What is a Labour Contract? Is it the same as a Contract of Employment?
In essence, it is, as both documents contain information about your employment with a particular employer. However, in the context of jobs in Dubai, these are two separate documents. The official Federal Labour Contract is actually a cookie-cutter template document written in both Arabic and English. It contains the very basic information pertaining to your employment as required by law. This document must be produced in three copies, hard copies (printouts) for both the employer’s and the employee’s file; and an electronic (usually scanned) copy for the Department of Labour. Unless submitted to the Department of Labour, such contract has no legal effect and no employment visa will be released in the name of the employee.
My employer asked me to sign a document titled “Contract of Employment”. Is this the document that binds me to an employee-employer relationship with a Dubai employer?
This question merits more than a straightforward yes or no response. If what you are holding is a detailed contract containing specific conditions of your employment with your particular employer, your reciprocal rights and obligations, specifically pertaining to your job description and remuneration, company policies and others, and the said document is written only in English, such document is not binding. This means you or your employer may not use such document before the Department of Labour as basis for any particular action pertaining to your employment.
Note: However, for any employment-related document to be legally enforceable, such document must be translated to Arabic and included in your Federal Labour Contract as an attachment under the Other Conditions section. All other documents and communications between you and your employer are binding only insofar as either or both parties agree to be bound, i.e. a handshake deal or a gentleman’s agreement, without any legal effect.
Why is the Labour Contract required to be written in both English and Arabic?
UAE Federal Laws specifically name Arabic as the sole official language to be used in every mode of communication between an employer and their employees. But because the majority of UAE’s work force, especially in Dubai, is expatriate, English, being the accepted language of business internationally, is used alongside Arabic for the sake of expatriate employees who do not speak or understand the Arabic language. Note however, that if there is an error or discrepancy in the text, weather intentional or not, the Arabic text prevails.
Employees, therefore, must exercise due diligence and be certain that they understand the provisions of their contracts before affixing their signatures to the document. It’s best to have a friend or colleague who understands both English and Arabic to review your contract.
What are offer letters? Are employers required to give all employees an offer letter?
An offer letter is a formal offer of employment to a prospective employee. This document contains the details of employment such as job description, compensation and benefits like basic salary and allowances, leave dues, and other perks. It is customary for an employer to make a formal offer of employment to a candidate who has successfully made it through their recruitment and hiring process. Customary does not mean mandatory. There is no legal requirement for employers to issue Offer Letters. Some employers do not make formal Offer Letters.
What is the difference between limited and unlimited contracts?
Your official Labour Contract may either be limited or unlimited.
An unlimited or indefinite contract is a renewable contract. The term specified as period of employment herein usually corresponds to the validity of your residency visa. Such contract can then be renewed upon expiration under the same conditions, i.e., without modifications. After the probationary period, either party may terminate the contract at any time by giving at least a 30-day notice.
A limited contract specifies a definite term or period of employment. Renewal of the contract upon expiration is not guaranteed as an option. Termination of the contract prior to expiration normally warrants the payment of damages to the party suffering the breach. Maximum penalties set by law for violation of the period clause is payment of damages to the aggrieved party of an amount equal to 1.5 times of the employee’s monthly wages.
What is the probationary period?
This is a period of time, usually between three to six months, where your (the employee’s) performance on the job is subject to scrutiny by the employer. Labour Laws allow the employer this period to assess whether you are indeed qualified to perform the job they hired you for. At any time during the probationary period, your employment may be terminated at will by the employer without further notice or compensation other than wages earned. After the probationary period, your employment with your employer is secured by applicable federal laws and may only be terminated upon expiration of the period of employment specified in the labour contract or for reasons specified by law.
What must I know about probationary periods?
Probationary periods are required by law, i.e., it is mandatory and shall be for a period of not less than three months but no more than six months. Here are some things you ought to know about probationary periods:
- You can not be placed under probation more than once by the same employer
- Your employer can terminate your services at any time during the probationary period without notice or severance pay.
- The probationary period is included in calculating your service years for purposes of gratuity and other pay calculations
- You are not legally entitled to any paid sick leaves during the probationary period.
- Entry airfare can be reimbursed from your employer if you were recruited from a foreign country.
- You are likely to incur a labour ban if you terminate your employment during this period.
Under what conditions can the employer terminate my employment prior to the expiration of my labour contract?
