Staff report
Published: December 12, 2008, 00:31
I have worked for a company in Sharjah on an unlimited contract for the last five and a half years. I now want to change my job after completion of the second contract. Do I require an NOC from my present employer? Will there be a ban even if I complete my tenure of the second contract? Do I have to make known to my present employer in writing that I do not wish to renew my contract? What will be the severance pay and benefits applicable for me after completion of my contract.
You may submit your resignation any time convenient since your contract is for an unlimited period, and no ban will be imposed on you as you have completed three years with your employer. All that you need to do is pay the required fees to the Ministry of Labour and not leave work until you have completed the notice period specified by the Labour Law of one month or as per the agreed period in the contract. As for your dues, in accordance with the article 132 of the Labour Law, you are entitled to 21 days' remuneration for each year of service. Fractions of a year also shall be calculated on the basis of the remuneration last due to you.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants.
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Saturday, August 29, 2009
No objection certificate
Gulf News
Published: November 13, 2008, 23:54
A reader from Dubai asks: I've worked with my present company for 10 months and found a new job. I can't get NOC. As I know, once my work permit is cancelled, there will be a 6-month ban. I am willing to pay whatever fee required. What can I do to be able to join the new company? How to lift the 6-month ban?
I would like to clarify to the questioner that a 6-month ban could be lifted by the following two cases:
1. The worker shall spend 3 years with the sponsor; in this case, the worker may transfer to another sponsor without the need to No Objection Certificate from the earlier sponsor.
2. The worker shall obtain No Objection Certificate from the sponsor to enable him to transfer to new sponsor.
And thus, the ban can be lifted by only the above mentioned two cases. Therefore, the questioner may transfer to another sponsor after obtaining No Objection Certificate from the current sponsor, and maybe the questioner could offer the company a sum of money for this Certificate as compensation for the visa expenses incurred by the company.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants
Am I entitled to NoC?
Gulf News report
Published: November 02, 2007, 20:48
Am I entitled to NoC?
A reader in Abu Dhabi asks: I worked for a company for more than five years. I resigned because I received another job offer. I requested an NoC from my previous company but they refused because they told me it was up to them whether to give me it or not. Can I force the company to give it to me since I worked for them for more than five years? Is there any law that states there is a minimum number of years you have to work in order to obtain an NOC? If I cannot get an NOC, how can I transfer my visa to the new company as the labour ministry will automatically give me a six-month labour ban?
As discretion, then the only thing he can do is to amicably seek an NOC from his previous sponsor. Actually no one can obligate the sponsor to grant an NOC; not even the Ministry of Labour as long as the sponsor has not breached the UAE Labour Law or arbitrarily dismissed the employee. As per the labour law, the Ministry of Labour usually in such cases, can apply a ban for six months which is automatic, upon any cancellation, without the demand of the sponsor. The questioner will have to, in case the six-month ban is stamped, exit and wait for six months before submitting a new work permit application. I would like to add that the Ministry of Labour usually asks the sponsor about an NOC letter regardless as to how long the employee has worked for the company.
Question answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
Ask the law queries
Send us questions on legal issues that need clarification. Write to us at
Published: November 13, 2008, 23:54
A reader from Dubai asks: I've worked with my present company for 10 months and found a new job. I can't get NOC. As I know, once my work permit is cancelled, there will be a 6-month ban. I am willing to pay whatever fee required. What can I do to be able to join the new company? How to lift the 6-month ban?
I would like to clarify to the questioner that a 6-month ban could be lifted by the following two cases:
1. The worker shall spend 3 years with the sponsor; in this case, the worker may transfer to another sponsor without the need to No Objection Certificate from the earlier sponsor.
2. The worker shall obtain No Objection Certificate from the sponsor to enable him to transfer to new sponsor.
And thus, the ban can be lifted by only the above mentioned two cases. Therefore, the questioner may transfer to another sponsor after obtaining No Objection Certificate from the current sponsor, and maybe the questioner could offer the company a sum of money for this Certificate as compensation for the visa expenses incurred by the company.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants
Am I entitled to NoC?
Gulf News report
Published: November 02, 2007, 20:48
Am I entitled to NoC?
A reader in Abu Dhabi asks: I worked for a company for more than five years. I resigned because I received another job offer. I requested an NoC from my previous company but they refused because they told me it was up to them whether to give me it or not. Can I force the company to give it to me since I worked for them for more than five years? Is there any law that states there is a minimum number of years you have to work in order to obtain an NOC? If I cannot get an NOC, how can I transfer my visa to the new company as the labour ministry will automatically give me a six-month labour ban?
As discretion, then the only thing he can do is to amicably seek an NOC from his previous sponsor. Actually no one can obligate the sponsor to grant an NOC; not even the Ministry of Labour as long as the sponsor has not breached the UAE Labour Law or arbitrarily dismissed the employee. As per the labour law, the Ministry of Labour usually in such cases, can apply a ban for six months which is automatic, upon any cancellation, without the demand of the sponsor. The questioner will have to, in case the six-month ban is stamped, exit and wait for six months before submitting a new work permit application. I would like to add that the Ministry of Labour usually asks the sponsor about an NOC letter regardless as to how long the employee has worked for the company.
Question answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
Ask the law queries
Send us questions on legal issues that need clarification. Write to us at
What do I need to do to avoid job ban?
Gulf News Report
Published: November 09, 2007, 00:04
A reader from Dubai asks: I am currently working for my employer but wish to change jobs and work for another company once I complete one year's service. The other company has asked me if my current company can provide a no-objection certificate (NoC). I consulted with our administration and was told it can provide me with one. What else do I need to avoid being banned?
If the questioner wants to transfer to a new company I advise him to make sure he does not submit his resignation before obtaining the NoC letter in order to transfer his visa. This is in order to avoid the ban stamped by the Ministry of Labour, especially as the employee might submit his resignation and the employer might then refuse to issue an NoC letter. He should complete one year's continuous service for the company; which is fixed by the Ministry of Labour as a minimum period in order to permit the employee to transfer to another employer.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
Published: November 09, 2007, 00:04
A reader from Dubai asks: I am currently working for my employer but wish to change jobs and work for another company once I complete one year's service. The other company has asked me if my current company can provide a no-objection certificate (NoC). I consulted with our administration and was told it can provide me with one. What else do I need to avoid being banned?
If the questioner wants to transfer to a new company I advise him to make sure he does not submit his resignation before obtaining the NoC letter in order to transfer his visa. This is in order to avoid the ban stamped by the Ministry of Labour, especially as the employee might submit his resignation and the employer might then refuse to issue an NoC letter. He should complete one year's continuous service for the company; which is fixed by the Ministry of Labour as a minimum period in order to permit the employee to transfer to another employer.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
Can I leave my new job?
Compiled by Dina Aboul Hosn
Published: October 31, 2007, 15:24
Can I leave my new job?
A reader in Abu Dhabi asks: I am a mechanical engineer working in Abu Dhabi, since I have a six-month ban from my previous company my new employer granted me a six month mission visa on a limited labour contract agreement. But, they have mentioned the start date of the contract without specifying the expiry date. I would like to ask is there any ban if I resign within six months and join another company as I am not comfortable with this company.
I would like to state whatever type the contract is, the Ministry of Labour always requires that an employee complete a period of one year continuous service for his employer even if the labour contract is for an unlimited period. For that reason, the questioner might give him a labour ban if he does not complete the period fixed by the Ministry of Labour. However, if the questioner can obtain an NOC from his sponsor to transfer his visa, then he is advised to submit an application with the Ministry of Labour seeking an exception to such a condition.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants
Published: October 31, 2007, 15:24
Can I leave my new job?
A reader in Abu Dhabi asks: I am a mechanical engineer working in Abu Dhabi, since I have a six-month ban from my previous company my new employer granted me a six month mission visa on a limited labour contract agreement. But, they have mentioned the start date of the contract without specifying the expiry date. I would like to ask is there any ban if I resign within six months and join another company as I am not comfortable with this company.
I would like to state whatever type the contract is, the Ministry of Labour always requires that an employee complete a period of one year continuous service for his employer even if the labour contract is for an unlimited period. For that reason, the questioner might give him a labour ban if he does not complete the period fixed by the Ministry of Labour. However, if the questioner can obtain an NOC from his sponsor to transfer his visa, then he is advised to submit an application with the Ministry of Labour seeking an exception to such a condition.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants
Notice Period
I was not given notice period
Compiled by Dina Aboul Hosn
Published: October 31, 2007, 15:30
I was not given notice period
A reader in Dubai asks: I worked for an IT company and my visa was cancelled, but my employer is saying my ticket has not yet been confirmed which is untrue, there has been no resignation letter from me or letter of termination from my company and my salary had not been paid for three months, What can I do? Can I work for another company or leave the country and come back on a new visa.
