UAE Labour Law: Annual Leaves, Public Holidays, Limited Contracts, and Unlimited Contracts
A UAE Labour Law covers a vast range of Labour and Employment-related cases involving employees and employers. Some of the most eminent issues addressed are following:
- Fixed-term Contracts
- Unlimited Contracts
- Annual Leaves
- Public Holiday
- Contract Types
Professional Labour and Employment lawyers in Dubai possess expertise in handling a large variety of matters. They are capable of interpreting the Labour laws according to the specifications. Attorneys at Ask The Law, Al Shaiba Advocates and Legal Consultants are most reputed lawyers for labour and Employment Law UAE.
Interpretation of UAE Labour laws for Entitlements:
UAE Labour law outlines how, when, and how much annual leaves are designated for workers in the UAE. Entitlements such as annual leave are the basic rights of all workers.
They are allotted to workers to strike a right balance between work and personal life. They are designated to employees to promote work-life balance that keeps them productive, efficient, and motivated.
As per the UAE Labour law, every employee should have completed at least 1 year of service to be eligible for paid annual leave. The employees are given 30 days of paid annual leave.
Fixed-Term Contracts- Explained:
Limited contracts are also termed as fixed-term contracts. They are defined under Labour law as an employment agreement with a specified beginning and an end date.
They are automatically terminated after the completion of the time duration. However, they can be renewed after maturity.
Duration and Renewal of fixed contracts in the UAE:
Normally, the fixed-term contracts must be up to 3 years. They can easily be renewed. The terms and conditions of work should be clearly explained in the contract. The fixed contract must contain the following information:
- Job Title
- Salary
- Type of Contract
- Terms and Conditions
- Duration
The contracts offer greater stability and predictability about the role, duration, and future of the job. It also benefits the employer as they have well-defined timeframes that set out clear expectations about the duration, entitlements, and benefits.
What are Unlimited Contracts?
An unlimited contract refers to open-ended agreements. They do not have any specified starting or ending date. Mostly, they are based on mutual trust and continuity of employment. It provides a high level of flexibility to employees and employers in their working relationships compared to fixed contracts.
End of the Service Benefits and Entitlements:
Any party has the right to terminate the unlimited contract. However, they must provide the written notices in advance. The notice period should be issued at least 30 to 90 days prior. Terms of conditions of the contract must be taken into consideration.
UAE Labour Laws Article 43 provides comprehensive guidance on it. This permits a smooth and fair transition. Employees working under the unlimited contract at entitled to receive the gratuity payments. They are calculated on the basis of their final basic salary. The amount increases with the tenure of service. This promotes longer-term employee retention.
UAE Labour Laws concerning Public Holidays:
All the workers working in private and public sector has the right to get public holidays in the UAE. UAE government has recognized public holidays that are applicable on the private and public sectors across the country. These holidays mainly include the national and religious occasions and festivals such as on special occasions like Eid Al Fitr, Eid Al Adha, UAE National Day, and others.
The workers in the UAE are entitled to get the official public holidays as announced by the government of the UAE. Additionally, they are fully paid leaves and are not deducted from the 30 days of annual leave entitlement. They are separate from the annual leaves.
Entitlement regarding the Paid Public Holidays:
If a worker is working on an official public holiday, the employer must give them additional compensation. According to Article 28 of the UAE Labour law, the employee receives the additional payment for work on public holidays.
They are also entitled to receive an alternative day off from work. Alongside, additional pay equal to 150 percent of their regular wage is paid to them.
How is Annual Leave calculated?
Nonetheless, the employees who have worked for more than 6 months but less than a year are also entitled to receive 2 days of leave every month. Once a whole 1 year is completed, the employees get a full 30 days’ entitlement.
Once the employment comes to an end, the employee receives the annual leave based on a pro-rata basis according to their service tenure.
Time and Approval of Annual Leaves:
UAE Labour law permits the employer to schedule the leaves as per their operational requirements. However, they must notify the employees with prior notice.
Conversely, the worker must submit the leave requests in advance. They must inform the employer about the annual leave in advance to ensure smooth workflows. Moreover, the law also made it mandatory to ensure legal compliance with the laws and provisions.
Furthermore, if an employee leaves the company or their contract ends before taking up their annual leave, the employer needs to compensate the worker. They must be given compensation against the unused days. The payment of the unused leaves is calculated on the recent salary. This makes sure the worker receives fair reimbursement as compensation.
Role of professional Labour and Employment Lawyers:
The labour and employment lawyers in Dubai take guidance from the UAE federal laws and local regulations that govern all kinds of Labour-related cases. The prime focus is to ensure the interests of employees and employers.
They make sure there is fairness and transparency between them. The type of contract directly affects the holidays and leave entitlements. It helps in ensuring compliance and maintains a friendly workplace environment. Besides, it also helps in minimizing workplace conflicts and disputes.
A Labour Law attorney in Dubai provides professional guidance to ensure the protection of entitlements. They also assist the employees with adequate legal procedures.