GILS Employment Law: UAE

UAE 

(1) Maternity and Family Leave Rights

1.1. How long is the duration of maternity leave?

A female employee is entitled to a maternity leave of 60 days, with the initial 45 days at full pay and the subsequent 15 days at half pay.

1.2. What are the rights of a parent when returning to work after parental leave?

Upon return from maternity leave, for up to 6 months after giving birth, a female employee is entitled to 1 or 2 rest periods daily to breastfeed her child, provided that the duration of both periods shall not exceed one hour.

1.3. Do fathers possess the right to take paternity leave? 

A parent employee (either the father or mother) is entitled to parental leave for a period of 5 working days which can be taken consecutively or intermittently, to care for his or her newborn child, within the first 6 months following the child’s birth.

1.4. Are there any additional parental leave rights that employers must adhere to?

A female employee is entitled to maternity leave, if she gives birth after 6 months or more of pregnancy, whether the fetus is stillborn or born alive then died. Additionally, if a female employee gives birth to a sick or a child of determination whose health condition requires constant care according to a medical report, she has the right to take a leave of 30 days with full pay after her maternity leave. She can also extend this leave for another 30 days without pay. 

Moreover, if, after maternity leave, a female employee or her child is sick due to pregnancy or childbirth, preventing her from returning to work, she may take 45 days of unpaid absence, supported by a medical certificate. This absence period is not counted towards her service term for the purpose of receiving end-of-service benefits or contributions to the retirement scheme as per relevant legislation. 

Being on maternity leave shall not affect a female employee’s right to obtain other leaves; and it is against the law to terminate or inform a female employee about termination due to pregnancy or for taking her maternity leave, or absence (in accordance with the provisions of Article 30 (Federal Decree-Law No. (33) of 2021).

1.5. Do employees have the right to flexible working arrangements if they are responsible for dependents? 

There is no specific mandate for flexible working arrangements for employees responsible for dependents. However, it is worth noting that some companies in the UAE may offer flexible work arrangements as part of their employee benefits packages or to accommodate employees with caregiving responsibilities, provided that such arrangements are supported by the labor law.

(2) Termination of Employment

2.1. Is it mandatory for employers to provide notice of termination of employment? How is the notice duration determined?

Either the employer or the employee may terminate the employment contract for a legitimate reason, provided they give written notice and adhere to a specified notice period of not less than 30 and not more than 90 days. Both parties may agree to waive or shorten the notice period, ensuring the employees’ rights are preserved for the notice period agreed upon in the contract. 

However, the employer also has the right to terminate an employment relationship without notice in specific circumstances (e.g. If the employee has assumed a fake identity or nationality or has provided forged or fake documents), after conducting a written investigation where the reason is documented and justified. 

An employer may terminate the services of an employee in probationary period by giving them a written notice at least fourteen (14) days before the specified date of termination.

2.2. Can employers enforce "garden leave" during the notice period, where the employee remains employed but does not have to attend work?

Although there is not a specific provision in the UAE law that addresses ‘garden leave’ explicitly, it is mentioned in Article 43 in Federal Decree-Law No. (33) of 2021 that an employee shall be entitled to his full wage for the notice period, and he shall work during that period if the employer requests the same. Hence, the employer may decide to keep the employee from attending work but is obligated to pay the employee his /her wage during the notice period.

2.3. What safeguards do employees have against dismissal? Under what circumstances is an employee considered to be dismissed? Is consent from a third party necessary before dismissal by an employer?

The employment relationship shall be terminated in any of the following circumstances: 

• Both the employer and employee agree in writing to terminate it;
• The employment contract has expired (and it has not been extended or renewed); 
• If terminated by either the employer or the employee with written notice; 
• The employer’s death if the subject of the contract is related to its entity; 
• If terminated by the employer when a final judgment is issued against the employee by a freedom- restricting penalty for a period of not less than 3 months; 
• Permanent closure of the establishment, in accordance with the relevant legislation; 
• Bankruptcy or insolvency of the employer, or any economic or exceptional reasons that prevent the continuation of the project; 
• The employee’s failure to fulfill the conditions for renewing the work permit for any reason beyond the control of the employer. 

In some regulated industries, consent is required from regulators before employee dismissal.

2.4. Are there specific employee categories enjoying special protection against dismissal?

Employment relationship in UAE is governed by its contract which can only be terminated in accordance with its conditions or as per the law.

2.5. Under what circumstances is an employer justified in dismissing employees: 1) due to individual reasons; 2) business-related grounds? Do employees receive compensation upon dismissal, and if so, how is it calculated?

