GCC Laws
Employment Contracts, Records and Wages

Employment Contracts, Records and Wages

Q. How can I get an employment contract in UAE?

Whenever an individual gets a job in the UAE, 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 are the types of employment contract in UAE?

As stipulated by the UAE labour laws, there are two types of employment contracts:

  • Limited Contract

A limited or fixed-term contract outlines the agreed-upon duration of employment between an employer and an employee within a legal framework.

  • Unlimited Contract

This type of contract is suitable for permanent positions and extended projects. Unlimited contracts are often sought by individuals seeking long-term employment with a company. However, it's important to note that this contract isn't applicable to private-sector workers.

Also Read: What is a Contract Employee?

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

An employment contract must specify the following:

  • Expiring date
  • Commencement date
  • Nature of the work
  • Workplace
  • Compensation’s dollar amount
  • Time frame

Q. What is the standard probation period for an employee in UAE?

It should be a maximum of six months, as the law dictates. During this period, the employer can terminate the worker's services without notice or severance pay. However, if the employee 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 in UAE? 

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

Also Read: What is Minimum Wage?

Q. How should the workers be paid in UAE?

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

Q. What is average salary in UAE in 2024?

As per the data provided by Salaryexpert.com, the average salary is AED 190,337 AED /per year which is 15,861 AED /per month Which is 4318.27 USD per month.

Q. When can an employer deduct the workers’ pay in UAE?

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, labour organizations, and considering cost-of-living fluctuations.

Q. What action an employee can take if their salary gets delayed UAE?

For any concerns or complaints regarding the unpaid or delayed salaries, employees may contact Ministry of Human Resources and Emiratisation (MoHRE) or register a salary complaint.

Also Read: What is an Hourly Salary?
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