What You Need to Know about UAE Labour Contract 2023 – Types, Changes, and Easy Checking

Your Simple Guide to Jobs in the UAE: Understanding Labour Contract and Labour Card

If you’re working in the UAE or planning to, understanding the Labour Contract is crucial. It is more than just pieces of paper – it holds key details about your job and employment terms. In this guide, we break down everything you need to know about labour contract. Let’s get started!

What is a Job Offer Letter in UAE?

In the UAE, a job offer letter is the first official offer given to a worker being hired. It includes important details like the salary, terms of employment, and how long the job will last. The letter is written in a language that the worker can understand, making sure everyone is on the same page about the job terms.

How to Get a Labour Card in UAE?

To obtain a Labour Card in the UAE:

1. The labour card serves as a worker’s official identity proof and needs to be registered by the licensed UAE company with the Ministry of Human Resources.
2. Employers have a responsibility to issue the labour card to their employees within 60 days of their arrival in the country. Failure to do so can result in fines.

The labour card has details like the name of the employee, profession, nationality, phone number, work permit number, the expiry date of the labour card and labour card number.

What is labour contract in UAE?

A Labour Contract in the UAE is a powerful, legally binding agreement issued by the UAE Ministry of Labour. It outlines the terms, conditions, and legal responsibilities for both employers and employees.

Understanding Types of UAE Labour Contracts

Fixed-Term Contract (Limited)

A fixed-term contract is designed for specific projects with predetermined commencement and conclusion dates. This contractual arrangement can extend for a maximum of three years, reflecting recent legal adjustments.

Flexible Contract (Unlimited)

A flexible contract, characterized by its unlimited nature, lacks a predetermined expiration date and concludes when mutually agreed upon by both parties. Termination, however, requires a legally mandated 30-day notice.

Full-Time vs. Temporary vs. Part-Time Contract

• Full-Time: Involves a commitment of 48 hours per week, often spread across six 8-hour workdays.
• Part-Time: Requires less than 48 hours per week, providing flexibility in work hours.
• Temporary: Encompasses a 90-day probation period, with the potential for extension into either full-time or part-time contracts based on performance and need.
• Part-Time Work Regulations: Employees engaging in part-time work for multiple companies must obtain a license from the Ministry of Human Resources and Emiratization (MoHRE).

What are the conditions for employees to work in the UAE?

1. Age Requirement: Employees must be between 18 and 60 years old.
2. Educational Qualifications: Employees must hold the necessary academic qualifications.
3. Health Requirements: Employees need to be medically fit and provide a valid medical certificate.

How to issue a labour contract?

Most of the companies have their in-house Tas-heel system, with this employers can log into the Tas-heel system by providing valid credentials submit the application for a new electronic work contract or through the establishment participating in the e-forms program.

Log in to the Tas-heel system by providing valid credentials, you can submit the application for a new electronic work contract or through establishment participating in the e-forms program.

Understanding Changes in UAE Labor Contracts

The recent Federal Decree-Law No. 33 has brought about significant changes to labour contracts in the UAE. Let’s break down the key points in simpler terms:

1. Fixed-Term Contracts (Limited)

• What Changed: The law now mandates all workers to have fixed-term contracts.

2. Notice Period and Probation

• Probation Period: Employers can put workers on a six-month probation if performance is lacking.
• Notice Requirement: Employers must provide 14 days’ notice before termination; same goes for probationary employees planning to leave.

3. Flexible Contracts

• Flexibility: New law allows contracts with variable terms, giving employees the option to choose work hours.

4. Restrictions and Rest Days

• Non-Compete Clauses: Allowed but not for part-time workers seeking additional work.
• Rest Days: Employers must provide a weekly day off; Friday is no longer legally mandated.

5. Currency and Leave

• Wage Currency: Minimum wage can be in any currency, but the Wages Protection System only handles UAE dirhams.
• Leave Entitlements: Employees must use accrued leave annually; special leave categories include pregnancy, sympathetic, and study breaks.

6. Contract Termination

• Notice Periods: Vary based on years of service, ranging from 30 to 90 days.
• Suspension: Employers can suspend an employee for up to 30 days with half salary during investigation.

7. Service-End Gratuity

• Eligibility: All workers qualify for end-of-service gratuity, provided they’ve worked for at least a year.

8. Workplace Policy

• Requirements: Employers must adhere to workplace policies, including anti-discrimination, pay equity, harassment bans, providing handbooks, and maintaining employment records for two years post-termination.

These changes aim to balance employee rights and employer flexibility, and it’s crucial for both parties to be aware of and comply with the updated regulations.

How to Check Your Labour Contract in the UAE

If you’re wondering how to check your labor contract online in the UAE, you can follow these steps:

1. Ministry of Human Resources and Emiratization (MoHRE) Website:

• Visit the MoHRE website.
• Navigate to the “Services” tab and select “View Approved Contract.”
• Use your transaction number to find your contract.
• If you don’t have the transaction number, you can search using your personal information.
• Follow the website’s instructions to locate your contract.

2. MoHRE App:

• Download the MoHRE app from the App Store or Google Play.
• Register on the app by following on-screen instructions.
• Enroll as an employee and log in after registration.
• Click on “My Dashboard” to access your dashboard.
• Scroll down and find “View Labor Contract,” then click to retrieve it.

Checking your labor contract online through the MoHRE website or app is a straightforward process. If you need extra support, utilize the website’s chat features or contact professionals at 600590000 for assistance.

How much is a work permit cost in UAE?

Here is the amended list of fees related to the issuing of work permit which has announced by UAE’s Ministry of Human Resources and Emiratisation (MOHRE).

Fees for issuing a work permit for a worker inside the country

• Issuing a work permit for juveniles – Dh50
• Temporary work permit – Dh50
• Issuing a part-time work permit – Dh50
• Training permit – Dh50
• Probationary work permit – Dh50
• Issuing a work permit for residency holders – Dh50
• Issuing a work permit for residency holders of freelancers for two years – Dh250

(These fees are for issuing work permits for an individual who holds a valid UAE residency)

Fees for work permits for workers outside the country

If a worker is not in the UAE at the time of application of the work permit, these are the fees that would apply:

Request for work permit:

• Category A: Dh50
• Category B: Dh50
• Category C: Dh50

Issue a work permit for two years:

• Category A: Dh250
• Category B: Dh1,200
• Category C: Dh3,450

Issue a work permit for a project:

• Category A: Dh250
• Category B: Dh250
• Category C: Dh250

Fees for work permits for workers outside the country

If a worker is not in the UAE at the time of application of the work permit, these are the fees that would apply:

Request for work permit:

• Category A: Dh50
• Category B: Dh50
• Category C: Dh50

Issue a work permit for two years:

• Category A: Dh250
• Category B: Dh1,200
• Category C: Dh3,450

Issue a work permit for a project:

• Category A: Dh250
• Category B: Dh250
• Category C: Dh250

Fees for transferring a worker from one company to another (transfer permit)

Request for a transfer permit from one company to another

• Category A – Dh50
• Category B – Dh50
• Category C – Dh50

Issuing a permit to transfer and employ a worker from one company to another, for a period of two years

• Category A – Dh250
• Category B – Dh1,200
• Category C – Dh3,450

Who pays work permit costs?

As per the new UAE Labour Law – Federal Decree Law No. 33 of 2021 – all recruitment related costs need to be paid for by the employer. This includes the employment visa and work permit costs.

Fore more information you may contract your HR Department or Tasheel or MOHRE call centre 600590000.