Everything worth knowing about Labour contracts in the UAE and also learn how to find the contract online
1. Fixed-term contract of employment
The UAE Labor Law states that an employee can receive a labour contract UAE for up to 3 years. Likewise, this law that entered into force on February 2, 2022, allows the extension or renewal of said contract. In this sense, the renewal or continuity may cover a period equal to or less than the original contract.
If the UAE employment contract is not renewed or extended by the employer but both parties continue to fulfill the obligations, it is considered renewed. In this case, the new contract will be governed by the terms and conditions of the original. Also, when calculating the benefits for the end of service, said renewal will be taken into account.
In the same way, the aforementioned law establishes that an unlimited-time labour contract UAE can be converted into fixed-term contracts. This will occur one year after the effective date of the agreement, which may be extended by the Cabinet. In addition, the Federal Law № 8 of 1980 together with the labor law also governs unlimited contracts in the UAE.
1.1 Probation period
The probation period UAE cannot exceed 6 months and cannot be extended for another period. In addition, after the employee has completed this period and the employer wishes to hire him, that time will be considered part of the service. On the other hand, if the employer wishes to terminate the employment relationship during this period, they must notify the worker 14 days in advance.
Also, if the employee wants to change jobs during the trial period, they must notify the employer at least one month before. In addition, the new hire must pay the current employer the cost of hiring the employee. However, there may be an agreement between the current employer and the employee so that this does not have to happen.
On the other hand, if the employee wants to resign to leave the country, he must notify the employer 14 days in advance. However, the same employee can return to the UAE and work with a new employer. In this case, if the worker returns within three months, the new employer must compensate the previous one.
In this case, it is the hiring costs, unless there is an agreement between the worker and the company.
2. Restrictions and types of arrangements in contracts of employment
A labour contract UAE may contain specific clauses, such as those regarding non-compete restrictions. In addition, you will be able to find various types of contracts that are also covered by the UAE labor law.
2.1 Non-Compete Restrictions
Under the Labor Law (Article 10), an employer may include non-compete restrictions in a labor contract UAE. However, the limitations in this sense must protect the interests of the company and be defined in the time, place, and nature of the work. In this case, the maximum period for such restrictions is 2 years from the termination of the contract.
2.2 Types of laborcontract UAE
The country’s Labor Law establishes 4 types of labour contract UAE that a company can offer to an employee. These types of contracts are the following:
- Full-time contract. This type of employment contract is that the employee will only work for the same employer full-time.
- Part-time contract. In this case, the employee can work in two companies at the same time on specific hours or days.
- Temporary employment contract. The employee will work in the company to carry out a specific job, and after having completed it the contract ends.
- Flexible work contract. With this employee contract UAE, the employer will be able to offer Flexible work hours or days at your convenience.
3. Requirements of a UAE labour contract under the Labor Law
Federal Law № 33 establishes certain changes in labor contracts about the rights and duties of the employee and employer. In this case, some more rights for employees and greater flexibility in certain aspects are added.
3.1 Requirements of a fixed-term labour contract UAE
UAE contract law requires a change in these types of agreements for all employees in the country. In this case, the HR department of each company is responsible for reporting these changes. One of the main ones is that employers must convert their workers’ contracts to fixed-term ones. The deadline for this change is February 2023.
3.2 Probation period and notification requirements
Companies may require a probation period before hiring a person. In addition, they can establish a similar period for those workers with poor performance but not more than 6 months. Also, if you want to fire an employee during that time, you must notify the worker at least 2 weeks in advance.
In the same way, the employee who wishes to leave the UAE during his probationary period must give the same advance notice. However, if the worker wants to work in another company, he must notify him 1 month before.
3.3 Flexible arrangement contracts
The new law allows employers to offer flexible arrangement employment contracts to their employees. In this case, this type of labor contract UAE allows workers to choose their work hours. Likewise, employees may request their workers to work at different times, days, or weeks throughout the year.
In either case, the company will still need legal services to comply with work limits and overtime laws.
3.4 Non-Compete Restrictions
As we mentioned, employers will be able to include non-compete restrictions in a labour contract UAE. However, part-time workers may seek employment with other employers to which the employer cannot object. However, employees may not apply for jobs with companies that compete with their current employer.
In this regard, workers must obtain a special permit from the Ministry of Human Resources and Emiratization (MOHRE).
3.5 Rest days
All workers have the right to receive a mandatory weekly rest day. However, they do not have the legal obligation to establish Friday for that specific moment, with which you can designate any other. In addition, if a worker must perform his duties during his rest day, he must receive compensation.
In this sense, the bonus must consist of the payment of overtime or enjoying a day off at another time.
3.6 Payments in foreign currency
Employers and employees can accept payment in currencies other than the UAE currency. Despite this, the Wages Protection System (WPS) can only accept the use of the national currency, the Dirham. Therefore, if an employer uses the WPS, they will first need to convert to the national currency.
