EXTRACTS FROM THE UAE LABOUR LAW
FEDERAL LAW NO.8 OF 1980 AND ITS AMENDMENTS
CHAPTER IV
WORKING HOURS AND LEAVES
SECTION 2
LEAVES
ARTICLE 74
Each employee is entitled to an official leave with full pay on the following
occasions:
Hijra New Year. One day
Christian New Year One day
Eid Al Fitr Two days
Eid Al Adha and Waqfa day Three days
Birthday of the Prophet One day
Ascension Day One day
National Day One day
ARTICLE 75
The employee must be granted an annual leave during each year of service which
may not be less than:
1. Two days per month in respect of any employee with more than six months and
less than one year of service.
2. Thirty days per annum in respect of any employee whose period of service
exceeds one year.
In the event of termination of an employee’s service he shall be entitled to an annual
leave for the fractions of the last year of service.
ARTICLE 76
The employer may at his discretion determine the date for commencement of annual
leaves and, when necessary, he may decide to divide the leave in two parts at the
most, except in cases of juveniles where vacation may not be divided in parts.
ARTICLE 77
The annual leave period is deemed to include such holidays as prescribed by law or
as agreed to, and any other periods of sickness, occurred during this leave and is
considered as part thereof.
ARTICLE 78
The employee shall receive his basic pay in addition to housing allowance, if any,
for the annual leave days. However if the exigencies of work necessitate that the
employee works during his annual leave in whole or in part, and the period of leave
during which he has worked, has not been carried forward to the next year, the
employer ought to pay him his wage in addition to cash in lieu of leave for his
working days based on his basic pay.
ARTICLE 79
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The employee is entitled to receive cash in lieu of annual leave days not availed by
him, if he was dismissed or if he left the service, after the period of notice stipulated
by law. Cash in lieu of leave is calculated on the basis of pay received by the
employee at the time of maturity of such leave.
ARTICLE 80
Remuneration due to an employee plus that of the approved leave under this law
shall be paid in full by the employer to the employee before the latter’s departure on
annual leave.
ARTICLE 81
If exigencies of work necessitate that the employee work on holidays or rest days
against which he receives full or partial pay he shall be compensated in lieu thereof
with increase in pay by 50% of his wage, but if he has not been compensated for the
same with a leave, the employer shall pay him an increase to his basic wage
equivalent to 150% of the days of work.
ARTICLE 82
If the employee falls sick for reasons other than labour injury he must report his
illness within a period of two days at most and the employer must take necessary
measures having him medically checked up to ascertain illness.
ARTICLE 83
1. During the probationary period, the employee is not entitled to any paid sick
leave.
2. If the employee spends over three months after completion of the probationary
period, in the continuous service of employer, and falls sick during the period,
he becomes entitled to a sick leave not more than 90 days either continuous or
intermittent per each year of service, computed as follows : -
A. The first fifteen days with full pay.
B. The next thirty days, with half pay.
C. The subsequent period, without pay.
ARTICLE 84
Pay during sick leave shall not be made if sickness resulted from mis-behaviour of
the employee such as consumption of alcohol or narcotics.
ARTICLE 85
The employer may terminate the services of an employee who fails to resume his
duties at the end of sick leave as stipulated in Article 82, 83 and 84 hereof, and in
such case the employee shall be entitled to his gratuity in accordance with the
provisions of this Law.
ARTICLE 86
If an employee resigns from service because of illness before the lapse of the first
45 days of the sick leave and the Government Medical Officer or the physician
appointed by the employer justifies the causes of resignation, the employer must
pay to the employee his remuneration due for the period remaining from the first 45
days referred to above.
ARTICLE 87
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A special leave without pay may be granted for the performance of pilgrimage to the
employee once through-out his service and shall not be counted among other leaves
and may not exceed 30 days.
ARTICLE 88
During the annual leave or sick leave provided for hereunder, the employee may not
work for another Employer; however, if the employer has established that the
employee has done this, he shall have the right to terminate the service of employee
without notice, and to deprive him of the leave pay due to him.
ARTICLE 89
Subject to the provisions herein contained, every employee who does not report to
duty immediately after expiry of his vacation, he shall be deprived of his pay for the
period of absence commencing from the day following to the date on which the
leave has expired.
ARTICLE 90
Without prejudice to cases where the employer has the right to dismiss the
employee without notice or gratuity as prescribed herein, the employer may not
dismiss an employee or serve him with a notice of dismissal during his leave as is
provided for in this Section.
