A Comprehensive Overview of Benefits Employment Contract UAE

A Comprehensive Overview of Benefits Employment Contract UAE

An employment contract UAE is the official document that governs the relationship between the employee and the company that hired them. Therefore, it contains essential information such as compensation, notice period, working hours, and more.

In this article, you are going to understand more about the key elements of an employment contract UAE. In addition, you get to know the answer to a common question, which is: how to check my employment contract in UAE.

Key elements for legality in UAE employment contracts?

The UAE Labor Law establishes the regulations employers have to follow when they issue an employment contract UAE. Thus, it is important to stay up-to-date with the recent changes that constitute the key legality.

Some of the most significant changes that have been made to the employment contract UAE are the following:

  • Previously, there were two types of UAE employment contract. With the recent modifications, all employees must now be under a Limited Term Contract.
  • There are several types of work arrangements. Employees can work full-time, part-time, project-based, flexible, and remote. This allows individuals to earn money online without investment.
  • Contracts cannot exceed a duration of 3 years.
  • Also, another key element for legality is that both parties must sign the contract
  • Both parties must know how to follow the established rules for contract termination

Furthermore, companies must understand how to issue a contract compliantly. For this, it is necessary to count on the Tas-heel system.

Steps to check my UAE employment contract

Employees who have signed an employment contract UAE may sometimes want to check it to review its content. This is because if they know how to get employment contract online, they can determine if the company is complying with what has been established in the legal document.

Thus, it is useful to learn how to check employment contract and to teach employees how do to it. To do this, there are two different processes that can be followed, by the MoHRE website or by the App.

The following is how to check employment contract using the MoHRE website:

  1. Visit the MoHRE official website
  2. Go to the “Services” tab.
  3. You will see a dropdown menu. Click on “View Approved Contract”
  4. In this next step, you can search by Transaction Number or EIDA Number
  5. Enter your Transaction Number, passport number, nationality, and Date of Birth
  6. Enter the Captcha
  7. Click on “View my Contract”
  8. If the information is right, you will see your contract.

Moreover, if you want to know how to check my employment contract in UAE, you can use the MoHRE App:

  1. On your phone, go to Google Play or App Store and download the MoHRE App
  2. Click on the “Sign up” button and then on “Employee”
  3. Enter your passport number, along with your nationality, and date of birth
  4. Enter a User Name and a Password, your email, and mobile number
  5. Choose the security questions and provide the answers
  6. Agree to the conditions of using the App
  7. Enter the activation code received by phone and email, and now you can log in
  8. Go to “My Dashboard”. Scroll down and click on “View Labor Contract”
  9. Read the contract or download it.

What’s the standard notice period in UAE contracts?

According to the new regulations and the Ministry of Labour, the minimum notice period that should be outlined in an employment contract UAE is 30 days.

Therefore, if you want to avoid disputes and legal consequences, it is important to adhere to the notice period required for a standard employment contract UAE.

Here are some important highlights about the notice period in the UAE:

  • If the employee or the employer wants to terminate an agreement, one of them must do it by giving a 30-day notice to the other.
  • Both parties can agree to extend the notice period, but it must be stated in written form. Also, the extended period cannot exceed 90 days.
  • The notice period is very important in a contract. This is because it allows both parties to prepare for the transition of the employee leaving the job.
  • HR professionals must ensure the notice period is included in the contract. Similarly, employees must check it before signing it.
  • During the probation period, the notice period should not exceed 14 days. Also, it is worth noting that the probation period cannot exceed 6 months.

Considering the employer’s perspective, it is required by law to provide a valid reason for termination. Some of these may be misconduct, poor performance, or redundancy. Thus, it is important to ensure a transparent process during the termination procedure, to ensure everything goes smoothly.

On the other hand, from the employee’s perspective, they have the right to challenge termination if they believe it was unjust. Therefore, it is crucial to avoid cases of unfair dismissal.

How does UAE labor law regulate working hours?

If you have been considering expanding your business to the UAE, it is important to learn about working hours. This is because if you want to hire employees, you have to follow the employment law.

Working hours must also be stated in the employment contract UAE. The following are the regulations for working hours in the UAE:

  • The working hours are set in the law as 8 hours per day. Consequently, employees must work no more than 48 hours per week.
  • In certain categories of workers or sectors, the working hours may increase according to the Executive regulations.
  • The commuting time (time spent by the worker to get from home to work) is not included in the working hours. However, this may vary depending on certain categories of workers.
  • In the case of remote workers, the working hours have to be established by the employer. So, they have a specific schedule.
  • When it comes to overtime, employees cannot work more than 2 hours of overtime per day.
  • During the holy month of Ramadan, employees’ working hours get reduced by 2 hours, so they work 6 hours per day.

