Labor relations in the United Arab Emirates (UAE) are regulated by Federal Decree-Law No. 33 of 2021, which contains many innovations and clarifications that ensure a balance between the rights and obligations of employees and employers. What are the key features of employment and interaction with employees in the UAE? Let’s go over the main points of this law together.
A variety of work schedules and contracts
One of the important characteristics of the UAE labor market is the flexibility of work schedules. The Decree provides for the following types of employment contracts:
- Full-time – work for one employer during a full-time shift.
- Part-time work is working for several employers or with a limited number of working hours.
- Temporary work is the completion of a task during a certain period.
- Flexible schedule – work with variable hours and days, varying depending on the workload and requirements of the employer.
This variety of schedules allows companies and employees to adapt to changing economic conditions and personal preferences.
Equality and non-discrimination
UAE law actively supports equal rights for all employees regardless of their race, nationality, gender or religion. Any discrimination that may infringe on the rights of employees is prohibited. It is also established that men and women should receive equal pay for equal work, which makes the UAE one of the leading countries in the fight for gender equality in the workplace.
Probation period
Employers in the UAE can set a probation period of up to 6 months. During this period, both the employer and the employee can terminate the employment relationship by notifying the other party 14 days in advance. After successful completion of the probation period, the employee receives full rights in accordance with the employment contract.
Read more about the probation period in the UAE in our article «Probation period in the UAE: what does a potential employee need to know?»
Protecting the rights of employees
The UAE is actively working to protect workers’ rights, including workplace safety guarantees, ensuring appropriate working conditions and housing conditions for employees. Employers are required to provide health insurance and cover the costs associated with treating employees in case of accidents at work. At the same time, the employer is responsible for remuneration and any compensation provided for by law.
Dismissal and termination of the employment contract
The law provides several reasons for termination of an employment contract, including mutual consent of the parties or serious violations on the part of the employee. If the dismissal is illegal, the employee has the right to compensation, as well as to have the case reviewed by the competent authorities.
What can be fired in the UAE for?
In the UAE, the issue of dismissal and termination of an employment contract is regulated by Federal Decree-Law No. 33 of 2021, which contains detailed rules and procedures for termination of employment relations between an employer and an employee. This law ensures both the protection of employees and the observance of the rights of employers, creating a balanced environment for both sides. Let’s consider the main points related to the termination of an employment contract.
Grounds for termination of an employment contract
The employment contract may be terminated in the following cases:
- By mutual agreement of the parties: The employer and the employee can agree to terminate the employment relationship on a voluntary basis at any time.
- Expiration of the contract: If the employment contract is concluded for a certain period and is not extended, then upon its termination the contract automatically terminates.
- Initiative of one of the parties: Each of the parties may terminate the contract, observing the statutory notice period, which ranges from 30 to 90 days, depending on the duration of the employee’s work in the company.
- Death of an employee or employer: If the object of an employment contract is the essence of the employer (for example, an individual entrepreneur), the contract is terminated in the event of his death. The contract also terminates in the event of the death of an employee or if the employee becomes completely unable to work.
- Conviction of an employee: If an employee is sentenced to a prison term of at least three months, this is the basis for termination of the employment contract.
- Economic or exceptional circumstances: In case of bankruptcy of the employer or the occurrence of exceptional economic conditions that prevent further business, the employment relationship may be terminated.
Notification of termination of the employment contract
If one of the parties intends to terminate the employment relationship, it is necessary to provide written notification to the other party. The notification period varies depending on the employee’s service life:
- 30 days for employees working for less than 5 years;
- 60 days for those who have been working for more than 5 years, but less than 10 years;
- 90 days for employees with more than 10 years of work experience.
At the same time, the contract remains in force throughout the entire notification period, and the employee is entitled to receive full salary during this time.
Compensation for non-compliance with the notification
If one of the parties violates the terms of the notification, it is obliged to pay compensation to the other party. The amount of compensation is equal to the employee’s salary for the entire notification period or for the remainder of it. This rule provides protection for both employers and employees in the event of wrongful termination of the contract.
The UAE offers a highly developed legal framework for regulating labor relations, providing flexibility and protecting the interests of both parties. Special attention is paid to the rights of employees, their professional development and the maintenance of fair working conditions, which makes the country attractive to qualified professionals from all over the world.
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