As per Article 65, “The maximum number of ordinary working hours for adult workers shall be eight hours per day, or forty-eight hours per week. The number of hours may be increased to nine hours per day for people employed in trade, hotels, cafeterias, security and other jobs whose addition may be made by virtue of a decision from the Minister of Labor.
Frequently Asked Questions
1. What is the normal working hours for employees?
2. Is the commute going to and from work considered part of the working hour?
As per Article 65, “The commutation periods spent by the worker from the place of residence to the work site thereof shall not be calculated within the working hours.”
3. What is the working hour during Ramadan?
As per Article 65, “The ordinary working hours during Ramadan shall be reduced by two hours.”
4. What is considered as overtime?
As per Article 67, “The carrying out by the worker of a work for more than the ordinary working hours, the additional period shall be deemed an overtime.”
5. How much overtime pay should be paid to the employee?
a) As per Article 67, “The worker shall be paid a wage equivalent to the ordinary hourly wage with an addition of at least 25% of the said wage.”
b) As per Article 68, “An overtime work between 9 pm and 4, the worker shall be entitled, in counterpart for the overtime, to a wage equivalent to the ordinary hourly wage with an addition of at least 50 % of the said wage.
6. What is the overtime pay that the employer is required to give to employees who are asked to do overtime work on Fridays?
As per Article 70, Friday shall e the ordinary weekly rest for all workers with the exception of the daily worker. Should the circumstances require that the worker work on this day, the worker shall be entitled to a substitute rest day, or to the basic wage for the ordinary working hours in addition to 50 % at least of the said wage.
7. How long does the probationary period last?
As per Article 37, “The worker may be employed for a probation period not exceeding six months where the employer may terminate the services of the worker without notification or end of service gratuity.
8. What happens if the worker is given another job assignment than the original one, will that be considered another probationary period?
As per Article 37, “The worker may not be employed by the same employer for more than one probation period. Should the worker successfully complete the probation period and pursues in his job, the said period shall be deemed as part of the service period.”
9. What is considered as wage?
As per the amended Federal Law no. 12, “Whatever is given to the worker in return for his service by virtue of an employment contract, whether in cash or in rem, on a yearly, monthly, weekly, daily, hourly, piece basis or in accordance with the production or on a commission basis.”
10. Is allowance considered part of the wage?
As per the amended Federal Law no. 12, “The wage shall include the cost – of – living allowance and every grant conferred upon the worker in recognition of his honesty or efficiency should such sum be set in the employment contracts or the by – laws of the establishment or be customarily granted so as the workers deem such grants as part of the wage and not a donation.”
11. How is gratuity calculated?
As per Article 132 of the UAE Labor Law, “The employee who has completed one year or more in the continuous service, is entitled to the end of service remuneration at the end of his service. Days of absence from work without pay are not included in computing the period of service, work without pay are not included in the computing.”
12. How is the remuneration for the gratuity calculated?
As per Article 132 of the UAE Labor Law, “Twenty one day pay is to be given to the employee for each year of the first five years of service. Thirty days is to be given for each additional year after the 5th year of service.”
13. How do you compute gratuity on an Unlimited Contract?
a) Resignation with service of more than 1 year but less than 3 years
The employee is eligible for 1/3rd of the 21 day basic salary for every year of service
b) Resignation with service more than 3 years but less than 5 years
The employee with a total service of more than 3 years but less than 5 years is eligible for 2/3rd of the 21 day basic salary for every year of service.
c) Resignation with service of more than 5 years
The employee with a total service of more than 5 years, for the first 5 years he/she is eligible for 21 day basic salary for every year worked and 30 day basic salary for every number of years worked after that.
14. What are the basic things that the employer/company should provide to the employee?
1. Health Insurance
2. Wage
3. Annual Leave
4. Rest Day
15. What is the difference between limited and unlimited contract?
a) Limited Contract
There is a start and end date. If the employee wants to leave the company or end his/her contract the employee should pay 45 days compensation based on his salary and the employee should submit his resignation letter and written agreement to pay the 45 days compensation or the period stated on his contract whichever is shorter. If the employer does not agree with the conditions they may give a 6-month labor ban. If the contract has finished and the employee does not want to renew the contract there is no labor ban.
b) Unlimited Contract
There is a start date but no end date. The word “Unlimited” should be written in the contract or no written contract is considered as “Unlimited”. Employee and employer can finish the contract if resignation letter and 1-month notice period is given there is no labor ban to be given. If the employee leaves the company without a 1-month notice and before the 6-month probationary period the employer can give a labor ban. But if the employee has Bachelor’s Degree and higher then no labor ban can be given.
16. How to remove the labor ban for unlimited and limited contract?
A petition to remove the labor should be submitted along with an offer letter from a different company to the labor office.
17. What steps can an employee do if he/she is terminated by his/her employer without cause and notice?
The employee can file a case against the employer from 1 month to 3 months compensation depending on the decision of the court.