Labour Relations Law

Article (1) Definitions

In application of the provisions of this Decree by law, the following words and phrases shall have the meanings assigned to each of them, unless the context otherwise requires: State: United Arab Emirates. Ministry: Ministry of Human Resources & Emiratisation. Minister: Minister of Human Resources & Emiratisation. Private Sector: Companies, institutions, establishments, or any other entities wholly owned by individuals or jointly with the federal or local government, and companies and establishments wholly owned by the federal or local government unless their Articles of Associations stipulate that they are subject to the provisions of another law. Establishment: Every economic, technical, industrial or commercial unit, or any other unit approved in the State, in which Workers are employed and whose objective is to produce or market commodities or to provide services, and which is licensed by the Competent Authorities. Employer: Every natural or legal person employing one or more Workers in return for a Wage. Worker: Every natural person authorised by the Ministry to work for one of the licensed Establishments in the State, under the supervision and direction of the Employer. Juvenile: Every person who is between fifteen and eighteen years of age. Work: Every human effort, whether intellectual, technical or physical, performed according to different types of work. Work Permit: A document issued by the Ministry, according to which a natural person is allowed to work for a licensed Establishment. Employment Contract: Every agreement concluded between the Employer and the Worker, in which the latter commits to work for the Employer and under his supervision and direction, in return for a wage that the employer is obligated to pay, according to the contract forms specified by the Executive Regulations of this Decree by law. Probation Period: The period that may be required by the Employer, which enables the Employer to evaluate the Worker's performance, and enables the Worker to become familiar with his job duties and familiarise himself with the work environment, and according to which he shall determine whether the employment contract shall be continued or terminated in accordance with the provisions of this Decree by law. Warning Period: The notice period specified in the employment contract, which both parties to the contract shall abide by in the event that either of them wishes to terminate the employment contract. Basic Wage: The wage specified in the employment contract, which is paid to the Worker in return for his work under the employment contract, on a monthly, weekly, daily, hourly or piece-meal basis, and does not include any other allowances or benefits in kind. Wage: The basic wage, plus the cash allowances and benefits in kind that are decided for the Worker under the employment contract or this Decree by law, and it may include: The benefits in kind that the Employer is obligated to provide to the Worker or their cash equivalent, if they are determined as part of the wage in the employment contract or the Articles of Association of the Establishment, or the allowances to which the Worker is entitled to in return for the effort he exerts, or the risks he is exposed to in the performance of his work, or any other reasons; or the allowances given to meet the high cost of living, or a percentage of sales, or a percentage of the profits paid in return for what the worker markets, produces, or collects. Business Day: The official working day determined by the resolutions implementing this Decree by law. Workplace: The work location agreed upon in the employment contract, or in which the worker performs the duties and services agreed upon for the employer. Continuous Service: The uninterrupted service with the same Employer or his legal successor from the date of commencement of work. Day Labourer: Every worker receiving a daily wage. Work Injury: Any of the occupational diseases stipulated in the table issued by virtue of Cabinet resolution or any other injury arising from the Worker's work and sustained by the Worker while performing and as a result of such work. It is deemed as Work Injury any accident proven to be sustained by the Worker on his way to or back from his work, without any stopping or diversion from the usual route. Medical Authority: Any federal or local government entity concerned with health affairs or any private health facility licensed to provide health services in the State. Worker's family: Wife or husband, and male and female children. Individual Labour Disputes: Any dispute between the Employer and one Worker individually, the subject matter of which is related to this Decree by law, its Executive Regulation and the resolution issued in implementation thereof. Collective Labour Disputes: Any dispute between the Employer and his Workers, the subject matter of which is related to the common interest of all Workers or a group of them.

Article (2) Objectives

This Decree by law aims to achieve the following: 1. Ensuring the efficiency of the labour market in the State, which contributes to attracting and maintaining the best competencies and future skills from the workforce, and providing an attractive business environment for Employers, which helps both parties to participate in achieving the State's national development goals. 2. Regulating labour relations and determining the rights and obligations of the parties in this legal relation in a balanced manner. 3. Enhancing the flexibility and sustainability of the labour market in the State by ensuring the protection of the parties to the labour relation, its developments, and the exceptional circumstances that they may face which may affect that relation. 4. Supporting and rehabilitating the capabilities and skills of Workers in the Private Sector, in a manner that enhances the efficiency and productivity of the workforce in the labour market in the State. 5. Providing protection to both parties to the labour relation and enabling them to obtain their rights within the framework of this Decree by law.

