Latest news with #CabinetResolutionNo.1
Hi Dubai
19-05-2025
- Business
- Hi Dubai
UAE Employment Law: Is It Legal to Assign Tasks Outside an Employee's Contract?
Question: I was hired as an accountant in Dubai and granted a visa for that position, but later, the company assigned me to a different role, such as HR or administrative work. Is this legal in the UAE and how can I convince my employer that it is illegal? Answer: Under UAE labour law, employers are not permitted to assign an employee to work that is substantially different from what was agreed upon in the employment contract—unless there is an emergency or a need to prevent or fix a workplace issue, and even then, only temporarily. This is outlined in Article 12 of Federal Decree Law No. 33 of 2021. The law specifically states that any such temporary reassignment must fall under exceptional circumstances and cannot exceed 90 days in a calendar year. Moreover, Article 13 of Cabinet Resolution No. 1 of 2022 clarifies that a 'fundamental difference' in work refers to tasks completely unrelated to the employee's profession or academic qualifications. If your employer asks you to take on a role that is fundamentally different—like switching from accounting to HR or admin—without your written consent, it is a legal violation. In such cases, Article 45(4) of the Employment Law grants employees the right to resign immediately without serving notice, while still retaining all end-of-service entitlements. In addition, Article 14 of the same law protects employees from being forced to work against their will. To address this, you should first review your employment contract and visa to confirm your designated role. If there's a clear mismatch between your official designation and the tasks assigned, you may present these details to your employer. If the issue persists, you have the right to file a formal complaint with the Ministry of Human Resources and Emiratisation (MoHRE). Unless you have agreed in writing, your employer cannot legally change your role to something substantially different. You are within your rights to refuse the new tasks and seek support from MoHRE if needed. News Source: Khaleej Times
Hi Dubai
14-04-2025
- Business
- Hi Dubai
Severance Pay and Golden Handshakes in the UAE: What You Need to Know
Question: I am planning to move to the UAE this summer and have been exploring job opportunities. However, none of my potential employers have been willing to offer a severance package. I'd like to understand if there are any laws or regulations about this. Is it possible to include a "golden handshake" clause in my job contract? And if I do, will it be legally binding? Answer: If you're considering an employment offer from a company based in the UAE mainland, you'll be governed by the UAE's Employment Law, as well as the Civil Transactions Law. These legal frameworks protect employee rights, including those related to severance pay. According to Article 51(2) of the Federal Decree Law No. 33 of 2021, any employee who has completed at least one year of continuous service is entitled to severance pay upon the end of their employment. The severance pay is based on the employee's basic salary and is calculated as follows: 21 days of salary for each year of service during the first five years. for each year of service during the first five years. 30 days of salary for each year of service after the first five years. Additionally, Article 8 of the UAE Employment Law and Article 10(1) of Cabinet Resolution No. 1 of 2022 specify the regular terms and conditions that must be included in an employment contract. However, the standard contract template provided by the Ministry of Human Resources & Emiratisation (MoHRE) does not typically include a clause about severance pay. Despite this, you are still entitled to severance pay if you have completed at least one year of service with your employer, even if it is not explicitly mentioned in your contract. The UAE Employment Law guarantees employees this entitlement, regardless of whether the contract addresses it directly. Can a "Golden Handshake" Be Included in Your Contract? While the UAE's Employment Law lays out the minimum rights of employees, it does not restrict employers from offering more favorable terms. As per Article 65(1) of the UAE Employment Law, employers can provide benefits that go beyond the statutory minimum, including the possibility of a "golden handshake" clause. A "golden handshake" refers to a negotiated severance package that offers more generous compensation than the standard severance pay. If you wish to include this clause in your contract, you can discuss it with your prospective employer. If both parties agree, it can be incorporated into the contract and will be legally binding, as long as it complies with the UAE's legal framework on employment contracts, which mandates that contracts be executed in good faith and in line with the law. In summary, while the UAE Employment Law ensures that you are entitled to severance pay, it also allows for the inclusion of more favorable terms such as a "golden handshake." You should discuss this possibility with your employer, who may agree to include it in your employment contract. If you have any concerns, it's always advisable to consult with a legal professional familiar with UAE employment laws to ensure your rights are fully protected. Applicable Laws: Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationships Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates News Source: Khaleej Times
Khaleej Times
13-04-2025
- Business
- Khaleej Times
UAE: Can employees ask for a severance package in their job contract?
