t contai ns 79 Arti cles and provi des ( amongst other thi ngs)
for certai n contri buti ons to be made by the employee and the employer to the Publi c Authori ty
of Pensi ons and Soci al securi ti es. For a person employed i n the publi c sector these contri buti ons
are equi valent to 5% of the contri butory pensi on salary to be pai d by the employee and 15% of
the contri butory pensi on salary payable by the employer. As for the pri vate sector, the government
shall bear 2.5% of the ( 15% ) share payable by the employer as contri buti ons to the Authori ty.
The Law also provi des for the amount to be pai d as a pensi on to eli gi ble nati onals on reachi ng
the reti rement age of 60, or di sabi li ty pensi on i n the case of an employee becomi ng di sabled and
thereby unable to work. I t further covers the amount of pensi on payable to benefi ci ari es on the
demi se of a secured person.
Both nati onal employees and employers are advi sed to revi ew the Arti cles contai ned i n the above
law to fully determi ne thei r obli gati ons and ri ghts.
Can the employee and the employer agree to pay gratuity for the termination of the
employment contract for a preceding period?
The employer and the employee may, upon mutual agreement, deci de upon the payment of the
employees gratui ty for the years that he has already served hi s employer. A new contract wi ll then
be entered i nto between the parti es.
The employees employment wi th the employer i s sti ll consi dered as a conti nuous peri od for the
purpose of calculati ng i nterest, or, at the ti me when he resi gns, calculati ng the employees total
years of servi ce wi th the employer .
Where an employee has worked for an employer in two or more countries, will he be
entitled to gratuity?
Thi s wi ll depend on a number of factors such as the terms of the employment contract, the law
of the country the employment i s bei ng conducted i n and the general practi ce of the employer .
For i nstance, many multi nati onals whi ch transfer thei r employees to another country pay the end
of servi ce benefi ts appli cable at the ti me of transfer. I n such cases, the transfer i s essenti ally
consi dered as new employment for the purposes of gratui ty payments.
The matter wi ll however depend on the facts of each case as i t i s not covered by the Law but
rather i s addressed i n certai n judgments. Therefore, i t should not be assumed that i f an employee
i s transferred to another country that the UAE law wi ll conti nue to apply or that hi s employment
contract wi ll conti nue to be enforced. The Law i s consi dered as a matter of publi c poli cy and thus
certai n cases may be di fferent i n other juri sdi cti ons. I n addi ti on, the country the employee i s bei ng
transferred to may contai n di fferent regulati ons regardi ng the transfer of employees to and from
other juri sdi cti ons.
Therefore, the law of the country the employee i s transferred to may prevai l and gi ve regard ( or
otherwi se) to the employees previ ous employment contract. I n such cases therefore i t i s
advi sable to seek i ndependent advi ce on the matter .
I t i s also not possi ble to apply a forei gn law to a UAE employment contract.
Can an employee mortgage or assign payment of his gratuity?
I t i s possi ble to mortgage or assi gn payment of an employees gratui ty to the employer or to a
thi rd party by mutual agreement, provi ded that i n the agreement wi th a thi rd party, the employer
and the employee agree to thi s i n wri ti ng wi th an understandi ng of all parti es that the employee
may forfei t hi s ri ght to gratui ty whi ch i s not yet due i f he has vi olated a provi si on of the Law.
When does gratuity become due and payable?
Gratui ty wi ll only become due and payable on the termi nati on of an employment contract.
Are the end of service gratuity and other dues payable to the employee considered
priority debts?
The employees wages, overti me, and any other benefi ts, i ncludi ng end of servi ce gratui ty, ar e
consi dered to be a preferenti al debt for whi ch the employee shall have a li en over any movable
or i mmovable property owned by the employer ranki ng second to government charges, judi ci al
fees and fami ly ali mony payments.
17. Dispute Settlement
In case of a dispute between the employee and the employer, how can either of them
proceed with a case?