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CHAPTER VII
TERMINATION OF EMPLOYMENT CONTRACT
AND
END OF SERVICE REMUNERATION
SECTION 1
TERMINATION OF EMPLOYMENT CONTRACT
ARTICLE 113
The employment contract is deemed to be terminated in any of the following cases:
In the event of mutual consent by both parties to terminate the contract provided
that the employee's consent is made in writing.
On expiry of the period specified in the contract unless the contract is expressly
or implicitly extended in accordance with the provisions of this Law.
At the option of either party in unlimited contracts provided that the provisions of
this Law regarding warnings and acceptable causes for termination of the
contract without abuse are fully complied with.
ARTICLE 114
A contract of employment shall not expire by reason of death of the employer unless
the subject matter of the contract is related to him in person. However, the contract
shall terminate by reason of death of the employee or in case of his total disability to
perform duties established by a medical report approved by the competent State
Medical Authority.
If partial disability of an employee permits him to perform different duties which
conform with h1s health state, the employer shall transfer the employee, at the
latter's request, to another job of such other duties and shall pay him the
remuneration normally paid by the employer in similar cases without prejudice to
entitlements and indemnity accrued to the employee in accordance with this Law.
ARTICLE 115
If the employer has terminated an employment contract with a limited period, for
reasons other than those provided for under Article 120 hereof, he becomes liable
for payment of compensation to the employee against damages sustained by him,
provided that the sum of compensation in all events, may not exceed the total pay
due to him for a period of three months or for the remaining period of contract
whichever is shorter, unless the terms of the contract provide otherwise.
ARTICLE 116
If the contract has been terminated on part of the employee, for reasons other than
those provided for under Article 121 hereof, the employee becomes liable for
compensating the employer against losses incurred by him in consequence of
contract termination, provided that the amount of compensation, may not exceed
half a month's pay for a period of three months or for the remaining period of
contract whichever is shorter, unless the terms of the
contract provide otherwise.
ARTICLE 117
1. The employer and employee may terminate the employment contract with
unlimited period, for a valid reason at any time after conclusion of the contract
by written notice duly given to other party, thirty days at least prior to
termination.
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2. In respect of daily pay employees period of notice shall be as follows:
a. One week if the employee has worked for more than six months but less
than one year.
b. Two weeks if the employee has worked for at least one year.
c. One month if the employee has worked for at least five years.
ARTICLE 118
The contract shall continue to be valid throughout the period of warning referred to
in the preceding Article and shall expire with the expiry date of the warning. The
employee shall be entitled to full pay during the notice period on the basis of last
pay he earned, and he shall have to perform his duties during such period if so
instructed by the employer.
It may not be agreed to waive or reduce period of warning but it may be agreed to
increase such period.
ARTICLE 119
If the employer or the employee has' failed to serve notice to the other party for
termination of the contract or has reduced the notice period, the party obliged to
serve the notice shall pay to the other party an indemnity called "Compensation in
lieu of notice", and it is incurred by the other party as a result of failure to give
notice or for reduction of said period, and the indemnity shall be equal to the
employee's pay for the notice period in full or in proportion to the diminished part. In
regard to employees on monthly, weekly, daily or per hour work pay the notice
allowance shall be computed on the basis of last pay earned by them. With regard
to employees paid on piece work basis, allowance shall be calculated on the basis
of the average daily pay provided for in Article 57 hereof.
ARTICLE 120
The employer may dismiss the employee without notice in the following cases:
1. If the employee adopts a false identity or nationality or if he submits forged
documents or certificates.
2. If the employee is appointed under a probationary period and dismissal
occurred during or at the end of said period.
3. If he commits an error causing substantial. material loss to the employer
provided that the latter advises the labour department of the incident within 48
hours from having knowledge of the same.
4. If the employee violates instructions concerning safety of the place of business
provided that such instructions are displayed in writing at conspicuous places
and in case of an illiterate employee the latter be informed verbally of the same.
5. If he fails to perform his basic duties under the contact of employment and
persists in violating them despite formal investigation with him in this respect
and warning him of dismissal if the same is repeated.
6. If he divulges any secrets of the establishment where he is employed.
7. If he is awarded final judgement by the competent court in respect of an offence
prejudicing honour, honesty or public morals.
8. If during working hours he is found drunk or under the influence of drug.
9. If in the course of his work he commits an assault on the employer, the
manager or any of his colleagues.
