UAE Labour Law – Key Q&A
UAE Labour Law – Key Q&A
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Are UAE nationals prioritized in hiring practices?
Are UAE nationals prioritized in hiring practices?
Yes, Emiratisation efforts are supported but not considered discriminatory.
Who pays for employment visa, work permit, and recruitment fees?
Who pays for employment visa, work permit, and recruitment fees?
The employer must bear all recruitment-related costs. Employees cannot be charged.
Can any company provide recruitment services?
Can any company provide recruitment services?
No, only licensed entities approved by the Ministry are allowed.
Is a work permit mandatory before employment?
Is a work permit mandatory before employment?
Yes, a valid permit from the Ministry is required before starting work.
Can the Ministry restrict employment in certain jobs?
Can the Ministry restrict employment in certain jobs?
Yes, based on safety or national interest, regulations may prohibit specific roles.
What type of employment contract is required?
What type of employment contract is required?
A fixed-term contract is mandatory, using Ministry-approved templates.
What happens if the contract continues without renewal?
What happens if the contract continues without renewal?
It is automatically extended under the same terms unless changed by mutual agreement.
What is the maximum probation period allowed?
What is the maximum probation period allowed?
Up to 6 months from the date of employment.
Can an employee be placed on probation more than once?
Can an employee be placed on probation more than once?
No, probation can be applied only once per employer.
What is the notice period during probation?
What is the notice period during probation?
Employer → 14 days' notice;
Employee → 14 days if exiting UAE, or 30 days if joining another UAE employer.
Are recruitment costs reimbursed if the employee switches jobs during probation?
Are recruitment costs reimbursed if the employee switches jobs during probation?
Yes, the new employer may need to reimburse recruitment expenses.
When can a non-compete clause be included?
When can a non-compete clause be included?
If the role gives access to confidential data or client relationships.
What are the validity conditions of a non-compete clause?
What are the validity conditions of a non-compete clause?
Must specify time, place, and industry; duration cannot exceed two years.
Is a non-compete clause enforceable if the employer terminates the contract unfairly?
Is a non-compete clause enforceable if the employer terminates the contract unfairly?
No, it becomes invalid in cases of unlawful termination by the employer.
What is the time limit to raise a claim for breach?
What is the time limit to raise a claim for breach?
Employers must file claims within one year of discovering the violation.
Can an employer withhold an employee's passport or documents?
Can an employer withhold an employee's passport or documents?
No, retaining official documents is strictly prohibited.
What are the employer’s duties regarding health and safety?
What are the employer’s duties regarding health and safety?
Employers must provide protective measures, training, and ensure safe working conditions.
What is the maximum number of working hours per week?
What is the maximum number of working hours per week?
8 hours per day or 48 hours per week.
Are commuting hours counted as part of working time?
Are commuting hours counted as part of working time?
Generally no, except for specific cases outlined in the Implementing Regulation.
Are working hours reduced during Ramadan?
Are working hours reduced during Ramadan?
Yes, Ramadan working hours are officially reduced as per UAE law.
How is overtime compensated in the UAE?
How is overtime compensated in the UAE?
Overtime is paid based on the employee's basic hourly wage:
Regular Overtime (outside normal hours): 125% pay
Night Overtime (10 PM – 4 AM): 150% pay
Weekly Off work: 150% pay or a day off
Public Holiday work: 150% pay or a day off
Can employers deduct money from an employee’s salary without consent?
Can employers deduct money from an employee’s salary without consent?
No. Most deductions, such as loans or contributions, require written consent from the employee.
What is the maximum total deduction allowed from wages?
What is the maximum total deduction allowed from wages?
Total deductions cannot exceed 50% of an employee’s monthly salary.
Can employers deduct for damages or mistakes made by employees?
Can employers deduct for damages or mistakes made by employees?
Yes, but the deduction is capped at 5 days’ wage per month unless otherwise approved.
Are public holidays paid in the UAE?
