The United Arab Emirates is quickly becoming a global leader in the remote work revolution thanks to its thriving tech scene, business-friendly environment, and youthful, tech-savvy populace. Understanding the UAE’s changing job market is essential for businesses hoping to build successful remote or distributed teams by gaining access to this talented pool of workers. Understanding the recently enacted Federal Decree-Law No. 33 of 2021, which regulates remote work and flexible work arrangements, as well as the more general labor laws outlined in Federal Law No. 8 of 1980, is imperative given this dynamic work environment. A successful operation also depends on managing the complexities of free zone laws and the advantageous business environment.

Maintaining a connected and engaged remote team goes beyond legal compliance and requires cultivating clear and consistent communication through the right technology tools and platforms. Providing opportunities for employee training and development also guarantees that remote workers maintain the abilities and know-how required for success. Through proactive measures, companies can leverage the enormous potential of the UAE’s remote talent pool and form compliant, productive teams in this dynamic and exciting environment.

Main Sources of Employment Law in the UAE

The employment laws of the United Arab Emirates are sourced from multiple important sources, which when combined offer a thorough framework for governing workplace relationships. Employers and employees must both be aware of these sources in order to guarantee compliance and equitable treatment.

1. Federal Laws:
   The Labour Law, Federal Law No. 8 of 1980, Regulating Labor Relations: Outlining fundamental worker rights and responsibilities, such as minimum wages, working hours, leave entitlements, and termination procedures, this forms the basis of employment law in the United Arab Emirates.

   No. 33, a Federal Decree-Law of 2021: Regulations pertaining to flexible work arrangements, such as remote work, part-time work, and flexible working hours, were recently introduced by this decree.

   Additional federal laws that are pertinent: These address particular topics like labor disputes, occupational safety and health, and social security.

2. Ministerial Orders and Decrees:
   The Labour Law and other federal laws are supplemented and clarified by ministerial orders and decrees issued by the Ministry of Human Resources and Emiratisation (MOHRE). Employers must abide by these as well because they are legally binding.
3. Local Emirate Laws:
   In addition to the federal laws, every emirate in the United Arab Emirates has its own set of employment regulations. These rules might cover particular regional problems or sectors of the economy.
4. Contracts:
   Legally binding agreements between employers and employees are known as employment contracts. Certain terms and conditions of employment that are not covered by the Labour Law or other sources may be addressed in these contracts. They must, nevertheless, adhere to the minimal requirements outlined by law.
5. Islamic Law (Sharia):
   While not a direct source of employment law, Sharia principles can influence interpretations and decisions in certain areas, particularly related to personal status and religious holidays.
6. International Conventions:
   A number of international labor rights conventions have been ratified by the United Arab Emirates. Although these agreements are not immediately enforceable in national courts, they can have a persuasive effect and affect how national laws are interpreted.

Navigating the complicated legal environment in the United Arab Emirates requires an understanding of these various sources of employment law. Both employers and employees can guarantee compliance and create enduring, fruitful working relationships by remaining informed and, when needed, seeking professional advice.

Employment Contracts in the UAE

Employment contracts in the United Arab Emirates (UAE) are legally binding agreements between employers and employees that outline the terms and conditions of employment. These contracts are essential for protecting the rights of both parties and ensuring a fair and harmonious working relationship.

Key elements of an employment contract in the UAE include:

• Parties to the contract: The names and contact information of the employer and the employee.
• Position and duties: The employee’s job title and a detailed description of their duties and responsibilities.
• Commencement date and duration: The start date of employment and the contract’s duration (fixed-term or unlimited).
• Remuneration: The employee’s salary, benefits, and any allowances.
• Working hours and leave entitlements: The employee’s regular working hours, overtime arrangements, and annual leave entitlements.
• Termination provisions: The conditions under which the contract can be terminated by either party.
• Non-compete clauses: Restrictions on the employee competing with the employer after leaving the company.
• Confidentiality clauses: Obligations on the employee to keep confidential information secret.
• Dispute resolution: How any disagreements arising from the contract will be resolved.

Types of Employment Contracts in the UAE:

There are two main types of employment contracts in the UAE:

1. Fixed-term contracts: These contracts are valid for a specific period, after which they automatically expire unless renewed by mutual agreement.
2. Unlimited-term contracts: These contracts do not have a fixed end date and can continue indefinitely.

Minimum Employment Conditions in the UAE

In order to guarantee equitable treatment and safeguard the rights of their workers, employers are required by law to comply with a number of minimum employment conditions set forth by the United Arab Emirates (UAE). The Federal Law No. 8 of 1980 Regulating Labor Relations, also known as the Labour Law, and other pertinent laws specify these requirements.

