3/21/2011 UAE Labour Law

UAE Labour Law in Abu Dhabi, Dubai, Sharjah and other emirates
Labour regulations in the UAE are governed by the UAE Labour Law - Federal Law No. 8 of 1980.
Amendments include Federal Law s No. 24 of 1981, No. 15 of 1985 and No. 12 of 1986

Nothing on this page (or w ebsite for that matter) should be taken as proper, improper, or any other sort of legal advice or interpretation of UAE law . It
is only our opinion or understanding of rules, regulations, and procedures in the UAE. You should consult a law yer and/or the UAE labour department
for professional and/or official information. Or at least read the UAE Labour Law yourself, and ignore anything w e say, especially if you don't think it
agrees w ith the law .

It is against the labour law in the UAE for recruitment agents and companies to charge job candidates and employees any fees for any part of the
recruitment process or residence visa and w ork permit application. Many still try, and that should set off w arning bells regarding the nature of the
employer. Within the UAE, they can be reported to the UAE Ministry of Labour w ho may or may not do anything about it. Either w ay, job applicants
are likely to be better off moving on to another recruitment agent and/or employer w ho respects the law .

Treat all information on this page as unconfirmed unless directly obtained from an official source (UAE Ministry of Labour for example) as there are
media reports w ith conflicting information. As is common in the UAE, w hen there are significant changes in the law , there is usually a period of
confusion w hile:

the authorities try to figure out if w hat they w ere reported to have said is w hat they thought they meant to say,
if the result is really w hat they w anted,
the media, citizens, and expat residents try to figure out w hat is really going on,
and targeted groups and organisations try to figure out how to get aw ay w ith w hat they w ere doing before any shakeup, or how much w asta
they need to get around any new rules.

Federal Labour Law Number 8 covers most of the essential rules and regulations you need to know w ith respect to salaries, termination, gratuity etc. It is (or
w as) available in English online at the UAE Ministry of Labour (MOL) w ebsite and in bookshops, and is w orth familiarising yourself w ith.

You w ill probably hear many people complain that the employment contract is not w orth the paper it's w ritten on. Certainly there are people w ho've had an
unpleasant job experience somew here w here things did not seem to go according to w hat they understood from their contract. Or w orse. To minimise the risk
of problems, keep in mind the follow ing points.

Legally, only the Arabic version of a contract is valid in the UAE.

Having a w ritten contract is at least something. A verbal contract is w orth much less.
You should read your contract carefully before accepting a position and resolve any questions or issues before signing it. Make sure you have a
w ritten copy of any changes negotiated, or a revised contract. That's important. If an issue is unresolved before signing a contract, expect it to stay
that w ay no matter w hat you are told.
You should be given an English version. Consider carefully the implications of w hat you are doing if you sign a contract in Arabic w ithout
understanding it.
Alarm bells should go off if a company w ill not send you a copy of the contract before you arrive, or they ask you to sign w hat appears to be a
different contract w hen you do arrive.
If you do have a problem w ith your employer and w ant a legal opinion, there are many law yers available (w ho charge a fee of course). See a list of
possible law yers in UAE to try.
It is possible that you end up in a situation w here it is difficult to resolve things even if the law is apparently on your side. You can expect that the
one w ith the most w asta (influence, pow er) w ill w in, in w hich case, put your tail betw een your legs and hope the door doesn't hit you on your w ay
out.
Your embassy might be able to help by providing you a list of law yers to contact.

Most jobs in Dubai have a probationary period of betw een one month and one year. During this time you can be dismissed w ithout notice and are not entitled
to any end of service benefits. It is not clear if this w orks both w ays i.e. you can resign w ithout notice. Some say the law says no, but people have successfully
resigned from their jobs at short notice during probation.

New UAE labour law changes from January 2011

Retirement age in UAE

Maximum age that foreign w orkers can be employed in UAE increased from 60 to 65 years old.

Part time work permits for students and other expat residents

From January 2011, university and college students sponsored by the institute in the UAE at w hich they are enrolled can legally w ork part-time
under certain conditions. Students need to apply for a part-time w ork permit from the UAE Ministry of Labour (MOL). Not clear if students must
be studying full-time, or if the new labour law decree also applies to part-time students.
A report in Gulf New s 08 February 2010 said Gobash recalled an incident when the son of General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince
of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, was denied the right to take up a part-time job in a company because there was no law
regulationg [sic] these work permits. Implying that UAE National students also need a part-time w ork permit to be legally employed.
The part-time employment permit is also available to expat residents w orking full-time w ho have a valid labour card, and to expat w ives sponsored
by their husband. Not clear if expat husbands under w ife sponsorship can also obtain a part-time w ork permit.
The part-time employment permit allow s the holder to be employed in more than one part-time job.