Are public holidays paid in the UAE?
Yes, workers are entitled to fully paid public holidays
How much annual leave are employees entitled to?
How much annual leave are employees entitled to?
30 days per year after 1 year of service; 2 days per month for service between 6 months to 1 year.
What happens to unused annual leave?
What happens to unused annual leave?
It can be carried forward or cashed out with employer approval, but must be used within 2 years.
How is unused annual leave calculated after the employment contract ends?
How is unused annual leave calculated after the employment contract ends?
Encashment is calculated based on the basic wage, unless the employer opts to pay the full salary
Are public holidays counted during annual leave?
Are public holidays counted during annual leave?
Yes, unless the company policy provides a more favorable arrangement.
Can leave be taken during probation?
Can leave be taken during probation?
Yes, with employer approval, and the employee retains the right to compensation for unused leave.
What is the total maternity leave duration in the UAE?
What is the total maternity leave duration in the UAE?
60 days: 45 days full pay and 15 days half pay.
Can additional maternity leave be granted for medical reasons?
Can additional maternity leave be granted for medical reasons?
Yes, up to 45 unpaid days with a medical certificate. Extra leave applies if the child needs constant care.
Are mothers entitled to breaks for breastfeeding?
Are mothers entitled to breaks for breastfeeding?
Yes, one or two breaks per day for up to one hour total during the first six months after childbirth.
What is the sick leave entitlement after probation?
What is the sick leave entitlement after probation?
Up to 90 days per year: 15 days full pay, 30 days half pay, and 45 days unpaid.
Is sick leave allowed during probation?
Is sick leave allowed during probation?
Paid sick leave is not permitted, but unpaid sick leave may be granted with a medical report.
Can employment be terminated after prolonged sick leave?
Can employment be terminated after prolonged sick leave?
Yes, if the worker cannot return after 90 days, but the employer must settle all dues.
What bereavement leave is granted to employees?
What bereavement leave is granted to employees?
5 days for the death of a spouse, and 3 days for the death of close relatives like parents, children, siblings, or grandparents.
Is parental leave available to both parents?
Is parental leave available to both parents?
Yes. Either parent can take 5 working days within 6 months of the child's birth, continuously or intermittently.
What is the provision for study leave?
What is the provision for study leave?
Workers with 2+ years of service may receive up to 10 working days of paid study leave annually for exams at recognized institutions.
Are Emirati nationals entitled to additional leave?
Are Emirati nationals entitled to additional leave?
Yes. They are entitled to paid sabbatical leave for national service as per UAE law.
What disciplinary actions can an employer take?
What disciplinary actions can an employer take?
Actions include warnings, wage deductions, suspensions (up to 14 days), denial of bonuses/promotions, or termination with EOSB.
Can an employee be disciplined for actions outside work?
Can an employee be disciplined for actions outside work?
Only if the behavior is directly job-related.
Can multiple penalties be imposed for one violation?
Can multiple penalties be imposed for one violation?
No. Only one disciplinary sanction can be applied per violation.
When can an employment contract be terminated?
When can an employment contract be terminated?
Contracts can end by mutual agreement, expiry, or unilateral termination with notice.
Can a contract end due to the death or disability of a party?
Can a contract end due to the death or disability of a party?
Contracts can end by mutual agreement, expiry, or unilateral termination with notice.
Can a contract end due to the death or disability of a party?
Can a contract end due to the death or disability of a party?
Yes. Termination applies in case of the employer’s death (if linked to identity) or the worker’s death/disability, supported by proof.
What happens if the company shuts down or goes bankrupt?
What happens if the company shuts down or goes bankrupt?
The contract can be terminated due to permanent business closure, bankruptcy, or exceptional circumstances.
Can a contract be terminated due to work permit issues?
Can a contract be terminated due to work permit issues?
Yes, if the worker cannot renew the permit for reasons beyond the employer’s control.
What is the notice period required for termination/ Resignation?
What is the notice period required for termination/ Resignation?