An employee that is not sure about the working hours established in the contract, must know how to review it. In this case, it is crucial to know how to get employment contract online or through the App to check it quickly.

Lastly, as an employer you have to instruct your HR personnel to monitor employees working hours. 

Legal status and rules for probationary periods in UAE?

As we have mentioned before, the rules for employment contract UAE are constantly being updated. So, there has been some changes in this matter.

Concerning the probationary period, both parties must ensure they comply with the recent regulations in the law. Consequently, they must agree to it in the contract.

First of all, it is necessary to know what a probationary period is. It is a period that starts with employment. Thus, during this period, the employer can evaluate the employee and decide if they are a good hire for the role.

If at the end of this period, both parties agree to continue, then the official employment can begin. Nonetheless, the employee must sign an employment contract UAE before beginning the probationary period.

Considering all of this, the rules are the following:

  • It should not exceed 6 months.
  • Some companies may agree with an employee for a shorter period. However, it is important to outline it in the UAE employment contract.
  • It is totally against the law to extend the probationary period beyond 6 months.
  • For instance, if during the probation period, the employer wants to terminate the contract, it is required to give a notice of 14 days in writing.
  • If an employee wants to resign during the probation period to join another company, he or she should provide a written notice of 30 days. Also, the new employer must pay the employee’s recruitment cost to the current employer as a way of compensation.
  • But if the employee is just resigning to leave the UAE, the notice should be 14 days.

In terms of legal status, it is crucial to ensure the employees have their required UAE visas. This is because they must be legal in the Emirates and ensure renewal with enough time in advance.

Employer obligations for end-of-service benefits in UAE contracts?

Another important aspect to be included in an employment contract UAE is the end-of-service benefits. However, for some foreign employers, this term may be confusing. This is because they may not be familiar with it.

An end-of-service benefit is also known as severance pay or gratuity, and it is mandated by the law. Thus, it aims to provide financial security to employees who terminate a mohre employment contract.

Nonetheless, it is only for employees who comply with a certain period of work and they receive it once they leave the company. Therefore, workers should review their employment contract UAE online so they can check their benefits.

This benefit changes depending on the nationality of the worker. The details are the following:

  • For Emiratis, this benefit has to be in accordance with the pensions and social security of the UAE.
  • For foreign employees, the gratuity will vary based on the time of service.
  • Employees that have worked for less than a year, will not receive gratuity pay.
  • Workers that have served for 1 to 5 years, will receive a gratuity pay consisting of 21 days of salary for each year worked.
  • Employees that have served for more than 5 years, will receive a gratuity pay consisting of 30 days of salary for each year worked.
  • An employer must make the gratuity pay within 14 days of the end date.
  • Subsequently, the calculation is based on the last wage of the employee.

In case you are considering starting your company in the UAE, it is very important to be aware of the employment law. For instance, you need to have HR professionals who are very aware of the obligations as an employer and the benefits you can provide.

Requirements on benefits in UAE contracts, like health insurance?

As an employer in the UAE, you should include great benefits in your employment contract UAE to attract top talent. However, you should know which ones are mandatory and which ones can be additional perks to your offer.

According to the law, in a mohre employment contract, you have to include the following benefits:

  • Employees with 6 months to a year of service: An annual leave of no less than two days per month served
  • Employees with more than a year of service: An annual leave of 30 days per year served.
  • Female employees are entitled to maternity leave. Subsequently, they receive a 60-day leave (45 days full pay, 15 days half pay). Also, after this period, the worker can receive 45 more days of leave, but unpaid.
  • Parental leave of 5 days for fathers or mothers
  • 90 days of sick leave consisting of the following: 15 days full pay, 30 days half pay, and 45 days unpaid.
  • Bereavement or compassionate leave of 5 days for the death of a spouse, and of 3 days for the death of a child, parent, grandchild, sibling, or grandparent.
  • 10 days of study leave for employees that have served in the company for 2 years
  • 2 weekly holidays, for instance, Saturday and Sunday
  • Public holidays with full pay
  • Gratuity payment based on the time served in the company
  • Employers should provide health benefits to their workforce, but without deducting the premium or reducing the salary. Thus, with a minimum level of coverage.
  • Employees who work overtime must receive overtime pay.
  • Some employers offer repatriation tickets, so it is possible to include them.

As an employee, if you are not sure about which benefits you are receiving, you should check your employment contract UAE online to determine it.

Conclusion

Once you know the key aspects of a standard employment contract UAE, you can be more confident when expanding your business. Contact us to learn how we can help you establish your presence in the UAE.

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