Juvenile or teenage work permits

From January 2011, teenagers from 15-18 years of age can find jobs in the UAE after obtaining a teenage w ork permit from the MOL.
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From January 2011, teenagers from 15-18 years of age can find jobs in the UAE after obtaining a teenage w ork permit from the MOL.
There are restrictions on the type of w ork and hours of employment. Ministerial decree 1189 for 2010 specifies 31 categories of w ork in w hich
juveniles are not permitted to w ork, including underground jobs in mines, quarries, and other w ork related to mining; furnaces of melting metals; oil
refining; bakeries; asphalt industry.
Some reports refer to the w ork permit as part-time only but it appears that full-time w ork is permitted.
Validity period of juvenile w ork permit is one year maximum.

Short term and temporary labour permit in UAE

Expat and foreign w orkers over the age of 18 (and less than 65 years of age) w ho have not previously w orked in the UAE can now apply for short-
term w ork permits valid for 60 days at a time according to UAE Ministry of Labour (MOL) information reported by the Al Khaleej new spaper 26
January 2011.
The 60-day w ork permits can be renew ed up to 5 times (6 times reported but later information said maximum total period of one year), renew al
must be made before expiry date of the permit or last renew ed period.
Work permit initial fee AED 500. Work permit renew al fees and bank guarantee amount not reported.
Fine of AED 500 w ill apply for every 10 day period past the expiry date.
Permit w ill automatically be cancelled if fees and bank guarantee not paid w ithin 60 days. Not clear if this means w ithin the validity period, or w ithin
60 days after expiry of the permit.
Short term w ork permits not available to UAE and GCC nationals (not that they need a w ork permit anyw ay, at least not UAE citizens).
A report in Emirates Business 24-7 on 05 February 2011 said "Also, priority will be given to Emiratis and GCC nationals who can take up the required job"
making it sound like those nationalities need to apply for a short term permit, how ever it is more likely that the intention is that permits should only
be issued to foreigners if the company cannot find an Emirati or GCC citizen to do the same job, since they don't need w ork permits for the UAE
as far as w e know .
Applications to be made at Tasheel center by employer or company representative, w ho must have electronic signature authority. Workers cannot
apply for a temporary permit themselves.
In some circumstances, e.g. unpaid salaries for more than 2 months, w orkers can obtain a temporary w ork permit even if their current employer
objects.

Changes to laws about part-time work in the UAE - January 2011

Students and housew ives can w ork part-time in the UAE according to changes in the UAE Labour Law from January 2011.
Part-time w ork permits w ill be available for one year at a time (fee AED 500), but female dependents and students w ith UAE residence visas w ill
not need a w ork permit. Unclear if expat husbands sponsored by expat w ives can w ork part-time w ithout a permit.
Expatriate male dependants (husbands and sons) of Emirati w omen do not need a w ork permit to w ork part-time.

New rules for NOC, employment permit, and labour ban in Dubai and UAE - January 2011

Tel 800-6655 (toll-free in UAE) MOL helpline for questions.

As of Saturday 01 January 2011, new rules in the UAE reduce the employment period for w hich an NOC is no longer required w hen changing sponsors
from 3 years to 2 years.
As far as w e know , this does not apply to employees on fixed term contracts w ho leave before the end of their contract (w hich, unless a contract
specifically allow s this or the employer agrees to an early departure, means the employee has broken the terms of their contract and might still be subject
to a 1 year labour ban instead of the automatic 6 month labour ban that usually applies w hen leaving a job in the UAE).
This information to be updated as the new law becomes more clear.

NOC no longer needed in UAE?

A Gulf New s report 20 December 2010 said a government official clarified that the new law completely scraps the "no objection certificate" (NOC) (the
official might have been Humaid Bin Deemas, Acting Director-General of the Ministry of Labour? Not confirmed). Which w as not actually that clear.
The NOC is no longer needed only for w orkers w ho have completed 2 years of employment. An NOC is still required for employees w ho have
completed betw een 1 and 2 years of an unlimited contract. For those w orking less than 1 year, or breaking a limited period contract, a 1 year ban is
still possible.

New law for NOC and ban period in UAE

On 16 December 2010, the official UAE new s agency, WAM, published new s about the new UAE labour law regarding ban periods (Cabinet Resolution No
25 of 2010 regarding internal w ork permit at the Ministry of Labour, issued by the UAE Minister of Labour, Saqr Gobash).

