Elite Business Setup

EMPLOYMENT SERVICES

EMBASSY SERVICES IN DUBAI

Attested documents are to be submitted in UAE Embassy from 9:00 am to 12:00 pm, Monday to Friday. Rs. 1500/ is the fee per certificate in CASH, and the document would be returned back after two working days, between 2:00 pm and 3:00 pm. In case of urgency, the document can be returned back on the same day by paying Rs. 750/ extra, per certificate in cash.

Other certificates like marriage, birth, experience, affidavits, FIRs of lost passports, commercial documents, etc. need to be attested by the Ministry of External Affairs of India. The rest of the procedure remains the same. The fee for the commercial documents depends on the matter and the fee for the invoice varies with the Invoice value. Please contact the UAE Embassy’s Consular Section in case of any questions.


 

The absconding domestic worker is typed via the service centers Tasheel\ Tadbeer, Tawseel car or the smart application.

Required Documents:

  1. Copy of employer’s passport “includes the page of unified number” for employer citizen/ Sheikh.
  2. Copy of the passport of the domestic worker
  3. Details of residency if the worker has a residence
  4. Details of Visa if the worker has a Visa
  5. Original valid ID card for an employer “GCC/ resident/ investor”, a special ID card for employer “diplomatic”
  6. Original valid ID card for employer “citizen/ sheikh” or a copy in case the original card is not available.

NOTE: If a copy of the employer’s ID card is provided, the applicant must present his or her original ID card.

Payments:

All Emirates except Dubai: 418 AED

Bank guarantee amount : AED 3000

If you as an employee caught working for another employer while absconding period and your employer did not report the absconding case for more than 3 months, employee has to bear following punishments:

Cancelled Sponsorship :

Labor ban in uae for 1 year

Employer penalty AED 10000 plus sponsorship cancellation fees and travel expense for employee

If the customer desires to follow up the application, he can access the information services from the Ministry’s website:mohre.gov.aeor via the smart application.

Steps to Follow

  • Type electronic abscond application
  • Wait for online approval by next day
  • Take approval print-out and submit at Immigration Department along with Trade License copy & Immigration Establishment Card copy

NOTE: Air Ticket fare to be deposited at Immigration for some nationalities.

NOTE: Payment should be made through E-Dirham Card at Thas’heel Centre. You can Buy E-Dirham Card from any branch of National Bank of Abu Dhabi or from Aafaq Islamic Finance Company found at Thas’heel branches. Take your Emirates ID & Passport copy to for E-dirham Card.

In case of fake abscond reporting, the employer shall pay a penalty and the company file will be banned from the transaction.

Frequently Asked Question

Fine if the absconding report is cancelled
It has to be noted that there might be a fine imposed upon the company. As a general rule, there are two situations where the absconding report may be cancelled either by an employer or by employee:

By employer: An employer may cancel an absconding report if he gives approval that there was an error in the absconding report. For example, the name included was wrong or the employee was hospitalized or was imprisoned and was consequently absent from work without information.

By employee: An employee may cancel an absconding report if he can prove his presence at work while he was reported absconding, or has valid proof for his confinement to the hospital or jail during that period.

Furthermore, if an employer submits the report, he has to provide the authorised signature keeping in view that the following fine may be imposed in case of fake or conspired absconding report:

  1. Fine in case of fake report
  2. Companies of the owners and all other firms with partners will be blocked unless he pays
  3. Bank guarantee amount will not be refunded by the Ministry of Labour
  4. The category of the company will be changed to C.

However, in case of a false report, if there is proof that the employee had not been working in the company for the last three months or more and instead was working with another company holding the visa of the old company, the employee may be given a one-year ban even if the report is cancelled. In case it is established that the institution/company from which the employee was reported absconding is nonexistent, then, the absconding report will not be cancelled. In such an event, the employer will be fined and all his firms will be blacklisted. (KT)

Address of Tas’heel Centers in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333
Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588
OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776
Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991
Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900
Al Nakhba Business Centre
Matar Plaza, Qusais, Near Mai Tower
Tel. 04-259 9990
Mu’amalaat Businessmen Service
Hyat Regency Hotel, Near Shindaga Tunnel, Dubai

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:00pm
Tel. 04-283 8800

What are an employee’s annual leave entitlements?

For every year of service, an employee is entitled to annual leave of not less than the following:

  1. Two days leave for every month if his service is more than six months and less than one year.
  2. A minimum of thirty days annually, if his service exceeds one year. At the end of his service the employee is entitled to annual leave for the fraction of the last year he spent in service. Annual leave is usually calculated on the basis of a calendar month rather than by working days. If an employee however fails to report back to work after the expiry of his leave period, his remuneration will automatically be forfeited for the days he is absent.

What would be payable to the employee during his annual leave?

An employee is paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month exclusive of any bonuses received.

Who determines when the annual leave commences and its duration?

The employer has the right to determine when an employee is allowed to take his annual leave and whether (if required) he is entitled to divide the leave into two parts.If however, work circumstances require keeping the employee at work during the whole or part of his annual leave and the leave has not been carried over for the following year, the employer should pay the employee his wage in addition to a leave allowance for the days he worked equal to his basic wage.
In all cases, no employee should be required to work during his annual leave more than once during two consecutive years.
In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.

When should annual leave wages be paid?

The employee should be paid his full wage before taking his annual leave, plus the wage of the leave days he has accrued.

Is the employee entitled to payment in lieu of leave if his services are terminated?

The employee is entitled to payment of his wages for the annual leave period not taken if his employment is terminated, or he resigns after serving the period of notice determined by law. Such payment is calculated on the basic wage received at the time the leave was due including any housing or accommodation allowance where applicable. Some employers also include transportation allowance in the calculation, although this is discretionary rather than compulsory.
Nevertheless, according to judgments delivered on the matter, an employee may only claim remuneration for the annual leave not taken for the last two years of employment at the rate of the wages paid during that time. Any leave days not taken prior to that period are therefore time barred and the employee is precluded from claiming remuneration against them (providing the employer relies on this time bar provision in the event of a claim).

I have been working in a company in the food industry for four years. I am eligible for my annual leave now. Last week, I applied for the leave, but my application was rejected by the office, saying that there are not enough staff at the moment. I would like to know if my company has the right to deny my annual leave.

Annual leave cannot be denied for two years
According to Article 78 of the federal labour law, if the work requires your stay in the country and prevents you from taking your leave, and if your leave is not carried forward to the next year, the employer has to pay you remuneration plus a leave allowance for the days you worked at a rate equal to your basic wages. Furthermore, this exception is not allowed more than once in two successive years.
Article 75 of the UAE Labour Law governs the annual leave of an employee. An employee is not entitled to an annual leave if his employment period is less than six months. However, if his employment period is more than six months but less than a year, he shall be entitled to an annual leave of not less than two days for each month.

However, if the employment period is more than a year, he is entitled to 30 days annual leave. Therefore, the duration of annual leave shall not be decreased as the right to annual leave is granted by the law. Article 75 states:

“The employee must be granted an annual leave during each year of service which may not be less than:

  1. Two days per month with respect to any employee with more than six months and less than one year of service.
  2. Thirty days per annum with respect to any employee whose period of service exceeds one year. In the event of termination of an employee’s service, he shall be entitled to an annual leave depending on the number of months completed in the last year of service.”

