Key Aspects of UAE Labour Law You Should Know
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Key Aspects of UAE Labour Law You Should Know
Knowing your way around UAE Labour Law can make a world of difference.
If you’re navigating employment in the UAE, knowing your way around UAE Labour Law can make a world of difference. This guide will walk you through some of the basics, whether you’re an employee wondering about your rights or an employer ensuring compliance.
Article 120: Termination Without Benefits
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Under Article 120, employers have the right to terminate an employee without end-of-service benefits if certain serious conditions are met, like theft, assault, or repeated policy violations. But, remember—employees must be given the chance to defend themselves. If you’re an employee facing termination, it’s always a good idea to understand your rights in this context.
Article 88: Working for Another Employer
Thinking about a second job? Article 88 requires that you can’t work for another employer unless your primary employer consents. It’s all about avoiding conflicts of interest, so your employer is assured of your focus and commitment.
Resigning from Your Role
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If you're planning to resign, pay close attention to your notice period. For limited-term contracts, it’s typically 30 days, while for unlimited-term contracts, the notice can extend to 90 days. Following these guidelines protects both your rights and any end-of-service benefits you’re entitled to.
Article 127: Non-Compete Clause
If you’re leaving your job, keep Article 127 in mind. This non-compete clause restricts employees from joining a competitor or starting a similar business within a specific area and timeframe, usually up to two years. Employers use this to safeguard their interests, but it must be reasonable to avoid unfairly limiting your career options.
Fixed-Term vs. Unlimited Contracts
There are two primary types of contracts in the UAE: fixed-term and unlimited. Fixed-term contracts have a set end date, while unlimited contracts go on until one party decides to end it. Knowing your contract type helps you understand the terms around notice periods, leave, and other entitlements.
Annual Leave Entitlements
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Employees in the UAE are entitled to 30 days of paid annual leave after completing one year of service. If you’ve worked less than a year, you’ll receive a prorated amount. Plus, if you resign with unused leave, the employer is obligated to pay for it.
Standard Working Hours and Overtime
A typical UAE work week runs at 48 hours, with an eight-hour workday across six days. This limit decreases during Ramadan, with shorter working hours for Muslim employees. Employers must also offer regular breaks to ensure employees stay productive and healthy.
Sick Leave Provisions (Articles 31 and 82)
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Under UAE law, you can take up to 90 days of sick leave each year. The first 15 days are fully paid, the next 30 days are half pay, and beyond that, the time is unpaid. Be sure to get a medical certificate, as employers may require documentation to approve paid sick leave.
Gratuity Payment Upon Termination
Once you’ve completed a year of service in the UAE, you’re eligible for a gratuity payment when you leave the company. This is calculated as 21 days of salary per year for the first five years, then 30 days per year afterward. This applies whether you’re resigning or being let go, as long as you meet the minimum service period.
Navigating UAE Labor Law can be complex, but with the right information, you can protect both your business and employees. At People Partners, we specialize in helping employers understand labor laws and ensure compliance, making it easier to manage your workforce. Want to stay informed on labor law updates and best HR practices? Sign up for our newsletter, or contact us today for expert support in managing your HR and legal responsibilities in the UAE!
If you’re navigating employment in the UAE, knowing your way around UAE Labour Law can make a world of difference. This guide will walk you through some of the basics, whether you’re an employee wondering about your rights or an employer ensuring compliance.
Article 120: Termination Without Benefits
Under Article 120, employers have the right to terminate an employee without end-of-service benefits if certain serious conditions are met, like theft, assault, or repeated policy violations. But, remember—employees must be given the chance to defend themselves. If you’re an employee facing termination, it’s always a good idea to understand your rights in this context.
Article 88: Working for Another Employer
Thinking about a second job? Article 88 requires that you can’t work for another employer unless your primary employer consents. It’s all about avoiding conflicts of interest, so your employer is assured of your focus and commitment.
Resigning from Your Role
If you're planning to resign, pay close attention to your notice period. For limited-term contracts, it’s typically 30 days, while for unlimited-term contracts, the notice can extend to 90 days. Following these guidelines protects both your rights and any end-of-service benefits you’re entitled to.
Article 127: Non-Compete Clause
If you’re leaving your job, keep Article 127 in mind. This non-compete clause restricts employees from joining a competitor or starting a similar business within a specific area and timeframe, usually up to two years. Employers use this to safeguard their interests, but it must be reasonable to avoid unfairly limiting your career options.
Fixed-Term vs. Unlimited Contracts
There are two primary types of contracts in the UAE: fixed-term and unlimited. Fixed-term contracts have a set end date, while unlimited contracts go on until one party decides to end it. Knowing your contract type helps you understand the terms around notice periods, leave, and other entitlements.
Annual Leave Entitlements
Employees in the UAE are entitled to 30 days of paid annual leave after completing one year of service. If you’ve worked less than a year, you’ll receive a prorated amount. Plus, if you resign with unused leave, the employer is obligated to pay for it.
Standard Working Hours and Overtime
A typical UAE work week runs at 48 hours, with an eight-hour workday across six days. This limit decreases during Ramadan, with shorter working hours for Muslim employees. Employers must also offer regular breaks to ensure employees stay productive and healthy.
Sick Leave Provisions (Articles 31 and 82)
Under UAE law, you can take up to 90 days of sick leave each year. The first 15 days are fully paid, the next 30 days are half pay, and beyond that, the time is unpaid. Be sure to get a medical certificate, as employers may require documentation to approve paid sick leave.
Gratuity Payment Upon Termination
Once you’ve completed a year of service in the UAE, you’re eligible for a gratuity payment when you leave the company. This is calculated as 21 days of salary per year for the first five years, then 30 days per year afterward. This applies whether you’re resigning or being let go, as long as you meet the minimum service period.
Navigating UAE Labor Law can be complex, but with the right information, you can protect both your business and employees. At People Partners, we specialize in helping employers understand labor laws and ensure compliance, making it easier to manage your workforce. Want to stay informed on labor law updates and best HR practices? Sign up for our newsletter, or contact us today for expert support in managing your HR and legal responsibilities in the UAE!
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