Dubai Fact-File Part 6:
Individual Business Employment Issues

6.1 Dubai Individual Business Employer Responsibilities

The duties and responsibilities of individuals in business as regards employing people: The Ministry Of Labour issues a model form of labour contract in Arabic which is widely used, but other forms of contract are enforceable, provided they comply with the Labour Law.

Employers should apply for labour cards for their employees immediately, and are obliged to cover all costs associated with this, and with the compulsory medical that the employee is required to undergo as a condition of employment in the UAE.

Two types of employment contract are generally available. One is a fixed term contract and the other an open-ended contract. Basic information that must be stipulated in a contract includes:

• Wage/remuneration;
• Date of the contract;
• Date of commencement;
• Nature of the contract (fixed or open-ended);
• Nature of the work;
• Duration of the contract (if a fixed term);
• Location of the employment;

Trade unions do not exist. In the case of a dispute between employer and employee, or over interpretation of the Labour Law, the Ministry of Labour and Social Affairs will initially act as an adjudicator, in an effort to resolve matters. If a party wishes to appeal any such decision it can take its case to court.

The normal maximum working hours are eight per day or 48 per week. However, these hours may be increased to nine daily for people working in the retail trade, hotels, restaurants and other such establishments. Similarly, daily working hours may be reduced for difficult or dangerous jobs. Many businesses work on a two-shift system (for example, 8am - 1pm and 4pm - 7pm).

As in all Muslim countries, Friday is the weekly day of rest. In practice, commercial and professional firms work 40-45 hours a week and government ministries about 35. The weekend for office workers has traditionally been Thursday afternoon and Friday, but a number of organisations have changed over to a five-day week, with Friday and Saturday as the weekend. During the Muslim holy month of Ramadan, normal working hours are reduced by two hours per day.

There are 10 days of public holidays (paid) in any year. The employee's annual leave is two days for every month if his service is more than six months and less than a year. In every completed year of service after the first, an employee is entitled to 30 days annual paid leave. This is in addition to public holidays, maternity leave for women and sick leave.

Muslim employees must also be granted leave to make the Hajj pilgrimage to Mecca, but this is only required to be granted once during their period of service.

Overtime is used extensively and additional pay is required for manual and lower ranking staff.

Introductory Guides

Dubai Artist Tax Guide

Dubai Contractor Tax Guide

Dubai Entrepreneur Tax Guide

Dubai Professional Tax Guide

Dubai Small Business Tax Guide

Dubai Sportsperson / Entertainer Tax Guide

Fact-File

Part 1: Dubai Business Formation for Individuals

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