UAE Law and Practice Contributed by: Amir Alkhaja, Gerry Rogers, Daria Selivanova and Danila Kriuchkov, Habib Al Mulla & Partners
on hiring, employment contracts, working condi - tions and termination. Key characteristics of the UAE labour regulation include the following. • It is largely a codified system. This means the Labour Law and its executive regulations set out detailed rules (eg, maximum working hours, leave entitlements, end-of-service ben - efits). UAE courts interpret and apply these rules, but judicial precedents do not have binding authority as in common law systems. However, higher court rulings (Court of Cas - sation) are respected as guidance. • The role of the Ministry (MOHRE) is to over - see private sector employment. All mainland employers must register employees with MOHRE and use standard MOHRE-approved employment contracts. MOHRE issues administrative regulations and resolutions (which carry legal force as delegated leg - islation) to implement the Labour Law – for instance, regulations on wage protection, work permits, and occupational health and safety. Labour disputes are first referred to MOHRE for mediation; if unresolved, they proceed to the labour courts. • Employment in the UAE is contractually based, but contracts cannot derogate from the minimum protections of the Labour Law. Any term in a contract less favourable to the employee than the law’s provisions is null and void. For example, the law sets minimum annual leave; a clause giving less leave is unenforceable. Employers and employees are free to agree on additional benefits beyond the law (eg, more leave, higher gratuity), which would be binding. • There is no formal trade union system or col - lective bargaining in the UAE for the private sector.
• Free zones and DIFC/ADGM have their own employment laws (based on common law principles in DIFC/ADGM). Companies in those zones follow the local free zone law instead of the federal Labour Law. • The UAE has specialised labour courts (often a section of the civil courts) that handle employment disputes. The process is expe - dited and court fees are minimal for employ - ees filing claims. The courts will apply the Labour Law and the contract terms. Typically, if an employee claims unlawful termination or unpaid dues, the court will reference statutory entitlements (eg, notice pay, gratuity, etc) as per the law. In summary, the UAE employment regulatory framework is statutory and administrative. The individual employment contract is important but is effectively a schedule of specifics. There is little role for “case law” shaping principles – although court judgments interpret ambiguous points, the law is frequently updated to clarify issues. Thus, an international client should understand that employment in the UAE is highly regulated by government. 4.2 Characteristics of Employment Contracts Employment contracts are mandatory and for - mal in the UAE. Employers must follow strict legal rules when hiring staff. Written Contract Requirement Every employee must have a written contract. It must be in Arabic or bilingual (Arabic-English). For mainland companies, the contract must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).
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