Article (3) Scope of Application

1. The provisions of this Decree by law shall apply to all Establishments, Employers and Workers in the Private Sector in the State. 2. The following categories are not subject to the provisions of this Decree by law: a. Employees of federal and local government agencies. b. Members of the armed forces, police and security. c. Domestic Workers. 3. The Cabinet may, upon a proposal by the Minister, exclude any category from being subject to all or some of the provisions of this Decree by law, and specify the legislation applicable thereto.

Article (4) Equality and Non-Discrimination

1. Discrimination between persons, on the grounds of race, colour, sex, religion, nationality, social origin, or disability is prohibited, which would weaken equal opportunities or would prejudice equality in obtaining or continuing a job and enjoying its rights. The Employer is also prohibited from practising discrimination in jobs with the same job functions. 2. Rules and procedures that enhance the participation of the State's citizens in the labour market are not deemed as discriminatory. 3. Without prejudice to the rights of working women stipulated in this Decree by law, all provisions regulating the employment of workers without discrimination shall apply to working women. 4. A woman shall be paid a wage similar to a man's wage if she performs the same work, or another work of equal value. A Cabinet resolution shall be issued, upon a proposal by the Minister, to determine the procedures, controls, and criteria necessary for evaluating work of equal value.

Article (5) Employment of Juveniles

1. It is prohibited to employ any person before he completes fifteen years of age. 2. The following are required to employ a Juvenile: a. A written consent of his guardian or custodian. b. A certificate of health fitness for the required work issued by the Medical Authority. c. The actual working hours shall not exceed six hours per day, and shall include one or more breaks, the total of which shall not be less than one hour. Such period(s) shall be determined so that the Juvenile shall not work for more than four consecutive hours. d. He shall not work during the period between 7 pm and 7 am. e. He shall not be employed in dangerous or arduous jobs or in jobs that are, by its nature, detrimental to his health, safety or morals, which are determined by a decision issued by the Minister in coordination with the Concerned Authorities. f. He shall not be required to work overtime, or to stay at the workplace after the times fixed for him, or to work on rest days or official holidays. 3. The Executive Regulation of this Decree by law shall define the juvenile employment system, the procedures that the employer must abide by, the jobs in which it is prohibited to employ juveniles and the controls for excluding entities that provide juvenile vocational training and qualification, including charitable, educational and training institutions, from some provisions of this Article.

Article (6) Recruitment and Employment of Workers

1. Work may not be practised in the State, and the Employer may not recruit or employ any Worker, except after obtaining a work permit from the Ministry in accordance with the provisions of this Decree by law and its Executive Regulation. 2. The Executive Regulation of this Decree by law shall determine the conditions, controls and types of work permits, and the procedures for granting, renewing and cancelling them. 3. It is not permissible to carry out the activity of recruitment or mediation to recruit or employ Workers without a licence from the Ministry, in accordance with the conditions and procedures specified in the Executive Regulation of this Decree by law. 4. The Employer is prohibited from charging the Worker the fees and costs of recruitment and employment or collecting them from him, whether directly or indirectly. 5. The Minister shall, in coordination with the Concerned Authorities in the State, issue the resolutions decisions regulating the jobs for which the recruitment and employment of workers is prohibited, and the controls therefor.

Article (7) Types of Work

1. The work types to be contracted shall be according to the following: a. Full-time, which is working for one employer for the full daily working hours throughout business days. b. Part-time, which is working for one or multiple employers for a specified number of working hours or days. c. Temporary work, which is work of which nature requires a specific period of time, or which focuses on a specific job and ends by the completion thereof. d. Flexible work, which is work of which hours or working days change according to the volume of work and the economic and operational variables of the Employer. The Worker may work for the Employer for times that change according to work conditions and requirements. e. Any other types specified by the Executive Regulation of this Decree by law. 2. The Executive Regulation shall determine the conditions and controls for work types, and the obligations of both the worker and the employer, according to each type.

Article (8) Employment Contract

1. The Employer must conclude an employment contract with the Worker, according to the form of work agreed upon, provided that the contract is in two copies, one of which shall be kept by the Employer and the other shall be handed to the Worker, in accordance with the forms specified by the Executive Regulation of this Decree by law. 2. The Worker or his representative may establish the employment contract, the amount of the wage and any of the rights he is entitled to under the provisions of this Decree by law and its Executive Regulation and the decisions issued in implementation thereof, by all means of evidence. 3. The employment contract shall be concluded for a definite period, renewable, based upon the parties' agreement. 4. In the event of an extension or renewal of the contract, the new period(s) shall be deemed to be an extension of the original period and shall be added thereto when calculating the Worker's continuous service period. 5. If both parties continue to implement the contract after the expiry of its original term or the expiry of the agreed-upon work without express agreement, the original contract shall be deemed to be impliedly extended with the same conditions stated therein. 6. Subject to Clause (3) of this Article, the Executive Regulation of this Decree by law shall determine the forms of employment contracts according to the approved skill levels, and the provisions for changing the contract from one type of work to another, and registering them with the Ministry.

