Overtime is based on hourly rate

How is overtime payment calculated? Is it calculated as per the basic salary? If an employee works a shift of 12 hours a day for eight days continuously, can the company give him off for four days? Is there any overtime calculation of 2.5 times if someone works on Eid holidays or any other public holidays like the New Year?

By Nasser Ahmed Al Osaiba (Legal View)

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Published: Mon 27 Feb 2012, 9:42 PM

Last updated: Fri 3 Apr 2015, 4:44 PM

Overtime payment is calculated based on the hourly rate of the employee. The second question is not clear. Are the four days off instead of paying overtime? If the worker reported to work on public holidays, then the compensation is calculated according to article 81 of the UAE Labour law. Article 81 states that “where the circumstances of the work make it necessary for a worker to work on public holidays or rest day in respect of which he is entitled to full or partial pay, he shall be granted compensatory leave in respect of such days, together with a bonus equal to 50 per cent of his remuneration. If he is not compensated for such days by leave, his employer shall pay him a bonus equal to 150 per cent of his basic remuneration in respect of the days worked”.

Eligible for compensation

I am working in a contracting company under a limited contract ending in 2013. But my employer is forcing me to leave the company in a few days. Please advise me whether I am eligible for some kind of compensation as my employer is breaching the contract.

According to article 115 of the UAE Labour law, if the employer revokes the limited working contract, he shall be required to compensate the worker for any prejudice the latter sustains, provided the amount of compensation shall in no case exceed the aggregate remuneration due for a period of three months or the residual period of the contract whichever is lesser unless the contract contains a provision to the contrary.

Notice period

I have been working in a company since June 2010 under an unlimited contract. The company supplied me to another company which works in a project as a sub-contractor of my employer’s company. I would be very grateful if you would kindly advise me about what I would be entitled to as my end of services if I would terminate the contract by myself or what would be most beneficial to me in case I want to go home for good now?

According to articles 131, 132, and 137 of the UAE Labour law, if you terminate your contract with your employer you will be entitled to the following benefits: (a) the expenses of going back to your home country, (b) a gratuity equal to 21 days basic salary for each working year divided by three as you did not complete three years, (c) If you terminated the agreement without a proper notice (30 days’ notice), then you do not deserve any compensation, except as stated in article 120 of the UAE Labour Law.

We suggest that if you want to go back to your home, notify the employer of your resignation and work for a period of 30 days in which you hand over your work. Then you are free to leave.

Job change

I have completed one year in service with my current employer on limited visa. I am an MBA degree holder and my current salary is Dh4,500 per month. Now, I have a job opportunity in another company with Dh6,500 per month. Is there any possibility for labour ban?

According to Ministerial Decision No (18/2005) you are allowed to change your work after completing one year at least in your work.

Unlicensed driver

What are the legal consequences if someone was driving perfectly, and yet the police pulled him over and discovered that he was unlicensed? What would happen if the same driver proved to be less than 18 years old?

According to article 51 of the Traffic Law, in case of committing such offence the punishment would be imprisonment to a maximum period of three months and a fine of up to Dh6,000, or either of the two punishments.

On the other hand, Article 8 of the Juvenile Delinquency law gives the judge the right to substitute this punishment with another one of those stated in the Juvenile Delinquency law

Compiled by Ahmed Shaaban

Nasser Ahmed Al Osaiba is an Emirati Partner and Lawyer at Global Advocates and Legal Consultants, legal member in the Rent Dispute Committee, Umm Al Quwain, with a Master’s Degree in commercial law, Melbourne University, Australia. Readers may e-mail their questions to: news@khaleejtimes.com or send them to (Legal View), Khaleej Times, PO Box 11243, Dubai


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