Private Sector Employee Rights & Rules

Labour Laws for the Private Sector in UAE

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UAE has experienced remarkable economic growth, especially in the last 3-4 decades. The financial situation of the UAE makes the UAE a perfect destination for living and working. It is a preferred destination for international investors, skilled professionals, and multinational companies. A comprehensive legal framework is the greatest contribution so far to make the friendly environment of UAE, more accessible and flexible. UAE Labour Law is one of those legal frameworks. Understanding of this labour law UAE is quite crucial for employers, employees, as well as Dubai Law Firms.

Overview of Labour Law UAE

The UAE’s labour law legal regulations for the private sector are governed by Federal Decree-Law No. 33 of 2021. This Federal decree law is also known as the UAE Labour Law. This modern legislation reflects the government’s professional and moral commitment to ensuring a transparent and fair work environment in the country. We suggest consulting Labour and Employment Lawyers for further or specific labour law. We will be discussing the initials today. For the details, please check our labour and employment lawyers. Let’s get back to the topic.

The Labour Law applies equally as federal law across all the emirates of the UAE. It includes free zones (except DIFC and ADGM). These two free zones have fully independent employment law regulations. Let’s discuss the key provisions now:

  • Labour and Employment Contracts

The Labour Law UAE states that all the employment contracts in the private sector must be for a fixed term, and that fixed term should not exceed three years. The renewal depends upon the consensus of both parties. This change aims to bring flexibility and clarity to employer-employee relationships. Lawyers in Dubai help companies in drafting several employment contracts and reviewing as well. We suggest again to check with UAE Labour and Employment Lawyers before taking any legal action.

  • Working Hours and Overtime

What UAE Labour Law tells us that standard working hours in UAE’s private sector are limited to 8 hours per day or 48 hours in a week. During the holy month of Ramadan, the working hours are reduced by two hours, daily. Extra or additional work beyond the defined standard hours is considered as OT or overtime. As per Law OT has to be paid separately. Overtime payments or compensations always include extra or additional pay. The OT payments are calculated at 125% of the regular wage as per the contract. If the OT falls between 10 PM and 4 AM, then compensation or payment rises to 150%.

  • Leave Entitlements

Employees in the private sector are entitled to have 30 days of annual leave with payment. There are 90 sick leaves in a year. The first 15 days are fully paid, the next 30 days are half paid, and the remaining are unpaid. 60 days are granted as maternity leave, where 45 days are paid fully while the rest of the 15 days are half-paid. Paternity leave is given as 5 days within the first six months of the child’s birth.

  • Termination and Severance Pay

UAE Labour Law for the private sector tells us that termination procedures must be followed. For example, notice periods, valid grounds for dismissal etc. The notice period has to be between 30 to 90 days, and it all depends on the labour and employment contract. Unfair dismissal is called as unfair termination and an employee may claim unfair dismissal compensation. Attorneys in Dubai must be consulted and hired to pursue necessary legal actions.

Do you have any question about the article? Contact us now.

Anti-Discrimination

UAE Labour Law also introduces provisions to dealing with discrimination matters and promoting the unfair opportunities in the workplace environment. Any discrimination based on race, creed, colour, religion, nationality, sex or for any disability is strictly prohibited in United Arab Emirates. Please check Emiratisation policies with our lawyers.

Legal Assistance

The Ministry of Human Resources and Emiratisation (MOHRE) provides mediation services. If unresolved, the matter can be escalated to the UAE courts. MOHRE has also been provided the authority to pass the judgemet of cases less than AED 50000. But that can be appealed in appeal court too.

Dubai Law Firms

Dubai Law Firms provide invaluable services to businesses and individuals, As follows:

  • Drafting labour and employment contracts.
  • Advising on employee and employer rights.
  • Assisting with MOHRE proceedings and resolutions.
  • Representing clients in labour courts (in all the Emirates).
  • Offering legal consultation and legal opinions.

UAE Federal Laws

Federal Decree-Law No. 33 of 2021, along with several other laws, govern employment matters in the private sector of the UAE, as follows:

  1. Cabinet Resolution No. 1 of 2022
  2. Federal Law No. 10 of 2017: Domestic Workers Law. It is for private household employment in the United Arab Emirates.
  3. UAE Constitution Article 20:

Recent Updates

  • Flexible work models, e.g. Remote Working, Part-Time Working, Freelance Working, Skilled VISAS)
  • Maternity and Paternity Leaves and Benefits: Significant Increase
  • Laws for workplace discrimination
  • Skilled VISAS

FAQs

All employees and employers operating in the UAE private sector, including those in free zones (except DIFC and ADGM), are covered by the UAE Labour Law. Domestic workers are also governed by separate legislation.

Termination without notice is not allowed, but for specific reasons, such as gross misconduct during the job. Otherwise, employers must provide the contractual notice period, which is typically between 30 to 90 days.

The standard working hours are 8 hours a day. During Ramadan, working hours are reduced by 2 hours daily. Private companies can also provide more flexibility if they want.

Overtime is paid at 125% of the regular wage. For night duties from 10 PM to 4 AM, it is paid as 150%.

Expatriates who complete at least one year of continuous service are entitled to gratuity. It is based on basic salary and years of service.

Employees can file complaints with the Ministry of Human Resources and Emiratisation (MOHRE). If unresolved, they can escalate the matter to the UAE courts with the help of attorneys in Dubai.

Note:

ASK THE LAW is the Online Legal Entity of Al Shaiba Advocates & Legal Consultants, a full-service Emirati Law Firm. The blog is just for legal knowledge, which can be outdated with time with the inventions of new laws or modifications in previous laws. There might be some human errors too in the blog content. Therefore no liability is taken or owned, and we suggest consulting our experts for any decision or proceedings.