Article (9) Probation Period

1. The Employer may appoint the Worker under the Probation Period for a period not exceeding six (6) months as of the date of commencing work, and he may terminate the Worker's service during this period after notifying the Worker in writing at least fourteen (14) days prior to the date specified for termination of service. 2. A Worker may not be appointed under probation more than once with one employer, and if the Worker successfully passes the Probation Period and continues to work, the contract becomes valid in accordance with the terms agreed upon, and that period must be counted within the service period. 3. In the event that the Worker wishes to move, during the Probation Period, to work for another employer in the State, he must notify the original Employer in writing within a period not less than one month as of the date of his desire to terminate the contract. The new Employer shall compensate the original Employer with the costs of recruiting or contracting with the Worker, unless agreed otherwise. 4. In the event that the foreign Worker wishes to terminate the employment contract, during the Probation Period, to leave the State, he must notify the Employer in writing, at least (14) fourteen days prior to the date specified for the termination of the contract. And in the event that he wishes to return to the State and obtain a new work permit within three (3) months as of the date of leaving, the new Employer shall pay the compensation stipulated in Clause (3) of this Article, unless agreed otherwise between the Worker and the original Employer. 5. If either party terminates the employment contract without observing the provisions of this Article, it shall pay the second party a compensation equal to the Worker's wage for the notice period or the remaining period of the notice period. 6. If the foreign worker leaves the State without being bound by the provisions of this article, he will not be granted a work permit to work in the State for a period of one year as of the date of leaving the State. 7. The Ministry may exempt some job categories, skill levels, or labour from the condition of not granting a work permit, stipulated in Clauses (4) and (6) of this Article, in accordance with the controls and procedures specified by the Executive Regulation of this Decree by law.

Article (10) Non-Competition Condition

1. If the work assigned to the Worker allows him to know the Employer's clients or access his work secrets, the Employer may stipulate in the work contract that the Worker shall not, after the termination of the contract, compete with him or participate in any competing project in the same industry; provided that such condition is specific in terms of time, place and kind of work to the extent necessary to protect the legitimate business interests, and that the period of non-competition shall not exceed two years as of the expiry date of the contract. 2. Said condition shall be null if the employer terminates the employment contract in violation of the provisions of this Decree by law. 3. The lawsuit filed by the Employer for the Worker's violation of the provisions of this Article shall not be heard after the lapse of one year from the date of discovering the violation. 4. The Executive Regulation of this Decree by law shall determine the provisions regulating this Article, and the skill levels or occupational professions that may be excluded from the provision of Clause (1) of this Article, in accordance with the conditions and controls specified by the Regulation.

Article (11) Outsourcing Some of Employer's Tasks to Another Employer

The Employer may assign any of his work to another Employer; and in which case, the latter shall be solely responsible for the rights entitled by virtue of the provisions of this Decree by law to his Workers performing such work, unless agreed otherwise between the two parties.

Article (12) Assigning Worker to Other Work

1. It is not permissible to assign the Worker a work that is fundamentally different from the work agreed upon in the employment contract, unless necessary, or with the aim of preventing the occurrence of an accident or repairing what resulted from such accident; provided that such assignment is temporary in accordance with what is specified by the Executive Regulation of this Decree by law. 2. The Employer may assign the Worker, in cases other than those referred to in Clause (1) of this Article, to perform a kind of work that is not agreed upon in the employment contract, provided that the Worker agrees in writing. 3. If performing the work that is not agreed upon in the employment contract requires that the Worker changes his place of residence, the Employer must bear all the financial costs resulting therefrom, including the costs of the worker's displacement and residence.

