One of the primary regulations governing the movement of employees inside the United Arab Emirates and between different workplaces is the Mobility at Work Act.
This Act seeks to provide equitable and seamless regulation of mobility while offering protection and rights to companies and employees.
Employers and employees are required to adhere to a number of principles and rules established by the Act.
The Legislative Landscape:
One of the main tenets governing the employment relationship between employers and employees in the UAE is the Labor Code. Ensuring justice and safeguarding the rights of all parties involved is the goal of the Act. Federal Law No. 33 of 2021, which defines working conditions, salaries, furloughs, termination of employment, and dispute resolution procedures, regulates labor relations in the private sector. To maintain a just and orderly workplace, both employers and employees must follow these laws.
The United Arab Emirates’ competent ministries and legislative bodies have been established to create laws and regulations pertaining to workplace mobility and to guarantee the safety of employees. The National Health Insurance Authority, the Ministry of Labor, the Ministry of Human Resources and Settlement, and the National Occupational Safety and Security Authority are a few of these.
The UAE Labor Mobility Act centers on a number of significant areas, including written contracts between employers and employees, housing, health insurance, and worker protection. According to the law, employers are required to include all relevant information, such as the new location, duration, pay, and transportation charges, in written employment contracts.
Employers are required to provide workers with suitable, safe, and healthy housing if they relocate further away. Basic utilities including power, water, and sanitary facilities are required for such homes. This guarantees that workers have access to decent living conditions and lessens the potential issues brought on by substandard housing.
In order to protect employees’ rights to essential medical treatment and illness prevention, businesses are also required to offer health insurance to their workforce. Employers mandate health insurance for all employees, regardless of nationality or educational attainment.
The National Health Insurance Authority, for its part, strives to guarantee that employees have sufficient and appropriate health insurance and carries out the task of implementing and overseeing the Mobility at Work Act. The Authority wants to increase access to healthcare services in the United Arab Emirates while also improving the sustainability and caliber of healthcare services.
To accomplish these goals, the National Occupational Security and Safety Authority is developing rules and regulations and overseeing their implementation across all industries. Programs for raising awareness and providing training are put in place to make sure that employees understand their responsibilities and rights as well as the security and preventive measures needed in the workplace.
Contractual Framework:
The UAE’s Labor Mobility Act’s contractual framework is a crucial tool for guaranteeing the security and defense of the rights of international employees. By giving employers and investors’ confidence in the current legal and contractual structure, this framework helps to improve the nation’s trade and investment climate.
It should be highlighted, nonetheless, that disputes about contracts and working conditions might occasionally arise between the employer and the foreign employee. Under such circumstances, each party may submit a complaint with the Authority and receive the required advice and assistance through the legal system. In order to settle disagreements and ensure that all parties receive justice, the Commission may step in.
Writing down the terms of employment, including job title, description, pay, benefits, working hours, leave policies, and termination procedures, is required for employment contracts. Fixed-term and indefinite contracts are the two primary categories of contracts.
- Fixed-term contracts: These agreements have a set duration and automatically terminate at the end of that time. Usually used to special initiatives or temporary positions.
- Contracts of an indefinite duration: These agreements are open-ended and can be terminated at any time by either party with the notice period specified in the agreement.
Contracts must abide by all applicable labor laws in the United Arab Emirates as well as any further revisions or rules made by the Ministry of Human Resources and Emiratization.
Nonetheless, those who work in the UAE have to follow labor regulations, adhere to residency and visa requirements, and conduct themselves honorably and professionally. Before signing a contract, foreign employees should be aware of their rights and responsibilities and ask questions about any ambiguous information. Companies should also pledge to respect the rights of international workers and to provide a safe and healthy work environment.
Working Hours and Overtime:
In the United Arab Emirates, a typical workday consists of eight hours or 48 hours per week. There is a two-hour daily reduction in working hours during Ramadan. The rules governing overtime compensation must be followed.
Compensation for overtime: On ordinary workdays, employees are entitled to an additional 25% of their regular overtime pay; on non-workdays, they are entitled to an additional 50%. An employee must be paid for an additional day off or 150% of their regular daily salary if they are forced to work on their day of rest.
In order to guarantee legal compliance and prevent disputes, employers must also maintain precise records of their workers’ working hours.
Leave and Vacation:
The UAE Mobility Law covers a number of significant subjects, including the licenses and vacation days that are available to international workers.
First, the Labor Mobility Act of the United Arab Emirates guarantees foreign workers the right to yearly paid leave. A foreign worker is required by law to get annual paid leave for a minimum of 30 days throughout a continuous work year. After completing a full working year, a foreign worker is entitled to request a leave of absence; the employer is responsible for scheduling the leave dates and covering the worker’s wages during that time.
The law grants foreign workers various leave benefits in addition to annual leave. For instance, in the event of illness or accident, a foreign worker is entitled to up to 90 days of paid sick leave annually, which is divided into 15 paid days, 30 days at half pay, and 45 days without pay. The length of sick leave varies based on the attending physician’s recommendation, and the foreign worker needs to provide a medical certificate attesting to his current health.
There are additional leaves that foreign workers are entitled to, including maternity, marriage, and death leaves. A working mother from abroad is entitled to 60 days of maternity leave, of which 15 days are half-paid and 45 days are paid. If more time off is needed, an additional 100 days of unpaid leave may be given.
In the case that a member of their immediate family passes away, a foreign worker is entitled to up to five days of marriage leave and three days of death leave.
Within six months following the birth of their kid, male employees are entitled to five days of paid paternity leave.
