What you’ll learn
- Country Introduction
- Social Security and Employee contribution
- End of service
- Probation Period & Termination of Indefinite Contract
- Termination of Contract Post Probation Period
- Working hours
- Sick leave
- Maternity leave
- Medical insurance
United Arab Emirates Introduction
United Arab Emirates (UAE) is a country in the Middle East region bordered by Oman and Saudi Arabia. Dubai is the country’s most populous city and is considered a major international hub with many digital nomads choosing to work in Dubai. Ever since oil was discovered in the area in 1958, the country has had rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.
Social Security and Employee contribution
Expatriate working in UAE are not subject to income tax
End of service
A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work without pay shall not be included in calculating the period of service. The severance pay shall be calculated as follows:
- 21 days wage for each of the first five years of service.
- 30 days wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage.
Probation Period & Termination of Indefinite Contract
A worker may be employed on probation for a period not exceeding six months, during which the employer without notice or severance pay may terminate his services. A worker shall not be placed on probation more than once with the same employer.
Termination of Contract Post Probation Period
Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.
Working hours
The maximum normal working hours for adult workers shall be eight hours in the day, 48 hours in the week.
Sick leave
A worker who contracts illness after completing three months, following the probationary period, in the continuous service of an employer shall be entitled to a sick leave not exceeding 90 days, successive or otherwise, in respect of each year of service, to be calculated as follows.
- The first 15 days: with full pay.
- The next 30 days: with half pay.
- Any subsequent periods: without pay.
Maternity leave
A female worker shall be entitled to maternity leave with full pay for a period of forty five days, including both pre and post natal periods, provided that she has completed not less than one year of continuous service with her employer. A female worker who has not completed the aforesaid period of service shall be entitled to maternity leave with half pay.
Medical insurance
Medical health insurance is mandatory to be provided by employer in UAE.
Partner with Masdar for Streamlined EOR Services in the UAE
With our comprehensive EOR services, you can elevate your business operations, foster a productive workforce, and ensure compliance with UAE labour regulations. Entrust your HR management and payroll processing to us, and experience the convenience and efficiency of our top-notch services. Contact us today to learn more about how our EOR services can benefit your business in the UAE.
