Introduction to Timeframes and Notices of UAE Labor Law
Timeframes and notices of the UAE Labor Law are one of the key questions for companies and employees.
In the UAE, labor contracts are governed by Federal Law No. 33 of 2021 (“UAE Labor Law”) which came into force in February 2022 becoming the greatest amendment since 1980.
The UAE Labor Law outlines specific provisions and requirements regarding various aspects of employment. Two critical components of any labor contract in the UAE are the timings (working hours and over stay, annual leave, maternity, sick leave) and notice periods (probation and termination).
The purpose of our publication is to address the timeframes part of work timings, overtime, maternity, sick leave, annual leave together with probation and termination notices.
Working Hours (Timings)
The standard working hours in the UAE is 8 hours per day or 48 hours per week. During Ramadan, the working hours are reduced by 2 hours per day. The UAE Labor Law regulates the work of juveniles with reduced timings.
These are the timeframes set out in the UAE Labor Law. However, contractual parties, employers and employees could improve the working days and hours being rather common having contracts reflect 40 hours a week over 5 working days.
It is important to stress when addressing working hours and overtime that certain industries and types of work may have different regulations regarding working hours due to the nature of their operations (e.g., hospitality, healthcare).
Overtime
Overtime in the UAE is regulated in Article 19 of the UAE Labor Law.
Any work done beyond the standard working hours is considered overtime. Overtime work should not exceed 2 hours per day unless in exceptional circumstances. Overtime compensation is typically 1.25 times the regular hourly rate. If overtime is worked between 9:00 PM and 4:00 AM, the rate increases to 1.5 times the regular hourly rate.
It is important to stress that managerial positions and positions of high responsibility are not entitled to overtime payments.
Breaks
Workers are entitled to a break of at least one hour if they work for more than five consecutive hours. This break is not included in the calculation of working hours.
Since 2022 the weekends are generally Saturday and Sunday with Sunday being the day that is most respected in terms of time off. Some industries and government offices also have special timings on Fridays being operational until noon time and having flexible timings (private companies that close Fridays or early on Fridays) on Saturdays or Sundays.
Notices of UAE Labor Law
Notice periods mainly refer to termination notices and probation periods.
Probation Period and Notices of UAE Labor Law
During the probation period, which can be up to six months, the employer or employee can terminate the employment with fifteen days notice.
This is a novelty introduced in 2022 as the prior labor law from 1980 allowed either party to terminate ipso facto.
Termination Notice
The UAE Labor Law envisions only limited term contracts but allows parties to terminate by the provision of a notice period from 30 to 90 days. This is regulated in Article 43 of the UAE Labor Law. This notice period will need to be equal for employers and employees or if not equal under the employment contract careful consideration given to anticipate the eventual court’s treatment if a litigation may be in the range of the possibilities.
When either party does not respect the agreed notice period the breaching party will be expected to compensate the non breaching party. In the case of employees not respecting the notice period may lead to the loss of other employment rights such gratuity.
Article 44 of the UAE Labor Law envisions, however, instances where termination could take place without this notice and all refer to grave instances of mis or non performance, serious defaults or mistakes and assaults to ethics and decency. If you consider that you may need to implement a termination under this Article we strongly recommend prior legal assessment as the implementation of this Article by the UAE Courts is narrowly undertaken.
Annual Leave
Employees are entitled to 30 calendar days of full pay. Two days for each month if the service period is between 6 months and one year.
It is often seeing companies granting 22 working days to afford flexibility to employees taking shorter breaks.
Maternity
Maternity is regulated in Article 30 of the UAE Labor Law.
Female employees are entitled to 45 days of full pay, 15 days with half pay and to an extension without pay if certified medical conditions so require.
Sick Leave
Employees may, after the end of the Probation Period, have a sick leave of not more than (90) ninety consecutive or intermittent days per year. The first 15 days with full pay, next 30 days with half pay and the remaining without any pay.
Employees should communicate as soon as possible the Employer and in most scenarios submit a medical report on the underlying condition. Most companies make it mandatory for extended medical absences.
Conclusion to Timeframes and Notices of UAE Labor Law
All employment terms, including working hours and notice periods, must be clearly stated in a written labor contract. This would be the first point of assessment. Aspects that may be missing will need to be complemented by the UAE Labor Law. Terms that reduce the minimum frameworks reflected in the UAE Labor Law will likewise need to be revisited with the minimums established by the Law.
Understanding these aspects of the labor contract can help ensure compliance with UAE labor regulations and promote a fair working environment for both employers and employees.
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We hope this publication will help you assess the timeframes and notice periods of the UAE Labor Law and remain available for any questions regarding this post of general application.
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Click here to read our publication about the 10 Key Aspects of the New UAE Labor Law.
*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to timeframes and notice periods of the UAE Labor Law.