UAE Labour Law: Things to know about shifts, leaves and wages

Working females are entitled to 45 days of full pay for maternity leave provided that she has served continuously for at least one year. Maternity leave is paid with half pay if one year of service has yet to be completed. At the end of the maternity leave, the woman has the ability to extend her leave at an unpaid rate for a maximum period of 10 days.

For the first 18 months following delivery, female employees who nurse their child are granted two paid rest intervals per day, not exceeding 30 minutes, in order to complete this task.

Working fathers are not provided paternity leave under the law.

Reduction in working hours

Construction and industrial workers are not permitted to work during the hottest hours of the day during the summer. Any firm found to have staff working during the designated break time would be fined Dh5,000 per worker up to a maximum of Dh50,000.

Also, employees are entitled to work 2 hours less every day during the holy month of Ramadan.

Minimum wages

There is no minimum salary stipulated in the UAE Labour Law, however, it broadly mentions that salaries must cover basic needs of the employees.

Article 63 of the law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet.

Wages Protection System (WPS)

The Wages Protection System (WPS) is an important step to ensure and protect the rights of workers, and to establish trust between organisations and their employees. Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service. For any concerns or complaints regarding the salary, employees can contact the MoHRE or lodge a complaint through eNetwasal.

End of service benefits

If the employee resigns of his or her own free will before completing one year, then they will not be entitled to any gratuity pay.

The worker is entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service.

The end of service gratuity is calculated on basis of last wage which the employee was entitled to, namely the basic salary. Hence, it will not include allowances such as housing, conveyance, utilities, furniture etc.

If the employee owes any money to the employer, the employer may deduct the amount from the employee's gratuity.

Calculations for gratuity pay

1 Under limited contract

In the event where the employer terminates a limited contract, calculation will be as follows:

.   If an employee has served for less than 1 year, he is not entitled to any gratuity pay.

.    If an employee has served more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days' salary for each year of work.

.    If an employee has served more than 5 years, he is entitled to full gratuity pay based on 30 days' salary for each year of work.

2. Under unlimited contract

In the event where the employer terminates an unlimited contract, calculation will be as follows:

.    If an employee has served for less than 1 year, he is not entitled to any gratuity pay.

.    If an employee has served more than 1 year but less than 5 years, he is entitled to 21 calendar days' basic salary for each year of the first five years of work.

.    If an employee has served more than 5 years, he is entitled to 30 calendar days' basic salary for each additional year, provided the entire compensation does not exceed two years' pay.

In the event where the employee under an unlimited contract resigns, calculation will be as follows:

.    If an employee resigns before completing 1 year of service, he is not entitled to any gratuity pay.

.    If an employee has served between 1 and 3 years, he is entitled to one third (1/3) of 21 days' basic salary as gratuity pay.

.    If an employee has served between 3 and 5 years, he is entitled to two-thirds (2/3) of 21 days' basic salary as gratuity pay.

.    If an employee has served more than 5 years, he is entitled to full 21 days' basic salary as gratuity pay.