1. Transfer w ithout NOC or ban is only possible if the employee has w orked at least 2 years w ith the employer, and the employee and employer have
terminated their relationship "cordially". The WAM report said The resolution says that the new employment permit will only be granted to the worker after the end of
his work relationship with his employer without consideration of the legitimate six month period which is usually calculated after the cancellation of the worker's labour card,
but stipulates two must-do conditions : firstly, the two contracting parties must have ended their work relationship cordially and secondly, the worker should have worked
with his employer for two years at least- the duration of the new labour card which will be issued by early January.
2. How ever, an employee can obtain a new w ork permit w ithout the agreement of the sponsor at the end of the contractual period (2 years minimum?) in 2
cases: First : when the employer fails to honour his legally or contractual obligations. Second, in the condition of expiry of work relationship where the worker takes no
responsibility such a complaint filed by the worker against his firm.
3. Or, there are 3 situations in w hich a w orker can get a new w ork permit even if s/he has been employed less than 2 years. First: When joining his new job,
the worker should be classified in the first, second or third professional class and that his new salary should not be less than Dh 12,000, Dh 7,000 and Dh 5000 if he is
in the first, second and third class respectively. Second:Non-compliance of the employer with legal, labour obligations towards the worker or in the case where the worker has
no role in terminating the work relationship. Third: Shifting of the worker to another firm the employer owns it or has stakes in it.

Other points to note about the new Labour Law regulations (all unconfirmed as of December 2010)

Labour card fee to be reduced to AED 300 (should be payable by employer) for companies at the top level of 5 categories - those employing at least
20% skilled w orkers, and 15% Emirati nationals. Other companies w ill pay AED 600 to AED 5,000 per employee for labour cards?
Skilled w orkers divided into 3 categories:
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Skilled w orkers divided into 3 categories:
1. University degree holders
2. Partial college level study completed (diplomas, certificates, etc beyond secondary education)
3. Secondary school education completed
Cheaper labour card costs for companies employing minimum 20% skilled w orkers, of w hom 15% are Emiratis, and being paid a minimum salary as
in the table below (system introduced mid-December 2010) (unclear if minimum salary requirement is for Emiratis only, or all nationalities):

Level Education Minimum Salary Labour Card Fees

1 Skilled University degree AED 12,000 AED 300
2 Skilled Post secondary AED 7,000
3 Skilled Secondary AED 5,000
4 Unskilled
5 Unskilled

Automatic 6 month employment ban to be lifted for skilled and professional w orkers.
Changes in the law prompted by a UAE Ministry of Labour (MOL) study - Humaid Bin Deemas Al Suw aidi, MOL Undersecretary, w as reported as
saying (29 December 2010) "We did a study and found that 70% of employees end their contracts before completing the three years."
Employer attitudes in the UAE summed up nicely by a comment reported in The National 28 December 2010 - a company administrator said about
their employees "We used to have control over them, and we knew it wasn't easy from them to go, now we will lose this control." Which is probably just w hat the
MOL hopes w ill happen - the loss of control that is.
Clarifying the question of w hether or not w orkers on fixed contracts can leave at any time during their contract period, Humaid Bin Deemas Al
Suw aidi, MOL Under-secretary, w as reported on 27 December 2010 to have said on UAE radio stations that "They cannot unless the contract has
ended - legally. They have to respect their contracts. They are the ones who agreed to them, or agreed on their renewal."
The National reported on 27 December 2010 that the MOL Undersecretary said only 0.4% of the private sector w orkforce are Emirati nationals -
about 16,000 out of 4 million registered w orkers in the UAE.

New company categories in UAE - 05 December 2010 (WAM)

Companies in the UAE classified into 3 categories according to Resolution Number 1187 of 2010 on Regulations and Criteria of Classification of
Firms in implementation of Cabinet Resolution Number 26 of 2010, issue date 11 August 2010 by UAE Minister of Labour, Saqr Gobash. New
categories replace previous classification system in operation since 2005.
Implementation not until July 2011? Emirates Business 24-7 reported on 11 January 2011 that The UAE Ministry of Labour has clarified that new
labour law amendments due to be implemented in July this year ...
Article 10 covers the introduction of practical and real mechanisms for voluntary Emiratisation.