Here are some of the key minimum employment conditions in the UAE:

Working Hours:

• Maximum of 8 hours per day and 48 hours per week, with a maximum of 6 working days in a week.
• Overtime work is allowed but should be compensated at a rate of at least 25% of the basic salary.

Wages and Deductions:

• Wages must be paid in UAE Dirham (AED).
• Employers are required to deduct certain percentages from an employee’s salary for social security, pension, and other contributions as per UAE laws.

Leaves:

• Annual leave: After two years of employment, employees are entitled to a minimum of thirty calendar days of annual leave. They will receive two days per month for the first year.
• Sick leave: If an employee provides a medical certificate, they are entitled to an additional 15 days of paid sick leave per year, with half of that time being spent at half pay.
• Leave for pregnancy: Female employees are entitled to sixty days of paid leave, of which fifteen days are half-paid. The remaining forty-five days are unpaid. If they become ill during their pregnancy or after giving birth, they are also eligible to take an extra 45 days of unpaid leave.
• Leave with compensation: Workers are entitled to one day of leave with compensation for each day they work on a public holiday.

End of Service Benefits:

• Upon leaving their job, employees are entitled to an end-of-service gratuity that is determined by their years of service and salary.
• For the first five years of service, the gratuity is equal to twenty-one days’ salary; after that, it is thirty days’ salary.

Other Minimum Conditions:

• Workplace: Employers are required to give their staff members a secure and healthful workplace.
• Discrimination: It is illegal to discriminate against someone based on their race, gender, religion, national origin, or handicap.
• Non-compete agreements: These terms are limited and may only be in place for a certain amount of time.
• Employers may have confidentiality clauses requiring workers to keep sensitive information private.

Paid Leave in the UAE

The United Arab Emirates (UAE) mandates paid leave for various reasons, ensuring fair treatment for employees and promoting a healthy work-life balance. Understanding these entitlements is crucial for both employees and employers.

Types of Paid Leave:

1. Annual Leave:
   • Eligibility: All employees are entitled to 30 days of paid annual leave after two years of service.
   • Accrual: During the first year, employees accrue 2 days of paid leave per month.
   • Splitting Leave: Employers can split the leave into two parts, but one part must be at least 14 consecutive days.
   • Salary: Employees receive their full salary and benefits during annual leave.
2. Sick Leave:
   • Eligibility: Employees are entitled to 15 days of paid sick leave per year.
   • Additional Leave: An additional 15 days of half-paid leave can be granted with a medical certificate from a government health facility.
   • Beyond 30 Days: Employers may request additional medical evidence or a medical board assessment for extended sick leave.
   • Salary: Employees receive their full or half salary during sick leave, depending on the duration and documentation.
3. Maternity Leave:
   • Eligibility: Female employees are entitled to 60 days of maternity leave.
   • Leave Breakdown:
   • 45 days: Fully paid by the employer.
   • 15 days: Half-paid by the employer.
   • Additional Leave: An extra 45 days of unpaid leave can be granted for illness due to pregnancy or childbirth.
   • Salary: Employees receive their full or half salary during paid maternity leave, depending on the period.
4. Compassionate Leave:
   • Eligibility: Employees are entitled to 5 days of paid compassionate leave upon the death of a close family member (spouse, children, parents, siblings).
   • Additional Leave: Unpaid leave may be granted at the employer’s discretion.
5. Study Leave:
   • Eligibility: Paid study leave with full or partial salary depends on the employer’s policy and the agreement between the employee and employer.
   • Approval: Prior approval is often required, and specific conditions may apply.
6. Hajj Leave:
   • Eligibility: Muslim employees are entitled to paid leave to perform Hajj once in their lifetime.
   • Duration: The duration varies depending on the employee’s situation and the employer’s policy.

Additional Points:

• Public holidays are considered paid leave days.
• Leave entitlements may be adjusted for specific situations like shift work or temporary contracts.
• Employees should refer to their employment contract and company policies for specific details regarding their leave entitlements and application processes.

Protection Against Discrimination

The United Arab Emirates (UAE) has witnessed a remarkable evolution in its stance towards discrimination. While challenges persist, numerous legal instruments offer robust protection against discrimination based on specific characteristics, fostering a more inclusive and equitable environment for all.

Fortified by Law:

• Federal Law No. 8 of 1980 Regulating Labour Relations (Labour Law): This cornerstone legislation safeguards employees from discrimination based on race, color, sex, religion, national/social origin, or disability.
• Federal Decree-Law No. 33 of 2021: This decree reinforces the principle of non-discrimination and equal treatment in the workplace, particularly in flexible work arrangements.
• Anti-Discrimination/Anti-Hatred Law: Championing tolerance and respect for diverse beliefs, this law criminalizes acts that incite religious hatred or insult religion.
• Resolution on Protecting the Rights of People of Determination: This resolution guarantees equal rights and opportunities for individuals with disabilities, encompassing reasonable workplace accommodations.