Article (13) Employer's Obligations

The Employer must: 1. Maintain Workers' files and records in accordance with the conditions, controls and procedures determined by a resolution issued by the Ministry, provided that the period of maintaining the Worker's file shall not be less than two years as of the date of the end of the Worker's service. 2. Not withhold the official documents of the Worker or force him to leave the State upon the end of the labour relation. 3. Lay down work organisation regulations, such as the regulation of work instructions, sanctions, promotions, bonuses, and other regulations and systems according to the controls specified by the Executive Regulation of this Decree by law. 4. Provide the Worker with adequate accommodation licensed by the Competent Authorities in accordance with the rules, conditions and standards in force in the State, or pay him housing allowance, or include it in the wage. 5. Invest in developing the skills of Workers who work for him, and provide the minimum amount of training, qualification and empowerment tools and programmes in accordance with the provisions of this Decree by law and its Executive Regulation. 6. Provide the necessary means of prevention to protect Workers from the dangers of occupational injuries and diseases that may occur during work, ensure the provision of guidance and awareness regulations, provide appropriate training for workers to avoid such risks, and conduct periodic evaluation to ensure that all work parties comply with the requirements of health and occupational safety and security, in accordance with the provisions of this Decree by law, its Executive Regulation, and the legislation in force in this regard. 7. Take what is necessary to ensure that the Worker knows his rights and obligations at work, in accordance with the tools and methods appropriate to the nature of work and its Workers. 8. Bear the costs of medical care for the Worker in accordance with the legislation in force in the State. 9. Bear the expenses of insurances, subscriptions and guarantees determined by the legislation in force. 10. Not let the Worker perform work for others except in accordance with the provisions of this Decree by law. 11. Give the Worker, at his request, upon the expiry of the employment contract, an experience certificate free of charge, indicating the date of his joining the work, the date on which his work ends, the total period of his service, the job title or the kind of work he was performing, the last wage he was receiving, and the reason for the end of the employment contract, provided that the certificate shall not include anything that might harm the Worker's reputation or reduce his employment opportunities. 12. Bear the expenses of returning the Worker to where he was recruited from or any other place that the two parties have agreed upon, unless he has joined the service of another Employer, or the reason for terminating the contract is due to the worker, in which case, the latter shall incur those expenses. 13. Provide a safe and appropriate work environment. 14. Perform any other obligations stipulated under the provisions of this Decree by law and its Executive Regulations, Cabinet resolutions, or any other legislation in force in the State.

Article (14) Prohibition of Forced Labour and Other Prohibitions

1. The Employer may not use any means that would make or force the Worker or threaten him with any penalty to work for him or force him to perform work or provide a service against his will. 2. Sexual harassment, bullying, or any verbal, physical or psychological violence against the Worker by the Employer, his superiors, colleagues, or co-workers shall be prohibited.

Article (15) Worker's Entitlements at the Time of His Death

1. In the event of the Worker's death, the Employer shall hand over to the worker's family any wages or financial entitlements to the Worker in addition to the end-of-service gratuity to which the worker is entitled in accordance with the provisions of this Decree by law and its Executive Regulation, within a period not exceeding ten (10) days as of the date of death or as of the date of the Employer's knowledge of the Worker's death. 2. Subject to the provisions of Clause (1) of this Article, the Worker may specify in writing a family member to receive his rights in the event of his death. 3. The employer shall bear all costs incurred in preparing and transporting the body of the deceased Worker to his country of origin or place of residence if his relatives so request. 4. The Ministry may, in coordination with the Concerned Authorities, may establish a mechanism to retain the Worker's entitlements in the event of his death if it is not possible to hand them over to his family or those entitled thereto.

Article (16) Worker's Obligations

The Worker must: 1. To perform the work personally under the direction and supervision of the Employer or his representative, and in accordance with what is specified in the contract, and not to outsource the work to any other worker or any other person. 2. Abide by proper conduct and ethical norms during work and display honesty and professional integrity. 3. Preserve the means of production and work tools in his custody and preserve them by taking the necessary measures to keep them in the places designated for them. 4. Maintain confidentiality of the information and data to which he has access by virtue of his work, not disclose trade secrets, and return anything under his custody to the Employer at the end of his service. 5. Not keep in a personal capacity any original copies of papers or paper or electronic documents related to trade secrets without the permission of the Employer or his representative. 6. Implement the occupational safety and health instructions determined in the Establishment in accordance with the legislation in force or work systems and instructions. 7. Work during the approved business days and working hours specified in the employment contract and communicate and interact effectively to efficiently accomplish the tasks assigned thereto. 8. Work continuously and diligently to develop his functional and professional skills and raise the level of performance he provides to the Employer. 9. Not work for others, in violation of the provisions of this Decree by law and other applicable legislation in this regard. 10. Evacuate the accommodation provided thereto by the Employer, within a period not exceeding thirty (30) days as of the date of the end of his service; however, the Worker may remain in the accommodation after the expiry of the aforementioned period, upon the Employer's approval, in return for the incurring the cost of accommodation, or what is agreed upon in writing with the Employer. 11. Perform any other obligations stipulated under the provisions of this Decree by law and its Executive Regulations or any other legislation in force in the State.