Category Level Qualification Minimum Salary Minimum staff Emiratisation Cross-cultural compliance
First 1 (A) Degree AED 12,000 20% minimum 15%
First 2 (B) Diploma AED 7,000 20% minimum 15%
First 3 (C) Unskilled AED 5,000 20% minimum 15%
Second 1 (A) AED 12,000 minimum 15% minimum 75%
Second 2 (B) AED 7,000 minimum 15% 50%-75%
Second 3 (C) AED 5,000 minimum 15% below 50%
Third

1. First group of companies information in italics based on Emirates 24-7 report 11 January 2011 (Dh12,000 minimum salary for degree holders part of new
company classification policy ... UAE Labour Ministry clarifies that amendment applies to only Category I firms under the new system), appears to conflict w ith or revise
previous information giving similar requirements for Category II companies.
Category I companies w ill be exempted from paying a bank guarantee for w orkers.
Category I companies exempted from paying visa deposit fees.
Companies upgraded to Category I may not reduce employee salaries below the minimums specified, otherw ise they are at risk of being
dow ngraded again.
Minimum staffing levels given as 20% in various reports but not clear if for each classification, or total for all 3 classifications.
2. Second group of companies is subdivided "based on their commitment to certain standards like emiratisation, wages and housing" according to comments from
UAE Minister of Labour, Saqr Gobash (05 December 2010 WAM report).
Category II companies must pay AED 3,000 bank deposit per w orker, up to a maximum of AED 1.5 million (level A), AED 3m (B), or
AED 5m (C).
Cross-cultural compliance policy based on WAM report 05 December 2010 that said "For the second group, the resolution arranged firms to
A,B and C according to cross-cultural policy. A company is sorted in group A if it does not commit itself to this policy by at least 25 per cent. A non-
compliance of 25 to 50 will place the company in grade B and C if the percentage crosses the 50 mark." No, w e're not sure if w e understood it
correctly either, and no, w e don't know how it's measured anyw ay.
3. Third group of companies is those w ith 100 or more black points for labour law related offences and convictions such as recruiting infiltrators, human
trafficking, providing w rong information regarding the w ages protection system (WPS), or failing to observe emiratisation policy. Companies can be fined
from AED 15,000-20,000 for such offences.
Category III companies required to pay AED 3,000 bank deposit per w orker up to a maximum of AED 10 million.

Exemptions from paying bank guarantees irrespective of company category apply to:
Industrial projects licensed by the UAE Ministry of Economy.
Federal or Local Government companies and organisations.
Non-profit organisations, cooperative associations, and national associations under the supervision of the UAE Ministry of Social
Affairs.

Minimum salary in UAE - February 2011

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Minimum salary in UAE - February 2011

As a result of UAE Labour Law changes at the start of 2011, several reports emerged w ith headlines or articles claiming that the minimum salary
paid in the UAE had increased to AED 5,000, AED 7,000, or AED 12,000.
Such claims should be taken w ith a pinch of salt. The labour law changes specified the requirements for a company to be classified as a second
category company (or 2nd level, or something similar - a variety of terms are being used), including minimum salary. This does not mean there is a
blanket minimum salary requirement in the UAE.

New labour permit fees UAE - December 2010

New Ministry of Labour (MOL) fees reported in Al Khaleej new spaper 20 & 29 December 2010 (as per Article 2 of Ministerial Decree No 26 of 2010), costs
and fees effective from January 2011:

Companies are exempted from paying the follow ing fees for Emirati employees.

Fee category Amount (AED) Frequency Notes

MOL registration fee for new companies 2,000 once
Digital signature processing for new companies 250 once
Companies employing non-Emirati PROs 2,000 2 yearly
Lost or damaged PRO card 200
Labour card for employees under family sponsorship 2,000 2 yearly
Labour card for category 1 w orkers 300 2 yearly
Labour card for category 2 level A w orkers 600 2 yearly
Labour card for category 2 level B w orkers 1,500 2 yearly
Labour card for category 2 level C w orkers 2,000 2 yearly
Labour card for category 2 w orkers 5,000 2 yearly
Labour card for employees over 65 years old 5,000 2 yearly
Temporary w ork permits for minors (15-18 yrs old) initial fee 100
Temporary w ork permit up to one year for minors 500 annual
Transfer fee to new company 300 once
Labourer importing fee per company (initial) 10,000
Labourer importing fee per company renew al 5,000 annual
Fine for delayed labour card application (after 60 days) 1,000 monthly

Maximum retirement age in UAE - change reported 30 December 2010

An unnamed UAE Ministry of Labour official said "The retirement age before was 60, now it’s 65. They raised the retirement age," according to an Arabian
Business report 30 December 2010.
He also said "After 65 you’re considered post-retirement, and it’s a different rate. You’re also on a one-year visa instead of a two-year."
The report seemed to imply that the change only applied to skilled w orkers but that w as not clearly stated.

