GCC Laws
Employment Contracts, Records and Wages

Employment Contracts, Records and Wages

Q. Why do the UAE laws require an employment contract to be written in duplicate, and what is the significance of providing a copy to both the worker and the employer?

Whenever an employment contract is signed, as stated in the law, both employee and the employer must have a record of the agreement, it helps in preventing disputes and serves as a reference for the terms and conditions agreed upon.

Q. What specific details must be mentioned in an employment contract in UAE, and why are these details considered essential?

An employment agreement must specify the date of conclusion, the date on which the employee starts working, the type and place of work, the duration of the contract (if definite), and the amount of the wage. These details are crucial for clarity, avoiding misunderstandings, and ensuring fair employment practices in UAE.

Q. How long is the probation period for an employee in UAE?

It should be a maximum of six months as dictated in the law. During this period, the employer has the right to terminate the worker's services without notice or severance pay. However, if the employee successfully completes the probation, it is considered as part of their period of service.

Q. Under what conditions can a definite-term employment contract be renewed? 

If the employee and the employee agree on working, a definite term contract can be renewed. The renewal is considered an extension of the original term, and the duration of the renewal is added to the worker's total period of service.

Q. What are the specific conditions outlined in the  UAE labor law regarding the payment of wages?

According to the labor law, wages must be paid in legal tender on a working day, at the place of work, and in the official national currency.

Q. How often should wages be paid in UAE?‍

Workers on yearly or monthly wages must be paid at least once a month. Other workers must be paid at least once every two weeks.

Q. Are employees in UAE obligated to purchase from specific shops or the employer's products?‍

Employers cannot force workers to buy commodities from a particular shop or purchase the employer's goods.

Q. According to the UAE labor laws, when can wage deductions be made for loss or damage?‍

If a worker causes loss, damage, or destruction to tools, machines, products, or materials owned or supervised by the employer, deductions can be made from the worker's wage for repair or restoration. However, this deduction should not exceed five days' wage per month. Higher deductions require permission from the competent court.

Q. Can an employer in UAE change a worker's payment category without consent?‍

Employers cannot shift a monthly-paid worker to a daily, weekly, hourly, or piecemeal payment category without the worker's written consent.

Q. How is the minimum wage determined in the UAE?‍

The federal decree determines the minimum wage and cost-of-living index for workers. The Minister of Labour and Social Affairs proposes the minimum wage, consulting relevant authorities, labor organizations, and considering cost-of-living fluctuations.

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