It’s essential to know your rights regarding working hours and overtime pay if you’re working in the United Arab Emirates (UAE). The nation’s Employment Law provides clear guidelines on the maximum number of hours employees can work, defines when overtime must be compensated, and outlines key considerations for both employees and employers.
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UAE Overtime Explained.
Working extra hours is common across industries, often necessary for meeting deadlines, handling urgent needs, or covering peak seasons. The UAE has established clear guidelines to ensure these additional hours are managed fairly. This provides employees with transparency and peace of mind, while helping employers maintain compliance, prevent disputes, and foster stronger working relationships.
Normal working time regulations.
According to Article 17(1) of Federal Decree Law No. 33 of 2021, the standard maximum work limit in the UAE is 48 hours per week (eight hours daily). Certain industries, such as hospitality, security, and trade, are permitted to extend this to nine hours per day. Any time worked past these limits is legally defined as overtime. Tracking these hours accurately not only ensures legal compliance but also helps support employee well-being and productivity.
The Mechanism for Overtime Compensation in the UAE
Overtime compensation in the UAE varies significantly based on when the extra hours are worked:
Standard Overtime: You must be paid your basic wage plus a minimum of 25% for hours worked beyond the normal schedule.
Night Overtime (10:00 PM to 4:00 AM): This rate increases to your basic wage plus a minimum of 50%.
Overtime is generally limited to two extra hours per day. Note that these rules do not apply to managerial, supervisory, and senior technical staff, nor does the late-night rate apply to employees on a shift work schedule.
What steps should I take if I don’t receive my overtime pay?
Start by having a calm, direct conversation with your employer, reminding them of the legal obligation to pay overtime. Most issues are resolved quickly through open communication. If that fails, you can escalate the matter to MoHRE (Ministry of Human Resources and Emiratisation) for guidance on resolving the employment dispute.
FAQS
On Mandatory Payment & Refusal:
Can an employer refuse to pay overtime? No, overtime compensation is a legal entitlement in the UAE. Employers are required to pay for all hours worked beyond legal limits to ensure fairness, protect employee rights, and maintain compliance with Labour Law, thereby avoiding potential disputes.
On Calculation Rules & Limits:
How is overtime calculated, especially for extended or late-night hours?
Standard: The first two hours of overtime are paid at your basic hourly wage plus at least 25% extra.
Late-Night (10:00 PM – 4:00 AM): This rate increases to your basic hourly wage plus at least 50% (unless you are a shift worker).
Beyond 2 Hours: The law mandates that the same overtime rates must be applied to all hours worked, even if you exceed the typical two-hour daily limit for urgent business needs.
Note: Frequent, extended overtime may signal operational issues, and employers should manage it strategically to avoid overburdening teams.
On Holiday and Rest Day Work:
How is overtime on public holidays or rest days compensated?
If an employee works on a public holiday or official rest day, the employer must provide one of two options: either a substitute paid day off or pay the employee their basic wage plus at least 50% extra for the hours worked.
On the Mutual Benefits of Compliance:
What are the broader implications of overtime rules?
Compliance with UAE overtime rules benefits everyone. It ensures fair compensation and recognition for employees’ extra efforts. For businesses, it is a crucial tool for building trust, retaining talent, maintaining compliance, and running operations smoothly and efficiently. (For payroll payment methods, refer to the guide on the Wage Protection System.)
