Employment Relationship According to the U.A.E. Federal Labor Law
- The Labor law is the law that governs the relationship between the employees and the employers
- The concerned Authorities are mainly the Ministry of labor, Free Zone Authorities, Police and the Courts.
- The scope of the law doesn’t cover certain employees such as employees of private residences and others.
The scope of the law
- Article 1 of the Federal labor law states that:
“ any agreement , whether for limited or an unlimited period concluded between an employer and an employee, whereby the latter undertakes to work in the employee’s services and under his management and control, in return for remuneration, the employer undertakes to pay;”
Particles of the Contract of Employment
- Date of contract conclusion
- Term of employment
- Salary and allowances
- Nationality- important (pension law for locals)
- Other information
Types of contracts of employments
- Shall not exceed 4 years and may be renewed by mutual agreement
- Upon the termination or the end of employment there are certain important issues related to the limited contract
- A contract shall be deemed unlimited if:
1- it is not made in writing;
2- if it is concluded for an unlimited contracts
3- if it was concluded for a limited period and the parties continued to perform without written agreement
4- if the contract is to execute works and the contract continues after the completion of the works
- Period of probation should not exceed 6 months (Article 37)
- The service of the employee may be terminated during the period without notice or severance pay
1- Employee’s rights
- Right to be paid for the work
- Right to have safe and healthy place of work, social care and preventive measures
- Right to leave (sick leave- leave for pilgrim-weekends and annual leaves)
- Shall not work at night
- Shall not be employed in a job that is dangerous arduous or detrimental to health or morals.
- Shall be entitled to maternity leave with full pay for 45 days
- Entitled for absence of leave for 100 days without pay
- Entitled to additional breaks during nursing period
Young person’s rights
- It’s unlawful to employ young person before he reaches 15 years of age.
- Shall not be employed at night in an industrial undertaking
- Shall not be employed in jobs that are dangerous, detrimental to health
- Special working hours not more than 4 consecutive hours and shall not exceed 7 consecutive hours.
- No overtime work
2- Employees’ obligations
- Undertake or be available to undertake works assigned to him
- Obey the rules, policies of the employer ( Discipline).
3- Employer’s rights
- To be provided with the works needed.
- Compliance with working hours
4- Employer’s obligations
- Assign the works required to the worker
- Pay the remunerations on time
- Provide safe environment of work
- Payment of treatment/hospitalization cost for workers involved in an accident while on the line of duty.
- Yearly or Monthly
- Weekly or daily
- Piece rate
- Prove of payment (burden of proof is on the employer) in writing.
- The penalties that may be imposed by an employer on the employee are:
1- a warning
2- a fine
3- suspension from work with reduced pay for a period not exceeding 10 days
4- forfeiture or deferment of periodic increment
5- forfeiture of promotion
6- dismissal without prejudice to severance pay
7- dismissal with forfeiture of all or part of severance pay.
- A fine imposed shall be registered on a special record
- A fine shall not exceed the remuneration of five days
- No charges may be taken after 30 days from the date of the offence.
- Temporary suspension may be imposed on the worker if he is accused of committing a deliberate offence or crime relating to honor and honesty or the offence of unlawful strike
- During the suspension period the worker shall not be entitled of remuneration.
Accidents and compensations
- The employer should take the measures on the occurrence of an accident (such as reporting to the authorities).
- Payment of cash allowance equal to full pay for 6 months
- If the worker dies as a result of an employment accident or disease, the member of his family shall be entitled to compensation equal to the basic salary for 24 months provided that the amount shall not be less than AED18,000 or more than AED 35,000
Termination of contract
- If the employer revokes the contract for reasons other than those mentioned in (120), he shall be required to compensate the employee (the amount of compensation shall in no case exceed the aggregate remuneration due for a period of 3 months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary.
- If the contract is revoked by the employee for reasons other than those mentioned in (121), he shall be required to compensate the employer( the compensation shall not exceed ½ of the remuneration for 3 months or the residual period of the contract whichever is shorter)
- If the employee leaves his work before the expiry of his contract period, he shall not be entitled to severance pay unless his continuous period of service exceeds 5 years
- If the employee leaves his work :
- if the service is not less than 1 year and not less than 3 years, he shall be entitled to 1/3 of the severance pay
-if the services exceeded 3 years but those not exceed 5 years, he shall be entitled to 2/3 of the severance pay.
- if the service exceeds 5 years, he shall be entitled to the full severance pay