When we talk about the highest and biggest job markets in the world, the name UAE is sure to come to mind. Indeed, from small to big industries, the UAE hosts tons of opportunities for employees from different sectors and fields. This is why hundreds and hundreds of new aspirants come into the UAE with the hope to land their dream job or particularly find a better living than in their home country.
The quality of life, work-life balance, and environment in the UAE are unparalleled. In fact, it offers tons of opportunities to potential candidates to live a healthy and better life in the UAE. These are some of the reasons for the massive expat population in the UAE.
However, the top-notch legal firm in UAE, Mai Alfalasi, recommends that it is pivotal to know the legal rights so that you can handle the things in a legal way and the way that benefits you. The government of the UAE has devised and formulated labor laws so that the foreign employees have the best working conditions as well as a conducive environment.
The New Labor Law of Dubai
Understanding the new labor law of the UAE becomes pivotal before we proceed to any other thing. According to the latest amendment in the labor of the UAE that comes into effect on 2nd February 2022, the government of UAE is being vigilant and changing the lawsuits to increase their effectiveness as in the developed nations. More precisely, they are elevating the labor laws in the UAE and comparing them to that the global standards.
The new amendments in the labor law have been around the employment law, leave provision, contracts issuance, and renewal, introduced a new working week, minimum wage, and termination of an employee from their position. The primary focus of devising this labor law in the UAE is to safeguard the rights of all working people from the private and public sectors.
The introduction of new terms and guidelines have been summarized in the new amendments in the labor law for the employees in the UAE. The Federal Law no. 8 of 1980 (regulates employment relations in the UAE), the Federal Law no. 6 of 1973 (Immigration and Residence) all the amendments, and Federal Decree-Law no. 17 of 2017 (Immigration Law) cover in detail all the rights enjoyed by employees when they are termination from their jobs. In this new law, three new terms and conditions have been put for all the employers to abide by upon the completion of the contract or even termination of the contract;
The first is if the term of the contract is expired and not renewed.
The second is when both parties mutually agree to terminate the contract.
The third is if the employee commits a violation of their job roles as mentioned in Article 120 of labor law.
The labor law clearly and succinctly explains the immediate payment of EoSB to the employee upon termination of the contract, except for the cases where the termination is due to misconduct or violation of extreme rules.
Now, this is where the termination of an employment contract may vary. The employees can take both ways by enforcing the legal obligations and enjoying the benefits.
Legal Rights in Employment Contract
In order to know more about the legal laws and compliances that you can get in the UAE, here are the rights that you must know for safeguarding your legal way. These are provided by the leading legal consultants in Dubai at Mai Alfalasi.
1. Receivables & Dues
The clearance of receivables and dues entirely depends on how you actually get terminated from your job. If the organization has taken a step further in the wake of cost-cutting, you are obliged to receive the gratuity pay and, in some cases, the notice period compensation. However, if you are wrongfully terminated from your position, and the organization failed to present a valid reason for your termination, you are entitled to get the gratuity and other dues.
2. Post-Service Benefits
In UAE, the end of service benefits (EoSB) are highly monitored and served with legal regulations to serve justice at all times. However, it is paramount to remember that an employee is not entitled to receive an end of service benefits if found involved in any sort of misconduct on the job role. Generally, all the employees who have completed one year of service become eligible for gratuity or end of service benefits.
Moreover, Article 132 of employment and labor law in UAE says the following about the end of service benefits;
21 days’ pay for each year of the first five years of service.
30 days’ pay for any additional year.
3. Notice Period
All the employees intending to leave the organization must serve a notice period that is agreed upon while entering the contract. Now the scenarios may vary where the employee can simply leave the company of their own goodwill. But be very mindful that in case of doing so, they have to serve the notice period, and if they are willing to get a waiver on the notice period, they must compensate the employer.
The same goes for the employer as well in Dubai, as they also have to follow the same legal proceeding. The duration of the notice period in Dubai may vary from 1 to 3 months in total, and each party must fulfill the notice period without having to compromise on the legal way of conducting things.
However, in some of the cases, our legal consultants have handled, if you have served the 3 months notice period, you are not entitled to serve anymore. In fact, the employee then becomes entitled to receive full wages during the notice period.
4. Uncertain Medical Reasons
Uncertainty can strike anytime, and medical uncertainty is inevitable in some conditions. Therefore, if a company dismisses an employee for medical unfitness although they cannot, employees can take legal action against them. However, it is important to note that the termination and legal action may vary if the employee has taken legal leaves and is continuously absent from the position.
5. Grace Period Exceptions
The government of UAE provides 30 days grace period after the cancellation of an employment visa. However, a new amendment has been proposed to the government to extend the time of grace period to 180 days. But it is still to get a ruling. However, if you have maintained good relations with the employer and ask them not to cancel your visa until you land another job, a probable option can be a potential gateway.
The Final Words
After reading the above-mentioned details, one thing becomes certain the UAE’s legal system provides a valuable working population and a safe and secure working environment where your legal rights are always protected and served upon violation. Moreover, if you need to file a case or so, perhaps hiring a labor law advocate is also advised and taken as a step forward in such situations. The professional team of legal consultants in Dubai at Mai Alfalasi also caters to all the cases and strives to provide and serve justice.
Practice Areas
- Commercial
- Corporate
- Dispute Resolution & Litigation
- Banking & Finance
- Insurance & Securitization
- Real Estate & Construction
- Technology & Data Protection
Mai Alfalasi Advocates & Legal Consultancy
1203, Green Tower
Baniyas Street, Deira
Dubai, United Arab Emirates
Phone. +971 4 223 0666
Whatsapp. +971 50 208 9986
Email. info@maaflegal.ae
Office Hours
9.00am to 6.00pm (GST)
Monday to Friday