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Dubai is a global city, attracting professionals from all over the world. This means you have access to a diverse and highly skilled talent pool, which can be advantageous if you’re looking for a workforce with diverse perspectives and experiences.
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Dubai has a business-friendly environment with various free zones, tax incentives, and a streamlined process for hiring and setting up businesses. Many professionals in Dubai are multilingual, making it easier to communicate with international clients and partners, This can make it easier to hire and retain top talent.
This can be advantageous for businesses looking to expand globally as a diverse workforce can help you better understand and cater to international markets.
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There is no minimum salary required in the UAE labour Law, however salaries must cover basic needs of the employees.
Every employer registered under the Ministry of Human Resources and Emiratisation (MoHRE) is required to register in the ‘Wages Protection System (WPS)’ and disburse employee salaries through it, following the specified deadlines.
Standard Working Hours
In Dubai, the standard working hours range from 8 to 9 hours per day, totalling 48 hours per week, with a 1-hour break for lunch.
However, during the month of Ramadan, the working day is often reduced to 6 hours. It’s important to note that these regulations can vary by industry and profession, and certain sectors.
The standard work week is Sunday-Thursday.
Any work conducted beyond the typical weekly working hours qualifies for overtime compensation, a subject governed by employment contracts or collective agreements.
There are two different overtime rates in effect. Between 9 pm and 4 am, designated as nighttime hours, overtime is calculated at 150.00% of the standard wage, while during any other time, it is calculated at 125.00%.
In the UAE, the customary payroll cycle is on a monthly basis with salaries being paid on the final working day of the month.
Paid time off
The UAE employment agreement outlines a baseline of 30 days paid leave annually, granted after a year of service. For employments over 6 months but less than a year, 2 days leave accrues each month.
Employees are entitled to sick leave with full pay, if they meet certain criteria. Employees with more than 3 months of service are eligible for sick leave with full pay. For the first 15 days of sick leave, an employee is entitled to full pay. For the subsequent 30 days, the employee is eligible for half pay.
A medical certificate from a licensed medical practitioner is required within 48 hours for sick leave to be valid and recognised by the employer. It’s important to note that these rules can vary depending on the specific employment contract, company policies, and individual circumstances.
Maternity leave is available to all female employees. For employees with at least 1 year of service, a 60-day paid leave is granted at a rate of 100% of their regular salary for the initial 45 days, reducing to 50.00% for the subsequent 15 days.
Maternity leave can be taken both before and after the expected delivery date. In addition, employees can take up to 45 days of unpaid leave either consecutively or intermittently due to pregnancy-related medical conditions, with a valid medical certificate.
Under the new labour law, it’s explicitly stated that employers are prohibited from terminating or using threats of termination against female employees due to their pregnancy status or while they are on maternity leave.
The UAE Labour Law doesn’t explicitly provide for paternity leave. However, some companies in the UAE may offer paternity leave as part of their company policies or benefits packages. These policies can vary widely from one company to another. It’s recommended to check with your employer or refer to your company’s HR policies to see if they offer any form of paternity leave and the specific details surrounding it.
Termination of Employment
Termination of an employee’s contract by the employer must be done in accordance with the provisions of the UAE Labour Law. Employers can terminate employees for valid reasons such as poor performance, redundancy, or violation of company rules and policies.
Employers must provide written notice of termination to the employee, specifying the reasons and adhering to the notice period stated in the employment contract. In some cases of termination, employees are entitled to receive severance pay, which is calculated based on the length of service and the employee’s last basic wage.
In line with the labour regulations in the UAE, it is obligatory to provide a notice period of at least 30 days but cannot exceed 90 days. If the contract doesn’t have a notice period, the law provides for a minimum notice period based on the employee’s length of service.
The length of the probationary period is typically established through mutual agreement between the employer and the employee. However, it commonly is over a period from 3 to 6 months.
Foreign individuals intending to work in the UAE are required to undergo registration with the UAE immigration authorities. This entails obtaining a job offer from a UAE-based company, and in certain cases, specific qualifications stipulated by the Ministry of Foreign Affairs may be necessary.
For employment in Dubai, a UAE employment permit or work permit is obligatory. Typically, these permits are valid for a maximum of 2 years for individuals who have received a job offer in the UAE. Such permits grant the privilege of residing and working within the UAE throughout the visa’s validity, which can be renewed upon the completion of a 2 year term.
The standard rate of VAT in UAE is 5%.