All You Need to Know About Employment Contract in the UAE

The recent developments in labour reforms across the UAE countries hold encouraging signs of a protective system for labour. The aim is to protect the labour market from economic and social distress. It maintains healthy relationships between employers and employees.

The Federal decree-law governs different working categories: part-time and temporary work, employment contract termination, and employee protection. So, if you want to avail a once-in-a-lifetime opportunity of working in the UAE, it is mandatory to become acquainted with the changes.

The Ministry of Human Resources and Emiratisation announced changes to regulate labour relations. It is a response to the outbreak of Covid-19, technological advancements, and rapidly changing working space.

What do You need to Know About Employment Contract in the UAE?

Each employment contract specifies the purpose and duration. Also, it contains rules and procedures for issuing a contract. It defines events leading to termination. Employers and employees must comply with the changes in the UAE Labour Law for reserving their rights:

1.  New Work Models

The Ministry took the dramatic changes occurring in the corporate world into account. It introduced new forms of work models in the labour reforms such as freelancing, shared job employment, condensed working weeks and self-employment. The Ministry is currently working on the Executive Regulations of Law that will specify the responsibilities of both parties.

Roughly, it was shared that the employee can finish their 40 working hours in three hours instead of working an entire week in the condensed working week model. Two employees will work on the same job in a shared job model. They will split the pay as per the employment contract.

2.  Termination of Employment Contract

The authority to terminate the employment contract lies with both parties as per UAE labour law termination 2020 regulations. Both parties can terminate the employment contract after an agreement of both parties in the form of written consent. An approved medical certificate is a compulsory requirement in case of an employee’s disability.

According to the newly revised laws, private sector companies cannot terminate an employee during a probation period without a 14-day written notice. If you leave the country during the probation period without written notice, you are under a ban from obtaining a work permit for one year. Therefore, remember to submit a 14-day written notice if you desire to leave the country temporarily.

3.  3-Years Contract

According to the new laws, the limited employment contracts cannot exceed three years and can be renewed for the same or lesser period. It means that you can enjoy three years of secure employment without indulging in the legalities of extending the contract after a short duration.

Surprisingly, it also resolved to convert contracts from unlimited to limited within one year of law enforcement.

4.  Leaves in the Private Sector

As an employee in the UAE, the law entitles you to one day of paid leave with the possibility of increasing the weekly rest days under the authority of the company.

Various leave days, such as mourning days, depending on the degree of kinship with the deceased are at your disposal. You can also avail of parental leaves as well as a 10-days study leave in a year in case of your enrolment in an accredited institute within UAE. Thus, UAE law aims to secure their employees’ economic and social future in every possible way.

5.  Working Hours and Overtime Wages

The new law protects you from working like a robot for consecutive hours without a one-hour break. Stop fearing overtime. It restricts the workers from contributing overtime of more than two hours per day.

Moreover, the law specifies an overtime wage. It will leave your pockets loaded. It is equivalent to regular hour pay with an increase of 25 per cent. Also, if ever the need arises that you have to work overtime between silent hours of 10 pm to 4 pm, you are entitled to an overtime wage equivalent to regular hour pay with a handsome increase of 50 per cent.

To sum up, the UAE protects the rights of the employees and aims to keep labour satisfied. Reliable lawyers in Dubai can guide you in a more comprehensible way regarding the swift changes in the UAE labour reforms. So better reach out to them to avoid disturbing legalities of employment.

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