Category: Labor And Employment

Compensation for Occupational Injury

Employees Compensation for Occupational Injury | Injury Lawyer in Dubai UAE

Federal Law No. 8 of 1980, UAE Labor law outlines employee’s right of compensation if they suffer injury at work. Under this law, employers are liable for workplace injuries sustained by employees.

Workplace injuries are defined broadly to include any accident sustained by the employee during their work or as a result of performing their work.

In addition to employees’ rights under the Federal Law No. 8 of 1980, employees can also bring claim against the employer under Federal Law No. 5 of 1987 (UAE Civil Code). However, under the Civil Code, the employee must prove the fault or negligence on the part of the employer in order to claim successfully.

UAE law guarantees safety of employee during work and therefore impose upon employers to ensure safety working environment to its employees. Employers are mandated by law to provide and have suitable health and safety guidelines in place, including policies and proper incident report protocol in order to promptly address and comply with the mandate of the Labor Law.

Below is the summary of the procedure and corresponding guarantees provided under the Labor law:

  1. In the event of injury sustained during employment, report must be immediately made by employees to the police and Labor Department or local office who has jurisdiction in the area where the injury took place. Investigation will be carried out thereafter.
  2. Copy of Investigation report will be sent by the police to the Labor Department and another to the employer.
  3. In cases of labor accidents, the employer shall be liable to pay for the treatment of the employee which includes hospitalization, medical test and medicines prescribed including rehabilitation.
  4. If the injury resulted and prevented the employee from performing his work, the employer shall pay him an allowance equivalent to full wage during the entire period of treatment or for a period of six month, whichever is shorter. If the medication requires more that six months or until the employee fully recovers, the allowance shall be reduced by half until the employee fully recovers, declared disabled or dies, whichever occurs first.

+ Article (147)

  1. Any dispute arises in regard to employee’s fitness for work or degree of disability shall be govern and shall be referred to the Ministry of Health through competent Labor Department. Medical Board will be formed to determine the matter related to the injury or treatment. Assistance of the expert may be sought, and the decision of the Committee shall be final and will submitted to the Labor Department for execution.
  2. In the event the occupational injury resulted to death of the employee, the person who at the time of death of the employee used to be entirely or mainly supported by the income of the descend shall be entitled to compensation equal to basic wage of the employee for 24 months, provided that the amount of compensation is not less than AED 18,000 or more than AED 35,000. Calculated as per the guidelines set forth under the Labor Law.
  3. Should the injury results to partial disability or permanent disability of the employee, compensation shall be calculated set forth under the Labor Law.

In summary, determination of the issues relating to the occupational injury shall be determined in accordance with the level or type of injury and the proportion of disability sustained by the employee.

dubai UAE labour law

UAE LABOUR AND EMPLOYMENT LAW

UAE LABOUR AND EMPLOYMENT LAW | LABOUR AND EMPLOYMENT LAW IN UAE

Federal Law No. 8 of 1980 governs labour rights of employees in UAE public and private sector. Except for certain categories of employees, this law applies to all employees working in the UAE, whether UAE nationals or expatriates.

In turn Ministry of Labour is the overseeing authority responsible in maintaining the proper implementation of labour rights and responsible implementation of the labour laws and regulations.

UAE Labour Law provides the framework relating to the following core employment facets: employment contract bound and conditions relating to working hours, termination of employment, end of service gratuity payments and notice period, vacation and public holidays, sick leave, maternity leave and annual leave.

UAE employment contracts are categorized into two classification: limited and unlimited contracts. Major distinction between these two types of employment contract are as follows:

  • Limited contract is a fixed term and it will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties. On the other hand, unlimited contract is an open-ended and maybe terminated in accordance with the conditions set forth in the UAE Labour Laws.
  • Limited term contracts have no notice provision and will expire at the end of the term. On the other hand, under the UAE Labour Law, there are two main ways for an employer to legally terminate an unlimited term contract – minimum notice period of 30 calendar days unless otherwise agreed on longer notice period; without notice period if the reason of employment termination is grounded for one of the 11 exhaustive gross misconduct reasons set out in Article 88 and 120 of UAE Labour Law.
  • In the event, the employee desires to terminate the limited term contract before the expiry of the term, he will be liable to pay the employer “early termination compensation” or half of three months’ salary or half of the remuneration for the residual period if the contract is less than 3 months prior to its expiration. On the other hand, in an unlimited contract, an employee may resign by providing 30 days’ notice period. However, the employee may resign without notice if the grounds are based on the conditions set forth under Article 121 of the Labour Law.
  • End of service gratuity for both Limited and Unlimited contract are calculated as follows:
 Employee who has completed one year or more of continuous service:

·         21 days’ basic salary for each year of the first five years of service

·         30 calendar days’ basic pay for each additional year

Provided that the entire remuneration does not exceed two years’ pay.

