COUNTRY

Employment contracts in the United Arab Emirates (UAE) should be written and in the Arabic language. The contract should include:

• name and address of the employer and employee,

• nationality of the employee,

• start date,

• duration of the contract and provisions for its renewal,

• probation period, which should not exceed 180 days and cannot be renewed,

• salary, payment method, payment intervals and bonuses,

• benefits and leaves,

• job description,

• working days and hours,

• social insurance contributions and deductions,

• non-compete and non-disclosure clauses,

• adherence to employers’ guidelines and policies,

• termination and end-of-service benefits,

• compensation on early termination, and

• coverage of recruitment costs and residency permits for non-UAE nationals.

Employers must inform the labor office of all new hires and are required to maintain sufficient records.

The standard workweek in the UAE is 48 hours (Sunday through Thursday), and eight hours per day. During the fasting month of Ramadan, it is six hours per day. The rest period is at least one hour per day (employees should not work five consecutive hours without a break), and 24 hours per week on Fridays.

Overtime is limited to 144 hours every three-week period. Employees are entitled to extra pay for working overtime.

Employees become eligible for 45 days of paid sick leave in the UAE after their probation period is over. They receive 15 days of fully paid sick leave and half pay for the following 30 days. If the sick leave is exhausted, then they receive additional sick leave days that are unpaid, provided they do not exceed 45 days, after which the employer may terminate the employment contract.

Female employees receive 60 days of paid maternity leave in the UAE after one year of service. Those who have not completed one year of service receive maternity leave at 50% pay. The father is entitled to five days of parental leave for the birth of a child.

Employers are not required to pay employees bonuses in the UAE but can choose to include bonuses within employees’ compensation packages. It is common for employers in the UAE to pay employees 13th and 14th month bonuses at the end of one year of service.

Employees are entitled to annual leave in the UAE after six months of service. They receive two days for every month of service after six months but less than 12 months, and 30 days every year after 12 months of service. Untaken annual leave days may be carried over to the following year only once. Employees also receive a one-time pilgrimage leave without pay to conduct a pilgrimage to Mecca. Such leave is not included in the other leaves and may not exceed 30 days.

In the UAE, the public holidays are:

• Gregorian New Year

• Eid Al-Fitr

• Arafah Day

• Eid Al-Adha

• Hijri New Year

• Birthday of Prophet Muhammad

• Commemoration Day

• National Day

Employers may be required to provide health insurance to employees in the UAE, depending on the location.

Employment contracts can be terminated in the UAE by either party. The termination must be in writing and notice is generally required. The notice period is at least 30 days and should be specified in the contract. No notice is required before terminating an employment contract in a limited number of circumstances, such as for breach of the contract terms or misconduct. Employees are entitled to severance after one year of service. Severance is generally is between 21 and 30 days per year of service up to a maximum amount.