The relationship between employers and employees is governed by Federal Act Number 8 of 1980 and its amendments. The Act is applicable to all employment relationships when engaging an employee, whether a UAE citizen or a foreigner. It is not applicable in the case of employment by a government authority.
The approval of the Ministry of Labor is a prerequisite for the employment of foreigners. The Ministry encourages the employment of nationals in the private sector. However, an employer will be given permission to employ resident foreigners who may be transferring from previous employers or to employ newly arriving employees. A work permit is issued by the Ministry for three years, subject to renewal for similar periods. Employment contracts may be for a limited period specified in the contract or for an unlimited period, in which case the employee will continue working with his employer until the contract is terminated.

Working hours

Working hours are eight hours a day or 48 hours a week. However, for persons or employees in trade, hotels, and restaurants, the daily working hours may be increased to nine hours. For overtime work, the employee is entitled to an amount equivalent to the wage paid for ordinary working hours, plus 25 per cent. Overtime may not exceed two hours per day unless necessary. An employee is entitled to an annual leave of 30 days, and maternity leave and sick leave are not part of the annual leave.

Act Number 8 stipulates certain provisions for the employee’s health and safety and for workmen’s compensation against work accident. The employment contract may be terminated by mutual consent of the parties or on expiry of its duration. Any dispute arising between the employer and the employee will be resolved by the Ministry of Labor, which must make a recommendation within two weeks from the date the application for a dispute settlement is filed. If the parties fail to settle the dispute as recommended by the Ministry, the matter should be referred to the courts. The time limit for a lawsuit relating to an employment contract is one year from the date on which the amount claimed or entitlements become due. Employees are exempted from court fees before the court of first instance and court of appeal.

Frequently Asked Questions

Employee can work for sponsor only

Q: I have been working with a company in Dubai for more than six months on a limited contract. Now, I want to avail power of attorney of my mother’s company in Sharjah.
Since it’s a family business, my mother wants me to take care of some parts of the business and for that she is willing to give me power of attorney to legally run her business. Is it legal to work for my mother’s company under a power of attorney approved by the Sharjah Court though I am working for another employer?

A: According to Article 67 in the third chapter of the federal law number 6 for the year 1973, a sponsored person is under a duty to not work except for his sponsor. Similarly, the sponsor is under a duty not to employ who is not sponsored by him. Hence, if your mother’s entity is not sponsoring you, you cannot take a role in it and this will be considered as a breach of the law.

Breaching any of these obligations and working in an entity where you are not sponsored put all the parties in a risk of being prosecuted and hence, subject to a minimum fine of Dh50,000 each or imprisonment and the same amount of fine (KT).