However, in cases where the employee is terminated summarily for gross misconduct pursuant to the provisions of the UAE Labour Law, the employee is not entitled to end of service gratuity.

End of service gratuity computation will differ in the event the employee resigned:

(i) Under limiter term contract, the employee is not entitled if he resigns less than 5 years or service. If he has more that 5 years of service, gratuity is calculated as per above guidelines.

(ii) Under unlimited contract, he will be entitled base on the following calculations:

·       One to three years of service: 1/3 reduction

·       Three to Five years of service: 2/3 reduction

·       More than Five years of service: no reduction

 

If you want to know your rights and learn more about how employment and incentive practices are implemented in UAE Labour Law, you can contact our team of expert labour lawyers in UAE and we will guide you through and pertinent legal advice will be provided.

injury law in dubai uae

Know Your Rights, If You Are Injured At your Workplace

Injured At your Workplace. What are your rights as employee if your company is in Dubai United Arab Emirates.

The Judicial Law of the United Arab Emirate for the Employer and Employee Relationship decreed the rights and obligation through the Federal Law No. 8 of 1980 wherein it governs the Labour rights of the employees in the Private Sector. It is stipulated in Article 144 of Federal Law No. 8 of 1980 which regulates the liability of the Employer during the course of the Employment, the Employee sustains an accident; contracts an occupational disease or is disabled, the Employer shall pay for the cost of the injured Employees treatment in a local government or public medical center until he recovers.

What does such Treatment Include?

Treatment shall include costs of residence in a hospital or sanatorium, surgical operations, expenditure on X-rays and medical analysis, the purchase of medicines and rehabilitation equipment, and the supply of artificial limbs and other prosthetic appliances for any person who is declared disabled. In addition, the Employer shall pay the cost of any transport entailed by treatment provided for the Employee.

Is An Employee entitled to Full Salary, during this period?

Yes and It is imperative to be aware that Employees are entitled to receive a full salary. The salary can be throughout the treatment period or up to 6 months whichever is shorter and thereafter, half of his salary for another six months or until the Employee completely recovers shall be payable to the Employee. In accordance with Article 145 Federal Law No. 8 of 1980. The Law also states that an Employee is fully protected in the U.A.E. and has the right to get compensation, salary, expense payments, etc. in the case whereof he is discriminated, terminated on wrongful grounds, not paid or if he gets an injury.

Why Lawyers or Legal Consultants are recommended during such events?

A Legal Adviser can be a substantial support to an Employee, Employer, or even a service provider during events that of worst scenarios.  Our team will assist both the Employer and Employee in terms of advice, filing lawsuit and representative the employer or employee at all levels of the competent court of laws. It is crucial to seek legal advice prior to taking any legal action against any individual be it employer or employee.  We strongly recommend consulting Al Riyami & Muhyealdeen International Legal Consultants or any other Consultant of choice for taking any legal action, other than this legal knowledge.

For Free Legal Consultation, Call Us Today!

Termination due to Covid-19 Pandemic Effect

Rightful Employment Termination due to Covid-19 Pandemic Effect

Termination due to Covid-19 Pandemic Effect. Rightful Employment Termination guide for business Owners and Management in Dubai UAE Labour & Employment Law.

The spread of the Coronavirus has widely traversed the world wherein it has unveiled the vulnerability of the global economy. This effect has agitating for the businesses as they were vastly affected by the pandemic. During these unprecedented and ambiguous times, the U.A.E. government gets its under way in imposing measures to suppress the outbreak. Thus, the business sectors are determined to respond by preserving its workforce and organization thereby they do not face insolvency.

In reference to the Judicial law of the United Arab Emirate herein stipulated as Section 2 of the U.A.E. Labor Law Federal Law No. (8) OF 1980 wherefore it confers sick leave entitlements and rights for employees, whereby when the same completed his or her probation period and has spent more than three months in continuous service for an employer he or she is entitled to a sick leave. Also, Article 83 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980 affirms that the duration of leave should not exceed 90 days of either consecutive or non-consecutive for every year of service. However in respect to Article 82 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980, as amended, the employee must notify the employer about his sickness within two days upon taking a sick leave. The employer has the right to put the employee under a medical examination in order to verify the illness, and the authenticity of the employee’s leave.

