Dubai: Are you being asked to work overtime? A new Labour Law – Federal Decree-Law No. 33 of 2021 on the regulation of Labour Relations – has come into effect in the UAE and the law provides detailed regulations on how various aspects of working in the UAE’s private sector will be governed, including the calculation of overtime work.
The law, which came into effect from February 2, 2022, has a detailed regulation on how overtime pay would be calculated in Article 19. However, it is also important to note that not every employee in the private sector can claim overtime pay. For example, Article 20 of the law includes the provision of some exempted categories of workers, which will be determined by executive regulations which will be announced at a later date.
Here is all you need to know about what the law says on overtime calculation.
ARTICLE (19) – Overtime
1. The employer may employ the worker for additional working hours, provided that they do not exceed two hours a day, and the worker may not work more than such hours unless according to the procedures and conditions specified by the Executive Regulations of this Decree-Law. In any event, the total working hours shall not exceed 144 hours in three weeks.
2. If the work circumstances require that the worker be employed for hours exceeding the ordinary working hours, such extended time shall be deemed overtime for which the Worker shall be paid his basic wage for his normal hours of work plus a supplement of at least 25 per cent of that wage.
3. If the work circumstances require that the worker be employed for extra hours between 10pm and 4am, the worker shall be paid his basic wage for his normal hours of work plus a supplement of at least 50 per cent of that wage. This paragraph shall not apply to workers by shifts.
4. If the work circumstances require that the worker be employed on the rest day specified in the employment contract, or the internal work regulations, he shall be compensated with a substitute rest day, or be paid his basic wage for his normal hours of work plus a supplement of at least 50 per cent of that wage.
5. The worker may not be employed more than two consecutive rest days, except for the daily workers.
ARTICLE (20) – Exempted categories of workers
The Executive Regulations of this Decree-Law shall determine the categories of workers that can be exempted from the provisions relating to working hours stated herein.