In fact, the sponsor does not have any right to conduct such procedures as mentioned as they are violating the labour law. Therefore, I advise the questioner to approach the Ministry of Labour immediately without any delay with a labour complaint, seeking to solve his difference with the sponsor or to refer the case to be reviewed by the competent labour court. In such a case, I would like to draw the questioner's attention that if he can prove to the Ministry of Labour that he has not received his salary for a period exceeding three months, then the Ministry might obligate the sponsor to transfer his visa to a new sponsor without the need for an NOC letter from the previous sponsor.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants
Compiled by Dina Aboul Hosn
Published: October 31, 2007, 15:30
I was not given notice period
A reader in Dubai asks: I worked for an IT company and my visa was cancelled, but my employer is saying my ticket has not yet been confirmed which is untrue, there has been no resignation letter from me or letter of termination from my company and my salary had not been paid for three months, What can I do? Can I work for another company or leave the country and come back on a new visa.
In fact, the sponsor does not have any right to conduct such procedures as mentioned as they are violating the labour law. Therefore, I advise the questioner to approach the Ministry of Labour immediately without any delay with a labour complaint, seeking to solve his difference with the sponsor or to refer the case to be reviewed by the competent labour court. In such a case, I would like to draw the questioner's attention that if he can prove to the Ministry of Labour that he has not received his salary for a period exceeding three months, then the Ministry might obligate the sponsor to transfer his visa to a new sponsor without the need for an NOC letter from the previous sponsor.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants
REPATRIATION OF EMPLOYEE
1. Who bears the repatriation expenses?
At the end of the contract, an employer shall sustain repatriation expenses of the employee to the place of recruitment or to any other place which the two parties have agreed upon. If the employee served with another employer at the termination of his contract, the new employer shall pay the cost of the travel at the end of the service. However, if the employee is responsible for terminating the contract, he shall be repatriated at his own expense if he has sufficient means.
2. Does the repatriation of the employee means that the employer has also to pay for furniture and family members?
If the employer had paid for the travelling expenses of the employee, his family and the furniture or such provision as stipulated in the contract, the employer then will have to pay for the family and the furniture and any expenses incurred therewith. However, if at the time when the contract was commenced there was no agreement on payment of family repatriation costs or furniture shipment costs and the employer didn't pay for these at the commencement of the contract, the employer will not be liable to pay the same, unless the rules within the establishment specify otherwise.
3. When does the employee have to vacate his accommodation if it was provided to him by the employer?
In cases where the employer provides accommodation to the employee, the employee shall be obliged to vacate the premises within a period that does not exceed 30 days from the date of termination of his services. The employee may not extend this period for whatever reasons provided that the employer actually pays for the following:
a. The repatriation expenses as agreed.
b. End of service benefits and other entitlements which are provided by the labour contract or the regulation of the establishment.
In case of a dispute between the employer and the employee, the labour office must give the recommendation of expenses within a week from the date the complaint is filed, and inform the employee of the amount payable. In such a case, the 30 days will commence from the date the employee deposits the amount recommended by the labour office with its office as deposit. In a situation where the premises were not vacated, the Ministry of Labour will order the vacation of the premises with the assistance of the local police in the emirate concerned. This of course, is without prejudice to the employee's right to challenge the amount
At the end of the contract, an employer shall sustain repatriation expenses of the employee to the place of recruitment or to any other place which the two parties have agreed upon. If the employee served with another employer at the termination of his contract, the new employer shall pay the cost of the travel at the end of the service. However, if the employee is responsible for terminating the contract, he shall be repatriated at his own expense if he has sufficient means.
2. Does the repatriation of the employee means that the employer has also to pay for furniture and family members?
If the employer had paid for the travelling expenses of the employee, his family and the furniture or such provision as stipulated in the contract, the employer then will have to pay for the family and the furniture and any expenses incurred therewith. However, if at the time when the contract was commenced there was no agreement on payment of family repatriation costs or furniture shipment costs and the employer didn't pay for these at the commencement of the contract, the employer will not be liable to pay the same, unless the rules within the establishment specify otherwise.
3. When does the employee have to vacate his accommodation if it was provided to him by the employer?
In cases where the employer provides accommodation to the employee, the employee shall be obliged to vacate the premises within a period that does not exceed 30 days from the date of termination of his services. The employee may not extend this period for whatever reasons provided that the employer actually pays for the following:
a. The repatriation expenses as agreed.
b. End of service benefits and other entitlements which are provided by the labour contract or the regulation of the establishment.
In case of a dispute between the employer and the employee, the labour office must give the recommendation of expenses within a week from the date the complaint is filed, and inform the employee of the amount payable. In such a case, the 30 days will commence from the date the employee deposits the amount recommended by the labour office with its office as deposit. In a situation where the premises were not vacated, the Ministry of Labour will order the vacation of the premises with the assistance of the local police in the emirate concerned. This of course, is without prejudice to the employee's right to challenge the amount
WORK ACCIDENT
1. What is the nature of reporting labour accidents and occupational diseases?
If the employee suffered a work accident or an occasional disease, the employer or his representative shall report the accident immediately to the police and labour department or one of its branches under whose jurisdiction the place of work falls. The information shall include the employee's name, profession, address,
nationality and a brief description of the incident and its circumstances, and the measures taken for treatment or first aid.
2. Would the employer be prosecuted for an accident or an injury to an employee?
Upon receiving the information from the employer, the police shall perform the necessary investigation stating in their report testimony from witnesses, the employer or his representative, and the injured person if his condition allows him to testify. The report shall specifically state whether the accident related to work, whether it took place intentionally, or as a result of misbehavior on the part of the employee.
If the report came to the conclusion that one of the employer's personnel or Managers were at fault or negligent, he may be prosecuted in a criminal court for the act or omission.
3. Would the employer be liable for the compensation?
In case of work accident and occupational diseases, the employer shall under take to pay the cost of the employees treatment in one of the government or private clinics till the employee recovers or his disability becomes certain. The treatment shall include hospital and sanitary fees and cost of surgical operations, X-rays and laboratories fees in addition to the cost of medicine and rehabilitation equipment and artificial parts for those whose disability is proven. The employer shall also pay the travel expenses needed for the employees treatment.
4. What would the employer pay if the employee were not able to perform his work after the accident?
If the injury prevented the employee from performing the duties of his job, the employer shall pay him a grant equivalent to his wage during the treatment period
or for six months whichever is less. If the treatment takes more than six months, then the grant shall be reduced by half for another six months or till the employee recovers, his disability becomes certain, or he dies, whichever comes first.
5. How much would the employer pay the employee during his treatment?
The financial grant made by the employer shall be calculated on the basis of the last wage the employee was paid in respect of those who are paid monthly, weekly, daily or hourly and on the basis of the average wage for those who are paid on piece work basis.
6. Would the employee be entitled for compensation other than his wages?
The employee will not be entitled to claim compensation from the employer other than his wages and compensation for disability according to the schedule published by the labour office. A copy of this schedule is attached herewith to this catalogue. This is, of course, without prejudice to the employee's right to claim compensation against any third party who may participate in causing the accident or the disability suffered by the employee.
7. Is the employee's family entitled to claim compensation?
The employee's family is not entitled to claim compensation unless the accident caused the death of the employee or his permanent disability. The compensation shall be equivalent to the basic wage of the employee for a period of 24 months. The value of the compensation shall not be less than Dhs. 18,000/- and not more than Dhs. 35,000/-. It shall be calculated on the basis of the last wage the employee was paid before his death and divided among inheritors according to the rules of the list annexed law.
8. Who will be considered the heirs of the employee, entitled to receive compensation?
In applying the rules of the Labour Law, the family of the deceased means those who depend for their livelihood entirely, or mainly, on the income of the deceased person at the time of his death. They must qualify by being included among the following categories:
1. Widower.
2. Children who are : sons under 17, and those under 24 who are enrolled as a regular student in the institution of learning, and also those of his sons who are physically or mentally unable to earn their living. The word "Son" shall include sons of the husband or the wife who are under the care of the deceased employee at the time of his death.
3. Unmarried girls including unmarried daughters of the husband or the wife who are under the care of the deceased employee at the time of the death.
4. Parents
5. Brothers and sisters according to the conditions set for sons and daughters
9. Would deliberate self injury receive a compensation or medical leave?
If it was evidenced in a report provided by the labour office or the police that the employee had intentionally caused his own injury in order to receive compensation or medical leave then he would not be entitled to
If the employee suffered a work accident or an occasional disease, the employer or his representative shall report the accident immediately to the police and labour department or one of its branches under whose jurisdiction the place of work falls. The information shall include the employee's name, profession, address,
nationality and a brief description of the incident and its circumstances, and the measures taken for treatment or first aid.