The employer has the right to specify the beginning of the annual leave and he can divide the leave into two parts, when necessary, in order to ensure smooth operation of the organisation/company. Article 76 states: “The employer, at his discretion, may determine the date for the commencement of annual leave and, when necessary, he may decide to divide the leave in two parts at the most, except in cases of juveniles, where vacation may not be divided in parts.”

In such an event, the leave may be forwarded to the next year, but it may not be suspended for more than two years and the employee will be entitled to sixty days annual leave in the next year if not paid in cash in lieu of the leave for his working days. Article 78 states: “The employee shall receive his basic pay in addition to housing allowance, if any, for the annual leave days. However, if the exigencies of work necessitate that the employee works during his annual leave in whole or in part, and the period of leave during which he has worked has not been carried forward to the next year, the employer ought to pay him his wage in addition to cash in lieu of the leave for his working days based on his basic pay.

“It shall be unlawful in any circumstances to employ a worker during his annual leave more than once in two successive years.”

I work as a school nurse here. Our employer said that during vacation, we will not receive any salary and that is for July and August. They will also not shoulder our accommodation charges. I am very worried because that is not what we agreed on or was written in the employment contract. They made us sign a waiver that we will have our two-month vacation without pay. Please advise.

Salary must not be deducted during vacation
As a general principle of law, a binding contract cannot be changed unilaterally. Article 267 of the UAE Civil Code states: “A binding contract cannot be changed unilaterally except with mutual consent of the parties or by an order of the court or by law”. Therefore, your employer does not have any legal right to deduct your salary or shoulder your accommodation charges if it is provided in your employment contract. Since you have signed the amended waiver, thus, it is binding upon you unless you prove that you have been forced to sign this waiver (KT).

Which acts would result in the termination of an employment contract, and result in the employee being banned from working in the UAE for one year?

The following acts by the employee would render the employee banned from working in the UAE for a year.

  1. If the employee leaves his employment without a justified cause before the end of a specified there in the employment contract; or
  2. In the case of an unlimited contract without giving one month’s notice of termination; or
  3. The employee leaves his employment before the lapse of one month’s notice; or
  4. The employee violates Article 120 of the Law; or
  5. The employee works with another employer full/part time at the same time as working for his original employer.

These sanctions would only be applied if a complaint was filed by the employer requesting such.

I was working for a company here. I was blacklisted forever due to a theft case in 2005. Now a company has appointed me at the Sharjah Hamriya & Jebel Ali free zone. Is it possible that I can get an employment visa on the company sponsorship for two years?

Blacklisting or a ban is a legal mechanism in the UAE that prevents a resident or an employee from re-entering into the UAE, or from accepting any employment position with a new employer for a fixed period of time.

Workers and visitors may be subjected to an entry ban or a work ban, depending on what they have done while they were in the UAE. Blacklisting or ban could be broadly categorised into two types i.e. employment ban and immigration ban.

In an employment ban, A person is not permitted to work in the UAE for a specific period of time due to breach of certain provisions of the UAE Labour Law. An employment ban is usually given under the following circumstances:

A permanent ban is usually imposed on absconding employees.

A ban for a period of six months will be automatically imposed by the Ministry of Labour, in case if a worker has not completed two years with his current employer. An immigration ban is usually imposed for serious labour offences or crimes committed by person. Therefore, an immigration ban means that one cannot enter the UAE, irrespective of whether the person intends to enter as a visitor or for residency. Since you were convicted of theft, an immigration ban was imposed upon you. Therefore, you will not be allowed to enter into the UAE.

I have been working in a company here on an unlimited contract. I have resigned recently with 30 days notice period. I would very much appreciate if you kindly advice me on the labour ban, if any, end of service benefits, and my passport which they kept with them.

First of all, the employer does not have the right to hold the employee’s passport without the latter’s consent. Secondly, according to Articles 125, 131, 132,133 and 137 your end of service benefits are; a certificate of service (free of charges), the expenses of sending you back to your home country (a ticket and any other agreed upon expenses according to the labour contract), and your gratuity would be the salary of 21 days for each year divided by three. Finally, Under the UAE laws, if an employee leaves a job without completing two years, then, the Ministry of Labour will impose a work ban for six months or for one year if requested by the employer (KT).

Excess bank guarantee can be refunded through the following procedures:

  • Login www.mol.gov.ae and enter Labour Establishment Card number to know refundable amount.
  • Apply for required amount using e-signature card through Tas’heel Centre.
  • Track the application through www.mol.gov.ae for approval within a day.
  • Ministry of Labour will issue an advice letter through online to the concerned bank to release the money.
  • Take the print-out and submit to the concerned bank to receive the cheque.

Note:

e-signature Card of the Authorized Signatory is must for refund application.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

No emergency leave provision in UAE

As per the Federal Labour Law no. 8 for 1980, there is no emergency leave and the same is subject to the consent of the employer as well as the system applicable in the company. Besides, the employer is not obliged by law to grant such leaves

How to get Employment Visa during ban period?

Based on the Ministry of Labor’s new decisions if the employee resigns before the completion of two years, a six-month ban shall be imposed. But the same may be lifted without any charges or NOC from the employer if the employee managed to get a new job opportunity, taking into account that the salary of such worker with the new company shall be in accordance with the skill level specified by the Ministry of Labour:

  1. First skill level: which means that if the employee is having university degree and above, his salary with the new company shall not be less than Dh12,000. Professions include: Manager, Engineer, Doctor, Teacher, Accountant etc. Click here for the list of professions.
  2. Second skill level: if the employee is having diploma, his salary with the new company shall not be less than Dh7,000. Technical and Mechanical related professions.
  3. Third skill level: if the employee is having high school degree, his salary with the new company shall not be less than Dh5,000. Professions include: Sales Executive, Sales Representative, Administration Clerk, Receptionist etc. Click here for the list of professions.

If these three skills have not been met by the employee, he may not lift the ban and he/she shall wait until the completion of the ban period and then he/she may work with a new sponsor, moreover, the NOC from the earlier sponsor has no effect based on the Ministry of Labour’s new decisions. This rule is not applicable for Free zone / government / semi-government organizations.

Above mentioned salary can be in total. It is not necessary to put as basic salary. Newprofession must be compatible with educational certificate. For secondary certificate holder, the new profession code shall end with 0000003.

NOTE: The above conditions are not applicable for government / Semi-government / Free zone, Family and House servant visa.

Documents Required for Recruitment of Individual Workers (other than Female Household Service Workers) by an Overseas Employer:

  1. Application for a Permit for Recruitment by an Overseas Employer. Annexure I
  2. Consulate Permit Form. Annexure II (in Triplicate)
  3. Individual Employment Contract. Annexure III
  4. Authorisation for Completion of Formalities at the Office of Protector of Emigrants. Annexure IV (in duplicate)
  5. Original Employment Visa and two Photocopies.
  6. In Case of Online Visa, two copies of the Visa with Sponsor’s Signature and Seal on it.
  7. Photocopy of the Passport of the Worker.
  8. Original Trade License of the Employer and one Photocopy thereof. (Original License will be returned after verification).
  9. Employer/Sponsor/Partner’s personal presence at the Consulate is required with his/her original Passport and a copy thereof.

