Thursday, June 29, 2023

Here are 7 common U.A.E Labour Law mistakes and how to avoid them

 1) Not having a written employment contract: An employment contract is a legally binding document that outlines the terms of employment between an employer and an employee. It is important to have a written employment contract in place to protect both the employer and the employee. The contract should include information such as the employee's job title, salary, working hours, and benefits. It should also include a termination clause that outlines the process for terminating the employment relationship.


 2) Not registering the employment contract with the Ministry of Human Resources and Emiratisation: All employment contracts in the UAE must be registered with the Ministry of Human Resources and Emiratisation (MOHRE). This is a legal requirement and failure to do so could result in penalties for the employer. The registration process is simple and can be done online.
3) Not paying the minimum wage: The UAE has a minimum wage that all employers must pay their employees. The minimum wage varies depending on the employee's nationality and skill level. Employers who fail to pay the minimum wage could be fined by MOHRE.
4) Not providing annual leave: All employees in the UAE are entitled to annual leave. The amount of annual leave an employee is entitled to depends on their length of service. Employees who are not given annual leave could file a complaint with MOHRE.
 5) Not providing health insurance: All employers in the UAE are required to provide health insurance for their employees. The health insurance must cover the employee's medical expenses, including hospitalization and surgery. Employers who fail to provide health insurance could be fined by MOHRE.
 6) Not terminating employment in accordance with the law: There are specific procedures that must be followed when terminating an employee's employment in the UAE. Employers who fail to follow these procedures could be liable to pay the employee compensation.
 7) Retaliating against an employee who exercises their rights: Employees in the UAE have certain rights, such as the right to join a union and the right to collective bargaining. Employers who retaliate against an employee who exercises their rights could be fined by MOHRE.

Here are some tips on how to avoid these mistakes:

  •     Consult with an employment lawyer: An employment lawyer can help you understand your rights and obligations under UAE labour law. They can also help you draft an employment contract and register it with MOHRE.
  •     Stay up-to-date on labour law changes: Labour law in the UAE is constantly changing. It is important to stay up-to-date on the latest changes so that you can comply with the law. You can do this by subscribing to newsletters or blogs that cover UAE labour law, or by attending seminars or workshops.
  •     Be transparent with your employees: Employees appreciate it when employers are transparent about their policies and procedures. This includes being clear about the terms of employment, such as the salary, working hours, and benefits. It also includes being open about the process for terminating employment.
  •     Create a positive work environment: Employees are more likely to follow the rules and regulations if they feel valued and respected. Employers can create a positive work environment by providing opportunities for training and development, by listening to employee concerns, and by resolving disputes fairly and promptly.

By following these tips, you can help to ensure that you are complying with UAE labour law and avoiding common mistakes.

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