2. Would the employer be prosecuted for an accident or an injury to an employee?
Upon receiving the information from the employer, the police shall perform the necessary investigation stating in their report testimony from witnesses, the employer or his representative, and the injured person if his condition allows him to testify. The report shall specifically state whether the accident related to work, whether it took place intentionally, or as a result of misbehavior on the part of the employee.
If the report came to the conclusion that one of the employer's personnel or Managers were at fault or negligent, he may be prosecuted in a criminal court for the act or omission.
3. Would the employer be liable for the compensation?
In case of work accident and occupational diseases, the employer shall under take to pay the cost of the employees treatment in one of the government or private clinics till the employee recovers or his disability becomes certain. The treatment shall include hospital and sanitary fees and cost of surgical operations, X-rays and laboratories fees in addition to the cost of medicine and rehabilitation equipment and artificial parts for those whose disability is proven. The employer shall also pay the travel expenses needed for the employees treatment.
4. What would the employer pay if the employee were not able to perform his work after the accident?
If the injury prevented the employee from performing the duties of his job, the employer shall pay him a grant equivalent to his wage during the treatment period
or for six months whichever is less. If the treatment takes more than six months, then the grant shall be reduced by half for another six months or till the employee recovers, his disability becomes certain, or he dies, whichever comes first.
5. How much would the employer pay the employee during his treatment?
The financial grant made by the employer shall be calculated on the basis of the last wage the employee was paid in respect of those who are paid monthly, weekly, daily or hourly and on the basis of the average wage for those who are paid on piece work basis.
6. Would the employee be entitled for compensation other than his wages?
The employee will not be entitled to claim compensation from the employer other than his wages and compensation for disability according to the schedule published by the labour office. A copy of this schedule is attached herewith to this catalogue. This is, of course, without prejudice to the employee's right to claim compensation against any third party who may participate in causing the accident or the disability suffered by the employee.
7. Is the employee's family entitled to claim compensation?
The employee's family is not entitled to claim compensation unless the accident caused the death of the employee or his permanent disability. The compensation shall be equivalent to the basic wage of the employee for a period of 24 months. The value of the compensation shall not be less than Dhs. 18,000/- and not more than Dhs. 35,000/-. It shall be calculated on the basis of the last wage the employee was paid before his death and divided among inheritors according to the rules of the list annexed law.
8. Who will be considered the heirs of the employee, entitled to receive compensation?
In applying the rules of the Labour Law, the family of the deceased means those who depend for their livelihood entirely, or mainly, on the income of the deceased person at the time of his death. They must qualify by being included among the following categories:
1. Widower.
2. Children who are : sons under 17, and those under 24 who are enrolled as a regular student in the institution of learning, and also those of his sons who are physically or mentally unable to earn their living. The word "Son" shall include sons of the husband or the wife who are under the care of the deceased employee at the time of his death.
3. Unmarried girls including unmarried daughters of the husband or the wife who are under the care of the deceased employee at the time of the death.
4. Parents
5. Brothers and sisters according to the conditions set for sons and daughters
9. Would deliberate self injury receive a compensation or medical leave?
If it was evidenced in a report provided by the labour office or the police that the employee had intentionally caused his own injury in order to receive compensation or medical leave then he would not be entitled to
PAYMENT OF GRATUITY
1. What is the employee entitled to at the termination of the employment contract?
The employee at the termination of the employment contract will be entitled for to the following:
1. A notice period, or any amount due in lieu of the notice period, in the case of an unlimited contract.
2. Compensation for the unreasonable dismissal if the contract was terminated by the employer for unreasonable cause, in the case of an unlimited contract.
3. In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month's salary whichever is greater.
4. Payments equivalent to the balance of unutilized leave or any part thereof.
5. Payments for overtime or any balance of wages due and not yet paid.
6. End of service gratuity calculated on the duration of the employment.
7. Repatriation expense as per the law or the contact.
2. What does the term end of service gratuity mean in terms of compensation?
An employee who completes one year or more in continuous service shall be entitled to gratuity at the end of the service. The gratuity shall be calculated as follows:
1. 21 day's wages for each year of the first five years.
2. 30 day's wages for each additional year on condition that the total of the gratuity shall not exceed the wages of two years.
3. How is gratuity calculated?
Gratuity is calculated on an annual basis if the employee has actually completed one year of employment with the employer or more. The day of absence from work without pay shall not be included in calculating the length of service. However, if the employee completed a year in service he will be entitled to a gratuity for the fraction of the year proportional for the part of the year he spent in work provided that he has completed one year in continuous service.
4. On what basis is gratuity calculated?
Without prejudice to what is stipulated by some laws in the granting of pensions or retirement benefits to employees, in some establishments gratuity for those who are paid monthly, weekly or daily wages shall be calculated as follows:
Basic wage which is taken as a basis for the calculation of gratuity is that which is last received by the employee before the termination of the employment contract. This wage will be the basis for calculating the gratuity for all the years during which the employee works for the employer calculated at the rate advised here above.
5. What does a basic wage mean?
A basic wage means anything received by the employee as a wage excluding housing, transport, travelling allowances and overtime, family allowances, entertaining allowances and any other allowances or a bonus.
6. Would a commission or payment by percentage be considered a basic wage?
According to recent judgment delivered by the UAE court, any amount payable to employee as wage other than allowances or bonus including wages paid by percent, commission or by performance will be considered a wage and will be taken into consideration in calculating gratuity.
7. Would an employee employed prior to the law coming into use be entitled to gratuity?
According to the UAE law, employees who are working with their employer prior to the date on which the law came into force will not be entitled for gratuity for the period preceding the law. Without prejudice to any entitlement or payment they were entitled to under laws or regulations. However, gratuity for those employees will be calculated on the date the law came into force thereafter.
8. Can the employer deduct any payment from the gratuity payable to the employee?
The employer may deduct any amount due and payable to the employee to the employer from the end of the service gratuity and make payment for the balance to the employee. If there is any dispute over payment of gratuity or amount payable to the employer, the matter should be put to the labour office for mediation.
9. Does it make difference to the amount calculated for the gratuity if the employee resigned from employment?
An employee employed under a contract for unlimited period who resigned after a continuous service of not less than a year and not more than three years is entitled to one third of the end of service gratuity provided above. If the period of continuous service was more than three years and less than five years he is entitled to two thirds of the gratuity.
If his continuous service was more than five years, he shall be entitled to the full gratuity.
If an employee who is employed under a contract of limited period, resigned with his free will before the end of the contract, he shall not be entitled to the end of service gratuity unless his continuous service exceeds five years.
10. Can an employee be deprived of his end of service gratuity and under what circumstances?
An employee may also be deprived of his gratuity in either of the following two cases.
He has been dismissed for one of the reasons stated in Article 120 of this law, or if he left work to avoid dismissal.
If he left his job voluntarily without notice in cases other than the two provided for in Article 121 of this law. This applies to unlimited period contract and in cases where the employee did not complete five years of continuous employment in a contract of limited term.
If the establishment or company has a pension scheme which is beneficial to the employee, would it be a substitution for payment of gratuity?
If the employer has pension scheme applicable to all employees at the company or the establishment, such a scheme must be published and known to all employees, and at the same time, specify that this scheme will be a substitution for the gratuity rules governed by the UAE Federal Labour Law. It must be more beneficial to the employees than the gratuity provision of the law. Otherwise the employee may benefit from both.
11. Can the employee and the employer agree to pay gratuity for determination of the employment contract for the proceeding period?
The employer and the employer may agree to pay at a certain time the gratuity to the employee for the years during which the employee served the employer, and to start with a new contract for the future period. Provided always however, that this agreement is clearly stated, acknowledged, and agreed between the employee and employer whereby gratuity will be paid for the proceeding period, and a new contract will be entered into for the future relationship. This, bearing in mind that the employee's employment with the employer will still be considered as a continuous period for the purpose of the calculation of the interest, or at the time when he resigns, calculating the years during which he was employed with the employer.
12. Can an employee mortgage or assign payment of his gratuity?
It is possible to mortgage or assign payment of the employee's gratuity to the employer or to the third party by mutual agreements provided that in the agreement with the third party, the employer and the employee should consent and agree to this in writing with an understanding of all parties that the employee may forfeit his right for a gratuity which is not yet due if he has violated the provision of the law as stipulated above.
