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Employer Law in Abu Dhabi, as with the rest of the United Arab Emirates (UAE), is governed by the UAE Federal Law No. 8 of 1980, otherwise known as the UAE Labour Law. This law, along with certain Ministerial Decisions, regulates the relationship between employers and employees, outlining rules on working hours, official holidays, annual and sick leave, end of service benefits, and health and safety obligations, among others.
Employers may find themselves needing legal assistance when hiring employees, drafting or revising employment contracts, dealing with employee disputes or misconduct, terminating an employment relationship, complying with local labor laws, implementing redundancy programs, or setting up procedures compliant with health and safety regulations. Having a lawyer assist you ensures your business practices are lawful, mitigates the risk of legal disputes, and can provide important counsel when issues arise.
Key aspects of employer law in Abu Dhabi align with UAE's Federal Labour Law, which include provisions relating to the terms of employment contracts, wage protection systems, insurance schemes for workplace injuries, end of service gratuity, arbitrary dismissal, redundancy, and the ban on discrimination and harassment. Employers are required to provide their employees with certain benefits, such as annual leave, sick leave, maternity leave, and medical insurance. Any violation of these laws may lead to heavy penalties imposed by the UAE Ministry of Human Resources and Emiratisation.
Unlimited contracts do not have a specified tenure and can be terminated by either party with a notice period, usually of 30 days.
Limited contracts have a fixed tenure, usually of 2-3 years, and cannot be terminated before the end of the term without penalties unless on grounds specified by the law.
The standard working hours are 8 hours per day or 48 hours per week. During Ramadan, the working hours are reduced by 2 hours.
This is a severance pay that an employer is required to provide to an employee who has completed one or more years of continuous service. It's calculated based on the employee's last drawn salary.
An employer can terminate an employee without notice only on certain grounds as stated in the Federal Labor Law, such as the adoption of a false identity, commission of an error resulting in significant material loss for the employer, and others
.Relevant resources include the UAE Ministry of Human Resources and Emiratisation and the Abu Dhabi Government portal, where you can get more information about UAE's labor laws and employer obligations. In addition, consulting with a local law firm specializing in labor and employment law might be beneficial.
If you need legal assistance, you should consider engaging a legal professional with expertise in UAE's employer law. Make sure you choose a lawyer or a law firm with a clear understanding of the local rules and regulations, years of experience in the field, and a good reputation in handling employer cases in Abu Dhabi.
