The UAE has become a global business and employment hub. To keep up with this pace, MOHRE plays a very significant role in regulating the UAE labor laws for protection on both sides: employees and employers. Such laws make for a fair, productive, and balanced work environment that ensures growth and stability in the job market. In this article, we look at some of the key labor laws regulated by MOHRE and the rights and obligations of employees and employers.
Key Labor Laws Regulated by MOHRE
- Employment Contracts
MOHRE UAE requires that every employee in the UAE has a written employment contract. Employment contracts specify the terms of employment, including job description, salary, working hours, and benefits. There are two types of contracts: limited-term and unlimited-term contracts, each with its own conditions regarding termination and renewal.
- Working Hours and Overtime
According to the UAE’s labor law, the daily working hours should not exceed eight or 48 hours a week. There is, however, an exception for specific industries. An employee who has worked in excess of these hours shall be entitled to overtime allowances: 125 percent of his/her hourly wage. In Ramadan, a two-hour cut of working hours applies each day.
- Leave Entitlements Employees are entitled to various types of leave, including:
Annual Leave: 30 calendar days per year for employees with more than one year of service.
- Sick Leave: Up to 90 days per year, with varying pay scales based on the duration of illness.
- Maternity and Paternity Leave: Female employees are entitled to 60 days of maternity leave, with 45 days on full pay and 15 days on half pay. Male employees can avail of paternity leave for five days
- Utilities at Termination of Services
The UAE MOHRE grants gratuity to employees on ceasing service based on the duration of service and the last basic salary drawn. End-of-service benefits are an important financial safeguard for employees.
- Termination and Resignation
The terms under which termination or resignation occurs must be in accordance with the employment contract and MOHRE guidelines that cover the notice period and compensation for wrongful termination.
- Anti-Discrimination and Harassment
UAE labor laws, in clear terms, prohibit discrimination on race, gender, religion or nationality basis. It is the employer’s responsibility to create a conducive environment free of all harassment and provide equal opportunity to all employees.
Rights and Responsibilities of Employees and Employers
Employees
- Rights: Employees have rights to fair pay, timely payment of wages, and safe working conditions. Leave benefits, gratuity at the end of employment, and protection against unfair dismissal are among their many benefits.
- Duties: Employees are expected to complete their job tasks, comply with the company policies, and follow the terms of their employment contract.
Employers
- Rights: Employers have the right to demand that employees efficiently and effectively perform their work within an established workplace context.
- Obligations: They must provide the employees with a safe and healthy workplace, pay the wages on time, and respect their rights with adherence to the MOHRE laws protecting labor rights and practice ethical labor practices.
Conclusion: From BLZ
Understanding and adhering to labor laws is fundamental for creating a successful and sustainable business environment in the UAE. MOHRE’s UAE robust regulatory framework ensures that the rights and responsibilities of both employees and employers are protected, fostering mutual trust and productivity. At BLZ, we are committed to helping businesses navigate these laws with ease. Whether you are establishing your presence in the UAE or looking to optimize your operations, our team of experts is here to guide you every step of the way. Let us handle the complexities, so you can focus on achieving your business aspirations.