I'm an Employer
Dubai Employment Regulations
If you have set up your own business or plan to set up a business and hire staff, you need to know the rules regulations, and how to go about hiring staff.
Foreign workers must be sponsored by an employer (or working spouse) and have a valid work permit and residence visa. Any reputable employer will take care of the entire process. It should be noted that you need to pass an AIDS/HIV test to qualify for residency. Residence visas and work permits need to be renewed every 3 years.
Labour Law
Administered by the Federal Ministry of Labour and Social Affairs, Labour Law in the UAE is loosely based on the International Labour Organisation's model. UAE Law No. 8 of 1980, as amended by Law No. 12 of 1986 (the Labour Law), governs most aspects of employer/employee relations, such as hours of work, leave, termination rights, medical benefits and repatriation. The Labour Law is protective of employees in general and overrides conflicting contractual provisions agreed under another jurisdiction, unless they are beneficial to the employee.
The Ministry issues a model form of labour contract in Arabic which is widely used, but other forms of contract are enforceable, provided they comply with the Labour Law. End of contract gratuities are equivalent to 21 days pay for every year of the first five years of service and 30 days for every year thereafter. The total gratuity should not exceed two years' wages. Employees are entitled to pro-rated amounts for service periods less than a full year, provided they have completed one year in continuous service.
Trade unions do not exist. In the case of a dispute between employer and employee, or in interpretation of the Labour Law, the Ministry of Labour and Social Affairs will initially act as an adjudicator. If a party wishes to appeal any such decision, it can take its case to court. Strikes and lockouts are forbidden.
Working Hours and Holidays
The normal maximum working hours are eight per day or 48 per week. However, these hours may be increased to nine daily for people working in the retail trade, hotels, restaurants and other such establishments.
Similarly, daily working hours may be reduced for difficult or dangerous jobs. Many businesses work on a two-shift system (for example, 8 am - 1 pm and 4 pm - 7 pm). As in all Muslim countries, Friday is the weekly day of rest.
In practice, commercial and professional firms work 40-48 hours a week and government ministries about 35. The weekend for office workers had traditionally been Thursday afternoon and Friday, but most organisations and he government have now changed to a five-day week with Friday and Saturday as the weekend. During the Muslim holy month of Ramadan, normal working hours are reduced to six hours per day.
There are 10 days of public holidays (paid) in any year. The employee's annual leave is two days for every month if his service is more than six months and less than a year. In every completed year of service after the first, an employee is entitled to 30 days annual paid leave. This is in addition to public holidays, maternity leave for women and sick leave.
Overtime is used and additional pay is required for manual and lower ranking staff.
For more information, visit: http://www.dnrd.gov.ae and http://www.mol.gov.ae
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News
SUG-MENA partners with SAP to co-host annual forum
Hot on the heels of its recent four-year $450m additional spend plan in Middle East and North Africa (MENA), SAP is bringing together its thriving ecosystem on 30 May for a high-powered symposium geared towards making the United Arab Emirates' (UAE) businesses, institutions and governments run better.
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