Labor contract UAE: All you need to know
All companies worldwide hire employees using the labour contract. This document is used to implement all the rights and obligations that workers have. And not only for the workforce but also for the business owners. Something important to note is that, depending on the country where you are, contractual policies may change. This is because labor law varies depending on the needs of each nation.
In this article, you will see everything you need to know about labor contracts in the UAE. First, you will see the definition of this document and the different types that exist in this country. Secondly, we will show you the main differences between the most used. In addition, we will teach you everything that a labour contract must include according to federal law decree 33.
- What is a labour contract in the UAE and what are the main types?
- Find out what are the mandatory policies in the employment contract in the UAE
- Learn how to check labour contracts online
- If you need to hire employees in your company, contact EORMiddleast
1. What is a labour contract in the UAE and what are the main types?
The employment contract in the UAE is an official employer agreement. This contract is signed by both the employee and the employer. Having reached a labour contract agreement and signed the document, it legally binds both parties. In addition, to be subject to all the terms that were reached in the work agreement.
You can find different types of employment contracts, from fixed duration to more flexible contracts. In addition, all these contracts are governed by the Labor Law of the UAE. All employment contracts are those that dictate the nature and scope of an employee’s work. In addition, you can find schedules, deadlines, and even work expectations. When employers want to draft a contract, they usually hire an Employer of Record in the UAE.
The employment contract is not only responsible for binding the employee but is also responsible for binding the employer. The employer must be in charge of dispensing any type of benefits owed as detailed in the employment contract. All these types of employment contracts can be found online, making it easier to understand them.
Different types of the employment contract are allowed under the UAE Labor Contract Law. It is vital that you understand that the Employee contract UAE has different types and can affect your legal employment. In addition, there are different categories for these types of contracts. Below you can see the most important categories of these employment contracts in the UAE:
- The limited contract, where you have a limited duration.
- The unlimited contract UAE, which is very flexible.
- Part-time contract.
- The full-time contract.
- The temporary contract.
- Special employment contract.
- The shared work contract.
2. Find out what are the mandatory policies in the employment contract in the UAE
The government in the UAE has created Federal Decree-Law No. 33, which contemplates several changes in the rights and obligations of labour contract agreements. This is for employers as well as employees. But, it is important to note that these changes offer the employee access to more rights; employers are also given more flexibility in some areas. Next, you will see everything that these new clauses include.
2.1 New requirements for fixed-term contracts
Within the new law, a change in the UAE labour contract of limited duration is contemplated; This applies to all employees who work under this modality. The human resources team that works in the company must communicate this change.
The employer has until February 2023 to transform its workforce to a different type of work, with other policies, consequently, getting the workforce management to a good point.
2.2 New policies in the probation period
Employers can put their employees on probation period under two possible conditions. The first is for new hires. And the second is for when workers perform poorly. In both cases, the trial period cannot exceed six months.
On the other hand, if a company boss decides to fire a worker during his trial period; You must give the notice to the employee at least 14 days in advance. Likewise, employees who are during their probation period, and want to resign, and leave the UAE, must give a 14-day notice. But, if you want to keep working in the country, the advance notice must be at least 30 days.
For instance, if you started working for a company, you only have 6 months working, you want to resign from an unlimited contract and you wonder if you can do it; the answer is that you can, as long as you comply with the notice period.
2.3 New policies on flexible arrangement contracts
Employees who are hired under flexible arrangement contracts can choose work hours. It is also valid for an employer to request the worker to work during different work hours throughout the year. Regardless of the two cases, the schedules of these employees are not consistent. In addition, the employer cannot exceed the employee’s workload and overtime laws must be complied with.
2.4 What are the non-compete restrictions?
In MOHRE labor contracts, employers can legally add some non-compete restrictions. But, part-time workers cannot be prohibited from seeking extra employment in companies other than your competition. In addition, all employees who work for several companies must apply for a permit from MOHRE.
2.5 New policies on days off
All employees are entitled to one day of rest for each work week. However, this day of rest does not need to be on Friday. In addition, they must provide compensation to employees who work on their days off. This compensation can be in two ways: a different rest day or overtime pay.
2.6 Agreements in the form of payment
All employees and employers can be paid in any currency. For instance, dollars or euros. But, the Salary Protection System cannot handle currencies other than dirhams in the UAE. Therefore, all managers using WPS must convert payments to that currency.
