By Fixed term Contract
In the Emirates, there are two types of contracts, i.e., limited and unlimited. In the amended new Labor Law UAE, unlimited contracts are no longer applicable, so employers must place all employees on limited or fixed-term contracts for a minimum period of 3 years. In pursuance of the new law, employers must switch the employee’s contract to a fixed term until February 2023.
The contract can be renewed with the mutual consent of both parties. If the contract is not extended, but both parties keep working together, it will be considered renewed on previous terms and conditions.
Rules for Probation Period in UAE New Labor Law
According to the UAE New Labor Law, an employee’s probationary period is 6 months, i.e., it remains unchanged. However, the employer must provide written notice 14 days before terminating the worker’s employment contract. Similarly, for resigning from a job during the probation period, the employee must provide one month’s notice before joining another company in the UAE or 14 days’ notice if planning to leave the UAE.
Flexible Working Model
The New Labor Law states that the employees may avail any day of the week as the rest day by agreeing with the employer. Overtime can be capped at 144 hours every 3 weeks and can be calculated based on the basic salary.
According to the recent changes in the Labor Legislation, employees must consume their accrued annual leaves within one calendar year or as decided by the mutual agreement of both parties. Moreover, the payment for unavailed leaves is calculated based on the last basic salary of the employee at the end of his service contract.
The general rules for the allocation of leaves are as follows:
1- Maternity Leave
The New UAE Labor Law allows 60 days of maternity leaves, 45 days fully paid, and 15 days with half pay. The mothers may also avail of maternity leave in case of miscarriage, stillbirth, or a child’s death after birth.
Similarly, employees who give birth to a disabled child are entitled to an additional 30 days of fully paid maternity leave that can be extended to unpaid 30 days. Moreover, the current Law reduced nursing breaks from 18 months to 6 months from the delivery date.
2- Study Leave
According to the new employment act in the UAE, employees with more than 2 years of service can avail of a study leave of 10 days per year. The study leaves can only be availed on studying in a UAE institute; however, it’s not mentioned in the law whether these leaves would be paid or unpaid.
3- Leave to find a New Job
As per UAE New Labor Law, the employee must provide a 14 days notice period to resign from a job to leave the UAE while one month’s notice to join another company in the UAE. For finding a new job in the UAE, the employees are entitled to an unpaid leave of 1 day per week during the notice period.
4- Compassionate Leave
The New Labor law entitles 5 days of paid leave to the employee on the death of his/her spouse and 3 days of paid leave on the death of the siblings, children, parents, or grandparents. The leave is granted to manage funeral services, grievances, or other financial or legal matters.