Where there i s a di spute between the employee and the employer, an appli cati on must be made
to the Mi ni stry i n the emi rate i n whi ch the employers establi shment i s located. The complai nt
must be submi tted i n wri ti ng to the complai nts department at the Mi ni stry, setti ng out a summary
of the facts, calculati on of the amount due, and enclosi ng a copy of the labour contract. The
appli cati on wi ll be fi led wi th the Mi ni stry upon payment of Dh.100 regi strati on fee.
Ei ther the employer or the employee wi ll be summoned to hear the argument at the labour offi ce
i n the Mi ni stry of Labour and Soci al Affai rs whi ch must make a recommendati on wi thi n two weeks
from the date i n whi ch the appli cati on i s fi led. Should the party fai l to settle the di spute as
recommended by the Mi ni stry, the matter wi ll then have to be referred to court to be li ti gated i n
the normal manner. I n such a case, the Mi ni stry wi ll i ssue a summary of the facts of the case, and
a memorandum together wi th i ts recommendati on, and the arguments put forward by both parti es.
Wi thi n three days from the date the appli cati on i s recei ved, the court wi ll schedule a heari ng date
and summon the other party to hear the matter .
How effective are foreign employment contracts in the UAE?
Such contracts are enforceable and vali d as contracts executed i n the UAE. However, i f there i s an
addi ti onal local contract and a di spute ari ses, the provi si ons i n the contract whi ch are mor e
favourable to the employee wi ll probably be upheld, provi di ng there i s evi dence i n support of the
provi si on i n questi on.
I n terms of the gratui ty payable, where there are two contracts, the employee may only benefi t
from one.
Should the application to the labour office and the court be made within a specified time
limit?
A complai nt by ei ther the employer or the employee must be made to the labour offi ce wi thi n
one year from the date i n whi ch the amount or the enti tlement becomes due. I n other words, the
one-year ti me peri od does not start runni ng from the date of termi nati on, but rather from the date
the amount becomes due and unpai d. A complai nt therefore must be fi led wi thi n one year from
the date such an amount becomes due otherwi se i t wi ll be ti me barred.
I n calculati ng ti me accordi ng to the Law, the Gregori an calendar i s used. Y ears are calculated as
365 days and months as 30 days. However, fi li ng an acti on before the Mi ni stry wi ll suspend the
ti me from runni ng. I f the Mi ni stry fai ls to transfer the case to court wi thi n two weeks, the
employee may then proceed to court wi thout referral from the labour offi ce.
Is the employer or the employee liable to pay court fees if the matter is referred to court?
Employees are exempt from payi ng court fees. Thi s exempti on also appli es i f an appeal i s fi led at
the court of appeal. However, should a matter fai l to be settled at the Mi ni stry, an employer who
elects to proceed wi th court acti on must pay court fees, whi ch are normally based on a percentage
of the amount clai med.
Is there a different rule for complaints filed by a group of employees against one
employer?
The Law provi des sli ghtly di fferent provi si ons regardi ng clai ms made by a number of employees
of the same establi shment who fi le a complai nt agai nst thei r employer. I t may take longer to be
settled at the Mi ni stry and the Mi ni stry may form a commi ttee to settle such a di spute.
18. Labour Inspections
Is the Ministry or any other competent authority entitled to inspect establishments or
commercial entities established in the UAE?
The Labour I nspecti on Department at the Mi ni stry and the personnel employed therei n may
undertake labour i nspecti ons, and have been gi ven the power to do so by the Law. The i nspector
however should carry the i denti fi cati on card i ssued by the Mi ni stry of Labour and Soci al Affai rs,
and i s enti tled to enter premi ses for i nspecti on. Employers and thei r agents should present the
labour i nspectors wi th all the necessary faci li ti es and i nformati on to perform thei r duti es and
should consent to any summons to appear before them, or should send a delegate to appear on
thei r behalf i f they are requi red to do so.
What are the primary responsibilities of the labour inspectors?
A labour i nspector i s responsi ble for the followi ng:
( 1) Supervi si ng the proper enforcement of the provi si ons of the Law, parti cularly terms of work,
wages, on the job safety, health and the speci fi c regulati ons concerni ng the employment of
juveni les and women;
( 2) Provi di ng employers and employees wi th the i nformati on and techni cal gui dance that wi ll
enable them to adopt the best means for the enforcement of the provi si ons of the Law.