Other UAE Labor Law information

Updates to the Labor Law in Dubai and the UAE

Indian housemaids less than 30 years old must have at least a high school education. Housemaids over 30 are exempt. Indian government
restriction, not a UAE restriction (Khaleej Times 17 September 2007).
Companies must open bank accounts for their w orkers WEF January 2008, or the Ministry of Labour w ill not issue w ork permits. (Khaleej Times
17 September 2007).

Salary cuts for workers in the UAE

Some companies in the UAE attempt to reduce employee salaries for various reasons, particularly during the economic dow nturn that started in
2008-2009.
The Khaleej Times 27 July 2010 reported that Saleh Al Jabri, Director of the Establishments Department at the Ministry, said "It is illegal for a company
to cut workers' pay as the employment contract is a binding agreement attested by the Ministry and all parties must comply with its clauses. ... The violating company
will be prosecuted as manipulating workers' salary is considered a crime."
Mr Al Jabri also reportedly advised w orkers threatened w ith pay cuts to report their employer to the UAE Ministry of Labour so that the case could
be investigated.

Employers keeping expat workers' passports in UAE

See more information about sponsor passport retention in UAE.

Employers keeping the passports of their expat employees is illegal. Not because the UAE Labour Law specifically says it is, but because employers
don't have any legal right to keep the passport of an employee (or any other property belonging to their w orkers) in the first place.
A passport is usually the property of the government that issued it, and the holder is responsible for its safekeeping. That means the person w ho
w as issued the passport has the right to decide w ho gets to see their passport and w ho doesn't.
Obviously, various authorities around the w orld are entitled to view or retain someone's passport for a period of time, for example border control,
police, immigration departments etc. But that list does not include your employer, w hether in the UAE or anyw here els.
Common UAE Labour Law questions
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Common UAE Labour Law questions

Precedence of contract over UAE Labour Law

Usually most legal systems declare as invalid any contractual agreements that take aw ay rights provided by law - w hether to do w ith labour or other
areas of society (w arranty agreements for services and products for example).
This, as far as w e know , applies in the UAE also. How ever, a number of people w ho sound more professional than us have often said (in
new spaper articles, online forums, etc) that your labour contract takes precedence over the law , irrespective of w hat it says. This doesn't make sense
to us but w e're not law yers or the UAE authorities.
We w ould therefore strongly suggest you read your contract carefully before signing, read the UAE Labour Law carefully before signing, especially if
there are contractual areas you are not happy about, and then try to renegotiate the contract terms and/or seek professional advice to clear up any
disagreements before signing the contract.
Note that some articles in the UAE Labour Law w hich specify rights due to the employer, do contain an escape clause for the employer w ith w ords
to the effect of ... unless the contract specifies otherwise. In w hich case, it w ould make sense to assume that your contract does override w hatever rights
you have as stated in the labour law .

Financial compensation for arbitrary dismissal or breaking contract in the UAE

An employer is expected to pay up to 3 months salary to an employee on a fixed term contract if s/he is fired w ithout good reason, unless the
contract says otherw ise (Article 115).
Employees on indefinite contracts are due compensation equivalent to the salary payable for the notice period (Article 119).
An employee w ho does not complete a contract ow es the employer 1.5 months salary or less, but not more unless the contract says otherw ise
(Article 115).
An employee on an unlimited contract w ho quits w ithout notice ow es the employer the salary payable for the notice period (Article 119).

Gratuity and severence pay in the UAE

See separate page about Gratuity in UAE.

Links to UAE Labour Law documents and PDF downloads

w w w .angelfire.com/nv/sabu/UAE%20Labour%20Law .html - not the actual text of the UAE Labor Law but a useful summary.
w w w .gulftalent.com/repository/ext/UAE_Labour_Law .pdf - might require name and email address for access.
w w w .scribd.com/doc/2910325/UAELabourLaw
w w w .zu.ac.ae/library/html/UAEInfo/documents/UAELabourLaw .pdf - copy of the Al Tamimi & Co version of the UAE Labor Law . Be careful,
it's their w ording, not the official document, w hich is more readable but does contain some apparent inconsistencies.

Last update Sunday 06-Mar-2011. Page development 3D 4L 5C.

Related pages

Gratuity calculation UAE - how to calculate severance pay due on termination of employment
Jobs in Dubai - guide to w orking in Dubai
Ministry of Labour UAE
Working in the UAE - forum w ith UAE employment questions, answ ers, and discussions
Visas in UAE - forum w ith UAE w ork permit and residence visa questions, answ ers, and discussions

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