United Arab Emirates

Employment

Under UAE Labor Law, there are two type of employment contracts, limited and unlimited terms.
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Limited term contracts are for employees who have a UAE residency visa. Once the visa is expired, the contract is terminated, unless it had been terminated prior or extended by both parties. Unlimited term contracts are open-ended with employees who have a permanent status in the UAE. Additionally, there is a three months of probation period.

Payroll

Salaries are most commonly paid on monthly basis, however the frequency can be agreed upon between the employer and employee.
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Salaries must be paid by the 25th of every month for working days from the first to last day of the month.

HR & Labor

Working hours: Regular working hours for full time employees are between 40 - 48 hours per week.
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Work days are 8 hours long (unless employed in the hospitality field, trades or as a guard). Administration positiond are not entitled to overtime. Break: Employees are entitled to breaks for prayer, meals and rest after working 5 consecutive hours. Overtime: Employees receive 125% of their average salary if they work overtime. If the hours are between 9pm-4am, the overtime rate is no less than 150% of the average salary. Employees who work overtime on Fridays will receive another day off or are paid 150% of the average salary. However, an employee cannot be asked to work two Fridays in a row (unless they are being paid on daily basis). Minimum Age: Employers are prohibited to hire anyone under the age of 15. Women are not allowed to work between the hours of 10pm – 7am aside from emergencies in the work place, they hold an administrative position or work in the health field.

Immigration

In order to work legally in UAE, employees must obtain a residence-visa sponsorship. Employers must submit the appropriate paperwork for their employee to receive an entry permit upon arrival in UAE.

Benefits

Employers are required to provide medical insurance for their employees.
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For international employees: Depending on the employer, they will provide housing, transportation, medical insurance, telephone and other necessities upon moving to UAE. Employers are not obligated to provide medical insurance to dependents, but employees are obligated to provide for them.

2018 Update

From February 4th 2018, the vetting procedure for non-UAE nationals entering for employment purposes will become more stringent in order to receive visa approval, a certificate of good conduct and behavior will be required assuring the good standing and character of an individual for the past 5 years. The process was put in place to ensure a clean criminal record not only in their country of origin but also if they resided anywhere previous to there.

Minimum wage

No official minimum wage

Public Holidays

August 31: Arafat (Haj) Day
September 1-3: Eid Al Adha
September 22: Hijri New Years Day
November 30: Prophet Mohammed's Birthday/Martyrs' Day
December 2: UAE National Day
December 3: UAE National Day Holiday

January 1: New Years Day
April 13: Israa & Miaraj Night
June 14: Eid Al Fitr Holiday
June 15: Eid Al Fitr
August 21: Arafat (Haj) Day
August 22: Eid Al Adha Day
August 23: Eid Al Adha Holiday
September 11: Hijri New Years Day
November 20: Prophet Mohammed's Birthday
November 30: Martyrs' Day
December 02: UAE National Day
December 03: UAE Natoinal Day Holiday

Pension fund

Total pension fund contribution is 26%, with 6% contribution from the government.

Employer are required to contribute 15% of employees wages to their pension fund.

Employees are required to contribute 5% of their wages to their pension fund.

Severance payments

No official information, it is decided in the contract the employee signs.

Advance notice

Advance notice period is 30 days

Termination procedure

If an employer terminates an employee prior the required 30 days’ notice, then employer is responsible for compensating 30 days of salary to the employee.

If an employee decides to terminate the contract before it is expired, they must compensate the employer the total salary of 45 days or remain until the contract ends.

Sick Days

Employees are not entitled to sick leave during their probation period. However, after those 9 months, employees are paid 100% of their wages for the first 15 days of the sick leave, 50% for the next 30 days and are not reimbursed for any additional days following.

Vacation time

Employers must allow all employees to take leave without pay for Haji one time during their employment. This cannot last more than 30 days.

Employees who has been in the company for more than six months but less than a year will accumulate two days per every month in the company. After 1 year, they will be entitled to a minimum of thirty days off.

Leave Pay

Employees who have worked 11 continuous months are eligabale for the 12th month paid Holiday. One month full salary paid while employee is on leave.

VAT

The standard rate is 5%.