visaprocessUAE: FAQs on UAE Labour Law

Q. Can I work for two companies at the same time?
Yes, after obtaining a part-time work permit to work for another entity.

Q. Can an employer shift my contract to work for another company registered under their name?
Yes, but only if they are owned by the same sponsor and offering the same profession and the allowances.

Q. What is the difference between a limited and an unlimited contract?
In general limited contracts mention start/end dates, the unlimited ones only specify joining dates, each follow respective provisions depending on the situation.

Q. In the event of work resignation and the employee didn’t complete two years, Will he face a ban? (Limited and unlimited contract)
1. Limited contracts: the worker must complete the term of the contract to avoid a year ban from working in the UAE. 2. Unlimited contracts: the worker must inform the employer about the resignation then complete the assigned notice period. 3. while taking into account the cases contained in the Ministerial Decree No. 1186 of 2010 concerning the controls and conditions for granting a new work permit for a worker after the end of the working relationship and other relevant decisions.

Q. Does the employer’s refusal to accept the employee’s resignation request have any impact on the termination of the employment/labour relationship?
An employer cannot rejects an employee’s resignation, provided the employee gives due notice and obtains the employer’s signature on his/her resignation letter, or sends the resignation letter by fax, email or postal mail.

Q. Does resignation have any validity, if for example if employee works beyond the notice period of his/her resignation?
The employee should get the employer’s written approval for any request to work beyond the notice period. It is to be noted that any employee who continues to work beyond 4 months of the notice period, should automatically withdraw his/her resignation.

Q. When is the employee entitled to get the return ticket as stipulated in the employment/ labour contract?
In the case of dismissal or leaving the country, the employee is entitled to get the return ticket to his/her origin country, as well as in the event of completion of the agreed contract term. In case of the employee’s resignation or being dismissed as per the Article No. (120) of the Labour Law, then the employee is not entitled to receive a return ticket.

Q. In case the employer has no contracted work (i.e construction work), is the employer entitled to stop & suspend the employee without paying the salary, or to send the employee on vacation for a period of more than a month?
That is not permissible and is considered a violation to labour law and in case the employee agrees, he/she is also considered as a violator. The employee is supposed to notify the Ministry of Labour relations department that he/she has been suspended from duty, not later than 3 months from the suspension date.

Q. Does the employer have the right to dismiss an employee, who for example takes more than his/her annual leave credit and was absent for more than two months, immediately after the employee resumes his /her job?
Yes, since the days that exceeds the balance of annual leave is considered as absence. As stated in the labour law, article (120); in case of the absence of more than 7 days, the employer may dismiss the employee without warning, unless there are force majeure circumstances that prevents the employee from resuming his/her work in time after completion of the annual leave days.

Q. How is the overtime calculated? Is it upon the basic salary or the gross salary?
The overtime is calculated upon the gross salary (basic salary + the agreed allowances) and the employee is entitled for overtime with an increase of not less than 25% of that wage. In case the overtime is performed between the hours of 9 pm and 4 am, then the employee ought to be paid an increase not less than 50 % of that wage.

Q. Does the employer have the right to refuse my annual vacation despite me completing one year of service with him?
Yes, the employer has the right and he/she can decide when the annual leave starts. In addition, the employer can (in a very critical business situation) divide the annual vacation period into two and transfer the remaining days to the following year.

Q. How is the End of Service Remuneration calculated? Is it according to the basic salary or to the gross salary?
The End of Service Remuneration is calculated according to the last paid basic salary only, without any allowances.

Source: www.workinuae.ae

Are you planning to Set-up your business in Dubai? Call us for Setting up new business, LLC Formation, Amendment in existing license, PRO Service and Translation. +971 55-273 2295, 055-345 7829, 04-239 1302 or mail your queries to visaprocess.ae@gmail.com

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