Guide to Labor Relations in Dubai, UAE

Guide to Labor Relations in Dubai, UAE - Makebiz

One of the popular reasons for moving to the UAE is to find employment with a local company. To begin with, it is crucial to study the local labor laws to understand the specifics, upcoming rights and obligations. 

An employment contract is most often signed for a fixed term in two languages — Arabic and English. Its structure usually includes information about the work schedule, salary, any compensation and benefits. It is worth paying special attention to the clauses on the role and functions of each party, job responsibilities. Separately prescribed the right to annual leave on average 28 days, as well as the conditions for going on sick leave or maternity leave. In some cases, compensation for repatriation and relocation of the employee to the UAE may be stipulated.

A distinction is made between fixed-term and open-ended contracts. In the first case, a specific time frame for the beginning and end of the document is prescribed. If the parties do not agree on its extension, it automatically loses its force and is terminated. In the second case, a specific end date is not set, which is most often popular for hiring permanent employees on a long-term basis. A contract can be terminated if the employer and employee mutually agree, or if the employee is dismissed at will or as a result of misconduct. 

Most companies prescribe the terms of the probationary period in their documents. According to UAE legislation, this period should not last more than 6 months and during this time sick leave is not paid. It is possible to dismiss an employee with 14 days’ notice. If the desire comes from the employee, a 1 month written notice is required. 

Upon termination of the contract, the employee is entitled to receive compensation for unused vacation and remuneration in the amount of 21 days’ salary for each year of service (for five years of service, and if more, the full monthly base salary).

Thus, the employment contract prevents disputes and ensures transparent and clear working conditions.

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