Question: I am planning to move to the UAE this summer and have been exploring job opportunities. However, none of my potential employers I've spoken to were willing to offer a severance package. I'd like to understand if there are any laws or regulations about this. Is it possible to include a "golden handshake" clause in my job contract? And if I do, will it be legally binding? Answer: It is assumed that you are considering an employment offer from a company based in the UAE mainland. In that case, the UAE Employment Law, along with related cabinet resolutions and the Civil Transactions Law, would apply to your situation. In the UAE, an employee who has completed at least one year of continuous service is entitled to severance pay at the end of his or her service with an employer. The severance pay of an employee is calculated on his or her basic salary. This is in accordance with the Article 51(2) of the Federal Decree Law no. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments ('UAE Employment Law'), which states: 'The full-time foreign employee, who completed a year or more in continuous service, shall be entitled to end-of-service benefits at the end of his service, calculated according to the basic salary as per the following: a. A salary of (21) twenty-one days for each year of the first five years of service; b. A salary of (30) thirty days for each year exceeding such period.' Further, the Article 8 of the UAE Employment Law read with Article 10 (1) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the 'Cabinet Resolution No. 1 of 2022'), states the regular terms and conditions which needs to be included in an employment contract of an employee. In the UAE, the parties to any contract are legally bound to carry out their respective obligations as stated in the contract, and to do so honestly, fairly, and in good faith. This is in accordance with accordance with Article 246 (1) of the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates, which states: '1. The contract shall be implemented, according to the provisions contained therein and, in a manner, consistent with the requirements of good faith.' Generally, in the UAE, the Ministry of Human Resources & Emiritisation (Mohre) template of the employment offer letter and contract does not contain clause related to severance pay. However, you may request your prospective employer to include the same. If your prospective employer does not agree to include details about severance pay in your employment offer letter, or if the offer letter and employment contract do not mention it, you will still be entitled to receive severance pay when your employment ends, as long as you have completed at least one year of service with the company. As an employee, you are entitled to all the benefits outlined in the UAE Employment Law and its related cabinet resolutions, including severance pay as specified in Article 51(2) of the UAE Employment Law. Additionally, while the UAE Employment Law ensures the protection of employee rights, it does not restrict employers from offering more favourable terms. This is in line with Article 65 (1) of the Employment Law, which states: 'Rights laid down in this decree-law shall consist the minimum employees' rights. The provisions of this Decree-Law shall not prejudice any of the rights prescribed for employees under any other legislation, agreement, declaration, regulation or employment contract, giving rise to rights that are more beneficial than those laid down in the provisions of this Decree-Law.' If you're considering including a 'golden handshake' clause in your employment contract, you can discuss this with your prospective employer and mutually agree to add it to the contract. Applicable laws: 1. Federal Decree Law no. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments 2. Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations 3. Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates
Khaleej Times
23-02-2025
- Business
- Khaleej Times
Ramadan 2025 in UAE: Can employees be asked to work during iftar hours?
Question: I run a small company in a free zone in Dubai. Can you list the office-related rules I need to follow during the holy month of Ramadan? I may need a couple of staff members to work during iftar hours. What are the rules then? Answer: In the UAE, an employee is entitled to two hours of reduced working hours per day during Ramadan. The law states: 'The implementing regulation hereof specifies the working hours in Ramadan. Article 15(2) of Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulations of Employment Relations (Cabinet Resolution No. 1 of 2022), which states: 'Subject to the provisions of Article 17 of the Decree Law: The regular working hours shall be reduced by two hours during the holy month of Ramadan.' If an employee works beyond the regular hours of employment which are stipulated for the month of Ramadan, such additional time of employment may be considered overtime. For overtime, an employee may receive a pay additional to their regular salary, with at least an increase of 25 per cent. This is in accordance with the Article 19 (2) of the Employment Law, which states, 'If the work conditions necessitate that the employee works for more than the normal working hours, the excess period shall represent overtime, for which the worker shall receive a salary equal to the salary corresponding to the normal working hours, which is calculated according to the basic salary plus an increase of not less than 25 per cent of that salary.' Based on the aforementioned provision of the law, you are required to reduce your employees' working hours by two hours during Ramadan. As an employer, you are obligated to grant an iftar break to all Muslim employees. However, if you need to have your entity operations continue during iftar breaks/hours, you may employ non-Muslim employees during this period. Therefore, you may consider either having employees in shifts to fulfil your business requirements or you may also extend working hours for certain employees by paying them overtime payments (only if they are not in managerial or supervisory designations). Furthermore, as your company is regulated by a free zone, it is advisable to confirm if any specific regulations within your free zone impose additional requirements or guidelines regarding working hours during Ramadan.
Hi Dubai
10-02-2025
- Business
- Hi Dubai
Ramadan in the UAE: Are Employers Allowed to Require Extra Work Hours During the Holy Month?
During the holy month of Ramadan, private sector employees in the UAE are entitled to reduced working hours and specific protections under labour laws. Here's an overview of the key rules, exceptions, and what to do if your employer does not comply. Reduced Working Hours As per Article 17(4) of Federal Decree Law No. 33 of 2021 on Employment Relations and Article 15(2) of Cabinet Resolution No. 1 of 2022, private sector employees' working hours must be reduced by two hours daily during Ramadan. This applies regardless of whether the employee is Muslim or not, reflecting the UAE's commitment to fair treatment for all workers. Overtime Pay During Ramadan If employees are required to work beyond their regular hours during Ramadan, they are entitled to overtime pay as stipulated by Article 19 of the Employment Law. Daytime Overtime : A supplement of at least 25% of the basic salary. : A supplement of of the basic salary. Nighttime Overtime (10 PM to 4 AM) : A supplement of 50% of the basic salary. : A supplement of of the basic salary. Rest Day Overtime: Employees are entitled to either a 50% supplement or a substitute rest day. However, managers and supervisory roles are exempt from overtime pay, as outlined in Article 15(4)(b) of Cabinet Resolution No. 1 of 2022. Filing a Complaint Against Non-Compliance If your employer fails to reduce working hours or pay the required overtime during Ramadan, you have the right to file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE). MoHRE will investigate the matter and ensure compliance with the UAE labour laws, protecting your rights as an employee. Key Takeaway The UAE's labour laws ensure that private sector employees enjoy reduced working hours and fair compensation during Ramadan. If you encounter non-compliance, MoHRE provides a robust mechanism to address grievances, ensuring that employers adhere to these regulations. News Source: Khaleej Times
