Hire in United Arab Emirates

There are no specific provisions regarding employee/contractor classification. The concept of a ‘contractor’ or ‘self-employed’ individual is not expressly recognized under the law.

In some free zones, there is a special freelancer visa that individuals can obtain in order to work independently. Individuals can establish their own consultancy company, akin to a contractor, and render services within the confines and terms of their trade license. However, such arrangements are limited.

The New Labor Law introduced flexible contract types and working models such as part-time, temporary, flexible and freelance arrangements. For remote work, employees can do so as long as they have the approval from the employer.

An employer may ask a candidate to undergo medical tests at a clinic or hospital of the employer’s choosing and at the expense of the employer. The employer may make employment conditional on the candidate passing these medical tests.

Pre-employment checks for drug screenings are rare. A certificate of good conduct confirming the individual does not have a criminal record in the UAE may be obtained by the prospective employer.

With regards to social media, it is common for employers to utilize professional social media sites such as LinkedIn at the recruitment and pre-employment stage.

Probationary periods may last up to six months, during which the employer may terminate the employment contract by giving 14 days’ notice.

The same employee may not serve more than one probationary period with the same employer. The probationary period must be considered part of the worker’s period of continuous service with the employer.

When an employee resigns during the probation period, the notice period is as follows:

• 1 month: If the employee is joining another employer in the UAE, they must offer the employer one month’s notice. In this scenario, the new employer has to compensate the current employer for the employee’s recruitment costs.
• 14 days: If the employee is leaving the UAE, they must offer the employer notice within 14 days. In this scenario, should the employee return to the UAE within three months, the new employer will be liable to the previous employer for recruitment costs.

Normal working hours must not exceed eight hours per day and:

• 48 hours per week over a six-day working week; or
• 40 hours per week over a five-day working week.

Employees are entitled to at least one day off per week, and this does not have to be on a Friday.

The daily limit is nine hours for workers in specified industries, notably commerce, hotels, catering and security. Normal daily hours must be cut by two hours during Ramadan (the Islamic holy month).

Workers’ travel time between their residence and workplace is not counted as working time. Employees cannot work more than five consecutive hours without taking a break of at least one hour for rest, food and prayer. The break does not constitute a working hour.

The provisions on working hours and overtime do not apply to workers in managerial or supervisory positions.

From 15 June to 15 September each year, employees who perform work outdoors in the sun e.g. on construction sites, must take a “midday break” from 12.30 pm to 3.00 pm. Employers must provide employees with a shaded rest area and cold drinks. The break is not paid and the employees’ working day is split into a morning and evening shift.

The work week for federal government entities will be 4.5 days, with weekends starting from Friday afternoons, Saturday and Sunday. For the private sector, the only obligation is for employees to be entitled to one rest day per week. This does not have to be on a Friday; however, many businesses are shifting their work week to align with the Government.

Workers may work no more than two overtime hours on any day, except where work is necessary to prevent major losses or a serious accident or to deal with the consequences of such an occurrence.

Any hours that exceed the statutory limits for normal working time are considered to be overtime, for which the worker must receive 125% the normal rate of pay; workers must be compensated at 150% the normal rate of pay if the overtime is worked between 9 p.m. and 4 a.m.

For work performed on a Friday, which is designated as a statutory day off, an employer must offer:

• a compensatory day off work
• basic salary for the hours worked plus additional compensation equal to 50% of that salary

Employers that employ at least five workers must keep a file for each worker, stating their name, occupation, age, nationality, address, marital status, date of employment, wages, any adjustments of wages, disciplinary sanctions penalties imposed if any, occupational injuries and diseases sustained and the date of and reasons for termination of employment. The file must include a leave card, which records annual leave, sick leave and other leave taken.

Employers that employ at least 15 workers must keep at every workplace:

• a payroll record stating for all workers the date employment started and ended, the days worked, the amount of daily, weekly or monthly wages paid, fringe benefits and any piecework or commission payments
• a record of all occupational injuries and any diseases sustained
• basic work regulations, approved by the public labor authorities and displayed prominently, stating the daily working hours, the weekly rest period, public holidays and the measures and precautions taken to prevent occupational injuries and fire hazards
• disciplinary rules, approved by the public labor authorities and displayed prominently, stating the applicable disciplinary offenses and sanctions

Employers must keep records for two years after the termination of an employment contract.

There is no statutory requirement to pay bonuses and this is generally at the discretion of the employer unless the employment contract specifically mentions payment of bonus, as well as the basis by which it is calculated and paid.

Under the New Labor Law, redundancy is recognized as a reason for dismissal (e.g. if employer is insolvent or going through economic restructuring). Other reasons for dismissal include the employee not having the necessary skills. When an employer initiates the termination, the employee is entitled to one day of unpaid leave per week to look for a new job.

Employers may not terminate a female employee during pregnancy or when on maternity leave.

All final payments due to employees have to be administered within 14 days of the termination date.

An employer and an employee can come to a mutual agreement on a notice period but it must be a minimum of 30 days and no more than 90 days.

