The primary piece of legislation on employment in the UAE comes under the Federal Law No 8 of 1980 named ‘The Labor Law’. This law administers all the seven emirates and is applicable to all employed personnel within the emirate apart from a particular category of public official, civil servants, members of armed forces, police and security officers and agricultural workers. Though each free zone authority has issued its own rules and regulations, almost every UAE free zone has agreed to apply the UAE Labor Law, except the DIFC.
What are the requirements for Employment?
Well, the very basic idea behind is to look for law firms in Abu Dhabi and hire one of them to help you understand better. Expat employees in UAE mainland are required to sign a job offer an a standard employment contract specified by the Ministry of Human Resources and Emiratisation (MoHRE). That signed contract is further registered with the federal authority and administers the employment relationship together with any supplementary employment agreement. Most of the free zones provide their own template employment agreement which has to be signed by all employees.
What comes under the Official MoHRE Contract?
If we talk about standard employment contracts, they are very and hence, they are recommended that employers must enter into extra supplementary contracts that comprise of company-specific practices like confidentiality, bonus schemes, or non-complete provisions to simplify the roles of prospective employees. The Labor Court, on a general basis, also takes into consideration the additional terms and conditions of employment in case of any potential dispute.
There are two types of Employment Contracts in UAE:
- Limited fixed term of not more than 2 years
- Unlimited
Termination Rights
The rights for termination differ on the basis whether the termination is initiated on valid reasons or if terminated under any arbitrary dismissal. For instance, consulting the best law firms in Abu Dhabi is of utmost importance when any such scenario erupts. According to the article 117, an employer may terminate an employee working under an unlimited term contract at any time on written notice, provided that the employer:
- Provides the employee the correct written notice of termination according to the employment contract.
- Dismissal is made for a valid point.
What are some valid reasons for Termination?
In Labor Law, there is no such specific definition of a ‘valid reason’ and what it may actually constitute. According to Article 122, an employee’s termination will be considered as arbitrary if the reason laid for termination was not considered relevant or related to the work. According to court, valid reason should be like:
- If the employee is found guilty of misconduct reasons specified in the articles 88 and 120 of Labor Law.
- If employee is a poor performer and this should come with sufficient documentation and evidence.
Further to it, under the Article 120, employee can be terminated without prior notice if he/she get involved in any of the following activities:
- Assume a false identity or have submit forged certificates or documents
- Ha been dismissed during or at the end of the probation period.
- Makes a mistake that leads to substantial material loss to the employer.
- Does not obeys the instructions on the safety of work or workplace
- Fails to do the basic duties laid under the employment contract and constantly violates them despite of any formal investigation with him in the same respect.
- If the person is finally convicted by a competent court of a crime against honor
- Assaults the employer
- Absenteeism from work for 20 consecutive days without a valid reason.
So in future if you face any challenge related to your employment contract, it is always advisable to consult one of the best law firms in Abu Dhabi. Because only the lawyers can help you make things look like a cakewalk, else the things are really complicated.
