UAE Labour ministry contract supersedes all other documents

The Ministry of Labour contract takes precedence over all agreements between employer and employee and is the only document that is recognised by the authorities, the ministry has warned.

A senior labour ministry official told Gulf News any contract between the employer and the employee other than the labour contract will not be taken into consideration.

The warning comes after some employees have complained that they are being deprived of their rights as laid down in the labour ministry's contract.

A group of insurance specialists have alleged that their company is cheating employees by forcing them to sign a letter of intent and depriving them of rights guaranteed by the labour ministry's contract, including basic pay and gratuity.

Paying back commission

The employees who work for Nexus Insurance Brokers told Gulf News that the company was unwilling to accept resignation letters unless the staff hand over all commissions they earned last year.

Documents obtained by Gulf News show the employees have a limited labour contract under which they are given a basic salary of Dh0.001 and Dh6,000 for accommodation, transportation and other allowances.

The letter of intent, which the insurance specialists were forced to sign, says employees were issued a labour contract because it is a requirement of the UAE law. The principal purpose of the labour contract will be to "sponsor employees' activities in the UAE and does not constitute in part or full their contract with Nexus".

"All benefits mentioned in the labour contract issued by the labour department and any other benefit such as accommodation, transportation, leave, air ticket, leave salary, entertainment, gratuity and other benefits are in fact included in commission, and may be stated separately in the labour contract only for the purpose of enabling you to sponsor your family and domestic help in the UAE," the letter of intent says.

R.J., an employee, said they were forced to sign an undertaking that if the company was required by law and the labour contract to pay a certain amount to them, the employees must repay the company commission and collection fees. He alleged that the company does not accept resignations till employees pay back what they have earned in the form of commissions in their last year at work.

"Unless we give them the last year's earnings, they will not cancel our visas," B.F., a former employee, said. "When I resigned, the company handed me a letter that said my resignation would be accepted, but I must first pay a cheque amounting to my last year's earnings. Only then would they give me a release letter."

Employer reaction

Hussain Ayyash, legal and human resources director at Nexus Insurance Brokers, told Gulf News that all the letters of intent are legal and issued to protect the company's rights. "Our employees work on commissions and they earn a huge amount of money. As the employees work on commissions, they have no labour rights. We issue employees a labour contract as a formality as we have to issue it. The labour contract contains certain allowances, which helps employees sponsor their families. But we do not work according to the labour contract. For us, it does not exist."

He said he had filed a complaint at the labour ministry against some employees who had recently resigned and joined competing firms. "We also have to take back commissions they earned in the last year of work with us," Ayyash said.

Gulf News has learnt that the labour court recently ordered Nexus Insurance Brokers to pay Dh20,000 as end of service benefits to a British consultant who resigned and complained against the company to the labour ministry.

Mohammad Bin Dakhin, Director of Governmental Communication at the labour ministry, told Gulf News that any agreement between the employer and the employee other than the labour contract would not be taken into consideration. "In case of dispute between the employer and the employee, the ministry will only consider the ministry's contract," he said.

Bin Dakhin said a letter of intent or internal contracts between the employer and employee are not accepted. "It is illegal to consider that the labour contract has been issued only to allow employees to sponsor their families. Denying workers the rights mentioned in the labour contract is illegal," he said. Bin Dakhin said that any contract between the employer and employee not signed and approved by the labour ministry is not a legal document.

Show cause Notices Issued Against 3 Ayurvedic Companies in Kerala

Three Ayurvedic companies that assure miraculous remedies are now under the scanner of Kerala government. Referring the claims made by these companies as ‘dubious’, the government has seized products that are worth almost Rs 2 crore. The companies could even lose their licenses for alleged violation of Drugs and Cosmetics Act & Magic Remedies Act.

Among the companies that are under scanner are Dhathri Ayurveda Pvt Ltd and Sreedhareeyam Ayurvedic Medicines Pvt Ltd, against whom show cause notices have been issued, for misleading claims under section 33 E of the Drugs and Cosmetics act & section 4 of the Drugs and Magic Remedies Act, 1954 for objectionable ads. The companies are liable to face a 3 year punishment, along with fine.

“These companies are putting many claims on the labels to attract consumers. For example, when the oil is only to treat skin diseases, they claim it is for whitening and stretch mark removal. It’s misleading. So under D&C Act we can proceed against them and cancel the licences of the products,” said CS Satheesh Kumar, Drugs Controller official. According to him, the big sharks whose licences are soon to be lost. The enforcement officials have conducted inspections at the manufacturing premises of Indulekha in Thalasseri and Kannur and of Dhatri in Moovattupuzha and Ernakulam. Steps are on to cancel their licences as per the law, said the DC.

