Labor Law in Dubai

June 1st, 2017

The Labor Law in the United Arab Emirates (UAE) is applicable to all staff and employees, UAE nationals or expatriates, working in the UAE with just a few exceptions of federal government employees, members of armed forces, police, security, domestic servants, and agricultural workers. Employment contracts are one of many aspects of UAE Labor Law, according to Neil Satterwhite, CEO and Founder of Tiger-Consulting Asia.

The Labor Ministry in the UAE requires approval of an application for the condition of employment of any expatriate employee before entering the UAE. Once approved, the permit is valid for three years and will be subject for renewal once the time is up. Furthermore, labor permits will not be issued by the Labor Ministry unless a formal labor contract has been filed with them first. Nationals in the UAE can enter into an employment contract at any time.

Limited Employment Contracts and Unlimited Employment Contracts are the two types of employment contracts in the UAE. Limited Employment Contracts are for a specified duration with with a specific commencement and completion date, not more than four years. Also, with mutual consent they can be renewed and at the end of contract period the employment terminates automatically .

In the case of unlimited contracts, there will be a true commencement date, but no completion date. These contracts are terminated by either party giving a 30 day notice of termination. However, if the termination of the contract by the employer is for an unjustified cause the employee will be entitled compensation.

The period of probation can be for a maximum period of six months according to UAE Employment Law. Probation is not required and is left to the discretion of both parties to agree upon the actual term of a probationary period. During this probationary time an employee or the employer can terminate the employment contract without the employer being liable to pay the end of service gratuity or the employee compensation for damages. Also during the probation period All wages and benefits should be paid along with repatriation costs as long as the termination of the employment contract is at the command of the employee. Probation is not compulsory, and is left to discretion of parties to agree upon the actual term of probationary period. On completion of the probation period, it will be considered as an employment with the employer, and the employee will be considered for calculating gratuity and other terminal benefits.

"Tiger-Consulting's Dubai office is now available to international clients giving them the ability to get support in this rapidly expanding region. Companies are looking to leverage their value, move quickly and stay light on their feet while seeking to consolidate support under one umbrella, which is exactly what we offer as well as providing a single point of contact. Our Dubai team has solid relationships with local and regional companies. We understand the rich cultural diversity of the region, its languages, and its customs. This part of the world is eager and ready to support foreign investment and new business opportunities. We will help with the complexities of international expansion." said Tiger-Consulting Founder & CEO, Neil Satterwhite.

Tiger-Consulting has been doing business in Asia for 25+ years. The firm provides HR, payroll and business support to 300+ businesses. For questions regarding the firm's International HR, Payroll, PEO, and other Business Consulting Services, please contact us by email on sales@Tiger-Consulting.net

Sincerely,
Neil Satterwhite
Founder & CEO, Tiger-Consulting

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