Labor Law in UAE – You Must Know

Labor, if we are to define it in terms of economics, it is the mental, physical, and social effort which is used to produce goods and services. It is the supply and demand of goods and services that make up the economy of a country. Economists divide factors of production into four categories, namely land, labor, capital, and entrepreneurship. Labor is the most crucial factor, and it is at every stage of the production process, be it manufacturing, assembling, or bringing it to the market.

Labor Law in UAE

Labor law has a unified purpose. They protect the rights of employees and stipulate the obligations and responsibilities of employers. They also have multiple functions. The main function of the labor law is to provide equal opportunities and rewards, physical and mental health and safety of employees and the diversity of the workplace. Although many employers still accept reasonable business principles without legally binding, employers use the structure provided by labor laws to ensure that their business complies with federal law.

Labor laws give the employee a strength to stand still in difficult circumstances, and countries with strong labor laws have happy labors. Companies nowadays are compliant with labor laws. Labor laws have features like equal opportunities, equal pays, family and friendly workplace, workplace safety, and concerted activity.

UAE is a country with a lot of labors since it is home to many companies and has employees or workers from all around the world.

UAE has a labor law that covers both the residents and the foreigners working in the UAE. The law gives a lot of protection to the employees, especially female workers. Here is what the law has to offer 

1- Employment of workers:

1. It is the right of every nation of the UAE to work. No non-national shall not engage in work until the conditions of working in the country have been met, like a work permit and work visa.
2. Where national workers are not available, then priority shall be given to nationals of other emirates and then nationals of other countries.
3. Any employer recruiting any national shall notify the labor department within 15 working days with all the credentials.

2- Employment of children

1. No children shall be employed under the age of 15.
2. Before employing a child, the employee should ask for the following documents A birth certificate, or an official extract thereof, or an age estimation certificate to be issued by a competent medical officer and authenticated by the competent health authorities. A certificate of medical fitness for the required work issued by a competent medical officer and duly authenticated. Written consent from the child’s guardian or trustee.
3. The employer shall keep at the workplace a special register of children, showing each child’s name and age, the full name of his guardian or trustee, the child’s place of residence and date of employment, and the job on which he is employed.
4. No child should be made to work at night, that is from 8 pm to 6 am.
5. No child shall be employed on any job that is hazardous or detrimental to health.
6. The maximum working hours of the children should be six per day and not more than that.
7. Children shall not be required to work overtime, or to remain at the workplace after their prescribed working hours, or be employed on a rest day.

3- Employment of women

1. Women shall not be required to work at night, which is from 10 pm to 7 am.
2. No women shall be employed on any job that is hazardous, laborious, or physically or morally detrimental.
3. Female workers are entitled to forty-five days of paid maternity leave, including prenatal and postnatal, provided that she has worked continuously for at least one year at the employer. Female workers who have not completed the above services are entitled to half-pay maternity leave. Female workers who have taken maternity leave may be unable to continue working for a period of time, up to a maximum of 100 days. A medical certificate issued by a duly authorized medical institution or a medical certificate certified by the competent health authority shall prove that the disease is the result of pregnancy or childbirth. 
4. Within 18 months after giving birth, a female worker should take care of her child. In addition to the specified break time, there are two additional breaks per day. For this purpose, neither should be more than half an hour. These two additions rest time should be considered part of working hours and does not include any breaks pay cuts.
5. A female wage should be equal to the male if she performs the same work.

3- Annual leave.

All workers should take a vacation on public holidays. The worker shall be entitled to paid public leave in the following circumstances:

1. New Year’s Day: One day
2. Islamic New Year: One day
3. Eid ul-Fitr: two days
4. Eid ul-Adha and Arafat Day: four days
5. National Day: two days
6. Memorial Day: One day

Workers should also enjoy annual service annual leave not less than: Workers’ service period is at least six months and up to one year, which is two days per month; if the worker’s service period is more than one year, it is thirty days per year. If the worker’s service is terminated, the worker is entitled to the annual leave of the previous year.

4- Wages Payment

Wages should be paid in the state’s national currency on weekdays and at work. Workers employed to earn an annual or monthly salary must pay at least once a month. Your employer must not force you to purchase their products. And you don’t have to buy food or other goods from certain stores or owners’ products.

5- Passport Right

Employers may not ask you to hand over your passport to keep them without your written consent. In addition, an employer must not dismiss an employee for failing to return the passport to the employer.

6- Employment Visa Fees

According to the UAE Labor Law, visa fees must be borne by the employer. As an employee, you never have to reimburse your employer for visa fees. Visa fees and sponsorship fees are the sole responsibility of the employer, and you are not liable regardless of how you terminate the contract. As we all know, the company requires employees to deduct visa fees from the staging – this is illegal and should be punished by law.

7- Working Hours

The average working time for adult workers is limited to eight hours a day, or forty-eight hours a week. For traders, hotels, cafeterias, security guards, and other staff, the number of hours can be increased to nine hours a day, and these jobs can be increased according to the decision of the Minister of Labor. In addition, according to the decision of the Minister of Labor and Social Affairs, the daily working hours may be reduced for hard or harmful work. During Ramadan, normal working hours should be reduced by two hours. The commute time of the worker from the place of residence to the place of work must not be calculated during working hours.

8- Force Resign

You do not need the employer’s consent. The Labor Law does not require an employer to agree to resign. This is your own decision. You can’t be forced to resign.

9- Notice Period

Your notice period is mandatory. You must remember that for all labor contracts, the notice period mentioned in the contract is mandatory because it is an agreement between the employer and the employee. When an employee resigns, they are obliged to serve a notice or pay compensation, unless he or she has an employer’s written statement in writing to waive the notice period for any reason. Usually, not less than 30 days. What if you leave without a notice period? You may be prohibited from working in the UAE for up to a year.

10- Remuneration

Remuneration is calculated based on the latest salary without an allowance and/or bonus. Depending on whether your contract is limited or unlimited, it may vary. A finite period or fixed-term contract is a condition in which an employee agrees to stay in the company for a certain number of years at the set termination date. Resignation before the end of this period may mean one or all of them; a labor ban, loss of labor rights, or even payment of compensation to the employer. An unlimited contract does not have such a term or period, so there is no end date. However, the notice period for the termination of the contract by both parties is one to three months.

11- Visa Cancel

After the labor contract is terminated and the work visa is canceled, the dismissed employee will receive a 30-day grace period from the date of dismissal, during which time he can obtain a new residence permit or leave the country. Illegal residents can be fined/deported.