During their employment, Muslim staff members are also eligible for up to 30 days of unpaid pilgrimage leave.
In order to guarantee that foreign workers receive the benefits of the legislation, the employer must be required to control these permits and furloughs. In addition, the employer is required to create appropriate conditions for the employee to return to work following the leave’s conclusion and to pay the employee’s wage during the absence.
The right of foreign workers to be paid for return leave is another facet of the UAE’s work mobility regulation. Return leave is a type of leave that foreign workers take after their employment contract has ended. During this time, they are compensated for their travel expenses back to their home country with a certain amount.
In order to receive these authorizations and depart, foreign employees must also adhere to specific regulatory processes. The employer must typically receive an official application from a foreign worker outlining the dates and kind of absence that the employee needs. The application is filed no later than a predetermined date, and the employer reviews and approves it in accordance with the requirements of the job and any relevant legal requirements.
Salary and Benefits:
Employees must get their pay and benefits in line with the terms of their employment contracts, according to UAE labor law. Employers are required to abide by the following rules:
- Payroll: Through the WPS, salaries must be directly deposited into each employee’s bank account in UAE Dirhams. At least once a month, and no later than ten days after the due date, salaries must be paid.
- Benefits: Employees are entitled to a variety of benefits in addition to the agreed-upon salary, including health insurance, end-of-service bonuses, and any other benefits mentioned in the employment contract.
- Bonus for end-of-service: Upon completion of service, employees are eligible for an end-of-service bonus that is computed based on their length of service and basic pay, with a maximum bonus of 24 months.
To keep employees happy and stay out of trouble with the law, employers have a duty to make sure that pay and benefits are paid on time and as required by law.
Termination of Employment:
In order to prevent future conflicts and legal action, terminations in the United Arab Emirates must be handled in compliance with labor laws. Regarding termination, there are particular rules that both employers and employees must abide by:
- Duration of notice: Unless the employment contract specifies otherwise, the parties shall have a minimum notice period of thirty days. By mutual consent, the notice period may be shortened or waived.
- Termination without notice: In situations involving major wrongdoing, such as dishonesty or a pattern of breaking workplace rules, the employer has the right to terminate an employee’s employment without giving them notice.
benefits upon termination. Employees are entitled to end-of-service bonuses, unused vacation time, and any accumulated pay or perks when leaving the company. - Arbitrary dismissal: Workers may report suspected instances of arbitrary dismissal to the Ministry of Human Resources and Resettlement. Employers must give good reason for termination in order to prevent allegations of unjust dismissal.
Dispute Resolution:
There are a number of reasons why disputes might occur between employers and employees, including contract violations, unpaid payments, unjust terminations, etc. A formalized procedure for resolving labor disputes is offered by the UAE:
- Mediation: Disputes are first brought before the Ministry of Human Resources and Settlement, which makes an effort to mediate and reach a mutually agreeable resolution.
- Labor Court: The conflict may be taken to the Labor Court if mediation is unsuccessful. After considering the case, the court will render a decision that is enforceable.
- Appeal: If the parties feel that the judgment was unfair, they have the right to file an appeal with the court.
Additional Considerations for Employers:
In order to ensure compliance with labor regulations and promote a positive working environment, employers in the United Arab Emirates are required to adhere to a number of additional factors.
- Workplace Safety: Employers are in charge of giving their staff members a safe and healthy work environment, which includes providing them with the required tools, safety training, and adherence to occupational health and safety laws.
- Documents pertaining to employees: Employers are required to maintain correct documents pertaining to their workforce, including contracts, pay statements, leave policies, and any disciplinary actions. The labor authorities must have access to these records for review.
- Taking on discrimination: Discrimination on the basis of sex, nationality, religion, or disability is forbidden by the UAE Labor Code. Employers are responsible for making sure that nondiscriminatory policies and practices are followed in the workplace.
- Training and Development: Offering opportunities for ongoing education and career advancement is a need for employers. Investing in the training and development of employees can boost output and job satisfaction.
Additional Considerations for Employees:
In order to ensure compliance with labor regulations and promote a positive working environment, employers in the United Arab Emirates are required to adhere to a number of additional factors.
- Workplace Safety: Employers are in charge of giving their staff members a safe and healthy work environment, which includes providing them with the required tools, safety training, and adherence to occupational health and safety laws.
- Documents pertaining to employees: Employers are required to maintain correct documents pertaining to their workforce, including contracts, pay statements, leave policies, and any disciplinary actions. The labor authorities must have access to these records for review.
- Taking on discrimination: Discrimination on the basis of sex, nationality, religion, or disability is forbidden by the UAE Labor Code. Employers are responsible for making sure that nondiscriminatory policies and practices are followed in the workplace.
- Training and development: Putting money into the education and training of employees can raise output and work satisfaction. It is imperative for employers to offer opportunities for ongoing education and career advancement.
In conclusion, in order to guarantee a just, open, and efficient workplace, it is imperative that both employers and employees comprehend and abide by UAE labor laws. Employers are responsible for keeping correct records, improving workplace safety, and ensuring compliance with contracts, working hours, holidays, pay, and terminations. Workers need to be aware of their rights and obligations, follow rules at work, and further their careers.
Employers and employees can establish a productive and happy working relationship that benefits all parties and advances the success and expansion of the business as a whole by encouraging respect for one another and adherence to the law.
For expert legal guidance and support in navigating employment law in the UAE, contact our reputable law firm today. Our team of experienced lawyers is dedicated to helping both employers and employees understand their rights and obligations in the Emirates. Don’t hesitate to reach out for assistance with any employment law matters you may be facing.
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