Note:

  1. Sponsor should sign the documents at the Consulate in the presence of the Labour Officer.
  2. Seal of the Company should be affixed on the Documents.
  3. If the application is submitted by PRO, authorization letter should be attached. PRO must be under the same company’s sponsorship.
  4. Recruitment of Female Workers below 30 Years of age who falls under Emigration Check Required (ECR) category is not permitted.
  5. Online visa (white colour) must be sealed and signed by the sponsor.

In case the recruitment is for Beauty Saloons / Massage Centers, the following

Additional documents are required:

  1. A No Objection Certificate from the Father / Husband / Mother of the Worker on Indian Stamp Paper attested by a Notary Public.
  2. Photocopy of a document such as Passport / Ration Card / Election Identity Card of the Signatory of No Objection Certificate to prove the relationship.
  3. A letter from a relative of the worker in UAE or the Company undertaking to take full responsibility of the worker. If letter is signed by a relative, photocopy of the Passport of the relative should be submitted along with the letter.
  4. Copy of the Employment Offer Letter issued by the Company.

Time Taken: two working days
Attested contract to be taken to the Protector of Immigrant’s office in the concerned State in India to get Immigration clearance for the visa holder. Insurance policy of Pravasi Bharatiya Bima Yojana also required for Immigration clearance. Many companies are issuing Insurance policy with different packages.

Note that Attestation service has been shifted from Consulate to new outsourced centre.

Submission Centre Address, Dubai:

IVS Global Services Private Limited, Unit 201-201, 2nd floor, Business Atrium Building, Opposite Al Nasr Club, Oud Metha, Dubai, Near Prime Supermarket, next to big parking area.
Tel: +971 4 357 9585, Timing: 8am to 3:30pm Sunday to Thursday
Website: www.ivsglobalattestation.com

Nearest Metro Station: Oud Metha (Green Line)

Bus Stop: Oud Metha. Click here for location map

Abu Dhabi Centre:

IVS Global Services Centre, Office No. 201, Second Floor, Sector E-25, Plot C-37, Al Nahyan Camp, off Muroor Road. The centre is located in the building next to the UAE Red Crescent Office. Timing: 8:30am to 3:30pm Sunday to Thursday. Tel: +971 56 332 9792

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

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. An employee is entitled to an annual leave of 30 days, and maternity leave and sick leave are not part of the annual leave.

Act Number 8 stipulates certain provisions for the employee’s health and safety and for workmen’s compensation against work accident. The employment contract may be terminated by mutual consent of the parties or on expiry of its duration. Any dispute arising between the employer and the employee will be resolved by the Ministry of Labor, which must make a recommendation within two weeks from the date the application for a dispute settlement is filed. If the parties fail to settle the dispute as recommended by the Ministry, the matter should be referred to the courts. The time limit for a lawsuit relating to an employment contract is one year from the date on which the amount claimed or entitlements become due. Employees are exempted from court fees before the court of first instance and court of appeal.

Frequently Asked Questions

Employee can work for sponsor only

Q: I have been working with a company in Dubai for more than six months on a limited contract. Now, I want to avail power of attorney of my mother’s company in Sharjah. Since it’s a family business, my mother wants me to take care of some parts of the business and for that she is willing to give me power of attorney to legally run her business. Is it legal to work for my mother’s company under a power of attorney approved by the Sharjah Court though I am working for another employer?

A: According to Article 67 in the third chapter of the federal law number 6 for the year 1973, a sponsored person is under a duty to not work except for his sponsor. Similarly, the sponsor is under a duty not to employ who is not sponsored by him. Hence, if your mother’s entity is not sponsoring you, you cannot take a role in it and this will be considered as a breach of the law.

Breaching any of these obligations and working in an entity where you are not sponsored put all the parties in a risk of being prosecuted and hence, subject to a minimum fine of Dh50,000 each or imprisonment and the same amount of fine (KT).

PAYMENT OF GRATUITY

What is the employee entitled to on the termination of his employment contract?

On the termination of the employment contract, an employee is entitled to the following:

  1. A notice period, or any amount due in lieu of the notice period in the case of an unlimited contract.
  2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the employer for unreasonable cause.
  3. In the case of a limited contract, compensation equivalent to the period until the end of the contract, or three month’s wages, whichever is shorter.
  4. Payments equivalent to the balance of unutilised leave or any part thereof.
  5. Payments for overtime or any balance of wages due and not yet paid.
  6. End of service gratuity calculated on the duration of the employment.
  7. Repatriation expenses as per the Law or the employment contact, subject to the employee not being in violation or in breach of either the Law or the employment contract.

What does the term end of service gratuity mean in terms of compensation?

In the case of an employment agreement for a unlimited term, an employee who completes one year or more in continuous service shall be entitled to gratuity at the end of their service. The gratuity shall be calculated as follows:

  1. 21 days wages for each year of the first five years.
  2. 30 days wages for each additional year on condition that the total of the gratuity does not exceed the wages of two years.

I have been working in a shipping company for around seven years. I will be 60 years’ old by the first week of November. As far as I know, the Labour Law states that Dh5,000 need to be deposited to stamp the employment visa after 60 years. Now, I have been offered a job by one of the companies and they need my service urgently. Can I resign now from my present company and join the new organization? Would it affect my gratuity and other terminal benefits?

Since you have completed more than two years with your current company, you can resign the job any time with a thirty-day notice as per Article 117 of the UAE Labour Law or otherwise in accordance with the terms and conditions provided in your employment contract.
Furthermore, your resignation from your current employment will not affect your gratuity and other end of employment benefits. At the time of resignation, you will be entitled to full gratuity in accordance with Article 132 of the UAE Labour Law.
According to the said article, “The employee who has completed one year or more in continuous service is entitled to the end of service benefits at the end of his service at the firm. Days of absence from work without pay are not included in computing the period of service, and the remuneration is to be calculated as follows:-

  1. Twenty one days’ pay for each year of the first five years of service.
  2. Thirty days’ pay for each additional year, provided that the entire total remuneration shall not exceed two years’ pay.”

I have been working in a company here on an unlimited contract. I have resigned recently with 30 days notice period. I would very much appreciate if you kindly advice me on the labour ban, if any, end of service benefits, and my passport which they kept with them.

First of all, the employer does not have the right to hold the employee’s passport without the latter’s consent. Secondly, according to Articles 125, 131, 132,133 and 137 your end of service benefits are; a certificate of service (free of charges), the expenses of sending you back to your home country (a ticket and any other agreed upon expenses according to the labour contract), and your gratuity would be the salary of 21 days for each year divided by three. Finally, Under the UAE laws, if an employee leaves a job without completing two years, then, the Ministry of Labour will impose a work ban for six months or for one year if requested by the employer (KT).

How is gratuity calculated?

Gratuity is calculated on an annual basis or part thereof provided that the employee has actually completed one year of employment with the employer or more. Days of absence from work without pay are not included in calculating the length of service. However, he will be entitled to end of service gratuity for fractions of a year he spent in service provided that he has completed at least one year in continuous employment.