Article 120 of the Federal Labour Law specifies these conditions. An employer may terminate your employment if:
- You falsified any information pertaining to your application;
- You committed mistake(s) that results to grave financial loss to your employer’s business. In this case, the employer must notify the Department of Labour within 48 hours from learning of the mistake
- You violated work-related safety instructions. The safety instructions in question must have been in writing and displayed in an easily visible place and that if illiterate, you must have been given the instructions orally;
- You repeatedly failed to meet performance standards set forth in your labour contract. There must have been interrogation and a written warning given you
- You disclosed trade secrets to parties you shouldn’t have. Some employers whose businesses require utmost confidentiality would actually include a non-disclosure agreement (NDA) as an attachment to your labour contract
- You have been conclusively convicted in court of any offence pertaining to honesty, honour or public morals;
- You report to work obviously intoxicated or drugged. This is presumably the kind of drugs considered illegal in most societies, e.g. cocaine. The Police and the Labour Department must have been duly notified in this case;
- You committed assault to physical harm to any person you work with during work hours. In this case, the Police and the Department of Labour must have been notified of the incident;
- You were absent from work for 20 uninterrupted days or seven (7) consecutive days in a single year for no valid reason.
In cases of criminal offences (items 7 & 8), a formal complaint must have been filed against you and a conviction by a court of law is necessary to substantiate the reason for termination.
In addition, Article 88 bars an employee from working for any other employer during his/her annual holiday or sick leave. Otherwise, their employment with the employer who sponsored their visas could be terminated and their pay for the leave withheld.
Can I have my contract terminated before it expires?
Yes, you may, under either of these situations:
- Your employer or any of their legal representatives have assaulted you or;
- Your employer has refused to release your wages per your labour contract.
In either case, you must present substantial evidence to the Department of Labour to have your labour contract cancelled. Each case is judged based on merit.
i am BBA 6 sem.and i want to doing job in dubai as any small managment post.
hi, my husband is working as a mechanic for almost 6 mos. now,in an auto shop repair company, when he arrived at al ain city he was ask to sign a new to contract, since he was new there he signed it but then he noticed that the salary in the contract is 1500 dirham but he he was paid 1000 dirham only, and they were also told that their salary will be delayed for 2 weeks till 2 months. please help me what my husband should do because he really wants to go back home. can he ask for the cancellation of his contract? and if the sponsor will allow it, who will shoulder for the plane ticket to go back home. pls help me becoz my husband don’t have internet so i will just rely this information to him.
plssss, need your help before my husband loses his insanity.
your help will be truly appreciated. tnx in advance
Hi, Good Day!
To be brief.. I wanna ask for my scenario again..
My Passport was still in my prrevious Employer my grace period is over i got already my appointment letter and my visa is still on processing for max of 20 days and its freezone.
And whatever will be the fine of overstaying we’ll pay for it but my previous PRO told me that he will surrender my passport to immigration if i dont go home..If ever that my passport will be surrender to the immigration what will be the consequences?will i be able to get it back as soon as I have my Visa?Can i have your expert Opinion?! As soon as possible…
Sir,
Currently I have been employed with limited contract and company offered me Car as transportation for personally.So far (7 months over) they dint given that and offer letter I have signed but not given me by hand.So I have emailed my request to HR manager after asking him verbally.But I have been received very rude attitude from HR MGR saying that I can go myself anytime from that company.In this condition what can I do? I would like to get another job…But the rules of limited saying that I have to pay 45 days salary to company..This is crucial for me.Labour Ministry saying there is no mandatory to produce offer letter to employee..so If I go to Labour Ministry how I can prove my innocency and needs without Offer letter even a copy also i DIDNT get..I can escape from the 45 days salary ? what favourable action I will get from labour? Is any requirement that the company shall cancel the visa immediately or I want to wait for 1 month to go another company? If the company makes revenge to extend my cancellation for 2 months what I want to do? This company not paying the overtime correctly wht we done…so what is the solution to get full overtime pay?
regrds,
Sibin
sir
i would like to know that recently i got a job in U.A.E but in my passport my profession is business. my question is do i have to change my passport profession to enter U.A.E?
Hi,this is norilyn. i,ve work as a cashier in a fine dining restaurant. sadly my employer terminate me without prior notice because i was absent for 1 day because i got sick and i have a sick leave certificate from rashid hospital. the next day he dont want me to continue my work without hearing any explanation from me. now, i was cancelled already and need to go back from my country. until now they didnt give me my last salary.
Actually I am working in construction company for the past 4 years and 11 month, at present i am in Ajman Visa. My Question is,
1.If company will cancel my contract or terminate what are the issues will come?
2.If myself cancel the contract what are the issues will come?
