The United Arab Emirates (UAE) is renowned for its strict labour laws, which are designed to protect both employers and employees in the private sector. Understanding these laws is crucial for navigating the UAE’s employment landscape with confidence.
Recent updates, including the Emiratisation initiative, aim to increase the presence of UAE nationals in key sectors. Here’s a detailed overview of the current labour laws and Emiratisation policies.
Quick Summary
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Working Hours: 8 hours per day or 48 hours per week for the private sector.
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Sick Leave: Up to 45 days of paid sick leave.
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Overtime: Additional 25% pay for overtime, not exceeding 2 hours per day.
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Emiratisation: Companies with 50+ employees must increase Emirati workforce by 2% annually; those with 20-49 employees must hire at least one Emirati by 2024 and two by 2025.
UAE Labour Law
The UAE Labour Law, as outlined in Federal Decree Law No. 33 of 2021, governs employment relationships in the private sector. It covers aspects such as working hours, overtime, leaves, and termination of employment.
The law aims to balance the rights of both employers and employees, promoting a fair and equitable work environment.
Emiratisation Initiative
The Emiratisation initiative is a national effort to increase the number of UAE nationals in the private sector. Starting in 2025, companies with 50 or more employees must increase their Emirati workforce by 2% annually in skilled roles.
For smaller companies with 20-49 employees in specific sectors, hiring at least two Emiratis by 2025 is mandatory.
Key Employment Laws
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Working Hours: Employees can work up to 48 hours per week, with a reduction of two hours per day during Ramadan.
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Sick Leave: Employees are entitled to up to 45 days of paid sick leave.
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Overtime: Overtime pay is 25% more than the regular pay, limited to two hours per day
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Notice Period: The notice period ranges from 30 to 90 days.
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Gratuity: Calculated based on years of service, with a maximum of two years’ salary.
Impact
Compliance with Emiratisation targets is crucial to avoid penalties. Companies failing to meet these targets face significant fines, such as AED 108,000 annually per unfulfilled position.
Emiratisation not only supports the UAE’s economic diversification but also enhances a company’s reputation as a socially responsible employer.
Expert Opinions
Industry experts emphasize the importance of understanding and complying with UAE labour laws to maintain a balanced and sustainable workforce. Emiratisation is seen as a strategic move to strengthen the UAE’s economy by providing Emiratis with leadership roles and experience.
FAQs
Q: What are the working hours in the UAE private sector?
Ans: The standard working hours are 8 hours per day or 48 hours per week.
Q: How does Emiratisation affect private sector companies?
Ans: Companies must meet specific Emirati hiring targets to avoid penalties.
Q: What is the notice period for terminating employment?
Ans: The notice period ranges from 30 to 90 days.
Conclusion
Understanding UAE labour laws and Emiratisation policies is essential for both employers and employees in the private sector. As the UAE continues to evolve its employment regulations, staying informed will help navigate these changes effectively. For more information, visit the Ministry of Human Resources and Emiratisation (MoHRE) website.