2.7 License rights
Employees can accumulate the leave they must use within the year in which it is earned. If you do not use this license, you have the right to charge at the end of the year. In addition, workers have the possibility of accumulating leave for two days a month, during the first six months. They are also granted the legal right to 30 days of leave as long as the employee has worked for one year.
The labor law contemplates different types of leave, which are:
- Leave for humanitarian reasons.
- Study license.
- Maternity license.
- Emergency leave.
Female employees who request maternity leave, are granted their full salary for 45 days and 15 days with half salary. If the employee gives birth to a disabled or sick baby, she is granted an additional 30 days with a full salary.
Employees who are on study leave from an approved educational institution in the UAE; are granted 10 days of leave. However, employees must work for a company for a minimum of two years to receive study leave benefits. It is important to clarify that study leave may be unpaid.
2.8 What are the requirements to terminate a contract?
All employers can dispense with a fixed-term contract, as long as there is just cause. Business owners must notify employees if they are going to be terminated imminently.
Depending on the situation of the employee, the notice period changes, that is,
- If the employee has worked in the company for five years or less, his prior notice must be at least one month.
- Employees who have worked in the company between 5 and 10 years are given a minimum notice of 2 months.
- Finally, if an employee has worked for more than 10 years, their notice period is 3 months.
The grounds for contract termination are the same for permanent and permanent contracts. For instance, if an employer finds an employee engaging in misconduct, they can legally suspend them for a maximum of 30 days.
During the suspension, the employer must pay the employee half the salary, and the employer is required to investigate. If the employee is found not guilty, the wages withheld during the sanction must be paid.
Finally, employers are required to pay the duties due to the termination of the Dubai labour contract, within 14 days.
2.9 End-of-service gratuity policies
The changes in the labor law include the bonus system for completing work in the company. From now on, all employees are entitled to a gratuity or full settlement for completing the service. But, employees must comply with labor obligations for at least one year, to be entitled to receive the end-of-service bonus.
2.10 Requirements in workplace policies
In this new law, employers are required to comply with certain regulations with tenants in the work environment policy. The ones worth highlighting are the following.
- Discrimination against protected classes is not allowed.
- Equal pay by gender must be granted.
- Prohibition of verbal, sexual, and physical harassment.
- All employees must be issued an employee handbook.
- It is important to keep employment records for up to two years after completion of the job.
3. Learn how to check labour contracts online
There are many ways to consult employment contracts. However, one of the easiest ways is online, because you can make your query at any time and place. Below you can observe these online methods to consult everything regarding your employment contract:
3.1 Through MOHRE online
By entering the MOHRE page, you must search for job offers and contracting services and you will be able to see the My Hiring form. You will need to look up your contract using your trade number. The MOHRE will allow you to view your employment contracts online.
If you have the corresponding transaction number, you can use your data to be able to look up your contract. Then, you must follow the instructions provided by the website and thus be able to find your employment contract. The website has chat features so that you can get help if needed to continue your search process. Also, people can call the MOHRE complaint number.
3.2 Through the MOHRE application
If you wish, you can also use the MOHRE app instead of the website. This MOHRE app will give you the ability to check all contracts online and also existing employment contracts.
You can easily download the MOHRE app from the Google Play Store or the App Store. After installing the application, you must register for it. Here, you must follow the instructions that will be displayed on the screen to be able to register as an employee.
After registration is complete, log in and go to your dashboard, click My Dashboard and scroll down until you can see View Employment Agreement. From this page, you can download a copy of the employment contract if you wish.
4. If you need to hire employees in your company, contact EOR Middle East
It is important that employers have this knowledge in labour contracts because all companies must hire employees. And to comply with this basic requirement in the formation of a company, you must know all the rights and obligations that you have as an employer and those that you must enforce with your future employees.
One solution for the entire recruitment process is for you to contact a company in Dubai that handles this and other business matters. The best company you can contact us EORMiddleast. We have employee recruitment services, both in person and remotely. You can contact us by phone by calling us at +971 43 316 688. You can also write to us at [email protected].
In case you are a person who wants to work in one of these companies that are looking for employees in the UAE; you can enter thetalentpoint.com. This is because all these companies that need workers to publish job offers on these websites. Thanks to this, the chances of getting a job that suits your skills and desires, increase significantly. If you want more information about what The Talent Point can offer, you can write to the following email [email protected].