During the probation period, the employer must give 14 days of notice and the employee must give 1 month of notice.

Notice must be given in writing. During a notice period, the worker must be compensated for their full wages and must continue to perform their job unless the employer does not require this. The employer or worker may pay the other party in lieu of all or part of the notice period, at the worker’s normal wage rate.

Workers who have at least one year’s service, excluding any days of unpaid absence, are entitled to a statutory “end-of-service gratuity” upon termination.

The gratuity is calculated as:

• 21 days’ basic salary for each year of service for the first five years.
• Service above five years, 30 days’ basic salary for each subsequent year of service, capped at two year’s wages.

The wages on which the gratuity is calculated exclude all bonuses and allowances, overtime pay and payments in kind.

For unlawful termination (i.e. employee filing a serious complaint or successful claim against the employer), a severance payment up to 3 months’ salary in addition to all other contractual and statutory entitlements may be owed. The total compensation takes into account the employee’s length of service, work responsibilities and damage sustained by the employee.

End of Services Benefits (EOSB)

End-of-Service Benefits (EOSB) in the UAE are governed by the UAE Labour Law and apply only to expatriates who have completed at least one year of continuous employment with the same employer. EOSB is referred to as gratuity in employment contracts. UAE citizens (local nationals) working in government and private sectors receive monthly pensions and social security contributions and are not covered under this entitlement.

Employers may include restrictive covenants in their employment contracts, preventing an employee from certain acts such as joining a competitor for a period. However, these can be enforced only to the extent necessary to safeguard the employer’s lawful interest. The clauses must be limited in duration, geographical scope and to the specific nature of the business itself.

The market practice is to limit non-competes for six to 12 months.

The UAE Labor Law places an obligation on employers in the UAE, upon the termination of employment, to provide a certificate to an employee setting out specific information if the employee requests the employer to do so. The information includes:

• the period of the employment
• the nature of the work performed by the employee during the employment
• details of the employee’s remuneration package

There is no specific legislation on data protection under the Labor Law. However, the Penal Code states that employers can collect and use personal data only with the consent of the worker or job applicant concerned.

In the UAE, it is common practice for employers to pay employees three to five working days before the end of the pay period. The pay period must not exceed one month for workers whose pay is calculated on an annual or monthly basis. All other workers must be paid at least once a fortnight.

Wages must be paid on a working day, with funds deposited into their bank accounts. Payment can be in UAE Dirhams or other currency.

Workers must not be required to purchase food or other goods from specific shops or to purchase the employer’s products.

Employees must be provided with an itemized pay statement, stating the amount of remuneration and the amount and purpose of any variable or fixed deductions. Electronic access to pay statements that can be printed are accepted.

Workers are entitled to 30 days of paid annual leave after one year’s service is completed. During the first year of service, employees are only entitled to annual leave after they have completed six months’ service; thereafter, they are entitled to two calendar days of paid annual leave per month until they complete one year’s service.

Leave must be taken in the year when the worker accrues the entitlement. However, employers have the discretion to implement a leave carry-over policy.

Workers are entitled to sick leave if they have completed three months’ service with their employer. Paid sick leave does not accrue during the probationary period. The statutory entitlement is up to 90 calendar days of sick leave each year. The worker is entitled to:

• Full pay for the first 15 days of sick leave per year
• Half pay for the 16th to 45th days

There is no statutory requirement for employers to provide sick pay during the remainder of the annual sick leave quota.

Once a worker has been absent on grounds of sickness for more than 90 days, the employer is entitled to dismiss them if they do not return to work. In such cases, the worker is entitled to an end-of-service gratuity if they meet the eligibility requirements.

Workers are entitled (under the Labor Law) on one occasion to take a special unpaid leave of up to 30 days to undertake the Hajj pilgrimage.

For ADGM, it is 30 days and for DIFC, it is 21 days. In both, employees must have at least one years’ service.

Pregnant workers are entitled to 60 days of maternity leave, where the employee will receive full pay for the first 45 days and half pay for the remaining 15 days. This entitlement is available to all pregnant female employees regardless of time of service with the employer.

The law does not stipulate when the leave should start but it should be taken around the time of the birth.

Female employees who miscarry after six months of pregnancy (or experience stillbirth or death of a child following birth) are also entitled to maternity leave benefits.

If a female employee gives birth to a disabled or ill infant, she is entitled to an additional 30 calendar days of maternity leave, which can be extended by an additional 30 unpaid days of leave.

Nursing mothers are entitled to two paid half-hour breaks during working hours for six months upon returning to work.

Pregnant employees are able to take 45 days of maternity-related sick leave. This can be taken consecutively or as needed.

Employees who become fathers are entitled to take five working days of paid paternity leave.

In the event of death of a close family member, compassionate leave is offered:

• Employee’s spouse: five days
• Employee’s immediate family: three days

Employees are entitled to 10 days of study leave per year for taking examinations if they have had two years of service or more with an employer and are enrolled in an approved UAE education institution.

Zambia typically observes 11 public holidays annually. These holidays encompass both fixed dates as well as those that are determined by religious or seasonal events.