On what basis is gratuity calculated?

Without prejudice to what is stipulated by the policies of some establishments in the granting of pensions or retirement benefits to employees, gratuity for those who are paid monthly, weekly or daily wages is calculated according to the employee’s last received basic wage before the employment was terminated. This wage is the basis for calculating the gratuity for the whole period of an employee’s employment.

Would a commission or payment by percentage be considered a basic wage?

According to a court ruling delivered by the UAE court, except for allowances and bonuses, any amount payable to an employee as wages including wages paid by percentage basis, commissions, or for performance will be considered as wage and will be taken into consideration in calculating gratuity.

Can the employer deduct any payment from the gratuity payable to the employee?

The employer may deduct any amount owed to him by the employee such as outstanding loans from the employees end of the service gratuity. If there is any dispute over the payment of gratuity or the amount of gratuity payable, the matter should be referred to the Ministry for mediation.

Is the amount calculated for gratuity affected if the employee resigns from employment?

An employee employed under a contract for an unlimited period who resigns after a continuous service of not less than one year and not more than three years is entitled to one third of the end of service gratuity provided above. If the period of continuous service is more than three years and less than five years he is entitled to two thirds of the gratuity. If his continuous service is more than five years, he is entitled to the full gratuity. If an employee who is employed under a contract for a limited period on the other hand chooses to resign before the end of the contract, he is not entitled to end of service gratuity unless his continuous service exceeds five years.

Under what circumstances can an employee be deprived of his end of service gratuity?

An employee may be deprived of his end of service gratuity if he has been dismissed for one of the reasons stated in Article 120 of the Law, or if he terminated his employment to avoid such dismissal.

Under what circumstances will an employee be entitled to gratuity if he terminates his employment contract without notice?

Under Article 121 of the Law, an employee will be entitled to gratuity on termination without notice in either of the following circumstances:

  1. The employer has failed to comply with his obligations towards the employee, as provided for in the employment contract or in the Law.
  2. The employee was assaulted by his employer or his legal representative.

The above applies to employees who have been continuously employed for a minimum period of one year, regardless of whether the contract of employment is for a fixed or unlimited term.

If the establishment or company has a pension scheme, which is beneficial to the employee, is this a substitution for the payment of gratuity?

If the employer has a pension scheme applicable to all the employees of the business, such a scheme must be published and known to all employees, and must specify that it will be a substitute to the gratuity rules outlined in the Law. It must also be more beneficial to the employees than the gratuity provision of the Law. Otherwise the employee may benefit from both unless the employee agreed or consented to the scheme in question.

Can the employee and the employer agree to pay gratuity for the termination of the employment contract for a preceding period?

The employer and the employee may, upon mutual agreement, decide upon the payment of the employee’s gratuity for the years that he has already served his employer. A new contract will then be entered into between the parties. The employee’s employment with the employer is still considered as a continuous period for the purpose of calculating interest, or, at the time when he resigns, calculating the employee’s total years of service with the employer.

Where an employee has worked for an employer in two or more countries, will he be entitled to gratuity?

This will depend on a number of factors such as the terms of the employment contract, the law of the country the employment is being conducted in and the general practice of the employer. For instance, many multinationals which transfer their employees to another country pay the end of service benefits applicable at the time of transfer. In such cases, the transfer is essentially considered as new employment for the purposes of gratuity payments.
The matter will however depend on the facts of each case as it is not covered by the Law but rather is addressed in certain judgments. Therefore, it should not be assumed that if an employee is transferred to another country that the UAE law will continue to apply or that his employment contract will continue to be enforced. The Law is considered as a matter of public policy and thus certain cases may be different in other jurisdictions. In addition, the country the employee is being transferred to may contain different regulations regarding the transfer of employees to and from other jurisdictions. Therefore, the law of the country the employee is transferred to may prevail and give regard (or otherwise) to the employee’s previous employment contract. In such cases therefore it is advisable to seek independent advice on the matter. It is also not possible to apply a foreign law to a UAE employment contract. If the governing law in the employment contact is UAE law and filed with the Ministry, then gratuity will be calculated from the commencement date of that contract. This contract will take precedence over any other contract with a foreign governing law.

Can an employee mortgage or assign payment of his gratuity?

It is possible to mortgage or assign payment of an employee’s gratuity to the employer or to a third party by mutual agreement, provided that in the agreement with a third party, the employer and the employee agree to this in writing with an understanding of all parties that the employee may forfeit his right to gratuity which is not yet due if he violates a provision of the Law. In any event, an employee’s gratuity can only be assigned subject to the employee becoming entitled to it.

When does gratuity become due and payable?

Gratuity will only become due and payable on the termination of an employment contract.

Are the end of service gratuity and other dues payable to the employee considered priority debts?

The employee’s wages, overtime, and any other benefits, including end of service gratuity, are considered to be a preferential debt for which the employee shall have a lien over any movable or immovable property owned by the employer ranking second to government charges, judicial fees and family alimony payments.

How effective are foreign employment contracts in the UAE?

Such contracts are enforceable and valid as contracts executed in the UAE. However, if there is an additional local contract and a dispute arises, the provisions in the contract which are more favourable to the employee will probably be upheld, providing there is evidence in support of the provision in question.
In terms of the gratuity payable, where there are two contracts, the employee may only benefit from one.
The enforceable contract will in most cases be the one filed with the Ministry and gratuity calculated according to the salary specified in the UAE employment contract.

I finished my three-year contract. I told my employer I wanted to resign. My contract is limited. My employer claimed I am not entitled to end of service benefits. It is right? What are my entitlements? Whom should I talk to?

Since you have spent more than a year with your employer, according to Article 132 of the federal labour law, you are eligible to 21 days’ salary for each year you have worked for the employer. In addition to the gratuity, you are eligible for a ticket to your home country or to the country that you have agreed to travel to with your employer at the beginning of your work.
Moreover, you have the right to claim any outstanding rights that you did not receive yet, provided that these rights are not due before a year. If your employer refuses to pay your dues, you should report this to the labour office in the city where you are working (KT).

My husband, who works as an administration staff, will complete three years in his job in June. He has an unlimited contract and as per his offer letter, he is eligible for a ticket once in two years. Now he wishes to change his job. His salary as per the contract is Dh2,500, but now he is getting Dh3,750 because of a recent increment. He needs to give a one month notice. But should he mention that he no longer wishes to continue the contract or that he is resigning?

Gratuity is based on basic of last salary
If contract is unlimited, employer can terminate it with 30 days’ notice
The law is clear that if an employee leaves the job within the first three years, he is entitled to one third of the end of service gratuity. Since, your husband has not completed three years, he is only entitled to 1/3 of the gratuity as per Article 137 of the UAE Labour Law. Therefore, your husband may submit a simple resignation with 30 days notice. Besides, the end of service gratuity is based on the basic of the last salary without adding any benefits or allowances of any kind as per the terms of Article (134) of the Labour Law. (KT)

I work as a safety officer with a private company here on a three-year limited contract. I have completed three years in service but my company has not renewed my visa. The company did not give me a one-month notice period before terminating my service. The management has, however, made me sign a clearance paper and promised to pay my salary, the end of service benefits, air ticket, and one-month salary against notice period. A friend of mine said they are lying, and will give me nothing as I have signed the clearance paper in which I acknowledged that I have received all my entitlements. What should I do?