The Dubai Health Authority has set its policy wherein employees in the private and public sectors are mandated to get a Sick Leave Certificate which will help to avert employers from workday losses. Thus, an employer may not dismiss or serve its employees termination whilst on sick leave. The same applies to the current pervasive situation we are faced with as the COVID 19 cases rapidly increase in numbers. If an employer breaches the contract with the employee without notifying them, the employee then has the right to file a complaint before the Ministry of Labor in the event whereof the employee and employer are unable to reach an amicable solution. An employee can claim compensation from the employer. If the employee uses all of his 90 days’ sick leave and was not able to report to work afterwards, the employer may terminate his services. In such a case, the employee shall be entitled to the end of service gratuity in accordance with the provisions of the U.A.E. Labor Law.

The U.A.E. Labor Law protects the rights of every employee, employer and the businesses in the United Arab Emirates. A person who lives and works in the U.A.E. has wide options to seek help if faced with employment-related matters as there is a comprehensive law, judiciary initiatives, public prosecutor, courts, lawyers, law firms, etc. We strongly recommend consulting Al Riyami & Muhyealdeen International Legal Consultants or any other Consultant of choice for taking any legal action, other than this legal knowledge.

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labor dispute in dubai

Labor Dispute in UAE

Labor Dispute in UAE | Employment Dispute between Employee and Employer in Dubai UAE

Any dispute that arises between the employer and the employee shall be dealt by,

A complaint is filed either by the employer or the employee in the labor department as per Article 6 of labor law which will then summon both parties and settle the dispute. In case the dispute does not get resolved it is then referred to the courts within two weeks of submission of complaint.

The labor court has two circuits which is

a- Minor Circuit
The cases which are worth less than one hundred thousand dirhams (AED100, 000) are dealt by one judge including counter cases regardless of their value

b- Major Circuit
The cases which value exceeds one hundred thousand dirhams (AED 100, 000) are dealt by three judges led by one judge including counter cases regardless of their value

There is a time limitation of one year to initiate an employment case. No complaint from both parties will be eligible for a claim if brought after a year or if they did not follow the procedures.

The court holds a meeting within three days of complaint in which they review and consider the claim from both parties. Furthermore, they might summon a representative of the labor department to investigate more and a notice is sent to both parties.

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employment law in dubai

Limited and Unlimited Contract in UAE Labor Law

Limited and Unlimited Contract in UAE Labor Law | Labor And Employment Law in Dubai

It is important as an employee that you should familiarize yourself with the labor laws of UAE so you know what you are committing yourself too.

There are two types of labor contracts which are as follows,

1- Limited Contract

This type of contract is for a limited time period which has a start date and an end date which is for two years and cannot exceed the term. It also must mention the notice period either it be a minimum of one month or maximum three months.

The contract will end once it completes two years term, or if both employer and employee mutually agree to end it, or if the employee commits any illegal act as per Article 120 of labor law.

In case if the employer singly wants to terminate the contract or renewed contract earlier with the reason not stated in Article 120 of labor law then the compensation to be given is of three months advance salary or the remaining period of the contract whichever is a lesser amount.

Same applies for the employees if they decide to resign with the reason not stated in Article 121 of labor law then they have to compensate with a half months salary for a period of three months or the remaining period of the contract whichever is a lesser amount.

2- Unlimited Contract

This type of contract has a start date but no end date known as an open contract. It can be terminated by any of the parties either be it the employer or the employee honoring the requirements of the notice may it be the notice period of minimum one month or maximum three months. However with the consent of both parties the contract may be terminated without notice requirements (notice period).

In case if the terminating party does not comply with the notice requirements for the early termination then they will have to face legal charges and compensate the other party.

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end of service claim in dubai

End of Service Benefits in UAE

How to Compute Gratuity Pay in Dubai

The most frequently asked questions raised about UAE labor law are, am I entitled to end of service pay or gratuity pay? According to UAE labor law, an employee becomes entitled to receiving end of service pay once they have completed 1 year of service.

The actual amount of end of service pay you may be entitled to varies greatly based on the length of service and whether you are employed in a free zone or by a mainland (non-free-zone) company. Although Free-zones are required to follow UAE labor law, some do have different (slightly more beneficial) calculations for this benefit.