10. If he absents himself without lawful excuse for more than twenty intermittent
days or for more than seven successive days during one year.
ARTICLE 121
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The employee may leave the service without notice in the following cases:
a. If the employer does not fulfil his obligations towards the employee as provided
for in the contract or in this Law.
b. If the employer or his legal representative has committed an act of assault
against the employee.
ARTICLE 122
Termination by the employer of an employee's service is considered arbitrary if the
cause for such termination has nothing to do with the work. In particular termination
is considered arbitrary if the employee's service has been terminated on grounds, or
a reasonable complaint lodged by him to the competent authorities, or on grounds of
a justifiable action brought by him against the employer.
ARTICLE 123
a. If the employee has been arbitrarily dismissed, the competent court has the
jurisdiction to give judgement against the employer for payment of
compensation to the employee.
The court shall determine the amount of this compensation, taking into
consideration the nature of work sustained by the employee, period of service
and after investigation of dismissal circumstances. Provided that in all cases
the amount of compensation should not exceed the employee's pay for a period
of three months, to be worked out on the basis of last pay due to him.
b. The provisions of the preceding clause shall not prejudice to the employee’s
entitlement to the gratuity due to him and notice period provided for in this Law.
ARTICLE 124
The employer may not terminate the service of an employee for his health deficiency
before he avails himself of the leaves lawfully due to him. Any agreement to the
contrary is deemed null and void even if it is made before this Law comes into
operation.
ARTICLE 125
The employer shall provide the employee at the end of his service and at the latter’s
request with an end of service certificate free of charge. Said Certificate shall
include date of appointment and date of termination, total period of service, nature
of work performed by him and his last pay plus allowances, if any. Certificates or
diplomas, papers and tools belonging to the employee shall be returned to him.
ARTICLE 126
If any change takes place in the form of the establishment or in its legal status, valid
contracts at the time of change shall continue to exist so between the new employer
and the employees of the establishment, and service shall be deemed to be
continuous. Both the former and the new employers shall jointly be liable for a
period of six months for the fulfillment of obligations arising from contracts of
employment in the period prior to such change and after the lapse of the said period
of new employer shall be solely responsible.
ARTICLE 127
If work assigned to the employee allows to acquaint with the employer’s clients or
have access to the secrets of his work, the employer may oblige the employee that
after termination of the contract he may not compete with him or take part in any
business interest competitive to the employer’s. Such agreement shall be valid only
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if the employee has reached the age of 21 years at the time of its being executed
and if the agreement is limited with respect to the place, time and nature of work to
the extend as is necessary to safeguard the lawful interest of business.
ARTICLE 128
Any non-national employee who absents himself from work without lawful reasons
prior to the end of the contract for a limited period, may not take up employment
elsewhere even with the consent of the employer for one year after the date on
which he absented himself from duties. And no other employer who is aware of that
may employ or keep such employee in his service during such period.
ARTICLE 129
If the non-national employee has notified the employer of his desire to terminate the
contract with unlimited period and has absented himself from work before the end of
the legal notice period, he may not take up employment elsewhere before the lapse
of one year from date of absence from work, even with consent of employer, and no
other employer, who is aware of the case may recruit him in service before the end
of such period.
ARTICLE 130
The provisions of Article 128 and 129 exempt non-national employee who obtains
prior approval of the Minister of Labour and Social Affairs before taking up another
employment with the approval of the original employer.
ARTICLE 131
Expenses for repatriation of an employee to his place of origin or any other place
agreed upon by both parties shall be borne by the employer. If the employee after
the end of his contract takes up employment somewhere else, repatriation expenses
upon termination of his service shall be paid by the last employer subject too the
provisions in the preceding clauses, and if the employer has failed to repatriate the
employee and has not paid the repatriation expenses, the competent authorities
shall do this at the employer's expense by way of attachment. If the cause for
termination of contract is attributed to the employee, his repatriation will be
arranged at his own expense if he has the means to pay.
* ARTICLE (131) (REPEATED):
1. In application of the provisions stated in the preceding clause, the expenses of
employer’s repatriation shall mean the cost of his travel ticket and whatever is
provided for in the employment contract or in the bylaws of the Establishment,
such as the employee's entitlement to travel tickets for his family and costs for
shipment of his luggage.
2. In the cases where the employer provides the employee with accommodation,
the employee shall be obliged to vacate the accommodation within a period not
to exceed thirty days from the date of his service termination.
