Understanding Employment Contracts in the UAE
In addition to being the destination of the moment, the United Arab Emirates, and Dubai in particular, is an excellent landing point for expatriates from around the world.
A sunny postcard setting, dreamlike innovations and infrastructure: Dubai is the destination of choice for both young and older people.
Although the capital is Abu Dhabi, its neighboring city Dubai, the tourist capital, attracts visitors from all over the world.
The peninsula is all the more attractive because salaries are not taxed in the UAE. What you earn, you keep.
Conditions for Working as an Employee in the UAE
UAE Residence Visa
To have the right to work legally in the UAE, foreigners (non-Emirati nationals) must obtain a work permit and a residence visa.
These permits are issued to foreigners if they possess the skills/qualifications required by companies established in the United Arab Emirates and if those companies agree to act as their sponsor. By law, residence visas are covered by your employer. Visa fees may under no circumstances be charged to the employee.
As in other countries, there are two sectors:
the public sector and the private sector.
In this article, we will focus on companies in the
private sector.
According to employment law, there are two types of contracts in the private sector:
employment contracts may be fixed-term (limited) or open-ended (unlimited):
-
Fixed-term contract: as its name indicates, this type of contract has a set duration, with a start date and an end date. Generally, this type of contract lasts 2 or 3 years and may be renewed by the employer if necessary.
-
Open-ended contract: by definition, this type of contract has an unlimited duration. However, under certain conditions, it is possible to terminate the contract by complying with the notice period. If applicable, the injured party may bring legal action.
Each company has a visa quota, which depends on the size of the company’s offices. On average, you should allow 7/8 m2 per employee; if you have 10 employees, you will need an office of at least 70/80 m2.
If the company is located in the
Mainland, you will need to contact the
DED, and if the company is located in a
Free Zone, you will need to contact the free zone authority for more details about the conditions and visa quotas.
To obtain the coveted authorization, you can begin your job search from your home country or come to the UAE and start your search there. Please note that it is strictly prohibited to work without a work permit or on a tourist visa. Make sure that all documents are up to date before starting your position; this will help you and your employer avoid a fine of approximately AED 50,000.
Your job search will mainly take place online. There are many job-offer websites, such as
LinkedIn,
Dubizzle.ae,
Bayt.ae,
Indeed.com, etc.
Most companies based in the UAE also have a “career” section on their website where you can submit your application and apply for job offers that have already been posted.
Finally, you can also register with licensed recruitment agencies.
Employment Contracts in Dubai
Job offer letter
Once you have found a job, you will first sign a “
job offer letter” setting out the basic elements of your employment conditions, namely:
- Contract Status = contract type
- Monthly Basic Salary = basic monthly salary
- Housing allowance = housing allowance
- Working time = weekly working hours
- Transportation = transportation allowance
- Equipment = telephone, computer, etc.
- Medical policy = medical coverage
- Annual Leave = paid annual leave
Employment contract
The registers/MOHRE provide free, basic, ready-to-use employment contracts that are ready to be completed. The substance and format of these employment contract templates cannot be modified. You only need to customize the salary amount, bonuses, etc.
This contract also provides more details about:
- the description of the position held;
- the contract start date;
- the place of work;
- the probationary period;
- the termination conditions;
- the duration and type of contract (limited/unlimited);
- the salary package;
- paid leave.
This document is in English and Arabic because only the Arabic version will be valid in the UAE in the event of a dispute with your employer.
Sign a second employment contract
It is also possible to sign a second contract (which is, of course, also valid in the event of a dispute) that may list more specific clauses (non-compete clause, etc.).
This therefore requires customized drafting based on the needs of the parties (employer and employee).
For this, you may contact:
Maître Joséphine D’Angelo
Tel: +971 56 953 7401
Email: josephinedangelo@merritt-legal.com
Skype: josephine.dangelo
It is important to know that in the UAE, local employment law will apply in the event of a dispute.
For these two employment contracts, although they are different, you must ensure that they are consistent with each other and do not contain contradictory clauses.
Probationary period in Dubai
In both cases, your employer may impose a probationary period of up to 6 months. Its purpose is for your employer to evaluate your work. During the probationary period, you and your employer may terminate the contract without explanation, notice or compensation other than the salary earned.
If everything goes well after your probationary period, your employment contract will become a permanent contract.
Terminating an Employment Contract in the UAE
An open-ended contract may be terminated subject to certain conditions.
There must be a legitimate professional reason and a notice period. If the dismissal is not related to professional misconduct or any other justifiable reason as defined by Article 120 of the employment code, it may be considered arbitrary.
The employee may then bring a legal claim and obtain compensation of up to three months’ salary from a competent court.
You can find more information on the
MOHRE website or by contacting
Maître Joséphine D’Angelo by telephone at +971 56 953 7401 or by email at
josephinedangelo@merritt-legal.com.
Our firm assists you with setting up a company in the United Arab Emirates, and our partner Merritt Legal Consultants supports and assists you with all matters relating to employment law and business law.
Merritt Legal Consultants works in collaboration with a local firm for all litigation proceedings and can assist you with your procedures.
Please do not hesitate to contact our lawyer, Maître Joséphine D’Angelo, by telephone at +971 56 953 7401 or by email at
josephinedangelo@merritt-legal.com
