All about Labour Contract in UAE: Key Highlights

UAE is now known for the golden opportunities it provides to people all over the world, which has boosted the flow of immigrant into the country. Work in the Emirates requires knowledge of labour contract regulations and conditions. You will only be able to protect your labour rights as an employee and strictly adhere to UAE labour law when you become knowledgeable about the necessary labour contract details. This blog will guide you through the labour contracts in the UAE. We will cover such critical subjects as the various forms of contracts, labour terms and conditions, dismissal, and conflict resolution alternatives.

Importance of labour contracts in the UAE

Labour contracts are a vital instrument for safeguarding the interests and rights of both employees and employers in the UAE. These labour contracts act as a document which clearly state the rights, duties and the responsibilities of both the employer and the employees whereby avoiding any circumstances of misunderstanding and the conflicts between the parties.

To the employees, labour contracts include work hours, wage rates, allowances, leaves, and other benefits. Contracts in writing help employees and employers to take action and go to court if there is a dispute or violation of their rights. Having a written contract makes it easier for employees and employers to assert their rights and seek recourse in case of any disputes or violations.

In the UAE, there are various types of labour contracts, some of which are listed below.

• Fixed term contract.
• Unlimited contracts 
• Full-time contracts
• Part-time contract 
• Temporary contracts 
• Special employment contract 
• Job sharing contracts  

The employees can get a copy of the labour contract either by applying for it through the official website of MOHRE or using the app whereby get the access to the labour contract.

Documents required for a labour contract

When initiating a labour contract in the United Arab Emirates, certain contracts and documents are required. There are certain documents which are to be maintained by the entity while applying for the labour contract.

• Have a picture of yourself with a blank white background
• A copy of your visa
• A copy of your health certificate
• Three copies of the employment contract, each signed by both the employer and the employee, are required.
• A copy of the company’s valid license is required.

If by any circumstance you fail to renew the contract on time then it would attract fines and penalties.

Key elements of a labour contract

To really be familiar with the key aspects of labour contracts in the UAE, it is necessary to study the components of the contracts by yourself.

• A labour contract should include the personal details of the employee and the employer including the names, nationalities, passports, or identification numbers for the employer, as well as the addresses of both parties. 
• The contract must include the details about the job, the job description the job position and the detail about the job assigned to him. 
• The contract must include the term including the start and the end date, whereby giving the parties the idea for the renewal of the labour contract.
• The contract will highlight the working hours, working days and the off days. It might also include the detail about the number of off days he can take in the term while working. 
• The contract should also specify the work location and authorize any allowances or benefits the worker may receive. 
• Furthermore, the employment contract should address remuneration, detailing the employee’s salary, the frequency of payments, and the mode of payment. The application of any appropriate deductions should also be defined clearly.
• Leave rights are also another important aspect of this labour contract. A favourable labour contract candidate should also mention the holidays that the employee can take, such as vacation, sick leave, or public holidays.
•  It is important to keep in mind the provisions regarding maternity leave and the process for obtaining permission to leave the company, as outlined in this section.
• The final issue that the contract should touch on is the procedures for termination and dispute resolution. The contract must clearly specify the notice period for termination and the consequences of breaching the agreement.

Conclusion

With reference to the facts mentioned above, it is therefore the responsibility of both employees and employers to respect the labour contract laws in the UAE. Understanding the role of the Ministry of Human Resources and Emiratisation (MOHRE) in dispute settlement is important to maintain justice and peace in a positive work environment.

If you are a company unsure of the labour laws, contact CDA, who can guide you through all the procedures and documents. If you are an employee looking to sign a labour law, CDA will help you through all the procedures.

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