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EMPLOYMENT RULES AND SERVICES
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.
In case of a dispute between the employee and the employer, how can either of them proceed with a case?
Where there is a dispute between the employee and the employer, an application must be made to the Ministry in the emirate in which the employer’s establishment is located. The complaint must be submitted in writing to the complaints department at the Ministry, setting out a summary of the facts, calculation of the amount due, and enclosing a copy of the labour contract.
The employer or the employee will be summoned to state their respective cases before the labour office at the Ministry who must make a recommendation within two weeks from the date in which the application is filed. Should the party fail to settle the dispute as recommended by the Ministry, the matter will then have to be referred to court to be litigated in the normal manner. In such a case, the Ministry will issue a summary of the facts of the case, and a memorandum together with its recommendation, and the arguments put forward by both parties. Within three days from the date the application is received, the court will schedule a hearing and summon the other party to hear the matter.
Should the application to the labour office and the court be made within a specified time limit?
A complaint by either the employer or the employee must be made to the labour office within one year from the date in which the amount or the entitlement becomes due otherwise it will be time bared. In other words, the one-year time period does not start running from the date of termination, but rather from the date the amount becomes due and unpaid.
In calculating time according to the Law, the Gregorian calendar is used. Years are calculated as 365 days and months as 30 days. However, filing an action before the Ministry will suspend the time from running. If the Ministry fails to transfer the case to court within two weeks, the employee may then proceed to court without referral from the Ministry.
Is the employer or the employee liable to pay court fees if the matter is referred to court?
Employees are exempt from paying court fees. This exemption also applies if an appeal is filed at the court of appeal. However, should a matter fail to be settled at the Ministry, an employer who elects to proceed with court action must pay court fees, which are normally based on a percentage of the amount in dispute.
Is there a different rule for complaints filed by a group of employees against one employer?
The Law provides slightly different provisions regarding claims made by a number of employees of the same establishment who file a complaint against their employer. It may take longer to be settled at the Ministry and the Ministry may form a committee to settle such disputes.
