New UAE Labour Law: 7 points your employment contract must include

Should you insist on retaining original job offer with you?

Since January 1, 2016, the UAE has implemented sweeping reforms to the old Labour Law, plugging loopholes that now make employees even more content and secure in their workplace.

Primary changes in the new regulations pertain to employment contracts for workers hired from abroad, termination of job contracts, and issuance of new labour permits to resident workers.

According to new regulations, any offer letter made to a foreign worker is legally binding once accepted and signed by both parties.

This means that the employment contract should be based on the offer letter signed by both parties. The contract, however, must include a set of information.

The resolution issued by the Minister of Labour mandates that employers will be required to disclose to the Ministry the terms of the offer made to a foreign worker.

As per law, the following seven points need to be specified in all employment contracts.

These include:

1) Wages/remuneration payable.

2) Date of the employment contract.

3) Date of commencement of the employment contract.

4) Nature of the contract (limited or unlimited).

5) Nature of the work.

6) Duration of the contract (for fixed term contracts).

7) The location of employment.

According to the ministry, it has begun implementing new procedures for issuance of work permits where employers are obliged to provide the job offer and annexes containing a comprehensive description of rights and duties between both parties.

The documents must be signed (or bear the thumbprint, depending on job classification) after which a copy of the job offer should be presented to obtain an authorisation to enter the country followed by the issuance of a work permit and signing of the contract.

The ministry praised the reaction of many companies to the newly launched decrees that have been applied since January.

“Many of the establishments that have applied for new work permits under the new decisions proved their commitment to establishing a transparent working relationship with workers who were brought from abroad, therefore, they proved their sincere commitment to protecting workers through innovating new methods that will monitor the workers’ signature/thumbprint and follow up on all processes,” says Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary for Labour Affairs at the ministry.

“Since the implementation of the new decisions, the ministry cooperated with a number of enterprises that have applied for new work permits in order to determine the procedures followed to brief workers on job offers. Officials in some of these facilities said they dispatched HR employees to a labour-sending country to closely brief the workers on job offers and then signed it followed by a photograph for documentation purposes.”

Who keeps the original job offer contract – you or your employer?

Are you worried about your original job offer not being with you?

If this important document is with the company you are employed with, it is well within the legal rights of your boss and you have nothing to worry about.

The Ministry of Labour has called upon employers to keep the original job offer contracts, signed by both parties, in case of legal disputes.

The ministry’s undersecretary has said that workers may contact the ministry in case they find a false signature on the job offer before signing the employment contract.

In such cases, employers are required to bring the original job offer that will then be referred to the court for further inspection, he said.

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New UAE labour law for terminating employees, new contracts

Law to be enforced in 2016; Aims to regulate relations between employers and workers.

The UAE intends to enforce a new labour law at the start of 2016 to better regulate the relationship between employers and workers and curb violations to ensure both parties will get their rights, the press reported on Tuesday.

The new law includes three main rules governing labour contracts for workers from abroad, terminating contracts between the employers and workers and the issuance of a new work permit to a resident worker.

“These rules will take the labour market to a new stage based on a strong and balanced relationship between all parties and on agreement and transparency in contracting to guarantee the rights of all parties,” Labour Minister Saqr Gobash said.

The first rule in the law, published by the Dubai-based Arabic language daily ‘Emarat Al Youm’, requires the employer to issue a “clear and detailed” contract for the foreign workers to be brought from abroad, including all duties and rights for the two parties, job terms and other requirements in a language understood by the worker.

The contract must be signed by the worker before it is submitted to the labour ministry for the issuance of a work permit, which must not be altered at any stage.

“The same measures apply to workers who reside in the UAE. In this case, the employer must also get the worker’s signature,” it said.

Contract termination

The second rule, which governs contract termination, includes an agreement by the employer and the worker to end their two-year contract.

Another case includes a decision by the employer to terminate the contract before it expires.
In this case, the employer must give at least one month notice to the worker and pay the worker all dues during that period.

“The notice period must also not exceed three months and must be agreed by both parties,” it said.

The new rule also governs cases in which the employer or the worker terminates the contract without abiding by the legal procedures.

Another case involves a decision by the employer to terminate the worker’s services for committing offences including assaulting or insulting the employer.

Regarding unspecified contracts, the employer seeking to terminate a worker’s contract must also give a notice of not less than one month and not exceeding three months.

“In all contract termination cases, any party has the right to go to court to seek compensation and any other rights,” it said.

Under the new rule, the work contract is considered null if the employer is found to have violated the law including failure to pay the worker for two months.

In case a worker could not start his job because of the closure of the company, the labour ministry will send inspectors to check the company’s status before issuing a decision within two months.

As for cases considered by the labour court at the ministry, it will issue a final decision forcing the employer to pay the worker two months’ salary or to compensate him for service termination or depriving workers from end of service benefits.

New job contracts

The new rules also cover new job contracts to workers whose contracts have expired or terminated by an agreement between the employer and the worker provided the worker has completed at last six months with his employer.

According to ‘Emarat Al Youm’, the new law specified three cases involving termination of work contracts.

They include agreement by both parties provided the worker has spent at least six months with the employer, termination of the contract by either party for some reason, and termination of the contract by the employer without reason.

The new law allows the issuance of a new work permit in cases where the employer is found to have violated his commitments, including failure to pay workers for two months, a complaint by the worker that he is not able to start his job because of the company’s closure, and a labour dispute at the ministry’s court.

Ministerial decisions 764, 765 and 766 aim to improve labour relations based on sponsorship.

Source :

You can quit job without notice if employer fails to meet obligations

The employee must immediately report non-payment of salary to the Ministry of Labour and file a complaint against the employer.

My friend is working as an accountant since one year at an entity based in the UAE. However, she has not received her salary for two months, owing to the fact that the employer has taken in its possession ATM Cards of all its employees. The employer deposits salary in the accounts of each employee in accordance with the Wage Protection Scheme regulations, but subsequently, the employer withdraws the money using the employees’ ATM cards.

Under these circumstances, can she shift to a job without getting a labour ban?

It is presumed that your friend’s employment is subject to provisions of the Federal Law No 8 of 1980 on the Regulation of Labour Relations (the “Labour Law”).

Pursuant to the first part of your question, it may be noted that your friend shall be within her rights to terminate her current employment, as her employer has failed to fulfil its obligations towards her as its employee, as your friend has not received her salary for the last two months. However, your friend must immediately report non-payment of salary to the Ministry of Labour and file a complaint against her employer.

Therefore, if your friend should decide to terminate her employment, she may not face the imposition of an employment ban, as the reason for termination of employment contract may be attributable to the employer. This is in accordance with the provisions of Article 121, which states: “A worker may leave his work without notice in either of the following case:

(a) If the employer fail to comply with his obligation towards him, as provided for in the contract or in this Law;

(b) If he is assaulted by the employer or the employer’s legal representative.”

Pursuant to the last part of your question, it may be noted that the acts perpetuated by your friend’s employer may actually amount to unauthorised use of ATM cards, which is a punishable offence in the UAE. Owing to this, your friend along with other employees of the same entity may also consider to approach the police and file a complaint against her employer. However, in any case, it is advisable for your friend to simultaneously file a complaint against her employer at the Ministry of Labour as well.



Dh20,000 salary must to sponsor parents in UAE

Expatriates earning less than Dh20,000 salary will not be able to sponsor their parents on residence visas in the UAE, XPRESS can reveal.

The new ruling requires applicants to provide evidence of either having a minumum salary of Dh20,000 or a monthly pay of Dh19,000 plus a two-bedroom accommodation. The development has left many long-term residents here at their wits’ end.

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