The Kerala Drugs Control Department has also issued a warning to celebrities against the endorsement of these products as they are also liable to be prosecuted legally. The move comes following reception of complaints, which include those from various committees of state assembly. The department has also claimed that the specified companies have not submitted  any document proving their claims.The team of enforcement officials from various districts conducted operations in the depots of wholesalers and manufacturing premises in different places and the total value of the seized products is Rs.5,211,770. The manufacturing companies who were found violating the provisions of the Drugs & Magic Remedies Objectionable Act are Dhathri Ayurveda Pvt Ltd, Kochi, Cochin Ayurvedic Centre (Indulekha), Kochi and Sreedhareeyam Ayurvedic Medicines Pvt Ltd, Koothattukulam, said C S Satheeshkumar, Drugs Controller, Kerala.

Checking tyres could save your life

Faulty tyres and hot weather are a deadly combination for road users and police and experts say worn out tyres are a leading cause of accidents in the country.

A little attention can save lives and make the road safe for all, according to the police who reported some 31 deaths were caused by tyres bursting last year. These accidents mostly occur on highways.

"An expert checks the tyres' health just once a year when a vehicle comes for registration renewal. And then nobody bothers to check them again,". It is a technical matter and a tyre safety expert must be consulted regularly.

Tyre safety depends on various factors including weather, use of brakes, wheel balance, the vehicle's load, air pressure, age of the tyres, and the original quality of the tyres. They must be inspected thoroughly at least once a month, he said.

Air pressure in tyres is very important in hot weather. This pressure must be in accordance with the vehicle's specification mentioned in the manual

Rakaish Khurana, another tyre safety expert in Al Ain, said people normally go for cheaper options when it comes to buying new tyres. The market is full of substandard tyres. "I have noticed that people are more concerned about price rather than quality and safety," he said.

Quality tyres should be used in the vehicles instead of buying cheap, low-quality tyres. A good quality tyre can withstand temperatures of 250 degrees Centigrade, providing enhanced safety against tyre bursts, he said.

He said most drivers do not understand the importance of tread depth. This depth must be at least 1.6mm. "I recommend tyres be changed when this depth reaches 3mm depending on weather conditions, the use of the vehicle, road conditions, and a car's fitness including wheel balancing and alignment," said Khurana. People need to be very careful when they buy a used vehicle as they are not aware of the condition of the tyres. "They must be replaced immediately even if their age is less than three years in some cases." he added.

A traffic police officer said tyres are a major concern when it comes to road safety. The Ministry of Interior has recently released statistics saying 720 people lost their lives on UAE roads last year of which 31 deaths were associated with tyre- related accidents. Though this number is slightly less than the previous year much still needs to be done.

Main areas: Safety aspects

    Air pressure: Do not neglect air pressure. Low pressure damages the tyres and high pressure could lead to a blown tyre. Air pressure must also be maintained in accordance with a particular vehicle's specifications. Tyres must also be correctly inflated.

    Tread depth: It is vital for tyres to keep grip on the road. Low tread depth compromises the effectiveness of brakes and steering ability of vehicles. The minimum legal depth is 1.6mm, but don't wait for it and replace the tyres even before it gets to this level.

    Wheel alignment: This helps in reducing wear and tear and stress on the tyres. It also enhances balance and steering ability of a car.

    Wheel balancing: The health of all of the tyres is important for a safe road trip and wheel balancing is also critical for this. An out of balance tyre increases wear and tear and compromises safety. It can cause annoying shakes and dangerous mechanical damage in the vehicle.

    Tyre rotation: Good health of tyres demands routine rotation. After every five to seven thousand kilometres, experts suggest tyre rotation to maintain equal use of centre and shoulders of the rear and front tyres.

Retiring from private sector - UAE rules

Dubai today has a growing private sector that is attracting professionals from all countries. As per UAE laws, one can begin working from the age of 18 till the age of 60, and in special cases even up to 70 years. Although the retirement age varies from job to job, expatriates working in the private sector who are over 60 years of age require the approval of the Ministry of Labour.

From 2011 onwards, private sector employees can now get two year extensions to work after their retirement age, as compared to the previous one year extensions. Fees for two year extensions up to the age of 65 range from AED 500 for first category companies, AED 800 for second category A companies, AED 1,700 for second category B companies, AED 2,200 for second category C companies and AED 5,200 for third category companies. For employees over the age of 65, in addition to the fees mentioned above, an additional AED 5,000 is charged with the labour card being valid for two years.

Emiratis working in both the government and private sectors are eligible for pensions provided they have fulfilled certain conditions as stipulated by the General Authority for Pension & Social Security (GAPSS). These include: either reaching the retirement age of 60, or having worked for a minimum 20 years in total in government/private sectors, provided that he/she has submitted his/her resignation.

The government also guarantees a social security allowance for women working in local or federal government who are sole bread-winners for their Emirati children. Eligible women having Emirati children include divorcees, widows or those married to Emirati men who are disabled/unable to work. In case the husband cannot work because he is disabled, a medical certificate has to be shown. For cases, where the husband is unemployed, the woman must give a written declaration to this effect, to be eligible for the social security allowance.

While expatriates working in the government & private sector are not eligible for pension, they are eligible for end-of-service benefits also known as gratuity or severance pay.

