Dubai is known for its strict laws in every sector. Labour Law in UAE is governed under Federal Law No. 8 of 1980. The law involves the rights of every employee. The law is applicable to all UAE employees irrespective of UAE nationals and expats. Take note that some free zones company and some particular area in Dubai like DIFC has their own rules and regulations.
However, in both of the case, an employee can consult an expert lawyer for labour matter in Dubai, UAE if they experience the breaching of the employment contract. The Labour Law in Dubai is extensively designed with all the required provisions related to payment and termination to save the interest of both, employers and employees.
Functionalities of Labour Law in Private sectors
The authority of HR and Emiratisation, previously known as the Ministry of Labour, supervises the relationship between employers and employees and the labour rights in private sectors under the Federal Law. 8 issued in 1980.
The Labour law maintains all the required provisions related to:
- working hours
- All the Vacations and Public Holidays
- Maternity leave
- Employment termination
- Employment juveniles
- Gratuity payments, etc.
However, all federal and Local Government employees are exempt from this law. They follow another regulation. You may consult our expert lawyer for labour matter in Dubai, UAE to learn more.
Termination Policies under labour law
The Labour Law involves lots of complexities associated with the termination. Let’s have a look at the summarization of Employee’s right on basic wages before learning about all the termination policies.
- Basic Wage is calculated without including any allowances as per Labour Law.
- During the termination, the calculation of the Basic Wage is essential as the figure of the basic wage is considered while calculating the gratuity at the end of the service.
Employers should take note that an employee is entitled to claim any of the followings:
In the case of Unlimited Contracts
- If the termination of the employee happens without any reasons, the employee has the right to get a notice period or payment instead of the notice period. ( The law is governed as per Article, 120)
- Secondly, suppose, an employer has terminated the employment contract arbitrarily; in this case, the law is a bit complex. The labour law doesn’t give a clear idea of arbitrary dismissal. However, in many cases, the employee is entitled to receive a maximum of 3 months of salary. To learn more about arbitrary termination, you may consult a Wrongful dismissal lawyer in the UAE.
In the case of Fixed Contracts
In this case, the employee is entitled to receive all the equivalent compensation until the contract ends. They even can receive a maximum of three month’s salary or even less than this.
In the case of Unlimited and Fixed Contracts
If an employee has completed at least 1 year or more in an organization, they have the right to receive all payments and end of service gratuity on the termination of employment on the following basis :
- They are entitled to receive a 21 days salary every year.
- They also receive 30 days of wages each year after completing 5 years in an organization in Dubai. However, the total payment must not cross the two years salary.
Note: The payment policies may vary from emirates to emirates. To learn more, please feel free to consult expert lawyers and Attorneys in the UAE. Only an expert lawyer for labour matter in Dubai, UAE can present you with a comprehensive idea.
Wrapping Up
If you want to learn more about UAE labour law or need assistance in acquiring your rights or wages from your employer, you can consult eLegal Consultants to get in touch with expert lawyers for labour matter in Dubai, UAE. Contact us to learn more about our service.