A written notice of 30 to 90 days is required, post probation as agreed in the contract.
Is the employee entitled to pay during the notice period?
Is the employee entitled to pay during the notice period?
Yes. The worker must receive full pay based on their last wage during this period.
What if one party fails to honor the notice period?
What if one party fails to honor the notice period?
They must compensate the other party with an amount equal to the wage for the full or remaining notice period.
Can employees take time off during the notice period?
Can employees take time off during the notice period?
Yes. If terminated, workers are allowed one unpaid day off per week to look for a new job, with 3 days’ prior notice.
What actions can lead to dismissal without notice?
What actions can lead to dismissal without notice?
Serious misconduct such as forgery, causing major loss, safety violations, repeated negligence, or disclosing trade secrets.
Under what conditions can a worker be dismissed without notice?
Under what conditions can a worker be dismissed without notice?
Only after a written investigation, justified decision, and formal dismissal letter.
Can absence from work lead to dismissal without notice?
Can absence from work lead to dismissal without notice?
Yes, if the worker is absent without valid reason for over 20 non-consecutive days or more than 7 consecutive days in a year.
Does working for another employer illegally justify dismissal?
Does working for another employer illegally justify dismissal?
Yes. Joining another company without following legal procedures is a valid ground for dismissal without notice.
Can a worker resign without notice and still receive end-of-service benefits?
Can a worker resign without notice and still receive end-of-service benefits?
Yes, if specific legal conditions are met, such as employer violations or safety risks.
What are valid reasons for resigning without notice?
What are valid reasons for resigning without notice?
Employer breaches contract and fails to fix it within 14 days;
Harassment or violence (reported within 5 days)
Serious workplace danger
Assignment of unrelated tasks without consent.
What must the worker do in cases of harassment or violence?
What must the worker do in cases of harassment or violence?
Report the incident to authorities and the Ministry within 5 working days.
Can an employer terminate a worker for health reasons?
Can an employer terminate a worker for health reasons?
Only after the worker has used all legally entitled leaves.
What is considered an unlawful dismissal?
What is considered an unlawful dismissal?
Termination for filing a serious complaint with the Ministry or a legal case against the employer.
What compensation is owed for such termination?
What compensation is owed for such termination?
Fair compensation of up to 3 months’ wage, in addition to notice pay and end-of-service benefits.
What happens to employment contracts if a company changes ownership or legal status?
What happens to employment contracts if a company changes ownership or legal status?
All existing contracts remain valid.
Who becomes responsible for the employees?
Who becomes responsible for the employees?
The new employer must honor the contracts and follow UAE Labour Law from the date of official registration.
What is the consequence of a foreign worker abandoning their job without valid reason?
What is the consequence of a foreign worker abandoning their job without valid reason?
A one-year ban on obtaining a new work permit in the UAE.
What must employers do if a worker is absent unlawfully?
What must employers do if a worker is absent unlawfully?
Report the absence to the Ministry according to official procedures.
Who is entitled to end-of-service benefits?
Who is entitled to end-of-service benefits?
National workers receive benefits per pension laws; foreign full-time workers with at least 1 year of service receive EOSB based on their basic wage.
How are benefits calculated for foreign workers?
How are benefits calculated for foreign workers?
21 days’ wage for the first 5 years
30 days wage thereafter
Are partial years and unpaid leaves considered in EOSB?
Are partial years and unpaid leaves considered in EOSB?
Partial years are calculated proportionally, but unpaid absences are excluded.
What are the employer’s obligations towards EOSB payment?
What are the employer’s obligations towards EOSB payment?
All dues, including wages and entitlements, must be paid within 14 days after last employment date.
Who is responsible for canceling an employee’s visa in the UAE?
Who is responsible for canceling an employee’s visa in the UAE?
The employer is responsible for canceling the visa of the employee.
If an employee fails to secure another visa within the grace period which provided by the immigration, they must leave the country or face fines.
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