328
Chapter 6
The United Arab Emirates An Accommodating Legal Environment
Employement All matters relevant to employment relationships in the UAE are regulated by the provisions of the federal Labour Law, which was issued in1980 (LL). That was only the beginning for many significant developments in the regulation of the area of employment.
Scope The EL covers all the employees, regardless of nationality, and contains a wide definition of “employee”, which includes all persons who, for wage of any kind, are in the service or under the management or control of an employer. Definite Contract
Due to the special nature of their activities and professions, EL excludes employees of the federal and local government, members of the armed forces, police and security, domestic servants employed in private households, and the like, as well as farming and grazing workers, other than those working in agricultural establishments that process their own products, and those who are permanently employed to operate or repair mechanical equipment required for agricultural work.
Employment Contract The EL defines the employment contract as any agreement, concluded between an employer and an employee, whereby the latter undertakes to work in the employer’s service and under his management and control, in return for a certain wage that the employer undertakes to pay. Indefinite Contract
Shall not exceed four years.
Indefinite.
may be renewed by mutual Agreement
Does not need to be renewed.
Renewal shall be deemed as an extension of the original term and shall be added thereto when calculating the employee’s total period of service.
Why UAE ?
Employee’s total period of service starts from joining till termination of service.
Employment contract is considered as ‘Indefinite’ if it: Is not written if it concluded for an unspecified period. If it was originally written and concluded for a definite term but both parties, without a written agreement between them, continued to perform it after its expiry; or Was originally concluded for the execution of a specific work that had no specific duration or that is recurrent by nature, but the contract continued after completion of that specific work.
Employment contract shall be written in duplicate, with one copy to be delivered to the employee and the other to the employer. Contract shall particularly specify the date of its conclusion, the date on which work is to begin, the type and place of the work, the duration of the contract, (if definite) and the amount of the wage. An employment contract may be for a definite or indefinite term. Below table summarizes the differences between the two types, as follows:
Probation Period EL recognizes inclusion of a condition of a non-renewable probation period not exceeding six months in employment contracts. During such a period the employer, without notice or severance pay may terminate employee’s services. An employee shall not be placed on probation more than once with the same. Where an employee successfully completes the period of probation and
continues in employment, said period shall be calculated as part of his period of service.
Employment of Non-UAE Nationals As the UAE is considered a preferred destination for professionals and skilled human resources from over the world, it was necessary that the EL outlines the legal framework for employment of non-UAE nationals. Non-Nationals may not be employed without the prior approval of the MOL and before first obtaining an employment permit in accordance with the revealing procedures and regulations such permit shall not be granted unless the following conditions are fulfilled: That the employee possesses professional competence or educational qualification the country is in need of. That the employee has lawfully entered the UAE and satisfied the conditions prescribed in the residence regulations in force.
The Unlimited Opportunities 2012
329