( 3) I nformi ng the concerned authori ty of any loop-holes whi ch the enforcement provi si ons fai l
to remedy and recommendi ng any necessary steps.
( 4) Recordi ng i nci dents where the provi si ons of the Law and the regulati ons have been vi olated.
Do the labour inspectors have the authority to enter commercial entities and premises?
A labour i nspector has the ri ght to do the followi ng:
( 1) Enter any establi shment that i s subject to the provi si ons of the Law at any ti me duri ng the
day or ni ght wi thout pri or noti ce, provi ded that such entry i s made duri ng worki ng hours.
( 2) Conduct any test or i nvesti gati on that may be necessary to ascertai n the proper enforcement
of the Law.
( 3) Q uesti on employees or the employer, exami ne all records whi ch have to be kept under the
provi si on of the Law, take a sample or samples of materi als used or handled i n i ndustri al
acti vi ti es, and ascertai n that noti ces and pamphlets requi red to be di splayed at the work si te
are i n accordance wi th the provi si ons of the Law.
19. New Businesses
What procedures do new businesses need to take in order to recruit individuals?
As di scussed above, i f a busi ness organi sati on i ntends to employ staff and fulfi ll the necessary
procedures for doi ng so, such as the i mmi grati on requi rements necessary, i t wi ll need to
open a fi le at the Mi ni stry of Labour and Soci al Affai rs. A new busi ness wi ll only be able to
complete the necessary i mmi grati on or labour matters for the purposes of recrui ti ng staf f
once i t obtai ns i ts li cence from the Dubai Department of Economi c Development, or the
concerned authori ty for the i ssuance of li cences i n the case of the other emi rates.
I t should be noted that for a manager to obtai n resi dency, i t i s a pre-requi si te that the
busi ness regi ster wi th the Mi ni stry.
Below are the procedures new busi nesses wi ll need to take before recrui ti ng staff.
Registration with the Ministry of Labour & Social Affairs
Procedure
I n order to regi ster a busi ness wi th the Mi ni stry, the local partner, the nati onal agent or the
duly authori sed representati ve of the busi ness should submi t the followi ng to the Mi ni stry.
Two copi es of the appli cati on form and card ( typed i n Arabi c and si gned by the local partner
and/or nati onal agent or the authori sed si gnatory;
O ri gi nal trade li cence of the busi ness ( and copy) ;
Passport copy of partners ( i f appli cant i s a company) or passport copy of the nati onal agent
( i f appli cant i s a branch offi ce or servi ce company) ;
Copy of the company consti tuti on or nati onal agency agreement;
A sketch plan detai li ng the locati on of the appli cants place of busi ness; and
The appropri ate fee ( currently Dhs.500) .
Provi di ng the correct documentati on has been submi tted and the appropri ate fee pai d, the
i nspecti on secti on at the Mi ni stry wi ll i nspect the appli cants busi ness premi ses to ensure that the
followi ng condi ti ons have been sati sfi ed:
( a) No employees are present at the premi ses and that only the nati onal agent, the local partner
or the duly authori zed representati ve or lawyer of the busi ness are present; and
( b) The appli cants si gnboard i s placed on the floor at the bui ldi ng entrance and on the
appli cants offi ce door .
The nati onal agents and/or local partners representati ve should meet the i nspector at the Mi ni stry
to ensure that he vi si ts the busi ness premi ses. ( I n certai n ci rcumstances i nspecti on may be
wai ved) .
The above procedure should take an average of ten days to complete.
Representative Cards
As local partners and/or nati onal agents are unli kely to have suffi ci ent ti me to deal wi th the
Mi ni stry regardi ng labour matters, i t i s common for most busi nesses i n Dubai to appoi nt a
representati ve from thei r staff to deal wi th such matters. However, i n order to conduct
deali ngs on behalf of a busi ness wi th the Mi ni stry of Labour and Soci al Affai rs, i t i s fi rst
necessary for one to obtai n what i s known as, a representati ve card. A representati ve car d
basi cally allows the holder to deal wi th the Mi ni stry regardi ng labour i ssues on the busi nesss
behalf, wi thout whi ch only the busi nesss sponsor, local partner or manager may conduct
such deali ngs.
