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UAE Labour Law

  • 1. Employment Contracts

    • All employees must have a written employment contract specifying job details, salary, and other conditions.
    • Contracts are now limited-term (fixed), with a maximum duration of three years, renewable upon mutual agreement.

    2. Working Hours & Overtime

    • The standard workweek is 48 hours, with a maximum of 8 hours per day.
    • Overtime pay is:
      • 25% extra for regular overtime
      • 50% extra for overtime between 10 PM – 4 AM (except for shift workers)

    3. Wages & Salary Protection

    • The Wages Protection System (WPS) ensures that salaries are paid on time.
    • Employers must pay salaries through banks or financial institutions.
    • Minimum wage: No fixed minimum wage, but employees must receive fair compensation as per the contract.

    4. Leave & Holidays

    • Annual Leave:
      • 30 days after one year of service.
      • 2 days per month if the service period is between 6 months and 1 year.
    • Sick Leave: 90 days per year (first 15 days paid, next 30 half-paid, last 45 unpaid).
    • Maternity Leave:
      • 60 days (45 days fully paid + 15 days half-paid).
      • Additional 45 unpaid days in case of medical complications.
    • Paternity Leave: 5 paid days within 6 months of childbirth.
    • Public Holidays: Employees are entitled to UAE national holidays with full pay.

    5. End of Service Benefits & Gratuity

    • Gratuity pay for employees completing 1+ years of service:
      • 21 days of basic salary per year for the first 5 years.
      • 30 days per year for each additional year.
    • If an employee resigns before completing one year, they are not entitled to gratuity.

    6. Termination & Resignation

    • Employers must provide a notice period of 30–90 days for termination.
    • Employees who resign must also serve a notice period as per the contract.

    7. Visa & Work Permit Rules

    • Expats must have a work permit issued by the Ministry of Human Resources and Emiratisation (MOHRE).
    • The employer is responsible for visa processing.
    • Golden Visa options exist for skilled professionals, investors, and entrepreneurs.
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