13. When does gratuity become due and payable?
Gratuity will only become due and payable at the end of or at the termination of the contract.
14. Would end of service gratuity and other dues payable to the employee be considered priority debts?
The employee's wages, overtime, and any other benefits, including the end of service gratuity, is considered a preferential debt and the employee shall have a lien over any movable or immovable property owned by the employer ranking second to government charges, judicial fees and family alimony payments
The employee at the termination of the employment contract will be entitled for to the following:
1. A notice period, or any amount due in lieu of the notice period, in the case of an unlimited contract.
2. Compensation for the unreasonable dismissal if the contract was terminated by the employer for unreasonable cause, in the case of an unlimited contract.
3. In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month's salary whichever is greater.
4. Payments equivalent to the balance of unutilized leave or any part thereof.
5. Payments for overtime or any balance of wages due and not yet paid.
6. End of service gratuity calculated on the duration of the employment.
7. Repatriation expense as per the law or the contact.
2. What does the term end of service gratuity mean in terms of compensation?
An employee who completes one year or more in continuous service shall be entitled to gratuity at the end of the service. The gratuity shall be calculated as follows:
1. 21 day's wages for each year of the first five years.
2. 30 day's wages for each additional year on condition that the total of the gratuity shall not exceed the wages of two years.
3. How is gratuity calculated?
Gratuity is calculated on an annual basis if the employee has actually completed one year of employment with the employer or more. The day of absence from work without pay shall not be included in calculating the length of service. However, if the employee completed a year in service he will be entitled to a gratuity for the fraction of the year proportional for the part of the year he spent in work provided that he has completed one year in continuous service.
4. On what basis is gratuity calculated?
Without prejudice to what is stipulated by some laws in the granting of pensions or retirement benefits to employees, in some establishments gratuity for those who are paid monthly, weekly or daily wages shall be calculated as follows:
Basic wage which is taken as a basis for the calculation of gratuity is that which is last received by the employee before the termination of the employment contract. This wage will be the basis for calculating the gratuity for all the years during which the employee works for the employer calculated at the rate advised here above.
5. What does a basic wage mean?
A basic wage means anything received by the employee as a wage excluding housing, transport, travelling allowances and overtime, family allowances, entertaining allowances and any other allowances or a bonus.
6. Would a commission or payment by percentage be considered a basic wage?
According to recent judgment delivered by the UAE court, any amount payable to employee as wage other than allowances or bonus including wages paid by percent, commission or by performance will be considered a wage and will be taken into consideration in calculating gratuity.
7. Would an employee employed prior to the law coming into use be entitled to gratuity?
According to the UAE law, employees who are working with their employer prior to the date on which the law came into force will not be entitled for gratuity for the period preceding the law. Without prejudice to any entitlement or payment they were entitled to under laws or regulations. However, gratuity for those employees will be calculated on the date the law came into force thereafter.
8. Can the employer deduct any payment from the gratuity payable to the employee?
The employer may deduct any amount due and payable to the employee to the employer from the end of the service gratuity and make payment for the balance to the employee. If there is any dispute over payment of gratuity or amount payable to the employer, the matter should be put to the labour office for mediation.
9. Does it make difference to the amount calculated for the gratuity if the employee resigned from employment?
An employee employed under a contract for unlimited period who resigned after a continuous service of not less than a year and not more than three years is entitled to one third of the end of service gratuity provided above. If the period of continuous service was more than three years and less than five years he is entitled to two thirds of the gratuity.
If his continuous service was more than five years, he shall be entitled to the full gratuity.
If an employee who is employed under a contract of limited period, resigned with his free will before the end of the contract, he shall not be entitled to the end of service gratuity unless his continuous service exceeds five years.
10. Can an employee be deprived of his end of service gratuity and under what circumstances?
An employee may also be deprived of his gratuity in either of the following two cases.
He has been dismissed for one of the reasons stated in Article 120 of this law, or if he left work to avoid dismissal.
If he left his job voluntarily without notice in cases other than the two provided for in Article 121 of this law. This applies to unlimited period contract and in cases where the employee did not complete five years of continuous employment in a contract of limited term.
If the establishment or company has a pension scheme which is beneficial to the employee, would it be a substitution for payment of gratuity?
If the employer has pension scheme applicable to all employees at the company or the establishment, such a scheme must be published and known to all employees, and at the same time, specify that this scheme will be a substitution for the gratuity rules governed by the UAE Federal Labour Law. It must be more beneficial to the employees than the gratuity provision of the law. Otherwise the employee may benefit from both.
11. Can the employee and the employer agree to pay gratuity for determination of the employment contract for the proceeding period?
The employer and the employer may agree to pay at a certain time the gratuity to the employee for the years during which the employee served the employer, and to start with a new contract for the future period. Provided always however, that this agreement is clearly stated, acknowledged, and agreed between the employee and employer whereby gratuity will be paid for the proceeding period, and a new contract will be entered into for the future relationship. This, bearing in mind that the employee's employment with the employer will still be considered as a continuous period for the purpose of the calculation of the interest, or at the time when he resigns, calculating the years during which he was employed with the employer.
12. Can an employee mortgage or assign payment of his gratuity?
It is possible to mortgage or assign payment of the employee's gratuity to the employer or to the third party by mutual agreements provided that in the agreement with the third party, the employer and the employee should consent and agree to this in writing with an understanding of all parties that the employee may forfeit his right for a gratuity which is not yet due if he has violated the provision of the law as stipulated above.
13. When does gratuity become due and payable?
Gratuity will only become due and payable at the end of or at the termination of the contract.
14. Would end of service gratuity and other dues payable to the employee be considered priority debts?
The employee's wages, overtime, and any other benefits, including the end of service gratuity, is considered a preferential debt and the employee shall have a lien over any movable or immovable property owned by the employer ranking second to government charges, judicial fees and family alimony payments
TERMINATION OF CONTRACT
1. When does an employment contract terminated ?
An employment contract can be terminated in any of the following circumstances:
1. If the two parties agree to cancel a contract provided that the employee consents to this in writing.
2. If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the law.
3. As a result of a wish by one of the two parties, and the labour contract has an unspecified term, provided that they observe the provision of the law referred to above, regarding notices and acceptable reasons to cancel the contract without prejudice.
2. Would an employment contract be terminated by the death of the employee or the employer?
An employer's death shall not constitute an end to the labour contract, unless the subject of the contract is related to him personally. However, the contract will be terminated upon the death of the employee or upon his total disability to perform his work.
However, if the employee's disability was partial, and he was able to perform other works which suited his health, the employer shall transfer the employee to another such work, if the employee so requests and give him the same wages for a similar job.
3. Under which circumstances can an employer terminate the employment contract without notice and with immediate effect?
An employer may dismiss an employee without any notice in any of the following cases:
1. If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certificates.
2. If the employee was appointed under probation and the termination happened during that period or at its end.
3. If the employee commits a mistake causing the employer a big financial loss, provided the employer informs the labour department of the incident within 48 hours.
4. If the employee violates instructions relating to safety in the place of work, provided those instructions were written and displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.
5. If the employee fails to carry out his basic duties as stated in the contract and continues to do so inspite of a written interrogation and a warning that his service will be terminated if he repeats his actions.
6. If he discloses a secret of the establishment for whom he is working.
7. If he is conclusively convicted by the concerned court of a crime involving honour or his honesty and public moral.
8. If he is found drunk or intoxicated by drugs during working hours.
9. If he commits a physical assault on the employer or manager or one of his colleagues during work.
10. If he becomes absent without a legitimate reason for more than 20 intermittent days or more than 7 continuous days within one year.
4. Can an employee terminate a contract without notice?
An employee may leave his work without notice in either of these two cases:
1. If the employer has not fulfilled his obligation towards him as provided in the contract or in this law.
2. If he was assaulted by the employer or his legal representative.
5. Would changes in the structure of the company or its ownership be considered a termination to the contract?
If there is a change in the form of the establishment or its legal position, any contract valid during the time of change shall remain valid and the service considered continuous. Both the previous and the new employer shall be jointly responsible for six months in executing the obligations relating to the contract of the employee in the period prior to the change.
After the end of this six month period, the new employer shall alone be responsible.
6. Can an employee after the termination of contract be employed by other employer in the UAE?
If the nature of the position held by the employee allows him to know his employer's clients or the trade secrets of the employer, the employer may stipulate in the contract that after the end of his contract, the employee shall not compete with him or share in any competing product. The employee has to be 21 years old at the time of signing the contract for this agreement to be legal. The agreement shall be, as far as time, place and nature of work are concerned, limited to what is necessary to protect the legal interest of the employer. However, if there were no agreements, the employee may work for another employer provided in case of the employee being non-national, he is one of the categories exempted from six months or a one year ban, and that he has not committed any violation to the law which makes him subject to a one year ban from working in the UAE.
