Dubai: A new unified labour contract, standardising employment terms and making them more transparent is expected to improve regulation and transparency of the UAE labour market.

The Standard Limited-Term Employment Contract, will come into effect on January 1, 2016, was drafted by the Ministry of Labour as part of the three new decrees, announced by the ministry on Monday.

The three ministerial decrees are aimed at enhancing the UAE labour market conditions and consolidating the contractual nature of labour relations.

All employees across the country will be presented with a unified, standard, employment offer that contains clear and enforceable terms and conditions of employment, prior to the worker’s entry in the UAE.

The contract will need to be signed by both the employer and the worker.

The contract, which is divided into 11 clauses, details the obligations and rights of both employer and employee. The contract will explicitly state a worker’s profession, job title, basic remuneration allowances (all of which should be written in figures and words).

One clause stipulates that the duration of the limited-term employment contract may not exceed two years. The contract’s rules are still effective during the notice period ahead of the contract’s termination. The notice period, which can anywhere between one to three months, must be agreed upon by both parties signing the contract.

All expenses related to enabling an employee to work for an employer must be borne by the latter. This may include: travel to the UAE and broker agency fees.

Employer’s obligations

Clause Nine of the contract details the employer’s obligations. The employer is responsible to deliver the Labour Card to his worker and dole out an authenticated version of the contract in a language the worker understands. The employer is also obliged to pay the worker his due remunerations, entitlements or benefits, according to the dates and procedures stated in the contract; and the rules specified by the Applicable Legal Regulations at the ministry.

No amount of the remuneration may be deducted by the employer, except in a few select cases.

If a worker is coming from abroad, the contract must be signed before he arrives to the UAE. According to the contract, employees may not work for more than eight hours a day, or 48 hours per week, or 144 hours in a three week period. Moreover, usual working hours shall be reduced by two hours daily during Ramadan.

However, if work-related circumstances require the employee to work overtime, the additional working hours should not exceed two hours per day, which are compensated for by the standard rate of working hours plus an increment not less than 25 percent; or not less than 50 percent if an employee works overtime between nine pm and four am.

Employers are also obliged to provide all occupational health and safety measures, and ensure healthy working environment as specified by the ministry.

An employer may not terminate the service of an employee because he isn’t medically fit, before the latter avails himself top the sick leaves legally due to him.

After the expiration of the contract, an employer must bear the repatriation expenses of his worker.

In case of work-related injuries or occupational diseases, employers must pay the medical expenses for treating the worker in one of the government medical centers until the worker has recovered or is proven to have become disabled.

If work-related injuries prevent the employee from performing his work, the employer is obligated to pay the former financial assistance that equals his full remuneration throughout the treatment period, or for a period of six months (whichever comes first). If treatment last for more than six months, financial assistance will be reduced to half for an additional six months until the employee has recovered, proved to be disabled or deceased.

Employers are also prohibited from assaulting the worker in any way, shape or form, or harassing the worker sexually.

Accommodations provided by the employer must meet the standards of the ministry. If accommodations are remote from urban areas, employers are required to provide appropriate means of transport, potable water, basic foods and medical, recreation, and sports facilities.

If it is proven than an employer’s obligation has been violated, employees may leave work without notice at any time, and file a duly admissible complaint with the ministry. 

Worker’s obligations

Clause Ten of the standard contract details the worker’s obligations, which promises that his basic duties will be carried out in full and by the deadlines, according to the specifications mandated by the nature of the work he is performing. An employer may dismiss him from his work without notice or end-of-service indemnity if he persists in failing to fulfill his basic duties after repeated warnings.

Workers also should not be found drunk of under the influence of drugs during working hours; nor may he assault his employer, manager or colleagues.

Furthermore, a worker may not be absent from work for more than 20 non-consecutive days or seven consecutive days within the single contractual year without a valid reason.

An employee may not work for any other party, even during his leave from work except in certain cases pursuant to the conditions and regulations set forth by the ministry.

It is also the worker’s responsibility to protect work-related equipment and not keep any work-related documents except within the parameters allowed by the employer.

An employee should notify his employer of any non-work-related illnesses within two days. The employer, in turn, will take the necessary measures to immediately have him medically examined and treated, if necessary. Workers are obliged to use the protective gear and equipment provided to him.

They are also responsible to keep the accommodation provided to them in good condition and use it solely for its intended purpose. Employees are also given a maximum of thirty days to evacuate the accommodation place, provided the employer meets his part of the obligation to provide end-of-service indemnity and other benefits as per the contract.

Employers must report to the ministry if he is unemployed in the UAE for more than three months or, in some cases, within six months of his referral to the competent court. The ministry may refrain from granting a work permit for up to one year to a worker who fails to meet the aforementioned points. The ministry may also refrain from giving someone a work permit if they do not abide by the termination procedures as per the contract or if they failed to fulfil their obligations. 

Worker’s rights

It is within a worker’s rights, as per Clause 11 of the contract, to file a complaint against his employer in case the latter failed to fulfill his obligations. Workers should also receive their full pay as per the dates and intervals specified in the contract.

They are also entitled to at least one day of rest every week, if they are required to work during the specified day, then they are entitled to a leave-in-lieu or a monetary compensation, which include the standard rate in addition to an increment of at least 50 percent.

Workers are also entitled to paid leaves on official holidays declared by the government. However, if they are required to work on those days, they must be given holidays in lieu and be paid an increment of 150 percent added to the basic remuneration for the worked days.

Annual paid leave should not be less than the following periods: Two days per month, if a worker has been employed for more than six months but less than a year. Thirty days per year if he has been employed for more than one year.

Employees are also entitled to receive remuneration in lieu of annual leaves not availed by him, If he is terminated or he leaves service in accordance to the contract stipulations.

Female workers are entitled to maternity leave with full pay for a period of 45 days, including pre and post-natal periods (provided she has completed a year of continuous employment). Female workers who have used-up their maternity-leave may take unpaid leave for no longer than 100 consecutive or non-consecutive days if such leave is due to an illness preventing her from resuming work.

During th1 8 months following the delivery, a female worker who is nursing her child is entitled to two additional breaks per day for this purpose (neither of which shall exceed thirty minutes).

Following the probationary period, if a worker completes more than three months of continuous service, they are entitled to a sick leave not exceeding 90 consecutive or non-consecutive days.

Workers who go to Hajj are entitled to 30 days of unpaid leave, which will not be deducted from other leave days due to him.

A worker also has the right to retain possession of his/her passport.

Employers also have the right to file a complaint or grievance with the ministry, as long as there are reasonable reasons to do so, as listed in the contract.

Employers have the right to temporarily suspend an employee from work, if the latter has been charged with a premeditated crime. Employees suspended will not be entitled to remuneration.

Employers may terminate the services of a worker who fails to report to work after exhausting all sick leaves he is entitled to. In this case, an employee shall be paid the indemnity he is entitled to.