Procedure
A representati ve card can be obtai ned by fi li ng the followi ng wi th the Mi ni stry:
T wo copi es of the prescri bed appli cati on form ( typed i n Engli sh and Arabi c) . The appli cati on
should be prepared and si gned by the authori sed si gnatory of the busi ness who wi ll take full
responsi bi li ty for i ts contents. The appli cati on must confi rm that the i ntended representati ve
i s a li terate adult, worki ng under the appli cants sponsorshi p, i s employed by the appli cant
and i s a legal resi dent of the UAE;
Passport copy of the i ntended representati ve;
Copy of the busi nesss trade li cence;
Copy of the i ntended representati ves Mi ni stry of Labour & Soci al Affai rs labour card;
T wo passport si ze photographs of the i ntended representati ve; and
The appropri ate fee ( currently Dh.210) .
The representati ve card wi ll automati cally termi nate i n the event of the representati ves di smi ssal
or resi gnati on from employment, the cancellati on of hi s resi dency or hi s convi cti on of a cri me
relati ng to honour or honesty. I t i s renewable annually where the same procedures wi ll need to
be fulfi lled i n addi ti on to the payment of the appropri ate fee ( currently Dh.210) .
Although i t i s not a legal requi rement for the representati ve to be an Arabi c speaker, thi s i s, as a
matter of procedure essenti al and i s noted on the representati ve appli cati on form provi ded by the
Mi ni stry.
I t i s i nci dentally necessary for the representati ve to present hi s representati ve card to offi ci als at
the Mi ni stry of Labour and Soci al Affai rs every ti me he makes an appli cati on or i nqui ry at the
Mi ni stry.
Appendix 1
Occupational Diseases
No. Type of disease Work causing disease
1. Poi soni ng by lead and i ts compounds Any work i nvolvi ng the use or handli ng of lead
or compounds contai ni ng lead.
2. Poi soni ng by mercury and i ts compound. Any work i nvolvi ng the use or handli ng of
mercury or i ts compounds or materi als
contai ni ng mercury, and any work i nvolvi ng
exposure to the dust or gases of mercury or of
i ts compounds or materi als contai ni ng mercury.
3. Poi soni ng by arseni c and i ts compounds Any work i nvolvi ng the use or handli ng of
arseni c or i ts compounds or materi als contai ni ng
arseni c, and any work i nvolvi ng exposure to the
dust and gases of arseni c or of i ts compounds or
materi als contai ni ng arseni c.
4. Poi soni ng by anti mony and i ts Any work i nvolvi ng the use or handli ng of
compounds anti mony, i ts compounds or materi als
contai ni ng anti mony and any work i nvolvi ng
exposure to the dust and gases of anti mony or
of i ts compounds.
5. Poi soni ng by phosphorous and i ts Any work i nvolvi ng the use or handli ng of
compounds phosphorus, i ts compounds or materi als
contai ni ng phosphorous and any work
i nvolvi ng exposure to the dust or gases of
phosphorus or of i ts compounds or materi als
contai ni ng phosphorus.
6. Poi soni ng by petroleum, i ts deri vati ves, Any work i nvolvi ng the handli ng or use of
compounds and by-products petroleum, i ts deri vati ves and compounds and
any work i nvolvi ng exposure to thei r dust or
gases.
7. Poi soni ng by manganese and i ts Any work i nvolvi ng the use or handli ng of
compounds manganese, i ts compounds or materi als
contai ni ng manganese, and any work i nvolvi ng
exposure to the gases or dust of manganese or
of i ts compounds and any products contai ni ng
manganese.
8. Poi soni ng by sulphur and i ts compounds Any work i nvolvi ng the use or handli ng of
sulphur, i ts compounds or materi als contai ni ng
sulphur, and any work i nvolvi ng exposure to
gases or dust of sulphur or i ts compound alloys.