Calculation of Gratuity/Severance Pay

According to Article 132 of the UAE Labour Law, a worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The severance pay shall be calculated as follows:

a. 21 days’ wage for each of the first five years of service

b. 30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage.

Severance pay shall be calculated on the basis of the wage last due, but shall not include whatever is given in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowance, children’s education allowance, allowance for recreational and social facilities and any other bonus or allowances (Article 134)

Deductions in Severance Pay

Where a worker under an indefinite term contract abandons his work at his own initiative after a continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay. Such a worker shall be entitled to two-thirds of the said severance pay, if his continuous service exceeds three years up to five years and to the full severance pay if it exceeds five years. (Article 137)

Where a worker under a definite term contract abandons his employment at his own initiative before the expiry of his contract period, he shall not be entitled to severance pay, unless his continuous period of service exceeds five years. (Article 138)

Provident /Pension Fund

Where the firm has a provident fund for the workers and the rules of the fund stipulate that whatever the employer pays into the fund for the worker’s account is in discharge of his legal obligation in respect of severance pay, the worker shall be paid the savings balance in his account or the severance pay due the Law, whichever is greater. Where the rules of the fund do not stipulate that the amounts paid by the employer are in discharge of his legal obligation towards the severance pay, the worker shall receive whatever is due to him in the provident fund in addition to the statutory severance pay. (Article 140)

Where a firm has a retirement fund, insurance or similar scheme, a worker who is entitled to a retirement pension may opt for treatment under the said pension or severance pay or under the pension or insurance scheme, whichever is more advantageous to him. (Article 141)

To ensure that you receive your rightful pension benefits, all retirees and eligible pensioners are required to regularly update their data with GPSSA. You can contact GPSSA on Toll free 800-10 from any emirate between 7.30 am and 5 pm.

UAE Domestic Workers Law: Ultimate Guide to Rights, Penalties, and Contracts

The UAE has fundamentally reformed its domestic labor sector, replacing old drafts with a comprehensive legal framework aligned with international labor standards. Overseen by the Ministry of Human Resources and Emiratisation (MoHRE), these laws strictly regulate the relationship between domestic workers, employers, and recruitment agencies to eliminate exploitation and ensure decent living and working conditions.

1. Golden Rules of the UAE Domestic Labor Law

The law enforces strict mandatory baselines for all domestic work contracts. The absolute non-negotiables for employers include:

• Recruitment Fees: It is strictly illegal for an employer or agency to charge a domestic worker any direct or indirect recruitment fees. The employer must bear all hiring costs.

• Prompt Payment: Wages must be paid in full at least once a month. Payment must be documented via approved channels (such as the Wages Protection System).

• Rest and Leave: Workers are legally entitled to one paid weekly day off. They also receive 30 days of annual leave, and the employer must provide a round-trip flight ticket home every two years.

• Sick Leave: Domestic workers are entitled to up to 30 days of sick leave per year (the first 15 days are fully paid; the next 15 days are unpaid).

• End-of-Service Gratuity: Workers who complete one or more years of continuous service are entitled to a severance payout calculated as 14 days' basic wage for each year of service.

2. Expanded Categories of Domestic Workers

The scope of protection extends far beyond traditional roles. The law specifically covers 19 distinct professions when employed within a private household:

Category	Covered Professions
Household Care & Management	Housemaid, Housekeeper, Nanny/Babysitter, Cook
Private Education & Health	Private Teacher, Private Tutor/Coach, Private Nurse
Estate & Logistics	Family Chauffeur (Driver), Watchman/Security Guard, Private Sailor, Private PRO, Agriculture Engineer
Specialized & Agricultural Care	Household Farmer, Household Shepherd, Horse Groomer, Falcon Carer & Trainer

3. Legal Consequences and Hefty Fines

The UAE enforces strict penalties and fines to deter illegal practices and protect both parties.

Penalties for Recruitment Agencies

Recruitment agencies face severe crackdowns if they fail to perform due diligence.

• Fines ranging from AED 50,000 to AED 200,000 apply if an agency recruits a worker under the age of 18, fails to properly inform the worker of contract terms before arrival, or refuses to provide a replacement worker or refund fees if the worker fails probation.

Penalties for Employers and Third Parties

• Employing Unlicensed Workers: Hiring a domestic worker without a valid work permit, or absconding a worker from another employer, carries a massive fine between AED 50,000 and AED 200,000.

• Scope of Work Violations: Assigning a worker duties completely outside the scope of their standard contract can result in fines up to AED 10,000.

• Filing False Absconding Reports: If an employer falsely reports a worker as "absconded" (missing from work) to avoid paying dues, they face a fine of up to AED 5,000.

4. Resolving Disputes Legally

To ensure vulnerable workers can access justice, all court cases filed by domestic workers are entirely exempt from court fees at all stages of litigation.

If a dispute arises over wages, working conditions, or contract breaches, neither party can go straight to court. The issue must first be submitted to MoHRE. The ministry will attempt an amicable settlement. If a settlement cannot be reached within the specified legal timeframe, the matter is officially referred to the specialized labor courts for an expedited ruling.

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