Understanding the UAE Labour Law

Apr 19
06:06

2024

susancastro

susancastro

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Explore the intricacies of the UAE Labour Law, Federal Law No. 8 of 1980, which governs employment relationships within the Emirates, including special zones like the Jebel Ali Free Zone. This article delves into the law's scope, its application across various sectors, and essential aspects such as employment contracts, worker rights, and restrictions.

Overview of the UAE Labour Law

The UAE Labour Law,Understanding the UAE Labour Law Articles established by Federal Law No. 8 of 1980, sets the framework for employment regulations across the Emirates. It applies to all employees working under UAE jurisdiction, except for those in the military, police, security, domestic servants, and agricultural workers. Notably, business partners are not considered employees and thus are exempt from needing a labour card.

Key Provisions and Regulations

The law comprehensively covers the employer-employee relationship, addressing:

  • Employment contracts
  • Employment of juveniles and women
  • Wages and compensation
  • Employee safety and protection
  • Medical and social care
  • Codes of discipline
  • Termination of employment
  • Labour inspections
  • Compensation in cases of injuries or death

It is important to note that the UAE does not permit the formation of trade unions, which is a significant deviation from labour practices in many other countries.

Special Regulations in Free Zones

In free zones like Jebel Ali, specific labour regulations apply, which may differ slightly from the general UAE Labour Law. These zones often offer more flexible labor policies to attract foreign investment.

Employment of Expatriates and Nationals

The process of employing expatriates in the UAE involves obtaining approval from the Ministry of Human Resources and Emiratisation. Employers may need to provide a bank guarantee as security, depending on the circumstances.

For UAE nationals, employment contracts can be more flexible. Nationals do not necessarily need a formal contract if they can provide other legally acceptable proof of employment terms.

Contract Essentials

When moving to Dubai or other parts of the UAE for work, expatriates should ensure their employment contract includes:

  • Wages payable
  • Contract issue date and commencement date
  • Nature and duration of the contract
  • Job description
  • Work location

Importance of the Contract Language

Legally, only the Arabic version of an employment contract is considered valid in the UAE. Expatriates are advised to obtain a translated copy and fully understand the terms before signing. Alarm bells should ring if an employer does not provide a contract in advance or presents a different contract upon arrival.

Legal Assistance and Dispute Resolution

In case of disputes, expatriates can seek legal advice from various lawyers in the UAE. However, it's often observed that the party with more influence or 'wasta' tends to have an upper hand in disputes. Expatriates facing legal issues are encouraged to contact their embassies for assistance in finding legal representation.

Interesting Statistics and Facts

  • According to the World Bank's 2020 Doing Business report, the UAE ranked 16th globally for ease of doing business, partly due to its streamlined labor regulations.
  • A 2019 survey by HSBC noted that 55% of expatriates in the UAE praised the working conditions, including labor laws that protect their employment rights.

Conclusion

Understanding the UAE Labour Law is crucial for both employers and employees to ensure compliance and protect their rights within the workplace. With its unique provisions, especially in free zones, the UAE continues to be an attractive destination for global business and talent.