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UAE: Leaves, wages, hours; all you need to know about private sector employment
The laws also spell out details about maternity leave, sick leave and employee records
- PUBLISHED: Tue 4 Apr 2017, 12:00 AM UPDATED: Wed 9 Nov 2022, 10:25 AM
If you are working in the UAE, knowing the labour laws of the country is crucial. It helps one clarify doubts regarding working hours, annual leave and several other job-related matters. The laws also spell out details about maternity leave, sick leave, employee records, safety standards, termination of employment and end of service gratuity payments.
Let's take a look at some of the important features of the UAE Labour Law that cover these:
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Working in the private sector
Federal Law No. 8 of 1980 also known as the Labour Law governs the labour rights of employees in the private sector. The labour law handles a wide range of job-related matters. Ministry of Human Resources and Emiratisation, known before as Ministry of Labour, is responsible for overseeing the employer-employee relations and maintaining labour rights for the private sector.
Here are some of the key provisions of the labour law:
Working hours and weekend
Article 65 of the UAE Labour Law identifies the normal working hours for the private sector as 8 hours per day or 48 hours per week.
Working for more than 7 hours a day is prohibited in arduous or unhealthy works and industries.
Normal working hours are reduced by two hours daily during the holy month of Ramadan.
Break time
The worker may not work for more than (5) five consecutive hours without a break or breaks of not less than an hour in total, provided that these periods are not included in the working hours.
Working hours and breaks shall be arranged at an establishment working according to shifts or for some job categories, as per their nature, such as field jobs, and according to the workers’ classification specified in the Implementing Regulation.
Overtime
An employer can require a worker to work overtime, up to a maximum of two extra hours per day. Any additional overtime must follow the rules set in the Implementing Regulation. In all cases, total working hours must not exceed 144 hours over a three-week period.
If a worker is required to work beyond normal hours, the extra time counts as overtime. For this, the worker must receive their regular hourly wage plus at least 25 per cent extra.
If overtime occurs between 10pm and 4am, the worker is entitled to their regular hourly wage plus at least 50 per cent extra. However, this does not apply to workers on shift schedules.
If a worker is required to work on their designated weekend, they must either receive another day off or be paid their regular daily wage plus at least 50 per cent extra for that day.
A worker cannot be required to work more than two weekends in a row, except for those working on a day-based schedule.
Weekends
The employee shall be granted a paid weekly day-off that is no less than one day and it may be increased according to the law.
Compensation for working on official leaves
If an employee is required to work during holidays or leaves, he will be granted another rest day as well as an increase of 50 per cent on his basic wage for that day. If he could not be granted another day off, he is entitled to receive an additional 150 per cent on his basic wage for that day according to Article 81 of the Labour Law.
Public holidays
Employees are entitled for paid leave on public holidays.
Annual leave
Employees are entitled to an annual leave of:
2 days per month, if they have completed six months of service but not one year
30 days, if they have completed one year of service.
How to calculate annual leave salary:
The calculation of the duration of annual leave will include official holidays specified by law or by agreement and any other leaves caused by sickness if they fall within the annual leave.
For the annual leave, the worker must receive his basic salary in addition to a housing allowance if such an allowance is stipulated in the contract.
– If the worker is requested to work during his total annual leave or a part of it and the leave is not carried forward to the next year, the employer must pay him his regular salary, in addition to a leave allowance, which is equal to his basic wage only.
– Annual leaves may not be forwarded for more than once within two consecutive years.
– The employer may determine the date of the commencement of the annual leave and may divide it into two or more periods. The division does not apply on leaves pertaining to working youth.
– The employer must pay the worker's salary for annual leave before it is taken.
If the worker is dismissed or he resigns, he is entitled to his salary for any annual leave he did not use.
Sick leave
Employees are entitled to a sick leave of not more than 90 days per year subject to conditions stipulated in the law. They will receive full pay for the first 15 days, half pay for the next 30 days and no pay for the rest 45 days.
According to the UAE Labour Law, as amended, the employee must notify the employer about his sickness within maximum two days. The employer has the right to put the employee under a medical examination in order to verify the illness, and the authenticity of the employee's leave.
