3 things to know about labor law in Dubai

If many business leaders decide to establish themselves in the United Arab Emirates, it is because the tax conditions there are optimal. There is also a misconception that employment law there is much more flexible than the law applied in France and elsewhere in Europe. At first glance, these conditions are ideal, which explains why setting up a company in Dubai seems so advantageous for foreign entrepreneurs. But what is the reality? In this article, we will review 3 important points to know about employment law in Dubai.

Flexible but well-regulated employment law

  Employment law in the United Arab Emirates is more flexible and less comprehensive than the law applied, for example, in France. That is a fact. However, it cannot be considered minimalist. In fact, it enables the courts to resolve the vast majority of situations that arise. So yes, it is true that local law may seem very flexible for employers, particularly those from Europe. However, the employment law applied in Dubai is considered highly protective of workers. Contrary to what one might think, no, it is not possible to do whatever one wants in the United Arab Emirates when employing staff.  

The importance of the employment contract

  If you hire an employee and bring them to work for your company in the United Arab Emirates, you will inevitably prepare an employment contract in your language. This is a good thing, but be careful: legally, in Dubai as elsewhere in the United Arab Emirates, only the employment contract in its Arabic-language version is valid. Moreover, you will always be told that in the United Arab Emirates, a verbal agreement is sufficient. Indeed, whether or not an employment contract exists, local employment law applies. But in reality, to ensure that both parties are fully protected (the employer and the employee), it is nevertheless preferable to have a written document that can serve as evidence in the event of a dispute.  

Does local employment law always apply?

  Local employment law applies, even if your team is not from the United Arab Emirates. However, in some cases, the employment contract may carry more weight than what is normally provided for under local law. This is particularly true if the clauses included in the employment contract go beyond local requirements. This is a very good thing, because it often enables both the employer and the employee to benefit from better protection.

I want to learn more about employment law in Dubai

  You are about to set up your company in Dubai, but you realize that you are not very familiar with employment law in the United Arab Emirates. If you plan to hire staff, it is important to take the time to learn about local employment law. Otherwise, you risk making mistakes that could prove costly. Our firm’s team includes lawyers who can answer all your questions on this subject. They are, of course, specialists in employment law in the United Arab Emirates. Do not hesitate to contact one of our advisors so that we can address all your questions. That way, once you have received your answers, you will truly be able to launch your business in Dubai under optimal conditions.