Labor Law Questions
How can an employee make a complaint about the breach of employment contract by employer?
By submitting a complaint by employee to the Ministry of Labor (MOL). Upon receipt of the complaint, the MOL will study the case and thereafter ensuring it has a legal ground, the MOL shall request the employer to put his case. On hearing of the both parties’ pleadings, the MOL shall make a decision with regard to the complaint. In case of non-compliance with the decisions of the MOL by either of them, the MOL will advise the parties to file a case with the competent court.
How is employee annual leave regulated?
UAE Labor Law regulates the annual leave and states that the worker shall be entitled during every year of service an annual leave of no less than the following periods:
a) Two days for each month, should the period of service of the worker be at least six months and a maximum of one year.
b) Thirty days for each year, should the period of service of the worker exceeds one year. Should the service of the worker be terminated, the worker shall be entitled to an annual leave for the fractions of the last year.
What are the new decrees of Ministry of Labor regarding labor rules?
MOL has declared three ministerial decrees in respect of organizing the contractual relationship between the employer and the employee. The new rules are designed to protect both the employer and the worker by setting out clear rules that identify the rights and duties of the party to an employment contract. The new rules addressed vital issues in the labor contract like standard work contract (decree 764), termination of limited contract and unlimited contract (decree 765) and granting new work permit (decree 766).
What are the remedies for unfair dismissal of employees?
If an employee got unfair dismissal he/she shall be entitled to the following:
● A notice period or any amount due in lieu of the notice period in the case of an unlimited contract.
● If the contract is unlimited term, compensation for unreasonable dismiss if the contract was terminated by the employer for unreasonable cause
● If the contract is for limited term, an amount equivalent to three months’ salaries or period until the end of the contract, whichever is shorter unless otherwise stipulated in the contract.
● Amount due for unutilized leave or any part therefore.
● Due payment for overtime works or unpaid any salaries as per the Labor Law.
● End of service gratuity as per the Labor Law.
● Repatriation expense as per the Labor Law.
What are the situations of termination of employment contract without notice from the employer?
According to UAE Labor Law Article No. 120, the employer may dismiss the employee without notice in the following cases:
1. Should the worker assume false identity or nationality or submits false certificates or documents.
2. Should the worker be appointed under probation and the dismissal occurs during or at the end of the probation period.
3. Should the worker commit an error resulting in colossal material losses to the employer, provided that the Labor Department is notified of the incident within 48 hours of the knowledge of the occurrence thereof.
4. Should the worker violate the instructions related to the safety at work or in the work place, provided that such instructions be written and posted in a prominent location and he is notified thereof should he be illiterate .
5. Should the worker fail to perform his main duties in accordance with the employment contract and fail to remedy such failure despite a written investigation on the matter and a warning that he will be dismissed in case of recidivism.
6. Should he divulge in any of the secret of the establishment where he works.
7. Should he be convicted in a final manner by the competent court in a crime of honor, honesty or public ethics.
8. Should he be found in a state of drunkenness or under the influence of a narcotic drug during work hours.
9. Should he assault during the work the employer, responsible manager or co – worker.
10. Should he be absent without valid cause for more than twenty non – consecutive days in one year or for more than seven consecutive day
What are the types of employment contracts under UAE Labor Law?
According to the UAE Labor Law, employment contract might be either for limited or unlimited period. Limited contract shall not exceed 2 years and the contract may with a mutual agreement be renewed one or more times for similar period or periods. Unlimited contract, on the other hand, is considered for unlimited period from the day of its commencement in any of the following cases:
● If it is not concluded in writing
● If it is made for unlimited period
● If it is made in writing for a limited period and continues to be applied by both parties after lapse of its period without a written agreement between them
● If it is concluded for performance of a specific job for which no period is fixed or if the job by its nature calls for renewal and had remained in force despite the completion of the work agreed to.
What does continuous service mean?
UAE Labor Law defines continuous service as: Uninterrupted service with the same employer or his lawful successor from the date of commencement of the service.
What is an employment contract?
According to the UAE Labor Law, an employment contract is any agreement, whether for a limited or for an unlimited period, concluded between an employer and an employee under which the latter undertakes to work in the service of the employer and under his management or control against a remuneration payable to him by the employer.
What is maximum number of working hours?
UAE Labor Law governs the maximum working hours and states that 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. Furthermore, the daily number of working hours may be reduced for strenuous or harmful works and such by virtue of a decision from the Minister of Labor and Social Affairs. The ordinary working hours shall be reduced by two hours per day during Ramadan. 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. The daily working hours shall be so regulated that no worker shall work for more than five successive hours without breaks – for rest, meals and prayer – amounting in aggregate to not less than one hour. Such breaks shall not be included as part of the working hours.
However, in factories and workshops where work is organized in the form of successive day and night shifts and in processes where work has to continue uninterrupted for technical and economic reasons, the manner in which breaks for rest, meals and prayer are to be granted shall be specified in a resolution by the minister.
What is the legal position on employee working during his annual leave?
UAE Labor Law states that should the employee works during his annual leave as per requirement of the employer, the employee shall receive a basic wage and a housing allowance, if any for the days of the annual leave. Should the work circumstances require that the worker to work during his total annual leave or a part thereof, the leave during which the worker worked is not carried forward to the next year, the employer must pay the worker the wage thereof, in addition to a leave allowance for the days of work, equal to his basic wage. In all cases, the worker may not be required to work during the annual leave for more than once within two consecutive years.
What is probationary period?
An employee may be appointed for probationary period not exceeding six months according to the Labor Law. During the probationary period, the employer may terminate the employment contract without giving a notice and/or ‘end of service gratuity’. Appointment of particular employee on probation basis in the service by particular employer may not be made more than once. However if the employee passed the probationary period satisfactorily and remained in service, such period of service shall be added to total period of his service.