Dubai is a hub for business, attracting entrepreneurs and investors from around the world. However, setting up a business in Dubai requires compliance with UAE labor law. It is important for business owners to understand the labor laws in Dubai to ensure that they are meeting all legal requirements when employing staff. In this blog, we will provide an overview of the labor laws in Dubai and help business owners ensure compliance.

Employment Contract

Employment contracts are required by law in Dubai. They should be in writing and signed by both parties. The contract should include the terms and conditions of employment, such as job title, salary, working hours, and annual leave entitlements. It should also include provisions for termination of employment, notice periods, and end-of-service benefits.

Working Hours

Working hours in Dubai are regulated by law. Employees are entitled to a maximum of 48 hours of work per week, with a maximum of 8 hours per day. During Ramadan, working hours are reduced to a maximum of 6 hours per day. Overtime work is permitted but should be compensated at a higher rate than regular working hours.

Annual Leave

Employees in Dubai are entitled to annual leave. The entitlement varies depending on the length of service. Employees who have worked for less than a year are entitled to 2 days of annual leave per month. Those who have worked for more than a year are entitled to 30 days of annual leave. Employers should ensure that employees take their annual leave entitlement and are compensated for any unused leave.

Sick Leave

Employees in Dubai are entitled to sick leave. The entitlement varies depending on the length of service. Employees who have worked for less than 3 months are not entitled to sick leave. Those who have worked for more than 3 months are entitled to 90 days of sick leave per year. Employers should ensure that employees receive their full entitlement of sick leave.

End-of-Service Benefits

End-of-service benefits are required by law in Dubai. Employees who have worked for more than a year are entitled to end-of-service benefits, which are calculated based on the length of service and final salary. Employers should ensure that they are providing the correct end-of-service benefits to their employees.

Discrimination and Harassment

Discrimination and harassment in the workplace are prohibited by law in Dubai. Employers should ensure that they are providing a safe and respectful workplace for their employees. Employees who experience discrimination or harassment should report it to their employer or to the Ministry of Human Resources and Emiratisation.

In conclusion, understanding UAE labour law is essential for business owners in Dubai. Compliance with labour laws is required by law and failure to comply can result in penalties and legal action. Business owners should ensure that they are providing their employees with fair and safe working conditions, and that they are meeting all legal requirements when employing staff.