The employer may dismiss the employee without notice after conducting a written investigation with him or her. The dismissal decision, however, shall be in writing and justified, handed over to the employee by the employer or his or her representative in any of the following circumstances: 

• The employee impersonates someone else or submits fake documents; 
• The employee caused substantial material losses to the employer (but the employer must have reported it to the Ministry within 7 days (of the employer’s becoming aware of such acts); 
• If the employee has not complied with any safety instruction (provided that such instruction was in writing and displayed prominently at the workplace, or it has been otherwise informed to the employee); 
• The employee consistently fails to fulfill basic duties as per his contract despite conducting investigation and warnings; 
• The employee discloses employer’s secrets or confidential industrial or intellectual property information, causing losses to the employer; 
• The employee is intoxicated or under the influence of a narcotic or psychotropic substance or engages in immoral behavior during work hours; 
• The employee assaults anyone at the workplace, which is punishable by law; 
• The employee is absent for more than 20 intermittent days or 7 consecutive days without a legitimate reason or reason acceptable to the Employer; 
• The employee illegally exploits his or her job position for personal gain; 
• The employee joins another company without complying with proper procedures.

Moreover, according to Article 47 in Federal Decree-Law No. (33) of 2021, if it is proven that the employer unlawfully dismissed an employee's service for filing a serious complaint to the Ministry of Human Resources and Emiratization (MoHRE) or for initiating a lawsuit against the employer, the employer must pay the employee fair compensation as determined by the competent court, considering the type of work, damage to the employee, and his or her service duration. However, this compensation should not exceed the employee’s wage for 3 months, based on their last entitled wage. The employee can also claim their end-of-service gratuity, any outstanding notice period dues, or any other unpaid entitlements from his or her employer.

2.6. Are there particular protocols that employers must adhere to regarding individual dismissals? 

For circumstances listed in 2.5, the employer must have conducted a written investigation, and the dismissal decision shall be in writing and justified, handed over to the employee by the employer or his or her representative. If the dismissal is related to performance, the employer must also serve prior warnings (at least twice). 

Usually, the HR policy of the establishment shall apply as long as it does not contradict with the law.

2.7. What claims can an employee pursue if they are dismissed? What remedies are available for a successful claim?

A dismissed employee can claim his or her unpaid wages, end-ofservice gratuity (as per the law), return ticket to home country, (if expatriate), and in lieu of the notice and unused leave.

If the competent court determines that an employee’s dismissal was unlawful due to their filing of a complaint or initiating of a lawsuit against the employer, the employee can claim for fair compensation weighed in by various factors, however, should not exceed the employee's wages for three (3) months, based on his or her last entitled wage.

2.8. Can employers resolve claims before or after they are initiated?

Employers can resolve claims before, during or after they are initiated.

2.9. Does an employer bear additional obligations when dismissing multiple employees simultaneously?

An employment contract must be terminated individually. There are no special provisions for collective or mass dismissals.

2.10. How can employees enforce their rights regarding mass dismissals, and what are the consequences if an employer fails to comply with its obligations? 

If a collective dispute cannot be amicably resolved, employees can file individual or collective complaints. The Ministry of Human Resources and Emiratization (MoHRE) has the authority to implement preventative measures on the establishment to safeguard the public interest against the impact of such disputes.

(3) Data Protection and Employee Privacy 

3.1. How does the employment relationship get impacted by employee data protection rights? Is the transfer of employee data across borders unrestricted for employers?

UAE federal employment laws, decrees and regulations do not specifically address the issue of employee data protection or the cross-border transfer of employee data. 

Be that as it may, the UAE's federal data protection laws and regulations stipulate that personal data cannot be processed without the individual's consent, except under specific conditions, such as for public interest, personal data made public by the individual, or for legal, health, public health protection and employment purposes, amongst others. 

For international data transfers, conditions include transferring data to jurisdictions with adequate data protection laws or under agreements ensuring the protection of personal data. Transfers may also occur with the explicit consent of the individual, for judicial reasons, to execute or perform contracts, or for public interest, provided these actions do not contravene the UAE’s public or security interests.

3.2. Are employees entitled to obtain copies of any personal information held by their employer?

UAE federal employment laws, decrees and regulations do not specifically address the right of employees to obtain copies of personal information held by their employer. 

Be that as it may, employees are entitled to access copies of documents they have personally signed or that directly relate to their employment. However, access to internal documents, such as performance evaluations, or materials containing confidential company information, such as executive decisions or proprietary materials, may not be granted by the employer.

3.3. Do employers have the authority to conduct preemployment checks on prospective employees (such as criminal record checks)?

Employers may carry out pre-employment checks if they obtain explicit consent from the prospective employee. Alternatively, employers may ask prospective employees to provide referrals or a police clearance certificate, as part of the screening process.

3.4. Do employers have the right to monitor employee emails, phone calls, or use of company computer systems?

UAE federal employment laws, decrees and regulations do not explicitly address this right, but employers can monitor all activities conducted on company-provided equipment, including phones and computer systems, as per the employer’s policies.