Don’t sign clearance paper before getting entitlements
As long as you have completed your three-year limited contract, you are entitled to the end-of-service benefits. According to Article (132) of the Federal Labour Law, an employee, who completes one year or more in uninterrupted service, is entitled to the end-of-service benefits as long as he has not committed any crime or serious mistake that led to the termination of his service.
Regarding your signature, you should not have done it. Your signature means that you have willingly acknowledged that you did receive your entitlements. To claim otherwise, you have to prove that you did not. It has become your responsibility to show the evidence.

Below is the original text of the UAE Federal Labour Law with the section on gratuity payments. Articles 132, 137, and 138 refer specifically to the calculation of gratuity.

Federal Law No 8, For 1980, On Regulation of Labour Relations
Chapter VII: Termination and Severance Pay
Section II: Severance Pay

Article 132

A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:

21 days’ wage for each of the first five years of service.
30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage.

Article 133

A worker shall be entitled to severance pay for any fraction of a year he actually served, provided that he has completed one year of continuous service.

Article 134

Without prejudice to the provisions of laws that grant pensions or retirement benefits to employees in certain firms, severance pay shall be calculated on the basis of the wage last due for monthly, weekly and daily paid workers, and on the basis of the average daily wage referred to in Article 57 hereof for those paid on piecemeal. The wage used as a basis for calculating severance pay shall not include whatever is given to the worker in kind, housing allowance, transport allowance, travel allowance, overtime pay, representation allowance, cashier’s allowances, children education allowance, allowances for recreational and social facilities, and any other bonuses or allowances.

Labour Card to be renewed within 60 days from the date of its expiry.
Visa in Passport to be renewed within 30 days from the date of its expiry.

Labour Card and Labour Contract can be renewed from Tas’heel Centre. Application status can be tracked through www.mol.gov.ae by entering IN number which is printed on the receipt.

Renewed Labour Card & Contract will come to Company Post Box within 10 days.

Labour Contract will be renewed for further 2 years with same conditions unlessamendment is made at the time of renewal. Incase of Amendment such as Salary Increment or Profession Change, fees extra to be paid at Tas’heel Centre.

NOTE: Payment should be made through E-Dirham Card at Thas’heel Centre. You can Buy E-Dirham Card from any branch of National Bank of Abu Dhabi or from Aafaq Islamic Finance Company found at Thas’heel branches.
Take your Emirates ID & Passport copy to for E-dirham Card.

FINE per month to be paid if delayed to submit new labour card application within 60 days from the date of entry/status change, or delayed to renew labour card within 60 days from the date of expiry.

Documents Required for Labour Card renewal at Tas’heel Centre
Passport Copy with Visa page, Labour Card Copy, one photograph with white background, Labour Establishment Card Copy and Trade License Copy of the Company.

Documents Required for Visa renewal
Original Passport, Medical Certificate, One photograph with white background, Labour Card renewal receipt copy issued from Tas’heel Centre and copy of Emirates ID renewal form.
Immigration Establishment Card Copy & Trade License Copy of the Company.

Steps to follow

Renew Labour Card from Tas’heel Centre by paying fees according to Company category.You can check your company category through www.mol.gov.ae
Type Visa Stamping application and get seal and signature of the sponsor. Attach copy of Labour Card renewal receipt and copy of Emirates ID renewal form and submit atImmigration Department along with Original Passport.
Pay for Courier if the Application is Normal and Passport will be delivered within Two days.
Visa stamped Passport can be received by hand if the Application is Urgent. Fees to be paid extra at the time of typing.

NOTE: Labour Card can be renewed according to the the above mentioned fees till the age of 65. After that, normal fees + extra to be paid at the time of renewal. Labour Card validity will be for two years for each renewal. This renewal is unlimited till the company needs such employee’s service.

NOTE: If you are renewing before expiry of the existing visa, the new visa will start from the date of submission. If you are renewing after expiry of the existing visa, the new visa will start from the date of last expiry.

Ministry of Labour
Timing: Saturday to Thursday 7:30am to 7:00pm
Call Centre: 800 665 Website: www.mol.gov.ae

Labour Contract is an Agreement between Employee and Employer.
It is made only for the employees of Firms under the Ministry of Labour. Free Zone employees will have internal contract with their concerned company. It is subject to Free Zone rules and regulations.
Normally, the Contract period is 2 years under Ministry of Labour.
There are Two Types Contracts; Limited and Unlimited.
Labour Contract to be signed by both parties and submitted to Ministry of Labour within 60 days from the date of Entry/Visa Position Amendment.
Labour Contract and will come to the Company’s Post Box after Ministry’s approval along with Labour Card/Work Permit.
Approval procedure will take Two weeks.
Application status can be tracked through www.emol.ae by entering IN number which is printed on the submission receipt.
Profession and Salary in Labour Contract can be amended after 6 months from the date of issue.
Labour Contract and Labour Card to be renewed through Tas’heel Centre on expiry of validity, for further Two years.
Renewal can be done if the validity of Labour Card is less than Two months.

Required Documents for Labour Card Renewal:

Copy of Labour Card, Copy Passport with visa page, Copy of Trade License, Copy of Labour Establishment Card and One photograph with white background.

Labour Card/Work Permit can be renewed till the age of 65.
After 65 years of age an employee can renew his Labour Card for two years against plus normal renewal fees according to the Company category. This amount should be paid at Tas’heel Centre for each renewal.

NOTE: Labour Contract will get next working day from Tasheel Centre on payment extra. This amount should be paid at the time of New Labour Card/Contract application submission.

Individual employment contract:

1. Is the worker entitled to obtain an employment contract?

Yes . the worker is entitled to obtain the employment contract concluded between the two parties and issued and attested by the ministry of labor signed by the two parties as the employment contract shall be in writing and each of the worker and employer shall have a copy respectively.. And the approved language in the state is the Arabic language. In case the worker does not receive the employment contract, he shall resort to the ministry of labour.

2. If the employment contract has not been issued from the ministry, can I prove my service with employer or not?

Evidence shall be conducted by the legal evidence means . for example: internal contract concluded between the two parties, appointment letter, payment statement or book of attendance and going out of the work ….. etc. , if the worker has one of them.

3. What is the necessary information that shall be available in the employment contract?

The employment contract shall contain the following:

  • Date of signing the contract.
  • Date of starting the work
  • Type of the contract, either it is (a limited or unlimited contract)
  • Place of signing the contract
  • Period of the contract: if it is a limited contract there shall be a date of the
  • commencement and end of the contract. In the unlimited contract only the commencement shall be mentioned therein.
  • Amount of the payment: the basic salary, allowances and bonuses shall be specified
  • Occupation

Note: if there are any other conditions agreed upon between the parties of the contract to be added at the date of signing the contract provided that they are not in contradiction with the labor law

4. How long the period of probation that shall be approved in the contract of employment?

Article (37): The worker shall be appointed under a probation period, which shall not be more than six months. This period shall not be extended for another one.

