The new UAE Labour Law, which came into force in February 2022, requires all employees of companies in the private sector (outside of the DIFC and ADGM) to be employed on fixed-term employment contracts. The deadline for transitioning employees onto the requisite fixed-term employment contracts is February 1, 2023.
The new law eliminates the idea of unlimited-term contracts and allows only fixed-term contracts (with a maximum duration of three years) to be issued. Businesses must change all current employees, who are on unlimited duration contracts, to fixed term contracts by the 2nd of February 2023.
There is no minimum salary stipulated in the UAE Labour Law, however it broadly mentions that salaries must cover basic needs of the employees.
Working in the private sector
The law became effective on 2 February 2022. It repealed the previous Federal Law No. 8 of 1980. The new law aims to protect both parties in the employment relationship and enables them to obtain their rights in a balanced manner.
The rules specify that you can work overtime, as long as it does not exceed two hours per day. The total number of working hours must not exceed 144 hours, every three weeks. That equates to 48 hours per week.
Article 17 of the Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the 'UAE Labour Law' identifies the normal working hours for the private sector as 8 hours per day, or 48 hours per week.
Article 66: Consecutive working hours
The break, which should not be less than an hour, can be used for rest, meals or prayer, according to Article 66 of the UAE Labour Law. However, it is important to note that the break is not part of the total number of working hours the employee is expected to work each day.
What are the most important changes? There are many changes with some of the important ones being around employment types and flexible working, contract types, and additional leave types. You can also expect more detail around stopping discrimination, harassment and bullying in the workplace, and around recruitment.
Previous law: Two days a month, if an employee's period of service is less than one year. 30 days a year, if an employee's service is more than or equivalent to one year. New law: Two days a month, if an employee's period of service is less than one year.
Eligibility for a sick leave (paid and unpaid)
An employee is entitled to a sick leave of not more than 90 days per year, only after the end of probationary period. The 90 days' sick leave can be continuous or intermittent, and the salary is paid as follows: full pay for the first 15 days. half pay for the next 30 days.
To compute your salary per day, divide your annual salary by the total number of working days in the year.
How is payroll calculated in the UAE? Payroll calculation in the UAE involves determining an employee's gross salary, adding any allowances or bonuses, calculating overtime pay (if applicable), and deducting any lawful deductions. The net salary is the amount paid to the employee after accounting for all these factors.
Dubai and UAE minimum salary and wages 2023
As of now, the UAE does not have a national minimum salary or wage since the country's labor law does not specify any minimum salary requirements. However, it is mandated that employees' salaries and wages should cover their basic needs.
The new scheme will take effect in 2023 and will cover 60% of the worker's basic salary. Insured employees will be compensated with up to AED 20,000 in cash in the event of unemployment. It will be available to workers who intend to receive financial support until they find subsequent employment.
Increases this year are most likely to be almost the same as last year, with 74% of employers polled by Hays saying that they expect wages to go up by 5% or less.
UAE allows juveniles between the ages of 15-18 to work, according to Article 5 of the UAE labour law, it is prohibited to employ minors. The Ministry of Human Resources and Emiratisation (MoHRE) does not issue work permits to Emiratis or expats under the age of 18.
The most significant change that happened according to THE NEW FEDERAL LABOUR LAW NO 33 of the YEAR 2021 is removing the unlimited employment contract and stipulating only a limited employment contract.
How is a labour ban imposed? The employer may raise a labour complaint against the worker who commits violations, incurring a ban for one year, in accordance with of Federal Decree Law No. 33 of 2021 and its Executive Regulations. MoHRE will investigate the complaint and judge its validity.
Firstly, as long as you have completed your probation period and are serving your notice period, you cannot be asked to pay compensation to your employer. Also, there may be some cases where you can resign with immediate notice, and you may not be liable to compensate your employer.
The law prohibits forced labour and discrimination on the basis of gender, race, colour, sex, religion, national or social origin or disability. It also spells out employers' obligations towards employees and bans the employment of children below the age of 15.
If a worker has served for 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 a worker has served more than 5 years, he is entitled to full gratuity of 30 days' salary for each year of work following the first five years.
According to Article 65 of the UAE Labour Law the maximum working hours in Dubai and the UAE is eight hours per day or 48 hours per week. The maximum for those working in hotels, restaurants, and certain other industries is nine hours per day.
Once you pass six months of employment, you'll be allowed two days of paid leave for each month of your first year. That's 24 days. After you pass one year of employment, you will then be given 30 calendar days of paid leave every year.
As per Article 21 of the UAE labour Law, employees of the private sector are entitled to at least, one day of paid rest per week as specified in the employment contract or work regulations of the company. The company may increase the number of weekly rest days.