3.5. Can employers control an employee's use of social media both inside and outside the workplace?

UAE federal employment laws, decrees and regulations do not explicitly address this right, but the extent to which employers can restrict an employee's use of social media during work hours, or on company devices, both inside and outside the workplace, shall be governed by the employment contract or the employer’s specific policies.

(4) Court Practice and Procedure

4.1. Which courts or tribunals hold jurisdiction over employment-related complaints, and what is their composition?

All employment-related disputes go through The Ministry of Human Resources and Emiratization (MoHRE). 

If the employment dispute involves a claim of AED 50,000 or less, the Ministry has the authority to issue a final enforceable decision if parties cannot reach an amicable resolution. However, disputes with claims exceeding AED 50,000 will initially undergo attempted resolution by the Ministry. If these efforts are unsuccessful within 15 days, the case will be referred to the Labor Court, where judges will make rulings.

4.2. What procedures govern employment-related complaints? Is conciliation obligatory before proceeding with a complaint, and is there a fee for employees to submit a claim? 

Employment-related disputes are managed by filing complaints to The Ministry of Human Resources and Emiratization (MoHRE), which issues enforceable decisions for claims under AED 50,000 or for nonadherence of either employer or employee on previous amicable resolutions. If parties disagree with the Ministry's decision, they can appeal to the Court of Appeal within 15 days after being notified of the resolution, suspending the execution, which then examines the case and issues a final non-appealable ruling within (15 days) from the date of case filing. On the other hand, if a resolution isn't reached for disputes with claims over AED 50,000, the Ministry refers them to the Labor Court. 

During disputes, employers may be compelled to pay employees' wages for up to two months, and the Ministry can impose administrative measures to prevent such cases leading to larger disputes. The Labor court can also dismiss lawsuits for non-compliance with proper procedures. 

Lawsuits must be filed within one year of the claimed right. Judicial fees are waived for labor lawsuits or requests under AED 100,000.

4.3. What is the typical duration for resolving employment-related complaints? 

Considering the procedures in 4.2, The resolution of employmentrelated complaints may extend beyond 30 days.

4.4. Is it possible to appeal against a decision at the first instance, and if so, how long does such an appeal usually take? 

It is possible to appeal against a decision at First Instance Court within 30 days after its issuance. Appeal duration varies, but usually takes a month up to 6 months.

(5) Work Permits 

5.1. What are the restrictions or limitations placed on individuals holding a work permit in terms of job duties, employer changes, or duration of stay? 

An employee shall have a fixed-term employment contract with his employer with an agreed work pattern, commonly for 2 years, which can be extended or renewed in accordance with the agreement of the employer and employee. 

An employee, hence, is bound by several obligations outlined in their employment contracts. These include performing assigned tasks personally and under employer supervision, maintaining ethical conduct and professionalism, safeguarding company tools and resources, and respecting the confidentiality of sensitive information. An employee must also adhere to safety protocols, work hours, and days as specified, continuously improve their skills, and refrain from unauthorized employment elsewhere. Additionally, he or she is required to vacate provided accommodation within a set period after employment termination, unless otherwise agreed upon. 

In cases of contract termination, expiration without renewal, or employer breach of obligations, an employee may transfer to another employer, however, must abide by a non-competition clause for no more than two years if any is stated in his or her contract.

5.2. What are the requirements for obtaining a work permit? 

The following are required in order to obtain a work permit in UAE: 

1. Employees must be at least 18 years old, except for those with juvenile permits or student training/employment permits; 

2. Employees need to meet the legal requirements for specialized professions or jobs requiring a practice license as per current legislation; 

3. The employee's job must be in line with the activities of the establishment; 

4. The establishment must possess a valid license without any violations that could lead to its suspension according to legal regulations; 

5. Permit applications must be submitted by the legally authorized signatory of the establishment; 

6. Any other additional conditions as determined by the Ministry or his delegates through resolution.

5.3. Are there any recent changes or updates to work permit regulations or policies that individuals or employers should be aware of? 

There are no recent changes or updates on regulations or policies related to work permits.

5.4. Are there specific industries or occupations that have different requirements or exemptions for obtaining a work permit? 

The Ministry of Human Resources and Emiratization (MoHRE) issues several types of work permits which allow registered establishments to recruit employees, depending on the nature of the job. Certain approvals are required for specialized jobs, from the regulator of the respective industry (e.g. healthcare, legal, finance).

5.5. What is the ratio of foreign and local labor? 

Employers are required to ensure that at least 2% of their workforce is local labor, with a phased objective to increase this to at least 10% by the year 2026.

(6) Tax

6.1. What are the legal obligations and requirements regarding the individual income tax paid by employers? 

In the UAE, there is no individual income tax levied on employees’ wages. As such, there will be no withholding tax related registration and filing obligations for UAE businesses of UAE sourced income.

6.2. What is the percentage of withholding tax? 

In the UAE, there is no withholding tax imposed on wages paid to employees.

 

Author:

Issam Dahman.