Essential Contract Checks in UAE Employment
UAE Labor Law Regulations: Key Points to Review in Your Employment Contract
A new job opportunity is always an exciting prospect, especially in the United Arab Emirates (UAE), where the labor market is continuously expanding. However, before you sign an offer, it's important to thoroughly review the details of your employment contract, as hasty decisions can have serious long-term consequences.
Why is a thorough review important?
The UAE Ministry of Human Resources and Emiratisation (MOHRE) regulates a significant portion of labor relations and strictly monitors the content of employment contracts. If it is found that the employee did not check the attachments provided with the offer before signing, the employer could face a fine of up to 20,000 AED for submitting incorrect information to the ministry. Therefore, before signing the offer, pay attention to the following key points:
1. Type of Employment Contract
Employment contracts in the UAE can take various forms depending on the nature of the job. Employees and employers can choose from the following options:
a. Full-Time: Traditional daily 8-hour work schedule.
b. Part-Time: Shorter working hours offering a more flexible schedule.
c. Temporary Work: Contracts for a specified period or specific projects.
d. Flexible or Remote Work: Work schedules that allow working from home.
e. Job Sharing: Sharing a single job among multiple employees.
2. Job Description and Responsibilities
A precise job description is essential to understand expectations. Ensure that the contract includes:
a. The exact job title.
b. A description of daily or weekly tasks.
c. Any objectives and performance measurement criteria.
This information is crucial to avoid any misunderstandings during the employment.
3. Salary and Benefits
The most important element of the offer comprises the salary and associated benefits. Consider the following:
a. Basic Salary: The fundamental amount received monthly.
b. Benefits: May include housing allowance, transport costs coverage, health insurance, and education allowance.
c. Bonuses: Payments linked to performance or annual results.
The contract should clearly state the amount in AED (Dirham) without hidden costs or deductions.
4. Probation Period Conditions
In the UAE, employee probation regulations are clearly defined. The maximum probation period is 6 months, during which either party can terminate the contract with prior notice.
Check:
a. The duration of the probation period.
b. Rules related to termination notice.
c. Conditions of any potential severance pay.
5. Termination Conditions
Rules governing the termination of employment are also fundamental. The contract should outline guidelines for termination, such as:
a. Length of notice period (usually 30 days).
b. Penalties for breach of contract.
c. Circumstances of immediate termination.
6. Attachments and Supplements
Attachments to the employment contract often contain important details like entry bonuses, company policies, or non-compete clauses. Always read these thoroughly to understand your obligations and rights.
Non-Compete Clause
In the UAE, non-compete clauses regulate what activities an employee may engage in after the termination of the contract, especially within the industry.
Summary
Accepting a job offer in the UAE can be an exciting step, but only if you make a well-considered and informed decision. Checking the details of the offer and the contract is important not only from a legal standpoint but also for your long-term satisfaction and financial security.
Remember, if the employer provides incorrect information to MOHRE, they may face a severe financial penalty, so don't hesitate to ask about every detail before signing the contract.