3.I have a loan in bank for a period of 4 years, then what should i do if i cancel or terminate my contract?
Please reply ASAP.
Regards,
Samsudheen.
Hi
I have completed more than 1 year with a company and the company has not processsed my labor card despite repetitive request until now.
At this time when I wish to apply for my maternity leave / pay they are terminating on the same grounds without giving me any maternity / leave.
Please advice me if i can go the labor court and get justice for myself.
Awaiting your response.
Thanks
Priyanka
hai,
this is regarding to my husband,he is working in a company in dubai airport freezone. meanwhile he helped another company in the same feild.now his boss got information regarding this and my husband resigned from his job.his boss accepted the resignation also. but now his boss is not ready to cancel his visa and he moved legally. he gave a complaint regarading to this to the dubai airport freezone police.the boss having some mails witnessing my husband worked for the other company. what will be the procedures for this in freezone and what will be the punishment maximum for this. please reccomend some solutions for this.
can i apply for another job in uae during my probation period of first job?
Dear sir,
I’m an steward in a cafe,I will finish my 2yrs this march 29 2012,but I got my visa for 3year ,I give my resignation last feb 29 2012 as a one month notice.this period upon resigning , I receive already not good treatment from my manager, hearing insult like stupid,deducting from my share of the tipps which according to him I do mistakes., we had arguments and so I quit before the 1month of notice
I went to the genral manager last march 5, I said I will not go to work anymore I just want to go home to my country.can you pls advise me , who will handle my ticket, how about my annual leave because I did not get my annnual leave last year? I follow up my status but his answer is my papers are not ready, I just want to go to my country.thank you very much..
does probationary period apply in a promotion scheme? my boss tell me am in probationary period for 9 months to be promoted for a higher position (jr… to Senior.)wasn’t it that the maximum probationary period is 6 months? but could be extended depends to my performance. but the thing is, their using me already as Sr staff. and the Sr title was accompanied to my name in their documents submitted to the client.and that they are charging the client for my position as senior, yet they are paying ,me as junior..
where would my right stand here? could any one out there assist me what to do.?
thanks a lot.
I am working for an MEP company in Jebel Ali Free Zone (Jafza) for 1 year 8 months . The company is paying me 4000 AED which is less so I started to look for a new job in the same field as I urgently needed to sort out my financial problems. I got an opportunity from a company for a package of 6000 AED (a direct competitor in Sharjah), which is doing the same kind of business and is ready to pay me almost what I had expected. So I tendered my resignation saying that I was resigning due to personal financial problems and that I was going to their competitor. After two days of handing my resignation the company called a meeting with me and rejected my resignation meanwhile they are threatening me by showing company agreement policy in which I have signed for the conditions as mentioned below.
UNDERTAKING FOR NON-COMPETITION – You can’t join in direct to competitor companies for 5 years. If you violate then you have to pay 500,000 AED to the company.
1. At this stage can I join the direct competitor?
2. Can I be banned to enter into UAE as they threatened me?
Is it possible for me to transfer to the direct competitor without getting a no-objection certificate (NOC) from my existing employer and without exiting the UAE? And tell me about the labour rules and regulations of Jafza under these circumstances.
Please assist me on this to go further.
I am working for an MEP company in Jebel Ali Free Zone (Jafza) for 1 year 8 months . The company is paying me 4000 AED which is less so I started to look for a new job in the same field as I urgently needed to sort out my financial problems. I got an opportunity from a company for a package of 6000 AED (a direct competitor in Sharjah), which is doing the same kind of business and is ready to pay me almost what I had expected. So I tendered my resignation saying that I was resigning due to personal financial problems and that I was going to their competitor. After two days of handing my resignation the company called a meeting with me and rejected my resignation meanwhile they are threatening me by showing company agreement policy in which I have signed for the conditions as mentioned below.
v UNDERTAKING FOR NON-COMPETITION – You can’t join in direct to competitor companies for 5 years. If you violate then you have to pay 500,000 AED to the company.
note: Statement of undertaking for non-competition is in company agreement/policy and not in JAFZA Form-14 contract document, which is applicable or not
1. At this stage can I join the direct competitor?
2. Can I be banned to enter into UAE as they threatened me?
Is it possible for me to transfer to the direct competitor without getting a no-objection certificate (NOC) from my existing employer and without exiting the UAE? And tell me about the labour rules and regulations of Jafza under these circumstances.
Please assist me on this to go further.
Sir, i have one doubt, if i get a job in a company with in six month can i proceed to resignation?