Information about UAE Labour Law

The standard of living in Dubai is quite high. The base salary of an employee is usually around AED 4000 as per the UAE Labour Law. A person earning below that cannot sponsor residence for his spouse and family. Keeping domestic help also requires a monthly salary of minimum AED 6000.

Regulations of the UAE Labour Law

It prescribes certain rules that have to be followed in order to work in the UAE. The law applies to all employees of the UAE, irrespective of whether they are nationals or expatriates. It does not apply to the staff of the federal government, members working in public services like municipalities and public or federal institutions, members of the armed forces, domestic servants and agricultural workers. Those working in the free zones maintain their independent employment contracts. The UAE Labour Law deals with issues related to employment contracts, wages, medical care, employment of women and juveniles, leave, penalties, safety of employees, employment related accidents, diseases and almost all aspects pertaining to the employment scene.

The law can be invoked in case of dissatisfaction on the part of either party involved (employer or employee). An expatriate must have an employment contract before he enters the UAE. All employment contracts are mandatory in Arabic. However, an employee could ask for a copy of the contract in English before he signs it. The employer or employee may either sign a fixed term contract or an unlimited term contract. A fixed term contract has a commencement and completion date and may be renewed, extended or terminated through mutual consent. An unlimited term contract has a commencement date but not a completion date. There are many implications of UAE Labour Law.

Know more about housing in Dubai

There are various areas where one can rent a house. Although living in Dubai is expensive, an employee, if he is single, can live on a share basis or in hotel apartments. If he wants to live with his family, he needs to rent a proper apartment, which can work out to be expensive. Only those with residence visas can rent houses in Dubai. Based on his employment, an employee can find housing in Dubai. An employee should keep in mind that his employer is not obliged to pay him any housing allowance. The UAE Labour Law does not provide for housing allowance. If a company chooses to pay a housing allowance to an employee, it is purely out of the choice of the employer and not under the law.

Details for living in Dubai

The UAE labor law – best among all UAE countries

Dubai has been one of the favorite options for the job seekers. As compared to other countries Dubai is the most sought after country for jobs and also for business. The main reason of people coming to do jobs in Dubai is because it is a fast growing economy. The real estate market is on a growing trend and hence people find many opportunities to invest their money here in Dubai. One can save the entire salary as the salary is tax free. Besides these reasons Dubai has an excellent climate and the most important the people can earn a lot while working or investing in Dubai.

The UAE labour law is governed by the Federal Law no. 8 established in the year 1980 known as the regulating labour relations law. This was later amended as Federal law no. 24 in the year 1981 and Federal law no. 15 in the year 1985 and in 1986 it was amended as Federal law no. 12. The labour laws are different for the free trade zone in the UAE.

The labour law applies to all those living in Dubai. This essentially means that it applies to both the citizens of Dubai and also the people who come to work here in Dubai known as expatriates. There are exemptions to the labour law in Dubai. The staff appointed by the Federal government in different areas and also the employees who work in the Emirates government department are exempted from this labour laws. The various public bodies, municipalities, various public institutions and the staff and workers employed at these organizations are exempted from the labour law. Even the armed forces and security units and domestic servants are exempted from the labour laws.

According to the UAE labour law all the employees besides the exempted staff should follow the law. The laws for the free trade zone like – Dubai Airport Free Zone and Jebel Ali Free Zone are also subject to various rules and regulations; but they are supposed to have their own employment contracts.

Those who are living in Dubai for employment should follow some important regulations in order to follow the laws correctly. There are certain pre-requisites for those who are working at Dubai. In order for any outsider i.e. non Dubai citizen to work in Dubai the employment visa has to be processed through the Ministry in UAE. Once the visa is approved by the Ministry only then the person can work at Dubai. The businesses which are to be started in Dubai has to be registered with the Ministry. This means that the company should open a file with the Ministry before they start employing their staff in the company. In addition to following the rules for labour laws the companies should also have proper immigration clearances to be done before the company employs staff. For the employees who have to be appointed in the free trade zones the companies or the sponsors have to deposit a bank guarantee with the Ministry.