General Question Answers under UAE LABOUR LAW

General question answer about Employment Contract such as Resignation, Termination, Notice period, overtime rules, part time work and gratuity calculator uae as per UAE Labour Law. 

Q: How does the Ministry of Labour deal with Free Zone workers?

The Free-Zone workers can approach the Labour Office and accordingly the complaint is transferred to the Labour Court without any interference from the Ministry of Labour with all decisions to be made by the Labour Court.

Q: Is employee allowed to reject the employment termination?

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 email, fax or postal mail.

Q: Is resignation have any validity, or if employee can work beyond the resignation notice period?

The worker should get the employer’s written approval for any request to work beyond the notice period. Point to be noted that employee who continues to work beyond 4 months of the notice period, should automatically withdraw his resignation.

Q: When is the Employee eligible to get the return ticket as specified (stipulated) in the Employment or Labour contract? 

In the case of dismissal or leaving the country, the employee is entitled to get the return ticket to his/her home 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 from Company.

Q: If the employer (company) has no contracted work, is the employer allowed to stop & suspend the staff without paying their salaries, or he allowed to send the employee on vacation on force for more than 1 month?

That is not allowed and is considered a violation to UAE Labour Law and in case the employee agrees, he/she is also considered as a violator. The employee (worker/staff) is supposed to inform the Ministry of Labour relations department that he/she has been suspended from the duty, not later than three months from the suspension date.

Q: How to Calculate Overtime? Is it according to the  basic salary or gross salary?

The overtime is calculated upon the gross salary (basic salary + written allowances) and the employee is entitled for overtime with an increase of not less than 25% of the total 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: Is employer (company) allowed to refuse my annual vacation request despite me completing 1 year of service with him?

Yes, the employer (company) has the legal right and he/she can decide when the annual leave starts. In addition, the employer can divide the annual vacation period into two and transfer the remaining days to the following year. (only in a very critical business situation).

Q: How to Calculate End of Service Remuneration? Is it based on the basic salary to the gross salary?

The End of Service gratuity (Payment, salary, Reward) is calculated according to the last paid basic salary only, without any allowances written in the Contract.

Q: Can an Employee work for 2 companies at same time?

Yes, after obtaining a part-time work permit from Employer and MOL  to work for another company.

Q: Can an employer transfer employee 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, salary and the allowances.

Q: Difference between Limited and Unlimited Contracts?

In general limited contracts mention start/end dates, whereas the unlimited contracts only specify joining dates, each follow respective provisions depending on the situation.

Q: In case of work resignation and the employee have not yet completed 2 years, will he face Ban under Limited or Unlimited contract?

For Employees who are working under Limited contracts, they must complete the term of the contract to avoid 1 year ban from working in the UAE.

For Unlimited contracts, the worker must inform the employer about the resignation then complete the assigned notice period.

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.