7. What employment ban provision apply upon the termination of an employment contract ?
One year ban will be stamped on the employee passport by the Immigration office if the employee violates the employment contract or the UAE Labour Law and Regulations. The six months ban will be stamped on the category whom not permitted to transfer visa and on the cancellation of the some.
The following category are permitted to transfer of Residence visa:
1. Engineers.
2. Doctors, Pharmacists and hospital attendants.
3. Agriculture instructors.
4. Teachers
5. Qualified Accountants and Auditors
6. Qualified Administration officials.
7. Technicians of scientific electronics and laboratories.
8. Drivers licensed to drive heavy transport vehicles and (buses)
This is in case of transferring the sponsorship from a company or establishment to its counterpart or to any governmental body.
9. Employees of private oil companies are entitled to transfer their sponsorship from one company or establishment to its counterpart or to any governmental body.
Provided always that:
1. The employee shall occupy with the new employer the same position he used occupy with the previous employer.
2. The employee must have a valid residency stamped on his passport.
3. the employee should have completed at least one year with the previous employer.
4. The employee must obtain the consent of the sponsor to transfer the sponsorship.
With the following exception to the above rules:
1. If the transfer was to be from one branch to another branch within the same company, establishment or an establishment owned by the same employer.
2. If the transfer was because of the transfer of the ownership of the company, establishment or a branch of it to the ownership of another company, establishment or person.
3. If the sponsor breached his liabilities and this resulted in the closing of the establishment.
4. If a court judgment was delivered the bankruptcy or the wind up and termination of activities of the establishment.
5. In the case of the death of the original sponsor and his heirs do not intend to continue in running the establishment and consequently it was closed.
This Rules has been -------- by Ministerial Decree No. 13 of 1991.
8. Which rules, if violated, will result in termination of the contract, and thus the employee being banned from working in the UAE for one year?
If the employee without a justified cause, before the end of a specified employment contract, or in the case of unlimited contract, leaves the employer, without giving one month's notice of termination, or leaves his employment before the lapse of one month's notice.
9. Is the employer obliged to give an end of service certificate to the employee at the end of the service?
An employer shall give his employee at his request at the end of the contract a service certificate free of charge, stating the date of commencement of service, the expiry date, total service period, nature of work carried out by the employee, his last wage and any allowances, if they exist.
The employer shall also return to the employee all that he has deposited with him like certificates, papers, instruments etc.
An employment contract can be terminated in any of the following circumstances:
1. If the two parties agree to cancel a contract provided that the employee consents to this in writing.
2. If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the law.
3. As a result of a wish by one of the two parties, and the labour contract has an unspecified term, provided that they observe the provision of the law referred to above, regarding notices and acceptable reasons to cancel the contract without prejudice.
2. Would an employment contract be terminated by the death of the employee or the employer?
An employer's death shall not constitute an end to the labour contract, unless the subject of the contract is related to him personally. However, the contract will be terminated upon the death of the employee or upon his total disability to perform his work.
However, if the employee's disability was partial, and he was able to perform other works which suited his health, the employer shall transfer the employee to another such work, if the employee so requests and give him the same wages for a similar job.
3. Under which circumstances can an employer terminate the employment contract without notice and with immediate effect?
An employer may dismiss an employee without any notice in any of the following cases:
1. If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certificates.
2. If the employee was appointed under probation and the termination happened during that period or at its end.
3. If the employee commits a mistake causing the employer a big financial loss, provided the employer informs the labour department of the incident within 48 hours.
4. If the employee violates instructions relating to safety in the place of work, provided those instructions were written and displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.
5. If the employee fails to carry out his basic duties as stated in the contract and continues to do so inspite of a written interrogation and a warning that his service will be terminated if he repeats his actions.
6. If he discloses a secret of the establishment for whom he is working.
7. If he is conclusively convicted by the concerned court of a crime involving honour or his honesty and public moral.
8. If he is found drunk or intoxicated by drugs during working hours.
9. If he commits a physical assault on the employer or manager or one of his colleagues during work.
10. If he becomes absent without a legitimate reason for more than 20 intermittent days or more than 7 continuous days within one year.
4. Can an employee terminate a contract without notice?
An employee may leave his work without notice in either of these two cases:
1. If the employer has not fulfilled his obligation towards him as provided in the contract or in this law.
2. If he was assaulted by the employer or his legal representative.
5. Would changes in the structure of the company or its ownership be considered a termination to the contract?
If there is a change in the form of the establishment or its legal position, any contract valid during the time of change shall remain valid and the service considered continuous. Both the previous and the new employer shall be jointly responsible for six months in executing the obligations relating to the contract of the employee in the period prior to the change.
After the end of this six month period, the new employer shall alone be responsible.
6. Can an employee after the termination of contract be employed by other employer in the UAE?
If the nature of the position held by the employee allows him to know his employer's clients or the trade secrets of the employer, the employer may stipulate in the contract that after the end of his contract, the employee shall not compete with him or share in any competing product. The employee has to be 21 years old at the time of signing the contract for this agreement to be legal. The agreement shall be, as far as time, place and nature of work are concerned, limited to what is necessary to protect the legal interest of the employer. However, if there were no agreements, the employee may work for another employer provided in case of the employee being non-national, he is one of the categories exempted from six months or a one year ban, and that he has not committed any violation to the law which makes him subject to a one year ban from working in the UAE.
7. What employment ban provision apply upon the termination of an employment contract ?
One year ban will be stamped on the employee passport by the Immigration office if the employee violates the employment contract or the UAE Labour Law and Regulations. The six months ban will be stamped on the category whom not permitted to transfer visa and on the cancellation of the some.
The following category are permitted to transfer of Residence visa:
1. Engineers.
2. Doctors, Pharmacists and hospital attendants.
3. Agriculture instructors.
4. Teachers
5. Qualified Accountants and Auditors
6. Qualified Administration officials.
7. Technicians of scientific electronics and laboratories.
8. Drivers licensed to drive heavy transport vehicles and (buses)
This is in case of transferring the sponsorship from a company or establishment to its counterpart or to any governmental body.
9. Employees of private oil companies are entitled to transfer their sponsorship from one company or establishment to its counterpart or to any governmental body.
Provided always that:
1. The employee shall occupy with the new employer the same position he used occupy with the previous employer.
2. The employee must have a valid residency stamped on his passport.
3. the employee should have completed at least one year with the previous employer.
4. The employee must obtain the consent of the sponsor to transfer the sponsorship.
With the following exception to the above rules:
1. If the transfer was to be from one branch to another branch within the same company, establishment or an establishment owned by the same employer.
2. If the transfer was because of the transfer of the ownership of the company, establishment or a branch of it to the ownership of another company, establishment or person.
3. If the sponsor breached his liabilities and this resulted in the closing of the establishment.
4. If a court judgment was delivered the bankruptcy or the wind up and termination of activities of the establishment.
5. In the case of the death of the original sponsor and his heirs do not intend to continue in running the establishment and consequently it was closed.
This Rules has been -------- by Ministerial Decree No. 13 of 1991.
8. Which rules, if violated, will result in termination of the contract, and thus the employee being banned from working in the UAE for one year?
If the employee without a justified cause, before the end of a specified employment contract, or in the case of unlimited contract, leaves the employer, without giving one month's notice of termination, or leaves his employment before the lapse of one month's notice.
9. Is the employer obliged to give an end of service certificate to the employee at the end of the service?
An employer shall give his employee at his request at the end of the contract a service certificate free of charge, stating the date of commencement of service, the expiry date, total service period, nature of work carried out by the employee, his last wage and any allowances, if they exist.
The employer shall also return to the employee all that he has deposited with him like certificates, papers, instruments etc.
EMPLOYMENT OF JUVENILES
1. Does the law restrict the employment of any category of persons?
1. Employment of Juveniles (of either sex) under the age of 15 is prohibited. Before employing a juvenile, employers must retain copies shall obtain from him the following documents in the Juvenile's personal file:
a. A birth certificate or age-estimation certificate issued by a specialized physician and certified by the concerned health authorities.
b. A certificate of physical fitness for the nature of proposed work, issued by a specialized physician and certified y the concerned authorities.
c. A written consent from the juvenile's guardian.
2. Further the employment of juveniles is prohibited under the following circumstances:
a. At night in industries.
b. In hazardous jobs or work which is harmful to health.
c. With working hours in excess of six hours per day (one or more breaks for rest is to be provided within the stipulated six hours).
d. To work overtime under any circumstances or to remain at the place of work after their working hours.
e. Work on holidays.
f. Employment of women at night between 10.00 p.m. to 7.00 am is prohibited, save and except for the following situations/categories:
i. During work stoppages due to force majeure.
ii. Employees in relatively technical and administrative position.