3.7 Leave rights in a labor contract UAE
Employees must use their leave days in the year but if they do not use them, they will be entitled to payment for them. In addition, workers may accumulate 2 days of leave for each month worked during the first 6 months of the labour contract UAE. Likewise, they will receive 30 days of leave for service equal to or greater than 1 year in the same company.
In addition to this license, the laws establish other types of license, which include the following:
- Maternity license. Pregnant employees are entitled to receive 45 days of full pay and 15 days of half pay with this leave. In addition, employees can receive 30 days of paid leave in case of giving birth to a disabled or sick baby.
- Leave for humanitarian reasons. This leave consists of between 3 and 5 days paid for the death of an immediate family member.
- Study license. This leave consists of 10 days for studies (which may be unpaid) at an authorized institution in the UAE. However, it is only for employees with at least two years of work in the same company.
3.8 Termination of the labor contract UAE
Employers can terminate a fixed-term labour contract UAE for justifiable cause or redundancy. In addition, the employee is obliged to notify the employee of the termination at a prudent time. According to UAE labor lawyers, the UAE labor law provides for the following notice periods:
- 30-day notice for those who have worked for 5 years or less.
- A notice of 60 days for those who have worked between 5 and 10 years.
- 90-day notice for those who have worked for more than 10 years.
Both the causes for the termination of a fixed-term and indefinite labour contract UAE are the same.
On the other hand, if the employee has engaged in misconduct, the employer has the right to suspend him for 30 days. In addition, during this period the employee must receive a payment of half salary while the employer investigates the case. Thus, if the employee is innocent of the charges, the employee will be required to reimburse the full money for the leave.
Also, employers are responsible for paying termination rights to the employee within 14 days after the termination.
3.9 End-of-Service Gratuity
The changes in the law also establish that all employees must receive full severance pay. However, the worker must have completed at least one year of service to receive the bonus.
3.10 Workplace Policies
Employees are required by law to comply with various requirements in the workplace, including:
- Equal salary for both sexes.
- Do not discriminate against protected classes.
- Provide employees with an employment manual.
- Prohibit verbal, physical, and sexual harassment.
- Maintain employee records for 2 years after termination.
4. How to find Labour Contract Online in UAE using internet?
One can find their Labour contract online under Mohre, The process is easy and simple.
Step 1 – All you need to do is visit Mohre Website
Step 2 – Then click on the services tab and later click on the enquiry services
Step 3 – Click on the Print electronic work permit option.
Step 4 – Then fill up all your information
Step 5 – Then automatically the website directs to the page wherein one can view their contract online.
5. Exceptions from the laws and verification of the labor contract UAE
The labor contract UAE laws are not applicable in the Dubai International Financial Center or the Abu Dhabi Global Market. This is because both organizations have their own laws, differentiated from those that govern other sectors.
5.1 Verification of the labour contract UAE
There are two ways in which you can verify your Dubai labour contract or any Emirates. In both cases, the form is simple but you will be able to know every detail of the contract you have with your employer.
5.1.1 Ministry of Human Resources and Emiratization Online
By entering the official website of MOHRE, you will be able to see all the details of your labor contract UAE easily. You can find this information in the “My contracts” section on the “Job Offers and Contract Services” page. To search for your contract, you must use the corresponding transaction number, otherwise, you can use your data.
Then you will simply have to follow the system prompts to complete the quest and view your contract. In addition, you can contact a MOHRE representative at 600590000 or use the web chat.
5.1.2 Application of MOHRE
This is the other alternative you have to see your labor contract UAE easily and quickly. With it, you can also see the existing employment contracts and the current ones from your mobile phone. This application can be found in the virtual stores of your device (Google Play Store or App Store).
After downloading, please install the application to be able to enjoy the benefits it offers. You will then need to do the following:
- Register as an employee by following the system instructions.
- Then log in with the username and password.
- Select “My Dashboard”.
- Finally, select “View Labour Contract”.
If I carry out this process properly, you will be able to see each of your contract details such as company name, duration, type, and so on.
6. Connect Legal is your best option to draw up a labor contract UAE
With our help, you will be able to draw up an employment contract with the clauses and terms that comply with the UAE labor law. We have all the necessary legal experience to offer you a labour contract sample UAE that we can adapt to your company.
In addition, our company has experience in other legal practices such as:
- Commercial laws
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Therefore, if you need to draw up a contract of employment or more information about it, just contact us. You can call us at +971 433 16 688 or send us an email at firstname.lastname@example.org and you will receive the attention you need. Register on our site and allow us to answer your questions!
On the other hand, the best place to find job offers and get a good contract is thetalentpoint.com. Plus, taking advantage of these offers is easy, just sign up and then upload or send your CV to email@example.com.