3. The employee may not delay vacation of accommodation, thereafter, for any
reason whatsoever, provided that the employer fulfils his obligation towards the
employee with respect to the followings:
a) Expenses defined in Clause (1) under this Article.
b) End of service remuneration and any other dues assumed by the employer
under the employment contract or the bylaws or the Law.
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4. However, if the employer raised a dispute with respect to the amount of
expenses and dues referred to above; the competent Labour Department shall
determine urgently the amount of such expenses and dues, within one week of
a notification being sent to it, provided always that after such determination is
made by the Labour Dept. the employee must be informed forthwith.
5. In such a case, the validity of the thirty days period referred to in Clause 2
under this Article, shall take effect from the date, the employer deposits the
expenses and dues determined by the Labour Department, with the treasury of
Labour Dept. as a trust.
If however the employee has failed to vacate the accommodation after expiry of
the said thirty days, the Labour Department, in cooperation with the competent
authorities in the concerned Emirate, will take the necessary administrative
action to secure vacation.
6. No provisions under this Article is deemed to prejudice the right of employee to
litigate thereabout before the competent court.
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SECTION 2
END OF SERVICE REMUNERATION
*ARTICLE 132
The employee who has completed one year or more in the continuous service, is
entitled to the end of service remuneration at the end of his service. Days of
absence from work without pay are not included in computing the period of service,
and the remuneration is to be calculated as follows:-
1. Twenty one day’s pay for each year of the first five years of service.
2. Thirty days pay for each additional year.
Provided that the entire total remuneration shall not exceed two year’s pay.
ARTICLE 133
The employee shall be entitled to end of service remuneration in respect of fractions
of the year payable pro rata to the time actually worked provided that he has
completed one year of continuous service.
*ARTICLE 134
“Without prejudice to the provisions of some laws regarding the granting of pensions
and gratuities to employees of some establishments, the end of service gratuity
shall be computed on the basis of last wage which the employee as entitled to, in
respect of those drawing their salary per month, week or day, and on the basis of
average daily wage stipulated in Article (57) in respect of those drawing their wages
on piece work basis. The wage which is considered as basis for computation of the
end of service gratuity shall not include anything given to the labourer in kind,
housing allowance, transport allowance, travel allowance, overtime allowance,
representation allowance, cashier’s allowance, children education allowance,
recreation and social services allowance or any other allowances”.
ARTICLE 135
The employer may deduct any amounts due to him from the employee’s end of
service remuneration.
ARTICLE 136
In fulfillment of the provisions of Article 132, cases of employment preceding the
effective date of this Law shall not be considered as cases entitling the employee to
end of service gratuity. Without prejudice to rights acquired by the employee under
any repealed labour law or contracts of employment, agreements, by-laws or
regulations of the establishment. In the event of his death, the employee’s gratuity
shall be paid to his legal heirs.
ARTICLE 137
If an employee under a contract with unlimited period has left his work at his own
option after a continuous service of not less than one year and not more than three
years, he shall be entitled to one third of the end of service gratuity provided for in
the previous Article.
If the period of his continued service is more than 3 years and less than 5 years he
becomes entitled to 2/3 of the said gratuity, but if his continued service exceeds 5
years, he becomes entitled to the entire gratuity.
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ARTICLE 138
If an employee under a contract with limited period leaves his work at his own option
before the end of the contract period he shall not be entitled to end of service
gratuity unless the period of his continuous service exceeds five years.
ARTICLE 139
The employee shall be fully deprived of the end of service gratuity in any of the
following cases:
a. If he is dismissed from service for any reason in accordance with Article 120
of this Law or if he leaves his work to avoid dismissal in accordance with the
provisions of this Article.
b. If he leaves his work willingly and without notice in cases other than those
enumerated in Article 121 under this law with respect to unlimited period
contracts or before he completes five years of continuous service with
respect to limited period contracts.
ARTICLE 140
In any establishment where a saving fund is raised for employees and if the
regulations of such fund provide that payments made by the employer to the fund for
the account of employee is a legal commitment against the end of service gratuity,
the amount of savings or benefits due hereunder shall be paid whichever is greater.
If the fund regulations have no provisions that amounts paid by employers is a legal
commitment for the end of service gratuity, the employee shall collect amounts due
to him from the saving fund in addition to the legal gratuity.
ARTICLE 141
In any establishment where a pension or security schemes or similar schemes are
maintained, the employee who is entitled to retirement pension may select either
this latter or the prescribed gratuity or whichever from both thus is more favourable
to him.
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