3. Health workers - other jobs as determined by the Minister of Labour and Social Affairs, provided that the woman employee does not usually perform a manual job.
g. Woman are not to be employed in hazardous or difficult work and, other duties harmful to health or morals, or in other jobs as may be specified by the Minister of Labour and Social Affairs
1. Employment of Juveniles (of either sex) under the age of 15 is prohibited. Before employing a juvenile, employers must retain copies shall obtain from him the following documents in the Juvenile's personal file:
a. A birth certificate or age-estimation certificate issued by a specialized physician and certified by the concerned health authorities.
b. A certificate of physical fitness for the nature of proposed work, issued by a specialized physician and certified y the concerned authorities.
c. A written consent from the juvenile's guardian.
2. Further the employment of juveniles is prohibited under the following circumstances:
a. At night in industries.
b. In hazardous jobs or work which is harmful to health.
c. With working hours in excess of six hours per day (one or more breaks for rest is to be provided within the stipulated six hours).
d. To work overtime under any circumstances or to remain at the place of work after their working hours.
e. Work on holidays.
f. Employment of women at night between 10.00 p.m. to 7.00 am is prohibited, save and except for the following situations/categories:
i. During work stoppages due to force majeure.
ii. Employees in relatively technical and administrative position.
3. Health workers - other jobs as determined by the Minister of Labour and Social Affairs, provided that the woman employee does not usually perform a manual job.
g. Woman are not to be employed in hazardous or difficult work and, other duties harmful to health or morals, or in other jobs as may be specified by the Minister of Labour and Social Affairs
ANNUAL LEAVE
1. What are an employee's leave entitlements?
For every year of service, an employee is entitled to an annual leave of not less than the following:
i. Two days leave for every month if his service is more than six months and less than a year.
ii. 30 days annually if his service exceeds one year. At the end of the service the employee is entitled to an annual leave for the fraction of the last year he spent in service.
2. Which official holidays are the employee entitled to ?
An employee is entitled to an official holiday with full wage for the following occasions:
1 Hijri New Year's Day one day
2 Gregorian New Year's Day one day
3 Eid Al Fitr (end of Ramadan) two days
4 Eid Al Ada and Waqfa three days
5 Prophet Mohammed's Birthday one day
6 Isra and Al Mi'raj one day
7 National Day one day
3. Are official holidays excluded from the calculation of leave?
No. The calculation of duration of annual leave shall include holidays specified by law or by agreement, or by any other day because of sickness if they fall within the leave and shall be deemed to be part thereof.
4. What would be payable to the employee during his annual leave?
An employee shall be paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month.
5. Who determines when the leave starts and for how long?
The employer has the right to determine the beginning of the annual leave, and when necessary, he has the right to divide the leave into two sections.
If however, work circumstances require keeping the employee during whole or part of his annual leave and the leave has not been carried over for the following year, then the employer shall pay him his wage in addition to a leave allowance for the day he worked equal to his basic wage.
In all cases, no employee shall be required to work during his annual leave more than once during two consecutive years. In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.
6. At which point should annual leave wages be paid?
Before taking his annual leave, the employee shall be paid his full wage, plus the wage of his leave days he deserves according to the provision of this law.
7. Is the employee entitled to payment in lieu of leave if his services are terminated?
The employee is entitled to payment of his wages for his leave if his employment is terminated, or he left his work after the period of notice determined by law. The employee will be entitled to receive wages for the annual leave that he has not taken. Payment will be calculated on the basis of the wages he received at the time when the leave was due.
For every year of service, an employee is entitled to an annual leave of not less than the following:
i. Two days leave for every month if his service is more than six months and less than a year.
ii. 30 days annually if his service exceeds one year. At the end of the service the employee is entitled to an annual leave for the fraction of the last year he spent in service.
2. Which official holidays are the employee entitled to ?
An employee is entitled to an official holiday with full wage for the following occasions:
1 Hijri New Year's Day one day
2 Gregorian New Year's Day one day
3 Eid Al Fitr (end of Ramadan) two days
4 Eid Al Ada and Waqfa three days
5 Prophet Mohammed's Birthday one day
6 Isra and Al Mi'raj one day
7 National Day one day
3. Are official holidays excluded from the calculation of leave?
No. The calculation of duration of annual leave shall include holidays specified by law or by agreement, or by any other day because of sickness if they fall within the leave and shall be deemed to be part thereof.
4. What would be payable to the employee during his annual leave?
An employee shall be paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month.
5. Who determines when the leave starts and for how long?
The employer has the right to determine the beginning of the annual leave, and when necessary, he has the right to divide the leave into two sections.
If however, work circumstances require keeping the employee during whole or part of his annual leave and the leave has not been carried over for the following year, then the employer shall pay him his wage in addition to a leave allowance for the day he worked equal to his basic wage.
In all cases, no employee shall be required to work during his annual leave more than once during two consecutive years. In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.
6. At which point should annual leave wages be paid?
Before taking his annual leave, the employee shall be paid his full wage, plus the wage of his leave days he deserves according to the provision of this law.
7. Is the employee entitled to payment in lieu of leave if his services are terminated?
The employee is entitled to payment of his wages for his leave if his employment is terminated, or he left his work after the period of notice determined by law. The employee will be entitled to receive wages for the annual leave that he has not taken. Payment will be calculated on the basis of the wages he received at the time when the leave was due.
SICK LEAVE
IX. SICK LEAVE
1. Is the employee entitled to sick leave?
The employee must report to the employer any injuries or illness preventing him from working, within a maximum period of two days.
The employee will not be entitled for any sick leave during the probation period.
After a period of three months continuous service following the probation period, the employee is entitled to:
1. Full wage for the first 15 days.
2. Half wage for the next 30 days.
3. Any following period will be without wage.
However, if the employee's illness is directly caused by his misconduct, he is not entitled to any wage during the sick leave.
2. Can the employee resign from employment during the sick leave?
The employee may resign from employment during the sick leave and before the completion of 45 days specified by law, provided the cause of resignation was approved by a government physician. In this situation, the employer must pay the employee who resigned, all the wages of which he is entitled for until the end of the 45 days referred to above.
3. Can the employer terminate the employee from service during his sick or annual leave?
The employer may not terminate the employee from service during his sick leave or during his annual leave. During this period any notice for termination will be considered null and void.
However, the employer is entitled to terminate the employment contract if the employee has exhausted his full sick leave and is not fit to come back to work. In such a case the employee will be entitled for his full gratuity and end of service entitlement according to this law.
Further, the employee will not be entitled to wages for the days that he has not reported to work after the end of his leave. This will not prejudice the rights of the employer to terminate the employees contract if he fails to report back to work within 7 consecutive days from the date on which he was due back.
4. Is going to Haj for pilgrimage considered part of the annual leave?.
The employer must give the employee once during his employment a special leave without pay to go for Haj ( pilgrimage) which should not exceed 30 days. This 30 days will not be part of the employee's annual leave or any other leave for which he is entitled.
5. Maternity leave entitlement
A working woman shall be entitled for 45 days maternity leave with full pay to include the period before and after the delivery, provided she has served continuously for not less than one year. The maternity leave shall be granted with half pay if the woman has not completed one year.
At the end of the maternity leave, a working woman has a right to extend her maternity leave for a maximum of 100 days without pay. This unpaid leave can be continuous or interrupted if the interruption is caused by illness which prevents her from coming to work. The illness must be confirmed by a certified government physician licensed by the competent health authority.
Maternity leave in either of the above cases shall not be deducted from any other leave for which the woman employee is entitled.
During the 18th months following the delivery, the working woman, who fosters her child has the right to have two daily intervals which do not exceed half an hour each for the purpose of nursing her child. Those two additional intervals shall be considered part of the working hours and no deduction in wages shall be made
1. Is the employee entitled to sick leave?
The employee must report to the employer any injuries or illness preventing him from working, within a maximum period of two days.
The employee will not be entitled for any sick leave during the probation period.
After a period of three months continuous service following the probation period, the employee is entitled to:
1. Full wage for the first 15 days.
2. Half wage for the next 30 days.
3. Any following period will be without wage.
However, if the employee's illness is directly caused by his misconduct, he is not entitled to any wage during the sick leave.
2. Can the employee resign from employment during the sick leave?
The employee may resign from employment during the sick leave and before the completion of 45 days specified by law, provided the cause of resignation was approved by a government physician. In this situation, the employer must pay the employee who resigned, all the wages of which he is entitled for until the end of the 45 days referred to above.
