Employees and Extra Pay For Working Overtime

September 1, 2022

As per UAE Labour Law, the daily working hours must be mentioned in Labour and Employment Contract. If an employee works for extra working hours, then as per the Law those hours must be mentioned in Labour and Employment Contract. Even such additions must be made in Internal Contracts as well. Federal Law Article 17, Decree-Law # 33 of 2021, define the working hours. Working Hours in the Private Sector is 8 Hours of Working in a week.

These working hours can be increased or decreased, especially in the emergency, pandemic period, or in utmost requirement. The prohibited working hours have to be kept aside. It can’t be increased or decreased during these prohibited working hours. UAE Labour Law Article 19, of Law, states that “Employer can order an employee to work on overtime working hours, which is more than regular working hours if it is not more than two hours in a single day. The employee can’t be ordered or forced to work more than these two hours in a day. As per UAE Labour Law, working hours in 3 weeks should not be more than 144 hours.

As per UAE Labour Law, when the employees work Overtime or they have to work for more than the normal work hours as per the UAE Labour Law, then they have to be paid as per the normal work rate/salary rate. The formula to calculate this rate is basic wage and the increase which is not less than Twenty Five percent of that wage. But it differs if the employee has to work between 10:00 PM to 4:00 AM. Then the wage calculation will be the basic wage rate and the increase which is not less than Fifty Percent of that wage. Therefore, it is proved that if the Employees have to work overtime or on emergency hours, then they have to be paid by the Employer.

Apart from this, UAE Labour Law also states that an Employer can’t stop paying the annual leave, gratuity and all other benefits as per the Law. The end-of-service benefits and all other benefits can’t be mixed with daily wages, salaries etc.