United Arab Emirates

Capital: Abu Dhabi

Currency: UAE Dirham- AED

AED

United Arab Emirates Labor Law and Employment Policy Overview

Key Legislation:
- Federal Labour Law No. 8 of 1980
- Federal Labour Law No. 33 of 2021
Legal Characteristics:
- Aims to protect employee rights and promote fairness and equity in the workplace.
- Applies to all employees working in the UAE, regardless of nationality.

Contract Types:
- Fixed-term contracts (maximum 3 years, indefinitely renewable)
- Unlimited-term contracts (no longer permitted)
Contractual Provisions:
- Mandatory clauses include:
  - Employee name and job title
  - Employer name and address
  - Place of work
  - Working hours
  - Remuneration and benefits
  - Conditions for termination of contract
Language and Currency:
- Contracts must be in both Arabic and English.
- Salaries must be paid in UAE Dirhams.

Standard Working Hours:
- 8 hours per day, 48 hours per week.
Rest Days and Breaks:
- Statutory rest day: Friday
- Minimum of 1 hour break per day.

Annual Leave:
- 30 calendar days.
- Eligible after 1 year of continuous service.
Public Holidays:
- 15 days.
Special Leaves:
- Sick leave: Up to 90 days per year.
- Maternity leave: 45 days paid leave.
- Paternity leave: 5 days.
- Childcare leave: 5 days.

Notice Period:
- Fixed-term contracts: 6 months (maximum)
- Unlimited-term contracts: Not applicable
End of Service Gratuity:
- Service of 1 to 5 years: 21 days' salary for each year of service.
- Service of 5 years or more: 30 days' salary for each year of service.
Unfair Dismissal Protection:
- Employees are entitled to compensation for unfair dismissal.

Personal Income Tax:
- The UAE does not impose personal income tax.
Social Insurance Contributions:
- Employers are required to contribute 12.5% towards social insurance.

Insurance Policy:
- Abu Dhabi and Dubai require employers to provide health insurance.
Insurance Coverage:
- Covers basic medical services.

Minimum Wage:
- No statutory minimum wage for expatriates.
- UAE nationals have specified salary requirements based on their educational qualifications.
Salary Structure:
- Basic salary, allowances, bonuses.

Permit Requirements:
- Expatriates require a work permit and residency visa.
Application Process:
- Initiated by the employer on behalf of the employee with immigration authorities.

Enforceability:
- Confidentiality and non-compete clauses are enforceable in the UAE.
Common Provisions:
- Restrict employees from disclosing confidential information after leaving employment.
- Restrict employees from working for competitors after leaving employment.

Legal Requirements:
- Employers are required to provide safety training to employees.
Government Support:
- Government provides funding and incentives to encourage corporate training.

Legal Requirements:
- Discrimination based on race, religion, gender, or disability is prohibited.
Enforcement Measures:
- Government and employers take measures to promote diversity and inclusion in the workplace.

Legal Framework:
- Remote work is legal in the UAE.
Tax and Insurance Implications:
- Tax and social insurance implications of remote work vary depending on the specific circumstances.