3. Can the employer terminate the employee from service during his sick or annual leave?
The employer may not terminate the employee from service during his sick leave or during his annual leave. During this period any notice for termination will be considered null and void.
However, the employer is entitled to terminate the employment contract if the employee has exhausted his full sick leave and is not fit to come back to work. In such a case the employee will be entitled for his full gratuity and end of service entitlement according to this law.
Further, the employee will not be entitled to wages for the days that he has not reported to work after the end of his leave. This will not prejudice the rights of the employer to terminate the employees contract if he fails to report back to work within 7 consecutive days from the date on which he was due back.
4. Is going to Haj for pilgrimage considered part of the annual leave?.
The employer must give the employee once during his employment a special leave without pay to go for Haj ( pilgrimage) which should not exceed 30 days. This 30 days will not be part of the employee's annual leave or any other leave for which he is entitled.
5. Maternity leave entitlement
A working woman shall be entitled for 45 days maternity leave with full pay to include the period before and after the delivery, provided she has served continuously for not less than one year. The maternity leave shall be granted with half pay if the woman has not completed one year.
At the end of the maternity leave, a working woman has a right to extend her maternity leave for a maximum of 100 days without pay. This unpaid leave can be continuous or interrupted if the interruption is caused by illness which prevents her from coming to work. The illness must be confirmed by a certified government physician licensed by the competent health authority.
Maternity leave in either of the above cases shall not be deducted from any other leave for which the woman employee is entitled.
During the 18th months following the delivery, the working woman, who fosters her child has the right to have two daily intervals which do not exceed half an hour each for the purpose of nursing her child. Those two additional intervals shall be considered part of the working hours and no deduction in wages shall be made
PAYMENT OF WAGES
1. What constitutes wage according to the Law?
Wages according to the Law, has been defined as follows:
"Remuneration paid to the employee in return for his services under a labour contract, whether in cash or in kind; annually, monthly, weekly, daily, hourly, on a piece-rate, productivity linked. "Wage" include cost of living allowances, incentives in recognition of honesty or efficiency, provided that these incentives have been specified in the labour contract or in the establishment's internal rules and regulations, have become customary or if the employees of that establishment have come to regard such incentives as part of the wages as opposed to a donation.
2. What is the difference between "Wages" and "Basic Wage"?
"Basic Wage" is the wage specified in the labour contract and as agreed between the parties for the term of the contract. Allowances of whatever nature are not included in the basic wage. Therefore, accommodation, housing, transport and travel allowances will not be included in the basic wage.
Basic wage is significant in the calculation of end-of-service gratuity, which is determined on the basis of the last drawn basic wage and not on the basis of the total wage. Allowances will not form part of the basis for this calculation.
3. Does the Law prescribe a minimum wage?
No minimum wage has been prescribed under the UAE Labour Law. However, an employee with a monthly salary of less than Dhs. 4,000.00 will not be able to sponsor a resident visa for his spouse. This is a labour regulation and does not form part the labour law.
4. How are wages to be paid?
Wages may be paid on a monthly, weekly, or on a daily basis. The parties may mutually agree on the manner in which wages would be paid or remitted. It may be paid in the UAE or elsewhere.
5. In what currency are wages to be paid?
Wages may be paid in any currency, in UAE Dirhams or any other currency. The parties may agree on the actual currency. Neither the Labour law nor any other law of the United Arab Emirates restricts repatriation or transfer of monies.
6. Does the law require evidence of payment of wages?
In the case of any dispute, the employer would be required to prove that the employee had been paid his wages along with such allowances as applicable. Such evidence must be in writing. However, the employee can prove non-payment of wages by any means stated in the law of evidence. It is necessary that the employer maintains adequate record and books recording payment of wages and allowances.
Wages according to the Law, has been defined as follows:
"Remuneration paid to the employee in return for his services under a labour contract, whether in cash or in kind; annually, monthly, weekly, daily, hourly, on a piece-rate, productivity linked. "Wage" include cost of living allowances, incentives in recognition of honesty or efficiency, provided that these incentives have been specified in the labour contract or in the establishment's internal rules and regulations, have become customary or if the employees of that establishment have come to regard such incentives as part of the wages as opposed to a donation.
2. What is the difference between "Wages" and "Basic Wage"?
"Basic Wage" is the wage specified in the labour contract and as agreed between the parties for the term of the contract. Allowances of whatever nature are not included in the basic wage. Therefore, accommodation, housing, transport and travel allowances will not be included in the basic wage.
Basic wage is significant in the calculation of end-of-service gratuity, which is determined on the basis of the last drawn basic wage and not on the basis of the total wage. Allowances will not form part of the basis for this calculation.
3. Does the Law prescribe a minimum wage?
No minimum wage has been prescribed under the UAE Labour Law. However, an employee with a monthly salary of less than Dhs. 4,000.00 will not be able to sponsor a resident visa for his spouse. This is a labour regulation and does not form part the labour law.
4. How are wages to be paid?
Wages may be paid on a monthly, weekly, or on a daily basis. The parties may mutually agree on the manner in which wages would be paid or remitted. It may be paid in the UAE or elsewhere.
5. In what currency are wages to be paid?
Wages may be paid in any currency, in UAE Dirhams or any other currency. The parties may agree on the actual currency. Neither the Labour law nor any other law of the United Arab Emirates restricts repatriation or transfer of monies.
6. Does the law require evidence of payment of wages?
In the case of any dispute, the employer would be required to prove that the employee had been paid his wages along with such allowances as applicable. Such evidence must be in writing. However, the employee can prove non-payment of wages by any means stated in the law of evidence. It is necessary that the employer maintains adequate record and books recording payment of wages and allowances.
WORKING HOURS
1. What are the prescribed working hours?
The maximum prescribed working hours for an adult employee is eight hours daily or forty-eight hours per week. However, the working hours may be increased to nine hours per day in the case of persons employed in trades, hotels, cafeterias, guards.
2. Would travelling to and from work be included in working hours?
No, the time travelling to and from work is not included in working hours.
3. Are breaks included during working hours?
The employee may not work for more than 5 consecutive hours per day without breaks for rest, food and prayer. However, the resting and the food will not be included in calculating the working hours. In the case of factories where people work day and night, shifts or jobs where for technical and economical reasons, continuance attendance is required, the ministers shall specify the manner in which the employee may take intervals for rest, prayer and meals.
4. In what situations does overtime exist, and on what basis is it calculated?
If the nature of the job requires overtime, the employee shall be paid overtime and the payment shall be equivalent to the wage paid for the ordinary working hours plus an increase of not less than 25% of his wage for the overtime period. However, if the employee's overtime fall between the hours 9.00 p.m. to 4.00 p.m. the employee will be entitled to an overtime equivalent to the normal working hours plus an increase of not less than 50% of his wage for the overtime period.
If circumstance of work require the employee to work at the place of work on Friday, he shall be given another day for rest during the week as a substitution or be paid a basic wage plus a minimum of 50% of that wage. However, the employee shall not be asked to work two consecutive Fridays unless his wages are calculated on a daily basis.
In any circumstances, overtime shall not exceed two hours in a day except where work is necessary to prevent big losses, a serious accident or to remove traces of such an accident, or reduce its effects.
The above provisions however, will not be applicable to the following persons.
1. Persons in a senior position, or in an administrative supervisory role, if such persons have similar authority over employees, as the authority of the employer.
2. Crews of naval ships and marine employees who enjoy special privileges because of the nature of their work. This does not include port employees engaged in loading and unloading and other related work
The maximum prescribed working hours for an adult employee is eight hours daily or forty-eight hours per week. However, the working hours may be increased to nine hours per day in the case of persons employed in trades, hotels, cafeterias, guards.
2. Would travelling to and from work be included in working hours?
No, the time travelling to and from work is not included in working hours.
3. Are breaks included during working hours?
The employee may not work for more than 5 consecutive hours per day without breaks for rest, food and prayer. However, the resting and the food will not be included in calculating the working hours. In the case of factories where people work day and night, shifts or jobs where for technical and economical reasons, continuance attendance is required, the ministers shall specify the manner in which the employee may take intervals for rest, prayer and meals.
4. In what situations does overtime exist, and on what basis is it calculated?
If the nature of the job requires overtime, the employee shall be paid overtime and the payment shall be equivalent to the wage paid for the ordinary working hours plus an increase of not less than 25% of his wage for the overtime period. However, if the employee's overtime fall between the hours 9.00 p.m. to 4.00 p.m. the employee will be entitled to an overtime equivalent to the normal working hours plus an increase of not less than 50% of his wage for the overtime period.
