Question

Words Required: 1200

Subject: Labor Law in UAE

Question 01: Write report on the duties and obligation of the parties in a contract of employment and evaluate the legal remedies to an employment dispute.

Answer 1

The Labour law is a federal legislation applicable to all emirates of the UAE, enforced by the Ministry of Labour and Social Affair, with litigations adjudicated by the Federal and Local Courts of the UAE.

The Labour Law in the United Arab Emirates (UAE) is applicable to all staff and employees working in the UAE, irrespective of whether they are UAE nationals or expatriates. However, some categories as mentioned follows have been excluded from its applicability:

• Staff and workers employed by the Federal government departments of the member-emirates, public bodies, municipalities, federal and local public institutions.
• Members of armed forces, police and security units
• Domestic servants
• Agricultural workers

The Labour Law in the UAE covers all areas of employer-employee relationships, including employment contracts, restrictions on employment of juveniles and women, maintenance of records and files, leave rules, working hours, medical and social care, safety of employees, discipline codes, termination of employment contracts, end-of-service benefits, compensation for occupational diseases, penalties and employment related accidents, labour inspections, injuries and fatalities.

Employment Contract:

There are two types of employment contracts – Limited Employment Contracts and Unlimited Employment Contracts.

Limited Employment Contracts are for a specified duration with features such as specific starting and ending date, not more than four years. However, it can be renewed with mutual consent. The employment automatically terminates at the end of contract period.

However, in the case of unlimited contracts, there will be a true commencement date, but no completion date. The contract is terminated on agreement by either party, by giving a 30-day notice of termination. The employee will, however, be entitled for compensation, if the termination of the contract by the employer is for an unjustified cause.

Dispute settlement:

In case of any unresolved dispute between employee and employer, an application will have to be made to the labour office in the emirate wherein the establishment is located. The employer or employee will be summoned to hear the argument at labour office and should make the recommendation within two weeks from the date on which the application is filed. In case, the parties fail to settle the dispute at the Labour Office, the matter will be referred to the court to be litigated in normal manner.

Employment ban/labour ban/work permit ban:

These are all different terms for the same thing, which implies that the employee or the worker is not allowed to work in the UAE for a certain period. An employment ban can be usually for six months, one year, or permanent.

A six-month ban is automatically imposed when leaving a job, unless there is reason not to, or when a longer ban in imposed.

A one-year ban is imposed when a worker resigns before completing the limited contract period. A one-year ban is imposed mostly in cases of expat workers leaving government jobs, expat workers who break the terms of their labour contract, in case of expatriates who lose a case with labour department against their employer if they were on temporary work permit and filed case with labour department, and possibly against workers who leave their job within a year of starting.

A permanent ban is imposed on absconding employees, or on those who break the labour law in any way.

During a ban, although nothing may be stamped on the employee’s passport, when a new employer applies to Labour Ministry, it will automatically be rejected, if a ban is already on the employee’s name in the computer file.