5. Is it permitted to exclude the probation period?

Yes it is as the probation period is optional.

6. Is it permitted to reduce the probation period?

Yes it is. But the probation period shall not exceed (6) months.

7. Is the employer entitled to dismiss the worker during probation period?

Yes he is. As this period is given to the employer to evaluate the worker’s performance. Therefore, he is entitled to dismiss the worker during this period without a notice and without end of service benefit.

8. If the worker has passed the probation period, does this period is calculated within service period?

This period shall be calculated when the worker successfully passed it and continued the service.

Important: (is the period of visit calculated within period of service?)
Legally, it is.

9. What are the types of employment contracts?

Types of employment contracts:

First: Limited Contract
Second: Unlimited Contract

First : Limited Contract:

10. What is the limited contract? Article (38):

It is the contract the period of which has been specified, and it shall not exceed (4) years. Such contract may be extended by agreement of the two parties for less period once or several times.
It is usually the limited employment contract to be for a period of (3) years in order to conform with the labor card and the period of residence.

Example: to be printed in the contract: (the limited contract) started from 10/ 10/ 2005 to 9/ 10/ 2008. i.e. it has a date of commencement and date of expiry.

11. Is the period after renewal of the contract considered as an extension to the original one, or each contract is calculated separately?

The said period is considered as an extension to the original one and calculated within the total period of the worker.

Example: a limited contract, the contract which began in 4/ 4/ 2004 and expired at 3/ 4/2007 and it was renewed for another (3) years so that the concluded contract is expires at 3/ 4/ 2010.
At this example, the period of service shall be calculated since the beginning of his work with the employer in 4/ 4/ 2004 up to the last day of work.

Second: The Unlimited Contract:
12. What is the unlimited contract?
Article (39): The unlimited contract is concluded in the following case:
– If it is not written namely (there is no contract issued between the two parties)
– If it is concluded for unlimited period example: the unlimited contract of employment starts at the date of (2/5/ 2007) to (..) i.e there is no expiry date.
– If the concluded contract is a written contract with a limited period and they
continued in execution of the contract after its expiry or end of its period without a written agreement the contract is deemed limited and it was renewed for one year and after end of the renewed period the contract shall be considered unlimited contract.
As it is obvious, the clause (b) in all employment contracts issued from the ministry of labor provides for the following:
“The limited contract shall be expired at the expiration of its period. If the two parties continued in its execution, it shall be considered renewed for one year as from date of expiry of the contract and with the same conditions therein” .
– If the contract is concluded for performance of a certain work with no limited period and it is, according to the nature of the work, renewable, and the contract continued between them after end of the work agreed upon between them.

Example: an engineer entered into a contract with an employer for completion of a certain project the period of completion of the project has not been specified after the end of the project, the engineer continued in the work with the employer ( here, the contract is considered unlimited because the contract did not specify a certain limited period for its expiry ).

If the employer terminates the contract for reasons other than those specified in Article 120 of the Law, he will be liable to pay compensation to the employee. This compensation is determined on the basis of the wages due for a period of three months or for the remaining period of the contract, whichever is less, unless an article in the contract states otherwise.

If the contract is terminated by the employee for reasons other than those stipulated under Article 12l of the Law, the employee will be liable to compensate the employer against any loss resulting from the termination. The amount of compensation payable is calculated on the basis of the employee’s salary for one month and a half or the salary payable for the remaining period of the contract, whichever is less, unless the contract states otherwise.

13- What about the limited contract the period of which was expired and the contract was not renewed, but the worker continued in the work?

The Article (40). The original contract is deemed a limited contract and renewed explicitly for one year under the same conditions provided therein.
This is What is provided in the clause (b) in all employment contracts issued from the ministry of labor, which provides for the following:
“The limited contract shall be expired at the expiration of its period. If the two parties continued in its execution, it shall be considered renewed for one year as from date of expiry of the contract and with the same conditions therein” .

14- What about the worker who works with a sub- contractor or in a (sub- contract)?
Article (41): If the employer agreed with another employer (contractor of works) by a contract concluded between them called (sub- contract) and the first party’s workers shifted to the second party (the second employer) the second employer shall be responsible for the rights of those workers And according to the international work agreements: The main employer and sub- employer shall be both liable for the rights of the workers jointly and severally.
And in the practical fact, the damaged party shall submit a complaint against the original employer.

15- is there any difference between the contract of those working in education and other contracts?
Yes there is, as the contracts of education have a special nature and special conditions. These contracts are issued under coordination between the ministry of labor and ministry of education and the person who has enquiry shall first resort to the ministry of education.. then, to the ministry of labor, in case there is a dispute .

16- How the teacher’s leave is calculated?
Contracts of education have special conditions and special rules because they are issued from the ministry of labour and ministry of education; therefore, the person who has enquiry shall first resort to the ministry of education then, to the ministry of labor, in case there is a dispute.

Required Documents for Labour Contract:

  • Copy of Employment Visa
  • Copy of Passport
  • Copy of Medical Fitness Certificate
  • Copy of Trade License
  • Copy of Labour Establishment Card
  • One photograph with white background
  • Salary details (basic, allowance (if any), Type of Contract (limited or unlimited)

STEPS TO FOLLOW (AFTER ENTRY)

  1. Type Medical and Emirates ID application and first go for Medical Test and then do fingerprint for Emirates ID
  2. After receiving Medical Certificate type Labour Contract from Tas’heel Centre and Visa Stamping application from Typing Centre
  3. Get seal and signature of the sponsor and employee on the Labour Contract and submit through Tas’heel Centre
  4. Get seal and signature of the sponsor on Visa stamping application, Attach Tas’heel receipt and Emirates ID application copy and submit at Immigration Department along with Original Passport
  5. Pay for Courier if the Application is Normal and Passport will be delivered after Two days
  6. Visa stamped Passport can be received by hand if the application is typed with Urgent fee.
  7. Labour Contract will come through Post Box of the company after one week. Application status can be tracked through www.mol.gov.ae by entering IN number which is printed on the application.

Address of Tas’heel Centers in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:30pm

Ministry of Labour
Timing: Sunday to Thursday 7:30am to 7:00pm
Call Centre: 800 665
Website: www.mol.gov.ae

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.

Documents required

  • An Arabic letter in Company Letterhead with seal and signature of the sponsor and copies of the company’s Trade License and the Establishment Card.
  • Two recent passport size photographs
  • A copy of passport
  • A copy of lost Labour Card (if any)

Procedure

  • Go to the nearest police station, along with all above documents and pay fees.
  • After investigation and if your labour card cantnot be found, you will be issued a lost report, which you can use to apply for a new labour card through Tas’heel centre.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:30pm

What are the documents required for applying Labour Establishment Card?

To apply for Employment Visa, Labour Establishment Card is must. The following documents are required to apply for Labour Establishment Card.

  • Trade License copy
  • Partners List for LLC company
  • Copy of MoA for LLC company
  • Passport and Jinsiyya (family book) copies of Local Sponsor
  • Passport copies of Partners for LLC company
  • One Photograph (white back ground) of Sponsor and Partners
  • Immigration computer card copy
  • Tenancy Contract copy
  • Location Map in Arabic
  • E-signature card copy of Sponsor & authorized signatories (if any)

After typing the application, put company seal and get signature of all partners (if any).