Note: The employer may deduct from the gratuity any amount owed to them by an employee for advanced pay or loans. Expenses such as visa costs and recruitment costs should not be deducted.

End of Service Benefits in UAE

The actual calculation can become quite complicated depending on individual circumstances as will include unused leave or holiday and can also include regular commissions. It is also based on your actual current salary rather than the starting salary that may be listed on your original employment contract.

The calculation is also different depending on whether you resign from your position or are terminated by the company (remember that there is also the possibility of compensation if you are terminated for any reason other than work related performance).

As a rule of thumb, the calculations are based on the criteria listed below and there is a useful calculator provided on the Ministry of labor web-site. Some free-zones also provide their own calculator on their web-sites to guide you.

Generic Guidance for End of Service Calculations

Limited contract if terminated,
– Must serve at least one year for gratuity pay
– For service of more than 1 year but less than 5 year, the employee will get 21 days basic salary for each year
– For service of more than 5 year , the employee will get 30 days basic salary for each year

Unlimited contract if terminated,
– Must serve at least one year for gratuity pay
– For service of more than 1 year but less than 5 year, the employee will get 21 days basic salary for each year
– For service of more than 5 year , the employee will get 30 days basic salary for each additional year but must not exceed 2 years pay

Resigned under unlimited contract then,
– Must serve at least one year for gratuity pay
– For service of between 1 year to 3 year, the employee will get 1/3 of 21 days basic salary for each year
– For service of between 3 year to 5 year, the employee will get 2/3 of 21 days basic salary for each year
– For service of more than 5 year , the employee will get 21 days basic salary for each year

advocates in dubai

Claiming the Labor Rights in UAE

Employment Law in Dubai UAE | Claiming the Labor Rights in UAE

There are a surprisingly high number of labor disputes in progress at any given time in the UAE and knowing the procedure and process are key to bringing about the best solution. The initial steps must be carried out by the parties involved, either the employer or the employee and lawyers cannot be directly involved until the dispute is referred to court.

For the Dubai Labor Authorities to consider any legal matters against an employee or an employer, a labor relationship must exist (or have existed) with a labor card or, at the very least, a formal offer letter issued by the authorities.

There is a separate independent body established to hear and handle manpower affairs known as the Ministry of Labor & Social Affairs. Initially, however, a complaint should be submitted to either the Labor Department of the Ministry (for UAE mainland companies) or the labor dispute section of the Freezone authority for Freezone companies.

Government employees should submit the case to Rulers Office as the initial step to obtain an NOC in order to proceed.

The labor authority concerned will then arrange a meeting between the employer and the employee to attempt to settle the dispute. If this is not successful, the matter can then be referred to the court.

At this stage, if you have not already done so, you can and should seek the assistance of a competent and experienced lawyer who can handle the proceedings in the court on your behalf.

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labor law in dubai

Labor and Employees Rights in UAE

UAE Labor Laws | Labor and Employees Rights in UAE

Most employees working are not familiar with the UAE labour laws governing that employment and the significant differences that will exist from their home country. This is particularly evident in the case of termination of an employee.

All matters relating to employment relations in the private sector are governed by Federal law No 8, 1980. When looking to hire someone, the employer has to follow specific procedures including obtaining a residence visa for the employee.

All expats that reside in the UAE and are hired by a company (license holder) on residence visa will also need to obtain a labor card.

The application of labor law generally favors the employee in the event of a dispute. This essentially means that any contractual provisions made by the employer (side contracts, local contracts for example) other than the UAE law will not be considered and the law of the land would prevail, unless those provisions were in the favor of the employee. Common examples of additional contractual provisions that are often contained in side contracts may include, lower gratuity, extended probation periods (more than six months) or notice periods other than between 1 and 3 months.

In general, there are 7 specific rights of labor that must be adhered to:

1- Annual leave – entitled 2 days leave for every month after finishing probation period

2- An air ticket to home country

3- Salary to be paid for full notice period

4- Over time should be paid (over and above the limits of UAE labor law)

5- All earned salary must be paid up to date

6- Compensation to be given for unfair termination

7- Gratuity to be paid at the end of service (unless specific reason for termination under article 120, gross misconduct)

Important: There can be other additional rights as well but employees will only be entitled to the above rights if they complete their probation period as agreed.

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