If circumstance of work require the employee to work at the place of work on Friday, he shall be given another day for rest during the week as a substitution or be paid a basic wage plus a minimum of 50% of that wage. However, the employee shall not be asked to work two consecutive Fridays unless his wages are calculated on a daily basis.
In any circumstances, overtime shall not exceed two hours in a day except where work is necessary to prevent big losses, a serious accident or to remove traces of such an accident, or reduce its effects.
The above provisions however, will not be applicable to the following persons.
1. Persons in a senior position, or in an administrative supervisory role, if such persons have similar authority over employees, as the authority of the employer.
2. Crews of naval ships and marine employees who enjoy special privileges because of the nature of their work. This does not include port employees engaged in loading and unloading and other related work
PROBATION PERIOD
1. What is stipulations regarding the probation period?
During the probation period either the employer or the employee may terminate the employment contract with immediate effect without the employee being liable to pay end of service gratuity or the employee, compensation for damages. According to Article 37 of the Law, the probation period can be for a maximum period of six months. It is not permissible for the same employer to employ any person on probation, more than once.
2. Is the period of probation included for the purposes of calculation of gratuity and other terminal benefits?
The probation period, once completed, will be considered as employment with the employer. It will be taken into account in calculating gratuity and other terminal benefits.
3. Are employers liable to pay repatriation and other benefits for probationary termination?
All wages and benefits occurring during the probation period must be paid along with the repatriation costs unless the termination of the employment contract had been at the behest of the employee. The employer is however not required to pay end-of-service gratuity or compensation in lieu of notice or damages should the employment contract be terminated without notice (during the probationary period).
4. Can the probationary period be waived?
The parties to the contract may agree to commence the employment without probation. Probation is not compulsory. Further it is left to the discretion of the parties to agree upon the actual term of the probationary period subject to a maximum of six months.
During the probation period either the employer or the employee may terminate the employment contract with immediate effect without the employee being liable to pay end of service gratuity or the employee, compensation for damages. According to Article 37 of the Law, the probation period can be for a maximum period of six months. It is not permissible for the same employer to employ any person on probation, more than once.
2. Is the period of probation included for the purposes of calculation of gratuity and other terminal benefits?
The probation period, once completed, will be considered as employment with the employer. It will be taken into account in calculating gratuity and other terminal benefits.
3. Are employers liable to pay repatriation and other benefits for probationary termination?
All wages and benefits occurring during the probation period must be paid along with the repatriation costs unless the termination of the employment contract had been at the behest of the employee. The employer is however not required to pay end-of-service gratuity or compensation in lieu of notice or damages should the employment contract be terminated without notice (during the probationary period).
4. Can the probationary period be waived?
The parties to the contract may agree to commence the employment without probation. Probation is not compulsory. Further it is left to the discretion of the parties to agree upon the actual term of the probationary period subject to a maximum of six months.
Employment Contract
1. What are the permitted tenures of employment contracts?
Two types of employment contracts are permissible: Limited employment contracts which are contracts for a specified duration with specific commencement and completion dates, and unlimited contracts by which the employee will continue to work for the employer from a specific date till such time as the employment contract is terminated by either party after giving prior notice.
2. What is the difference between a limited and an unlimited employment contract?
A limited contract has the following characteristics:
1. It has a commencement and completion date.
2. Its term cannot be in excess of a period of 4 years. It can however be renewed on mutual consent for a similar or lessee period.
3. The employment will terminate at the end of the contract period.
4. If the employer terminates the contract for reason other than those specified in Article 120, he would be liable to pay compensation to the employee. This compensation shall be determined on the basis of the wages due for a period of three months or for the remaining period of the contract whichever is less, unless an article in the contract states otherwise.
5. If the contract is cancelled by the employee for reasons other than those stipulated in Article 121, he will be liable to compensate the employer against any loss resulting from its cancellation. The amount of compensation shall be computed on the basis of half-a-month's wages for three months or for the remaining period of the contract whichever is less, unless the contract states otherwise.
The characteristics of an unlimited contract are as follows:
1. The contract will state a commencement date but no completion date i.e. the date on which the contract will end.
2. A contract will be considered "unlimited" if it is a oral contract or if it is not for a specified period or it had been for a specified period and the parties continue to act on its terms & conditions after its expiry, without any written contract specifying the completion date, or if the purpose of the employment is to complete work not estimated within a specified time-frame or which is by very nature not renewable.
3. The contract may be terminated on a mutual agreement by either of the parties by giving the other 30 days notice of termination.
4. The contract may be terminated for a justified cause at any time on giving 30 days notice of termination by either party to the other. The notice period may be less for an employee working on daily basis.
5. The notice period may be extended for a period exceeding 30 days. It would then not be acceptable for the parties to waive this notice period.
6. The employees wages during the notice period should be paid in full for the entire notice period served.
7. In the event that no notice had been given, the person who ought to have given the notice must compensate the other with the payment of a month's wage in lieu of the notice period.
8. As per Article 120, the employer may terminate the employee's contract without notice.
9. The employee may terminate the employment contact without notice in accordance with Article 121.
10. The employee will be entitled to compensation if the termination of the contract had been for an unjustified cause. The court may award the employee damages, against the employer, provided that the damages so awarded does not exceed three months wages of the employee (calculation to be based on the last wage paid to the employee).
11. The compensation for damages if any, awarded to the employee for unreasonable dismissal, will be without prejudice to the employee's entitlement of end-of-service gratuity and payments in lieu of notice, if notice had not been properly given.
3. What information should be stated in an employment contract?
The only information required by law to be specified in the employment contract is as follows:
1. Date of the employment contract
2. Date of commencement of the employment contract
3. Nature of the contract (limited or unlimited)
4. Designation/category
5. Term of the contract (for limited contracts)
6. The compensation package
Two types of employment contracts are permissible: Limited employment contracts which are contracts for a specified duration with specific commencement and completion dates, and unlimited contracts by which the employee will continue to work for the employer from a specific date till such time as the employment contract is terminated by either party after giving prior notice.
2. What is the difference between a limited and an unlimited employment contract?
A limited contract has the following characteristics:
1. It has a commencement and completion date.
2. Its term cannot be in excess of a period of 4 years. It can however be renewed on mutual consent for a similar or lessee period.
3. The employment will terminate at the end of the contract period.
4. If the employer terminates the contract for reason other than those specified in Article 120, he would be liable to pay compensation to the employee. This compensation shall be determined on the basis of the wages due for a period of three months or for the remaining period of the contract whichever is less, unless an article in the contract states otherwise.
5. If the contract is cancelled by the employee for reasons other than those stipulated in Article 121, he will be liable to compensate the employer against any loss resulting from its cancellation. The amount of compensation shall be computed on the basis of half-a-month's wages for three months or for the remaining period of the contract whichever is less, unless the contract states otherwise.
The characteristics of an unlimited contract are as follows:
1. The contract will state a commencement date but no completion date i.e. the date on which the contract will end.
2. A contract will be considered "unlimited" if it is a oral contract or if it is not for a specified period or it had been for a specified period and the parties continue to act on its terms & conditions after its expiry, without any written contract specifying the completion date, or if the purpose of the employment is to complete work not estimated within a specified time-frame or which is by very nature not renewable.
3. The contract may be terminated on a mutual agreement by either of the parties by giving the other 30 days notice of termination.
4. The contract may be terminated for a justified cause at any time on giving 30 days notice of termination by either party to the other. The notice period may be less for an employee working on daily basis.
5. The notice period may be extended for a period exceeding 30 days. It would then not be acceptable for the parties to waive this notice period.
6. The employees wages during the notice period should be paid in full for the entire notice period served.
7. In the event that no notice had been given, the person who ought to have given the notice must compensate the other with the payment of a month's wage in lieu of the notice period.
8. As per Article 120, the employer may terminate the employee's contract without notice.
9. The employee may terminate the employment contact without notice in accordance with Article 121.
10. The employee will be entitled to compensation if the termination of the contract had been for an unjustified cause. The court may award the employee damages, against the employer, provided that the damages so awarded does not exceed three months wages of the employee (calculation to be based on the last wage paid to the employee).
11. The compensation for damages if any, awarded to the employee for unreasonable dismissal, will be without prejudice to the employee's entitlement of end-of-service gratuity and payments in lieu of notice, if notice had not been properly given.
3. What information should be stated in an employment contract?
The only information required by law to be specified in the employment contract is as follows:
1. Date of the employment contract
2. Date of commencement of the employment contract
3. Nature of the contract (limited or unlimited)
4. Designation/category
5. Term of the contract (for limited contracts)
6. The compensation package
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