Article (17) Working Hours

1. The maximum normal working hours for Workers shall be eight (8) hours per day or forty-eight (48) hours per week. 2. The Cabinet may, upon the proposal of the Minister and in coordination with the Concerned Authorities, increase or decrease the daily working hours for some economic sectors or some categories of labour, in addition to the working hours, rest hours, and hours during which it is prohibited to work for certain categories of labour, according to the classification of labour specified in the Executive Regulation of this Decree by law. 3. The periods spent by a Worker in travelling between his home and place of work shall not be included in his working hours, except for some categories of Workers in accordance with the controls specified by the Executive Regulation of this Decree by law. 4. The Executive Regulation of this Decree by law shall determine the working hours in the month of Ramadan. 5. In the event that the Worker works full-time, the original Employer, or any other Employer for whom the Worker works in accordance with the provisions of this Decree by law, may not require the worker to work for him more than the hours agreed upon in the employment contract, except with the Worker's written consent. 6. In the event that the worker desires to perform his work remotely, whether from inside or outside the State, and with the approval of the Employer, the Employer may stipulate specific working hours.

Article (18) Consecutive Working Hours

The worker may not work for more than five (5) consecutive hours without a rest period or periods amounting in aggregate to not less than one hour. Working hours and rest periods shall be regulated in the Establishment that operates on the shift system, or for some job categories according to their nature - such as field jobs - and according to the labour classification specified in the Executive Regulation of this Decree by law.

Article (19) Overtime

1. The Employer may require the Worker to work for additional working hours beyond the normal working hours, provided that they do not exceed two hours per day, and he may not be required to work for more than that except in accordance with the conditions and controls specified in the Executive Regulation of this Decree by law. In all cases, the total working hours shall not exceed one hundred and forty-four (144) hours every (3) three weeks. 2. If circumstances of work require that the Worker works for more than the normal working hours, the extra time shall be considered overtime, for which the Worker shall receive a wage equal to that corresponding to his normal working hours - calculated according to the basic wage - plus an increase of at least twenty-five percent (25%) of such wage. 3. If circumstances of work necessitate that the Worker works overtime between 10 pm and 4 am, he shall be entitled to the wage determined for normal working hours - calculated according to the basic wage - plus an increase equal to at least fifty percent (50%) of such wage. Shift Workers shall be excluded from the above. 4. If circumstances of work necessitate that the Worker works on the rest day specified in the employment contract or the work organisational regulation, he shall be compensated with another rest day, or with payment of the wage for that day according to the wage established for normal business days, plus an increase not less than fifty percent (50%) of the basic wage for that day. 5. The Worker may not be required to work for more than two consecutive rest days, excluding day labourers.

Article (20) Excluded Labour Categories

The Executive Regulation of this Decree by law shall determine the categories of labourers that may be exempted from the provisions regarding working hours contained in this Decree by law.

Article (21) Weekly Rest

The worker shall be granted a paid weekly rest not less than one day, according to what is specified in the employment contract or the work organisational regulation. It is permissible by a Cabinet resolution to increase the weekly rest day stipulated in this Article.

Article (22) Determining the Amount or Type of Wage and Paying It

1. The amount or type of wage shall be specified in the employment contract, and if it is not specified therein, the competent court shall determine it as a labour dispute. 2. The Employer is obligated to pay the wages to his Workers on their due dates in accordance with the systems approved in the Ministry and the conditions, controls and procedures specified in the Executive Regulation of this Decree by law. 3. The wages shall be paid in AED, and they can be paid in another currency if it is agreed upon between the parties in the employment contract.

Article (23) Method of Calculating Wages for Workers on Piecemeal Basis

The daily wage of Workers who receive their wages on piece-meal basis is calculated according to the average of what the Worker received for the actual working days during the six (6) months preceding the request or the lawsuit regarding any matter related to the wage.

Article (24) Transferring Monthly Wage Worker to Other Categories

A worker with a monthly wage may be transferred to the category of day workers or workers appointed for a weekly, piece-meal or hourly wage, if the Worker agrees to this in writing, and without prejudice to the rights acquired by the worker during the period he spent working for monthly wage.