9. Poi soni ng by petroleum, i ts Any work i nvolvi ng the handli ng or use of
by-products and compounds. petroleum, i ts gases or by-products and any
work i nvolvi ng exposure to such substances,
whether i n soli d, li qui d or gas state.
10. Poi soni ng by chloroform or Any work i nvolvi ng the use or handli ng of
carbon tetrachlori de chloroform or carbon tetrachlori de and any
work i nvolvi ng exposure to thei r gases, or to
any gases contai ni ng such substance.
11. Di seases resulti ng from radi um, Any work i nvolvi ng exposure to radi um or to
radi o-acti ve substances ( X-ray) any radi o-acti ve materi als or X-ray
12. Chroni c di seases of the ski n and burns Any work i nvolvi ng the use or handli ng of or
of the ski n and the eyes. transfer of tar carbon, tar machi nes, mi neral oi l,
kerosene or cement flour and si mi lar materi als
such as dust and the components and by-
products or deposi ts of such i tems.
13. I njuri es of the eyes by heat and li ght Any work i nvolvi ng frequent or conti nued
and thei r compli cati ons. exposure to li ght, heat or rays from molten glass
or from heated or melted metals, or exposure to
strong li ght and i ntense heat as would result i n
damage to the eye or i mpai rment of si ght.
14. Lung di seases resulti ng from si li ca dust, Any work i nvolvi ng exposure to newly-
asbestos and cotton dust. generated dust of si li ca or substances contai ni ng
more than 5% of si li ca such as work i n mi ni ng,
quarryi ng, stone cutti ng or gri ndi ng, worki ng i n
a stone cement factory, glassi ng metals wi th
sand or any other acti vi ty i nvolvi ng such
exposure to asbestos or cotton dust to an extent
that such di seases are caused.
15. Anthrax Any work i nvolvi ng contact wi th ani mals
i nfected wi th thi s di sease, or wi th thei r ski ns,
horns and hai r .
16. Glanders All works i nvolvi ng contacts wi th ani mals
i nfected wi th thi s di sease.
17. Tuberculosi s Work at hospi tals for the treatment of thi s
di sease.
18. Enteri c fever Work at hospi tals speci ali sed i n the treatment of
thi s fever.
Appendix 2
Permanent Disability Rating
Degree of Nature of Permanent Disability Percentage
Disability
Permanent
1. Loss of both arms from the shoulders and loss of any two or more li mbs 100
2. Complete loss of si ght i n both eyes or loss of two eyes 100
3. Complete paralysi s 100
4. Dementi a or complete mental derangement 100
5. Wounds and i njuri es to the head or brai n whi ch cause conti nuous headache 100
6. Complete deformati on of the face 100
7. I njuri es and wounds to the chest and i nternal organs whi ch cause a
conti nuous and complete defi ci ency i n the functi on of these organs. 100
Partial
8. Loss of both legs from the top 90
9. Loss of hands from the elbow or above 85
10. Severe deformati on of the face 80
11. Loss of both hands from the elbow 70
12. Complete loss of the ri ght arm from the joi nt of shoulder or from the elbow 70
13. Loss of both legs from the knees or above 70
14. Complete loss of the left arm from the joi nt of shoulder or from the elbow 60
15. Loss of one leg from the knee or above 60
16. Loss of the ri ght arm from the elbow or below 60
17. Loss of one leg from above 60
18. Loss of both legs from below the knee 60
19. Loss of all the fi ngers of the ri ght hand i ncludi ng the thumb 60
20. Loss of the left arm from above or below the elbow 50
21. Loss of the fi ngers of the left hand i ncludi ng the thumb. 50
22. Loss of one leg below the knee. 50
23. Complete and permanent deafness 50
24. Complete loss of the tongue or permanent dumbness 45
25. Loss of both feet from the heel or below the heel. 45
26. Loss of the sexual organ 45
27. Loss of si ght i n one eye. 45
28. Loss of the ri ght hand from the wri st. 38
29. Loss of the thumb or four fi ngers of the ri ght hand. 35
30. Loss of the left hand from the wri st. 34
31. Loss of the thumb or four fi ngers from the left hand. 25
32 Loss of the one foot from the heel or below the heel 20
33. Loss of all toes i n one foot i ncludi ng the bi g toe 20
