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This blog is designed to equip you with essential knowledge about UAE labor law, empowering you to make informed decisions regarding hiring and employment practices.

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Understanding Contracts:

• Limited contracts: Ideal for project-based roles, offer fixed durations and require early termination compensation from employers.
• Unlimited contracts: Preferred for permanent positions, provide stability and full gratuity upon termination.
• Probation period: Up to six months, allowing contract termination without compensation by either party. However, terminating an employee during probation can be challenged if deemed unfair or discriminatory.
• Renegotiation: Possible for both contract types under specific conditions.

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Termination Procedures:

• Notice Periods: Apply in both termination and resignation scenarios. The required notice period depends on the contract type and service duration.
• Limited contracts: Typically 30 days.
• Unlimited contracts: Typically 30 days, but can be longer as specified in the contract.

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Process and Warnings:

For performance issues, employers must follow a progressive disciplinary process before termination. This includes verbal and written warnings with opportunities for improvement.

Grounds for immediate termination without notice exist for serious misconduct, medical incapacity, excessive absenteeism/lateness, and policy violations (after warnings).

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Important Considerations: Due process, proportionality, and non-discrimination are crucial during termination.

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Severance Pay and Dispute Resolution:

• Limited contracts: Early termination compensation applies for employer-initiated termination.
• Unlimited contracts: Notice period and severance pay based on contract terms and service duration.
• Dispute resolution: Ministry of Human Resources and Emiratisation (MOHRE) for conciliation, followed by labor courts if needed.

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Visa and Work Permits:

• Different types of visas exist (employment, freelance, investor).
• Employers are responsible for obtaining, renewing visas/permits and associated costs.
• Seek professional guidance for staying updated on regulations.

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Employee Rights and Benefits:

• Minimum wage and overtime pay according to government regulations.
• Leave entitlements: Annual leave (minimum 30 days), sick leave (minimum 15 days), and other forms of leave.
• Medical insurance: Employers must provide coverage.

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Additional employee rights:

• Non-discrimination: Protection from discrimination based on race, religion, gender, or nationality.
• Freedom of association: Right to join or form trade unions.
• Protection from harassment: Workplace free from harassment and discrimination.

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Legal Limitations on Deductions:

• Maximum 50% of net salary per month for authorized deductions (visa costs, loans, damages).
• Clear documentation and employee consent required (exceptions exist).
• Dispute resolution through MOHRE or legal channels.

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Employee Visa Costs:

• Voluntary departure: Contract terms may allow visa cost recovery by the employer with legal limitations.
• Termination: Employer typically bears cancellation costs unless misconduct justifies immediate termination.

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Remember:

Seek legal advice for specific situations and complex matters.

This blog provides general information, not a substitute for professional legal counsel.

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