Ineligibility for a paid sick leave:
The employee is ineligible for a paid sick leave in the following situations:
– During the probation period
– If the illness directly arises from the misconduct of the worker, such as the consumption of alcohol or narcotics
– If the employee works for another employer during the sick leave
Termination during sick leave: An employer may not dismiss an employee or give him a termination notice while the employee is on sick leave. If the employee uses all of his 90 days' sick leave and was not able to report to work afterwards, the employer may terminate his services.
Resignation during sick leave: An employee can resign from work because of illness and before the expiry of the first 45 days of the sick leaves, if the physician from the respective health facility or the physician appointed by the employer consents to the cause of resignation. In such a case, the employer must pay to the resigned employee the wage that is due to him with regard to the remainder of the first 45 days.
Special leave
Employees may be granted a special leave without pay, which may not exceed 30 days for the performance of Haj once throughout his service. This is granted only once during his years of employment.
Employees are not entitled to any paid sick leave during the probation period.
Maternity, childcare leave
Working females are entitled to 45 days of full pay for maternity leave provided that she has served continuously for at least one year. Maternity leave is paid with half pay if one year of service has yet to be completed. At the end of the maternity leave, the woman has the ability to extend her leave at an unpaid rate for a maximum period of 10 days.
For the first 18 months following delivery, female employees who nurse their child are granted two paid rest intervals per day, not exceeding 30 minutes, in order to complete this task.
Working fathers are not provided paternity leave under the law.
Haj and Umrah leaves
Haj leave:
Employees may be granted a special leave for the performance of Haj under the provisions that the leave:
– is given without pay
– may not exceed 30 days
– is granted only once during the employment duration with the company
Umrah leave:
The UAE Labour Law does not have any provisions which entitle the employee for Umrah leave. If the employee requests a Umrah leave, it is up to the employer to consent and deduct from the employee's annual leave or consider unpaid leave.
Compassionate leave
The UAE Labour Law does not have any provisions which entitle the employee for a compassionate leave which is commonly given when an immediate family member (first-degree relative or second-degree relative) dies.
In such misfortunes, employees may request for leave to be deducted from their annual leave, or consider unpaid leave or any other arrangement, which the employer would agree to.
Reduction in working hours
Construction and industrial workers are not permitted to work during the hottest hours of the day during the summer. Any firm found to have staff working during the designated break time would be fined Dh5,000 per worker up to a maximum of Dh50,000.
Also, employees are entitled to work 2 hours less every day during the holy month of Ramadan.
Minimum wages
There is no minimum salary stipulated in the UAE Labour Law, however, it broadly mentions that salaries must cover basic needs of the employees.
Article 63 of the law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet.
Wages Protection System (WPS)
The Wages Protection System (WPS) is an important step to ensure and protect the rights of workers, and to establish trust between organisations and their employees. Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service. For any concerns or complaints regarding the salary, employees can contact the MoHRE or lodge a complaint through eNetwasal.
End of service benefits
If the employee resigns of his or her own free will before completing one year, then they will not be entitled to any gratuity pay.
The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service.
The end of service gratuity is calculated on basis of last wage which the employee was entitled to, namely the basic salary. Hence, it will not include allowances such as housing, conveyance, utilities, furniture etc.
If the employee owes any money to the employer, the employer may deduct the amount from the employee's gratuity.
Calculations for gratuity pay
1. Under limited contract
In the event where the employer terminates a limited contract, calculation will be as follows:
If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
If an employee has served more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days' salary for each year of work.
If an employee has served more than 5 years, he is entitled to full gratuity pay based on 30 days' salary for each year of work.
2. Under unlimited contract
In the event where the employer terminates an unlimited contract, calculation will be as follows:
If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
If an employee has served more than 1 year but less than 5 years, he is entitled to 21 calendar days' basic salary for each year of the first five years of work.
If an employee has served more than 5 years, he is entitled to 30 calendar days' basic salary for each additional year, provided the entire compensation does not exceed two years' pay.
In the event where the employee under an unlimited contract resigns, calculation will be as follows:
If an employee resigns before completing 1 year of service, he is not entitled to any gratuity pay.
If an employee has served between 1 and 3 years, he is entitled to one third (1/3) of 21 days' basic salary as gratuity pay.
If an employee has served between 3 and 5 years, he is entitled to two-thirds (2/3) of 21 days' basic salary as gratuity pay.
If an employee has served more than 5 years, he is entitled to full 21 days' basic salary as gratuity pay.