There are numerous people around the globe who are unaware of the regulations and laws of the countries they are living in. Practically, the labor law is the foundation of laws, precedents and administrative regulations which addresses the lawful privileges of, and binds individuals who are working in companies. This research will highlight different conceptions which pertains to employment law in certain aspects and in general in UAE like, the ILO, MOL, the employment agreement, Probation Periods, wages, Disciplinary Code and Termination of Contract.
For laws relating to labor, it is of paramount importance to mention the body ILO commonly known as the international organization accountable for drawing overlooking and drawing up the international standards. Additionally, the aim of ILO is to make sure that it serves the needs and wants of individuals who are working by merging the government together, employers and workers to set labor standards, develop policies, and devise programs.
This specific body regulates all issues that pertain to work. It is accountable for allotting work permits or labor cards and imposing prohibitions on those are punishable in one way or the other. Their aim is to manage and organize the labor market to build up participation of the fellow Emiratis working in the workforce, understand the fortification and flexibility in the labor market, and entice other skilled workers through an inclusive system of rules and strategies and policies, enforcement, institutional partnership and effective service delivery.
The law is binding for all the staff and employees working in the organization in UAE. However, there are specific groups of individuals who are relieved from this law, which are:
Additionally, a potential partner in a business arrangement does not comes in the criteria of an employee and is therefore not obliged to acquire a labor card from the UAE MOL. However, if the partner holds and employee spot added to his partner rank, he will be treated as an employee for the work he is doing in the corporation.
Usually, a written lawful document represents an employment contract that lists out the binding terms and conditions of employment that exists between the employer and the employee. It is written in most regularly for jobs in higher positions and senior employees because they have a lot of consequences attached to their employment if the relation among employee and employer does not work out as planned. There exist two categories of an employment contract:
The features of a limited or a fixed term contract:
The contents of an unlimited term contract:
The information that form the basis of an employment contract and are crucially required are, wages/remuneration payable, date of the employment contract, date of the beginning of the employment contract, nature of the contract (Limited/Unlimited), nature of the work, time duration of the contract (For limited term contracts) and the location of employment.
In accordance to the employment law in UAE, wages has been explained as the remuneration paid to the employees for the services they render to an organization according to the employment contract, they can be cash or bank transfers etc.; annually, monthly, weekly, daily, hourly, on a piece-rate, productivity linked. Wage comprises of all kinds of cost that pertains to living allowances, incentives related to honestly or loyalty of the employee, provided that these rewards are particularly stated in the employment contract signed by the parties involved or in the formation’s core rubrics and rules, have become habitual or if the employees of that formation have come to concern such enticements as part of the wages as contrasting to a donation”. Basic wage is a particular benchmark wage which is stated in the labor contract and as consented by the parties involved for the terms and conditions of the contract. Allowances costs and other incentives however do not form the part of basic wage. Therefore, accommodation, housing, transport and travel allowances will not be included in the basic wage. Basic wage is vital in the assessment of end-of-service gratuity, which is based on the foundation of the last drawn basic wage and not on the foundation of that totality of the wages. Even in this assessment, allowance does not form a part. The currency of the wages being paid differs as it can be Dirhams in UAE or any suitable currency. However, the parties may consent the currency to be paid in the employment contract. No such restrictions are imposed by any regulatory authorities. Case: Does the law need any proof or evidence of payment on wages? In the event of any kind of conflict or dispute, it would be important for the employer to prove that the employee had been paid his wages regularly in addition with any such allowances applicable. Such proof must be in writing. However, equal rights are given to the employee to prove any sort of non-payment by the employer within the law frame stated in the employment contract. So, it is of crucial importance that employer sustain adequate records of the transactions and payroll.
A disciplinary code in UAE presides for the provision of disciplinary measures which any employer or his representative may grant on his employees. There are listed as follows:
A fine can be a fixed amount or some amount equal to the employee’s wage for certain duration of time. However, the optimum level of fine an employer can impose on his fellow employee should not exceed 5 days wages, and indeed in any month total fines shall not exceed an amount equivalent to 5 day’s wages. Case: If a fine is imposed, who should be in charge of keeping the money deducted from the employee’s wages? A fine imposed on an employee is supposed to be entered in a specific register stating the cause or the events, name of the employee and his basic wage level. A specific account should be maintained for these fines, the monthly total of which should be spent on things like social welfare and the betterment of work environment. The employer may not levy any punitive procedures on the employee unless the following conditions take place:
The contract of employment may be dismissed or terminated if both the related parties consent to it, provided that there is sufficient evidence in the writing of employee getting terminated. It may also be dismissed in the case of the death of the employee or his complete disability of working provided that a valid medical certificate has been given to the organization or the employer. However, if the disability of the employee’s is partial and he can do some other work and provided that his health state allows him to work in such conditions, it is the duty and the responsibility of the employer to shift and accommodate the employee the work suited for him in such events. An employer may discharge an employee without giving any notice in any of the following cases (Article 120 of the law):
An employee may dismiss his contract of employment without giving any notice in either of the following cases in accordance with Article 121 of the law: 1-If the employer has not content his responsibility headed for the employee as providing in the contract or by regulation, for example, when an employer does not pay an employee his wage on time. 2-If he is attacked by the employer or his lawful illustrative.
If the employee has completed his service of one or more year he will be entitled for the end of service gratuity for each of the first five years to come and 30 days per year after that. It is assessed on the basis of the last basic salary of his service. The total end of service gratuity, however, cannot exceed the cumulative salary of two years. The time duration of owing leaves are not comprised within the service duration of time. If an employeeis demised, the end of service gratuity goes to those who inherit them. Only UAE nationals are permitted for the end of service gratuity for the duration of time before the issuance of the Federal Labor Law in 1980 An employer should give his employee at his demand at the end of the contract a service credential free of charge, affirming the date of beginning of service, the expiration date, total service duration of time served the organization or the company, nature of work carried out by the employee, his last wage and any allowances, if they exist. The employer shall also return to the employee all that he has deposited with him like certificates, papers, instruments etc.
However, the conclusion can be in this way that there are a total of two employment contracts which we have mentioned above and each of those contracts have their own kinds of characteristics. Additionally, the termination can be in distinct way with any rules provided in the contract.
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