The relationship between employers and employees is governed by Federal Act
Number 8 of 1980 and its amendments. The Act is applicable to all
employment relationships when engaging an employee, whether a UAE citizen
or a foreigner. It is not applicable in the case of employment by a
government authority.
The approval of the Ministry of Labor is a prerequisite for the employment
of foreigners. The Ministry encourages the employment of nationals in the
private sector. However, an employer will be given permission to employ
resident foreigners who may be transferring from previous employers or to
employ newly arriving employees. A work permit is issued by the Ministry
for three years, subject to renewal for similar periods. Employment
contracts may be for a limited period specified in the contract or for an
unlimited period, in which case the employee will continue working with his
employer until the contract is terminated.
Working hours
Working hours are eight hours a day or 48 hours a week. However, for
persons or employees in trade, hotels, and restaurants, the daily working
hours may be increased to nine hours. For overtime work, the employee is
entitled to an amount equivalent to the wage paid for ordinary working
hours, plus 25 per cent. Overtime may not exceed two hours per day unless
necessary. An employee is entitled to an annual leave of 30 days, and
maternity leave and sick leave are not part of the annual leave.
Act Number 8 stipulates certain provisions for the employee’s health and
safety and for workmen’s compensation against work accident. The employment
contract may be terminated by mutual consent of the parties or on expiry of
its duration. Any dispute arising between the employer and the employee
will be resolved by the Ministry of Labor, which must make a recommendation
within two weeks from the date the application for a dispute settlement is
filed. If the parties fail to settle the dispute as recommended by the
Ministry, the matter should be referred to the courts. The time limit for a
lawsuit relating to an employment contract is one year from the date on
which the amount claimed or entitlements become due. Employees are exempted
from court fees before the court of first instance and court of appeal.
Frequently Asked Questions
Employee can work for sponsor only
Q: I have been working
with a company in Dubai for more than six months on a limited contract.
Now, I want to avail power of attorney of my mother’s company in Sharjah.
Since it’s a family business, my mother wants me to take care of some parts
of the business and for that she is willing to give me power of attorney to
legally run her business. Is it legal to work for my mother’s company under
a power of attorney approved by the Sharjah Court though I am working for
another employer?
A: According to Article 67
in the third chapter of the federal law number 6 for the year 1973, a
sponsored person is under a duty to not work except for his sponsor.
Similarly, the sponsor is under a duty not to employ who is not sponsored
by him. Hence, if your mother’s entity is not sponsoring you, you cannot
take a role in it and this will be considered as a breach of the law.
Breaching any of these obligations and working in an entity where you are
not sponsored put all the parties in a risk of being prosecuted and hence,
subject to a minimum fine of Dh50, 000 each or imprisonment and the same
amount of fine (KT).
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