Application can be submitted at Ministry of Labour – Qusais or Hyatt Regency Hotel, Deira (First Floor, AAMAL Business Centre, Tel. 04-273 0932) or Economic Department, Deira). Labour Establishment Card will be issued at the same time.

Labour Establishment Card is valid till cancellation of the Trade License.

NOTE:

If you need signature authority for anyone other than local sponsor, you should make Power of Attorney and get it attested from Notary Public and attach with the Labour Establishment Card application. Powers mentioned in the LLC Memorandum will not work for Labour signature authority. Separate Power of Attorney in prescribed form is must.

Address of Tas’heel Centers in Dubai

Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:30pmIn setting up a professional firm, 100% foreign ownership, sole proprietorships or civil companies are permitted. Such firms may engage in professional or artisan activities. A UAE national must be appointed as local service agent, but he has no direct involvement in the business and is paid a lump sum and/or percentage of profits or turnover. The role of the local service agent is to assist in obtaining licences, visas, labour cards, etc.

Documents required

  • An Arabic letter in Company Letterhead with seal and signature of the sponsor and copies of the company’s Trade License and the Establishment Card
  • Two recent passport size photographs
  • A copy of passport
  • A copy of lost Labour Card (if any)

Procedure

  • Go to the nearest police station, along with all above documents and pay fees.
  • After investigation and if your labour card cantnot be found, you will be issued a lost report, which you can use to apply for a new labour card through Tas’heel centre.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:30pm

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).

The part-time work permit applies to three categories of persons:

  • Resident workers in full-time employment holding a valid labour card
  • Residents aged 18 and above
  • Government employees

NOTE: Part-time Work permit is not issued for female employees.

Those issued with a part-time work permit are not limited to the number of part-time jobs they can take up.

Period of Contract: one year. Contract starting and ending date must be mentioned.

Separate Labour Card and Contract will be issued for the part time job.

Required Documents:

  • Passport Copy
  • One photo (white background)
  • Labour Card Copy
  • No Objection Letter (Arabic) from the current sponsor
  • Trade License copy of both companies (if applicable)
  • Labour Establishment Card copy both companies (if applicable)
  • Passport copy of new sponsor

Steps to follow:

Type the application, scan and submit through Tas’heel Centre.

Students on university sponsorship can now legally work part-time upon receiving a permit from the Ministry of Labour under a new decree issued as part of the UAE Labour Law.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

What are the documents required for applying Labor PRO Card?

Required Documents

  • Police Clearance Certificate
  • Passport copy with visa page
  • Labour Card copy
  • Two photographs
  • Trade License and Labour Establishment card copies of all represented companies

NOTE

  • Applicant must be under the same company’s sponsorship
  • Validity of the PRO Card: Maximum two years (PRO Card will expire while expiring the holder’s labour card).
  • Grace period: 60 days. PRO Card must be renewed or cancelled within the grace period.
  • Application to be typed from Tas’heel Centre and submit at Ministry of Labour, Al Qusais.

PRO Card Cancellation

Following documents to be submitted at Ministry of Labour, Al Qusais.

  • Original PRO Card
  • Passport and Labour Card copy
  • Labour Establishment Card and Trade License copy
  • Request letter in Arabic with company seal and signature of the sponsor/ authorized signatory

Ministry of Labour
Timing: Saturday to Thursday 7:30am to 7:00pm Call Centre: 800 665 Website: www.mol.gov.ae

Address of Tas’heel Centers in Dubai

Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900>

Tas’heel Centre Timing: Saturday to Thursday 7:30am to 7:30pm

Article 37 of the labour law states: “A worker may be engaged on probation for a period not exceeding six months, during which his service may be terminated by the employer without notice or severance pay; provided that a worker shall not be engaged on probation more than once in the service of any one employer. Where a worker successfully completes his period of probation and remains in his job, the said period shall be reckoned towards his period of service.”

Frequently Asked Question

Q: Is it permitted to exclude the probation period?
A: Yes it is … as the probation period is optional.

Q: I have been employed by a company for more than two years under a contract for an unlimited period. However, for more than three months, the company did not pay me my dues and I finally submitted my resignation due to the non-payment of my salaries. I then filed a complaint before the Ministry of Labour to claim my labour rights and overdue salaries. At present, the complaint is pending before the Ministry of Labour. Can I claim damages from the company? It is worth noting that I could not pay my rent on time and the real estate office of the building wants me to vacate my apartment. Furthermore, can I transfer to a new company without the consent of the employer? My employer would not provide me with a no-objection certificate (NOC) to transfer the sponsorship.

A: Resignation over non-payment of a worker’s salary is deemed to be arbitrary dismissal, according to the Cassation Court. As such, the employer shall compensate the worker a maximum of three salaries, based on the court decision.
Therefore the questioner shall ask the employer for compensation for arbitrary dismissal, along with the other labour rights and overdue salaries.
As for the question on the transfer of sponsorship, if the worker failed to get his salary for more than two months, the Ministry of Labour will transfer his sponsorship and as per the labour office rules, there is no need for an NOC certificate from the sponsor.

How can I change my profession in Labour Card and Visa?

Required Documents:

  • Passport Copy
  • Labour Contract Copy
  • Labour Card Copy
  • One photograph (white background)
  • Company’s Trade License copy & Labour Establishment Card copy
  • Attested Educational Certificate copy (for certain professions)
  • A request letter (Arabic) in company letterhead to change salary/profession

Profession change and salary increment in the contract can be done after six months from the date of issue.

STEPS TO FOLLOW

  1. Type the new contract from Tas’heel Centre, attach above documents and get seal and signature of the sponsor and employee and submit it at Tas’heel Centre.
  2. Application can be tracked through MoL website.
  3. Amended contract/labour card will be sent to company Post Box within 10 days.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Al Nakhba Business Centre
Matar Plaza, Qusais, Near Mai Tower
Tel. 04-259 9990

After Profession change in Labour Contract/Card, it has to be changed in Visa also after receiving the new Labour Card.

To change profession in Visa, the following documents are required:

  • Original Passport
  • 2 Photos (white background)
  • Trade License Copy
  • Immigration Computer Card Copy
  • New Labour Card Copy (with new profession)

Prepare the application from Typing Centre, get seal of the Company and signature of the sponsor and submit it at the Immigration. Pay Dh20 for courier if the application is normal.

When can a contract of employment be terminated?

An employment contract can be terminated in any of the following circumstances:

  1. If the two parties agree to cancel the contract, provided that the employee consents to this in writing.
  2. If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the Law.
  3. By one of the parties where the contract has an unspecified term, provided that the parties observe the provisions of the Law referred to previously regarding notice and the acceptable reasons to cancel the contract without prejudice.

Would an employment contract be terminated by the death of the employer or the disability of the employee?

