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EMPLOYMENT SERVICES
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.
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.
Frequently Asked Question
Q:I would like to know the basis of calculating overtime? Is it calculated as per the basic salary or the full salary per month?
A:Overtime pay based on gross salary
According to Articles 67 and 68 of the federal labour law, the basis of calculating the overtime pay is the normal hourly rate which is the gross rate (KT).
