Everything you need to know about limited contracts in the UAE.

UAE labour law: what you should know about the UAE limited contract

Some of the laws and restrictions established in the Federal Decree-Law No. (33) of 2021 Regarding the Regulation of Employment Relationships and its Amendments are as follows (UAE Labour Law).

Obligations of the worker

• According to Article 16 (1) of Federal Decree-Law No. (33) of 2021, the worker must complete the work as specified in the contract and must not subcontract it to another organization.
• According to Article 10 (1) of UAE labor legislation, if the work allocated to the worker allows them to obtain access to the employer’s clients or learn about their work secrets, they must not engage on any rival project in the same industry for two years after the contract is terminated.
• Article 17 (1) of Federal Decree-Law No. (33) of 2021 requires employees to work “regular working hours,” which are eight hours per day or 48 hours per week.

The rights of the worker

• Article 28 (1) of the UAE labor legislation provides that employees are entitled to paid time off on public holidays as established by UAE Cabinet resolution.
• According to Article 28 (2) of the UAE labor legislation, if the employee’s job requires them to work on public holidays, the employer must provide them with:
  • Another day off for each day, or pay them the regular working day wage.
  • An additional 50% of the day’s base wage.
• The employee is entitled to receive payments, salaries, and other entitlements mentioned in the contract within 14 days “after the end date of the contract term,” according to Article 53 of UAE labor legislation.
• According to Article 29 (1) of Federal Decree-Law No. (33) of 2021, the employee has a legal right to at least one year of paid yearly leave.
  • 30 days per year of service
  • If the service period is more than six months but less than a year, you will receive two days per month.
  • Annual leaves are due from the previous year.
• According to Article 30 (1) of UAE labor legislation, female employees must be granted maternity leave of 60 days in the following ways:
  • The first 45 days are paid in full.
  • The remaining 15 days will be paid at half-time.
• Article 51(2) of Federal Decree-Law No. (33) of 2021 stipulates that full-time foreign workers who have completed a year or more of “continuous service” are eligible for end-of-service incentives in the UAE.

After the contract expires

According to Article 13 (11) of UAE labor legislation, upon the expiration of the employment contract, the employer is required to provide the worker with a certificate of experience free of charge. The following information must be included on the certificate:

• Employment date
• Contract expiration date
• Occupational title
• Workplace Situation
• The employee’s most recent pay check
• The reason for contract termination

Nothing in the certificate should jeopardize a worker’s chances of getting a new employment.

• Article 43 (2) of UAE labor law stipulates a few significant requirements for the applicability of employment contracts during the notice period:
• During the notice period, the employment contract remains in effect. As a result, the worker is entitled to the full wage for that time period.
• If the employer demands it, the employee must also work during this time period.
• Exemption or modification of the notice period is permitted only if both parties voluntarily agree and the workers’ rights are not jeopardized.
• In the case of non-compliance with serving the notice period, Article 43 (3) of UAE labor law specifies that the breaching party must pay compensation to the non-breaching party, often known as the “notice period allowance.”
  
• • Even if their absence caused no harm to the non-breaching party, they must pay them.
  • The compensation must be equal to the worker’s wage for the whole notice period or the remaining portion, depending on the circumstances.
• If the employer terminates the contract, the employee has the right “to remain absent during the notice period for one working day without pay every week in order to look for another job,” according to Article 43 (5).
  • This clause applies only if the employee tells the employer three days in advance of their absence.
• Article 35 of UAE labor law defines the validity of the notice period in the event of termination during leave:
  • If either party wishes to terminate the contract in accordance with the law while the worker is on leave, the notice period (as agreed upon in the contract) will commence only on the day the worker returns from leave.
  • This law is subject to the parties’ mutual agreement.