34. Loss of three fi ngers of the ri ght hand excludi ng the thumb. 15
35. Loss of the ri ght i ndex fi nger . 15
36. Loss of the di stal phalanx of the ri ght thumb. 10
37 Loss of the left i ndex fi nger 10
38 Loss of three fi ngers of the left hand excludi ng the thumb 10
39 Loss of all toes i n a foot excludi ng the left foot 10
40. Loss of the bi g toe. 10
41. Loss of the di stal phalanx of the left bi g toe 6
42. Loss of the mi ddle fi nger i n the ri ght hand. 6
43. Loss of the mi ddle fi nger i n the left hand. 6
44. Loss of the ri ng fi nger i n the ri ght hand 6
45 Loss of the ri ng fi nger i n the left hand 6
46. Loss of the li ttle fi nger i n the ri ght hand. 6
47. Loss of any fi nger i n the left hand 6
48. Loss of the di stal phalanx of any fi nger excludi ng the thumb. 5
49. Loss of the second phalanx of the i ndex fi nger i n the ri ght hand 5
50. Loss of toes of the foot excludi ng the bi g one 5
51. Loss of one molar tooth 3
52. Loss of a cani ne tooth. 2
1. A permanent total di sabi li ty i n the functi ons of any organ or part of the body shall be
consi dered as a complete loss to that part or organ.
2. I f the i njured person was left handed, all compensati on for i njuri es of the left hand shall be
consi dered as i f they were for the ri ght hand.
3. I n the case of deformati on or unnatural change to any organ or part of the body or any of
the senses not menti oned i n the li st, the rate of di sabi li ty shall be esti mated by the Medi cal
Board provi ded i n Arti cle ( 148) of thi s Law whi ch shall take i nto consi derati on si mi lar cases
i n the li st.
Appendix 3
Term of Distribution of Death Compensation Among
Members of the Deceased Employees Family
I f the wi dow ( or wi dower) li ves wi th the parents and offspri ng who were supported by the
deceased, the compensati on shall be di vi ded as follows:
1. The wi dow ( or wi dower) shall take one ei ghth and i f there are more than one wi dow ( or
wi dower) , the one ei ghth shall be di vi ded equally among them, the parents shall take one
thi rd di vi ded equally between them, but i f ei ther of the parents i s dead then the mother shall
take one si xth, and the father shall take one thi rd and the rest for the offspri ng. I f there ar e
no chi ldren, the wi dow ( or wi dower) shall take two thi rds of the compensati on ( to be
di vi ded equally among them i f there are more than one) and the father shall take the
remai nder. I n cases where both parents are li vi ng they shall share that remai nder equally. I f
both parents are dead, the wi dow ( or wi dower) shall have one ei ghth of the compensati on
( to be di vi ded equally among them i f there i s more than one wi dow) and the offspri ng shall
get whatever remai ns. I n cases where there are no chi ldren and no li vi ng parent, the wi dow
( or wi dower) shall take the whole compensati on. I f there i s more than one wi dow, the
compensati on shall be di vi ded equally among them.
2. I f there exi sts one or both of the parents and a chi ld who were supported by a deceased
employee who left behi nd no wi dow, the chi ld shall take two thi rds and the remai ni ng thi r d
shall go to the parent or parents, who take equal shares.
3. I n the absence of a wi dow ( or wi dower) , parents, brothers and si sters, the compensati on
shall be di stri buted equally among the chi ldren of the deceased. I f there i s only one chi ld,
he shall be pai d the whole compensati on.
4. I f there are only parents, who were under hi s care, i n the absence of a wi dow ( or wi dower)
and chi ldren, the compensati on shall be di vi ded equally between the parents. I f there i s only
one, he or she shall take the whole compensati on. Brothers and si sters who were supported
by the employee at the ti me of hi s death shall be treated i n the absence of parents, as
parents.

LaborLaw UAE

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LaborLaw UAE

Uploaded by

Copyright:

Available Formats

The Labour Law of the United Arab Emirates 1

You might also like