There are different types of employment contracts under Federal Law Decree No.33 of 2021 concerning Labor in UAE, specifically for the Private sector. A job contract might be full- or part-time. Employees can work remotely, on a temporary basis, or share a job, among other types of employment arrangements. Thus, it is essential for employers to seek the services of Employment Consultants in UAE to effectively ensure compliance with the Labor Regulations in UAE.
Types/Nature of Job Agreements Under Labor Law in UAE
- On the expiration of a contract that is not extended or renewed and concerned parties continue to execute their commitments under the existing contract, it is supposed to be resumed under the same circumstances and terms as the initial concurrence. On the determination of advantages of the worker’s end of service, any renewal or extension of the employment contract in respect of terms and conditions is required to be taken into consideration.
- Additionally, the decree mandates that limitless work contracts must be set straight into fixed-period employment contracts in accordance with this legislation within a year of the contract’s effective date and may be augmented by the Cabinet for supplementary time periods if indispensable for the public interest. The requirements of this decree legislation shall, in the meanwhile, also be applicable to any limitless employment contracts signed in line with Federal legislation No. 8 of 1980.
Probation Time
Employees’ probationary periods are limited to six months and cannot be extended for an additional amount of time. The probation will be added to the employee’s service after his or her probation is over and they continue working for the company.
Notice in Case of Termination from Employer: –
- In the event that the employer wishes to let the employee go for any reason, the employee must be given 14 days written notice in advance if the employer wishes to dismiss the employment for any reason during the probationary period.
Notice in Case an Employee Wishing to Leave the Job
- If an employee wishes to join another company in the UAE while still on probation, he must provide the employer with written notice that is at least one month in length. If nothing else is agreed upon between the present employer and the employee, the new employer in this situation must pay the current employer for the expense of recruiting the employee.
- However, if an employee decides to quit their position during their probationary term, they must give a 14-day advance written notice.
Notice for Termination under Labor Law, UAE
Article 43 of Labor Law UAE, both employee and employer can terminate the contract of employment on any reasonable cause as provided below:
“A written one-month to ninety days will be served by the terminating party to the other party”, In addition, the following guidelines must be followed:
- During the notice period work, as specified in the contract, is mandatory to be accomplished.
- The worker is privileged to receive his entire compensation as per the given terms under the agreement.
- On failure to serve notice, a party shall be paid an allowance for a notice period equal to the salary of the employee for the full notice period or in proportion to the term remaining to work.
- If the leaving worker comes back to the state within 3 months of departing on a fresh employment visa, the new employer will be bound to pay the preceding employer back for the expenditures used up with searching the employee for a new job, unless the employee and the current employer agree otherwise.
Limits on competing
Employers are allowed to impose non-compete clauses in employment contracts under Article 10 of the UAE Labor Law. These limitations must be stated in terms of time, place, and the nature of the job, and they must be kept to the minimum amount required to preserve the business’s legitimate interests. After the employment contract’s expiration date, the maximum restriction term is two years.
Categories of employment
According to the following structures of labor engagements, the labor legislation is permissive as stated below
Temporary Employment: Temporary employment means that the employee works on a single project, and the employment relationship ends when the project is finished. Flexible working means that the employee’s working hours or days can change in accordance with the needs of the employer. Remote employment means that the employee performs all or part of their work from another location. The term might be prolonged or renewed for an identical or lesser time frame.
Full-time employment: Full-time employment refers to work under which a worker employed exclusively for one employer on a whole-time basis
Part-Time Employment: This is referred to as a job that is engaged for many employers on a part-time basis.
Job sharing: under such a contract, the tasks and responsibilities are distributed among the employees in accordance with an advance agreement. On the job-sharing contracts, the same regulations that apply to part-time employment apply.
Seek the expert services of an Employment Consultant in the UAE
The UAE is enhancing the worker welfare programs through effective legislation under Labor Law by stipulating the provisions of job safety, compensation, notice period, written contract, and working hours to align with the international standard. Thus, it is essential for employers to seek the services of HR Services in UAE to effectively ensure compliance with the Labor Regulations in UAE. Therefore, contact us today and we shall be glad to assist you.
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