Legislation Details
- Full Title: Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates
- Law Type: Federal Decree-Law
- Law Number: 47 of 2021
- Issued Date: 20 Sep 2021
- Effective Date: 02 Feb 2022
- Official Gazette: No. 712
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 26
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law sets the unified general rules of employment in the United Arab Emirates, applying to both the federal government sector and the private sector. Its purpose is to enhance the efficiency, attractiveness, and sustainability of the UAE labour market by ensuring balanced protection of the rights of employers and employees. The law unifies key employment terms and conditions, such as types of work, working hours, wages, leaves, and end-of-service benefits, providing a comprehensive regulatory framework for the UAE workforce. This legislation is significant for businesses and individuals in the UAE, as it standardizes employment practices and entitlements across the public and private sectors. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 2)
What is the scope and purpose of this law?
The Federal Decree-Law applies to job occupants subject to the Human Resources Law in the Federal Government as well as workers in the private sector whose employment is regulated by the Law Regulating Labour Relations. The Cabinet may, upon the proposal of the Minister of Human Resources and Emiratisation, exclude any category from the law's scope. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 3) The key objectives of this law are: (1) setting and unifying the general rules of labour for all job occupants and workers in the UAE; (2) enhancing the efficiency, attractiveness and sustainability of the labour market by ensuring protection of the employment relationship; (3) determining the rights of all employees and workers in a balanced manner; and (4) creating balance and integration between the public and private sectors in terms of work environment attractiveness and efficiency. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 2)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Law: The law regulating human resources in the Federal Government Sector or labour relations in the private sector, and their executive regulations and resolutions
- Establishment(s): Any economic, technical, industrial or commercial unit, or any other unit approved in the UAE, which aims to produce or market commodities or provide services, and is licensed by the Competent Authorities
- Employer: The federal government entity or any private sector establishment in the UAE
- Employee/Worker: Every natural person who is an employee working for Federal Governmental Authorities or a worker in the Private Sector
- Employment Contract: An agreement between the Employer and the Employee/Worker, where the latter commits to work for the Employer under its supervision and direction, in return for a wage
- Basic Wage: The wage specified in the employment contract, excluding allowances, bonuses or benefits in kind
- Wage: The basic wage plus cash allowances, bonuses and benefits in kind
(Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations: 1. The relationship between the Employer and Employee/Worker must be regulated under a fixed-term employment contract, with the law defining the conditions, controls and procedures for contracting, as well as the obligations of both parties. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 5(1)) 2. It is prohibited to hire or employ persons under the age of 18, with an exception allowing the employment of persons who have completed 15 years of age as per the regulating legislation. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 5(2)) 3. The Employer may appoint the Employee/Worker under a Probation Period not exceeding 6 months, with the law determining the provisions in this regard. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 5(3))
What types of work are covered?
The law recognizes the following types of work: a. Full-time: Working for one Employer for the full daily working hours throughout business days, whether from the workplace, remotely, or a hybrid work type. b. Part-time: Working for one or multiple Employers for a specified number of working hours or days, whether from the workplace, remotely, or a hybrid work type. c. Temporary work: Work of which nature requires a specific period of time, or which focuses on a specific job and ends by the completion thereof. d. Flexible work: Work of which hours or working days change according to the volume of work and the economic and operational variables of the Employer. e. Any other types specified by the Law. The law shall regulate the cases in which it is permissible to combine more than one type of work with more than one Employer. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 6)
What are the rules on working hours?
The law sets the maximum normal working hours at 8 hours per day or 48 hours per week. It shall determine the controls for working and rest times, the hours in which work is prohibited, the overtime that may be worked and their controls, and the payment that the Employee or Worker shall receive for working overtime. Employees must be granted a paid weekly rest of at least one day, which may be increased in accordance with the law. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 7)
What are the wage provisions?
Employees and Workers have the right to receive the wage agreed upon in the employment contract, in accordance with the controls and standards specified by the law. The wage must be paid in AED, but can be paid in another currency if agreed upon in the employment contract. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 8)
What leave entitlements are provided?
The law grants the following leave entitlements for full-time Employees and Workers: a. Annual leave: Minimum 30 days per year, or 2 days per month if service is more than 6 months and less than a year, with pay. b. Maternity leave: 60 days, with the first 45 days at full pay and the remaining 15 days at half pay. c. Parental leave: 5 working days for the Employee/Worker (father or mother) to care for the child within 6 months of birth. d. Sick leave: 90 days, with the first 15 days at full pay, the next 30 days at half pay, and the remaining period unpaid. e. Mourning leave: 5 days with pay for the death of a spouse, and 3 days with pay for the death of certain family members. f. Study leave: 10 business days per year with pay for Employees/Workers enrolled in accredited educational institutions. g. National/reserve service leave: Full-time leave in accordance with applicable legislation. The law shall determine the rules and procedures for granting these leaves, the possibility of working during them, and the rules for any other leaves. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 9)
What are the provisions on end of service?
The service of the Employee or Worker shall end upon the expiry of the employment contract or according to the reasons specified by the law. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 10) The end-of-service gratuity for national Employees/Workers shall be in accordance with the legislation regulating pensions and social security. For foreign full-time Employees/Workers who have completed at least one year of continuous service, the gratuity shall be calculated based on the basic wage, with a minimum of 21 days' wage for each of the first 5 years of service and 30 days' wage for each year thereafter. The law shall determine the end-of-service gratuity for other work types. Alternative systems to the end-of-service gratuity may also be adopted as specified by the law. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 11)
What are the general provisions of this law?
The law establishes the following general provisions: 1. The rules in this law represent the minimum rights for workers in the private sector, without prejudice to any other legislation, agreement, acknowledgment, system, programme or employment contract that grants the Employee or Worker more beneficial rights. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 12(1-2)) 2. The periods and dates stipulated in this law shall be calculated according to the Gregorian calendar, with the Gregorian year being 365 days and the month 30 days. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 12(3))
When did this law come into effect?
This Federal Decree-Law shall be published in the Official Gazette and shall enter into force as of 02 February 2022. (Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates, 2021, Art. 13)
Source Documents
This article analyses Federal Decree by Law Concerning the Unified General Rules of Employment in the United Arab Emirates for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.