An employer’s death does not constitute the termination of a labour contract, unless the subject of the contract is related to him personally. However, the contract will be terminated upon an employee’s total disability (without prejudice to his end of service benefits). However, if the employee’s disability is partial and he is able to perform other work which suits his health, the employer should transfer the employee to such other work if the employee so requests, and should give him wages equal to those paid for similar work.

Under what circumstances can an employer terminate the employment contract without notice and with immediate effect?

An employer may dismiss an employee without notice in any of the following cases (as per Article 120 of the Law):

  1. If the employee assumes a personality or a nationality other than his own, or has submitted fake documents or certificates.
  2. If the employee was appointed under probation and the termination happened during that period or at its end.
  3. If the employee commits a mistake causing the employer a substantial financial loss, provided the employer informs the Ministry of the incident within 48 hours.
  4. If the employee violates instructions relating to safety in the place of work, provided those instructions were written and displayed in a permanent place, and the employee has been informed of these instructions orally if he is illiterate.
  5. If the employee fails to carry out his basic duties as stated in the contract and continues to do so in spite of a written interrogation and a warning that his service will be terminated if he repeats his misconduct.
  6. If he discloses a secret of the establishment for whom he is working.
  7. If he is conclusively convicted by the concerned court of a crime involving honour, honesty and public morals.
  8. If he is found drunk or intoxicated by drugs during working hours.
  9. If he commits a physical assault on the employer or manager or one of his colleagues during work.
  10. If he becomes absent without a legitimate reason for more than 20 intermittent days or more than seven continuous days within one year.

Can an employee terminate a contract without notice?

An employee may terminate his contract of employment without notice in either of the following cases (as per Article 121 of the Law):

  1. If the employer has not fulfilled his obligation towards him as provided in the contract or in the Law, for instance where an employer does not pay his employee his wages on time.
  2. If he is assaulted by the employer or his legal representative.

Would changes in the structure of a business or its ownership constitute a termination of an employment contract?

If there is a change in the structure of a business or its ownership, any contract valid during the time the change is made will remain valid and the service considered continuous. Both the previous and the new employer are jointly responsible for six months from the date of the alteration in executing the obligations relating to the contract of the employee in the period prior to the change.
After the end of this six-month period, the new employer is solely responsible for the employees of the business.

Can an employee, after the termination of his contract, be employed by another employer in the UAE?

If the nature of the position held by the employee allows him to know his employer’s clients or the trade secrets of the employer, the employer may stipulate in the contract that after the end of his contract, the employee shall not compete with him or share in any competing project. The employee has to be 21 years old at the time of signing the contract for this agreement to be legal. The agreement shall be as far as time, place and nature of work are concerned limited to what is necessary to protect the legal interests of the employer. However, if there is no agreement to the contrary, an expatriate employee may work for a new employer provided that his profession is listed in one of the categories exempted from the automatic six month or one-year ban provisions outlined below.

According to the 1999 amendment to the Law, certain employers are required to submit to the Ministry a bank guarantee as security for end of service benefits and repatriation costs related to their employees. In the event of bankruptcy, the employer is required to encash the guarantee and provide to the employee.

What are the civil/criminal responsibilities of an employer if his employee is on somebody else’s visa?

A fine of Dh10,000 will be imposed and the employer will be banned from employing additional employees or doing anything else in relation to immigration. The bar would be lifted once the Employer is no longer in violation of the Law.

What employment ban provisions apply upon the termination of an employment contract?

A one-year ban will be imposed (stamped) on an employee’s passport by the Immigration Department upon termination of employment if the employee violates the employment contract, the Law, or the labour regulations.
A six-month ban will be imposed (stamped) upon termination of employment on those who do not fall under one of the categories of professionals permitted to transfer their visas.
A six- month ban is typical and a person who wishes to be reemployed must wait until the period of six months has passed.

However, the following circumstances are exceptions to the above rules:

(a) Where the transfer of employment is from one branch to another branch of the same company, establishment or a branch owned by the same employer.

(b) Where the transfer of employment was due to the transfer of the ownership of the company, establishment or branch thereof to the ownership of another company, establishment or person.

(c) Where the sponsor has breached his liabilities which resulted in the closing of the establishment.

(d) Where a court judgment is delivered for the bankruptcy or winding and termination of activities of the establishment.

(e) Where the original sponsor has died and his heirs do not intend to continue running the establishment.

The above rules have been stipulated by Ministerial Decree No. 360 of 1997 To Issue the Executive Bylaw of the Federal Law No. (6) of 1973 Concerning the Entry and Residence of Expatriates. However, the Ministry or immigration, may, at their own discretion, grant exceptions.

Following the termination of his employment contract, when should an employee cancel his dependent’s visas?

Upon termination of his employment contract, an employee has to apply for the cancellation of his dependent’s visas (spouse, children & domestic help) before his employer submits an application for the cancellation of his visa. This is not necessary in the event of a transfer of sponsorship.

Is the employer obliged to give an end of service certificate at the end of the employee’s service?

At the end of an employee’s service, and subject to his request, an employer is obliged to provide him with a service certificate. This certificate is free of charge and should state the date the employee commenced service, the last day of service, the total service period, the nature of work carried out by the employee, his last wage and any allowances, if applicable.
The employer should also return to the employee all materials deposited with him, such as certificates, papers, instruments etc.

How can I change my profession in Labour Card and Visa?

Required Documents:

  • Passport Copy
  • Labour Contract Copy
  • Labour Card Copy
  • One photograph (white background)
  • Company’s Trade License copy & Labour Establishment Card copy
  • Attested Educational Certificate copy (for certain professions)
  • A request letter (Arabic) in company letterhead to change salary/profession

Profession change and salary increment in the contract can be done after six months from the date of issue.

STEPS TO FOLLOW

  1. Type the new contract from Tas’heel Centre, attach above documents and get seal and signature of the sponsor and employee and submit it at Tas’heel Centre.
  2. Application can be tracked through MoL website.
  3. Amended contract/labour card will be sent to company Post Box within 10 days.

Address of Tas’heel Centres in Dubai
Itqan Businessmen Services
Opp. Al Mulla Plaza, Tel. 04-232 7333

Tas’heel Business Centre
Ground Floor, Al Tawar Centre
Tel. 04-263 5588

OnTime Business Solutions
Oud Metha Road
Tel. 04-397 7776

Al Reaya Services
Near Oasis Centre
Sheikh Zayed Road
Tel. 04-346 7991

Estemarat Services
Muraqabat Street, Opp. Coral Deira Hotel
Tel. 04-704 4900

Al Nakhba Business Centre
Matar Plaza, Qusais, Near Mai Tower
Tel. 04-259 9990

After Profession change in Labour Contract/Card, it has to be changed in Visa also after receiving the new Labour Card.

To change profession in Visa, the following documents are required:

  • Original Passport
  • 2 Photos (white background)
  • Trade License Copy
  • Immigration Computer Card Copy
  • New Labour Card Copy (with new profession)

Prepare the application from Typing Centre, get seal of the Company and signature of the sponsor and submit it at the Immigration. Pay courier if the application is normal.

Get in Touch

Come and visit our quarters or simply send us an email anytime you want. We are open to all suggestions from our clients.

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+971 58 574 6158

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Office 304, Al Hilal Bank building Al Qusais, Dubai, UAE

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