Guarding Against Bias:

These laws safeguard against discrimination based on the following grounds:

• Race and Color: Individuals are protected regardless of their race or skin color.
• Sex and Gender: Both men and women are entitled to equal treatment and opportunities in the workplace.
• Religion: Religious beliefs and practices are protected from discriminatory actions.
• National or Social Origin: Individuals from different countries or social backgrounds are treated equally.
• Disability: People with disabilities have the right to equal opportunities and reasonable accommodations.

Seeking Justice:

Individuals who experience discrimination can seek redress through various channels:

• Ministry of Human Resources and Emiratisation (MOHRE): Handles labor-related grievances and enforces the Labour Law.
• Federal Authority for Human Rights (FAHR): Investigates and addresses human rights violations, including discrimination.
• Courts: Individuals can file lawsuits against employers who engage in discriminatory practices.

Embracing a Brighter Future:

While the UAE has made significant strides, challenges remain:

• Limited awareness of anti-discrimination laws.
• Underreporting of discrimination incidents.
• Difficulty proving discrimination in court.

Despite these hurdles, the UAE remains committed to eradicating discrimination and fostering inclusivity. Ongoing efforts focus on:

• Strengthening anti-discrimination legislation.
• Raising awareness and public education.
• Ensuring effective enforcement mechanisms.

Data Protection Act

The Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data (PDPL 2021) has established a strong data protection framework in the United Arab Emirates (UAE). This law gives people more control over their personal data by defining rights to access, correct, erase, and limit its use, as well as requiring express consent before processing. To protect customer trust and safeguard personal data, businesses need to adhere to data governance practices and implement suitable security measures. The PDPL 2021 presents challenges like limited awareness and inconsistencies with other countries’ regulations, but ongoing efforts address these issues while fostering international cooperation on data protection. The UAE can maintain its position as a pioneer in data protection, advancing personal privacy and spurring economic growth in the digital age, by adopting the PDPL 2021.

Termination of Employment

In the dynamic and rapidly evolving landscape of the United Arab Emirates (UAE), understanding the legal framework surrounding termination of employment is crucial for both employers and employees. This guide aims to provide a comprehensive overview of the key aspects of termination in the UAE.

Termination Grounds:

The Federal Law No. 8 of 1980 Regulating Labour Relations (the Labour Law) outlines the permissible grounds for terminating an employment contract, categorized into two main types:

• With notice: Both employers and employees can terminate contracts with notice, provided they adhere to the stipulated notice period. This period varies depending on the employee’s length of service and contract terms.
• Without notice: Immediate termination without notice is allowed in specific situations, such as:
  • Serious misconduct: This includes theft, fraud, violence, or blatant disregard for company rules.
  • Incapacity to perform duties: This can be due to illness, injury, or lack of necessary qualifications.
  • Absence from work without legitimate reason: This includes exceeding permitted leave or unauthorized absences.

Notice Period and End-of-Service Benefits:

• Notice periods for employees range from 30 days for less than 5 years of service to 90 days for over 10 years. Employers terminating an employee with notice must pay their full salary and benefits during the notice period.
• Upon termination, employees are entitled to end-of-service gratuity, calculated based on their salary and years of service. The gratuity amount is 21 days of salary for the first five years and 30 days for each subsequent year.

Employee Protection:

The Labour Law provides various safeguards for employees facing termination. These include:

• Right to a written termination notice: The notice must state the reason for termination and the effective date.
• Right to challenge termination: Employees can challenge unfair terminations through the Ministry of Human Resources and Emiratisation (MOHRE).
• Right to severance pay: If an employee is terminated without notice due to reasons outside their control, they are entitled to severance pay equivalent to one month’s salary for every year of service, up to a maximum of 3 months.

Employer Responsibilities:

Employers have several obligations related to termination, including:

• Complying with the stipulated notice periods and gratuity calculations.
• Providing a written termination notice outlining the reason for termination.
• Paying all outstanding salaries, benefits, and end-of-service gratuity.
• Obtaining necessary approvals from MOHRE for certain types of terminations.

Ensure Compliance in the UAE with Marzuna

Although there are many exciting opportunities for business expansion in the UAE, navigating the country’s complicated labor laws can be challenging. The procedure is streamlined by Marzuna’s Global HR Platform, which also serves as your official employer of record and guarantees strict adherence to regional laws. With our intuitive platform, you can automate hiring and do away with the need for a local organization, saving you both money and time. Together with Marzuna, you can accomplish your business objectives and expand your workforce in the UAE with assurance, all while feeling completely compliant. Speak with Marzuna right now to find out how we can make your journey toward UAE compliance easier.