How is Overtime Calculated As Per New UAE Labour Law 2022 effective from February 2022?

The new labour law – Federal Decree-Law No. 33 of 2021 on the regulation of labour relations – has updated the regulations for the private sector in the UAE. One of the many aspects covered in the new law includes the calculation of the overtime. The new law shall become effective for employees in the private sector in the UAE from February 2, 2022. The New law has explained the regulation on the calculation of overtime that every employee in the private sector can claim for overtime pay.

As per the Article 19 of the law on Overtime calculation:

1. The employer may employ the worker for additional working hours, provided that they do not exceed two hours a day, and the worker may not work more than such hours unless according to the procedures and conditions specified by the Executive Regulations of this Decree-Law. In any event, the total working hours shall not exceed 144 hours in three weeks.
2. If the work circumstances require that the worker be employed for hours exceeding the ordinary working hours, such extended time shall be deemed overtime for which the Worker shall be paid his basic wage for his normal hours of work plus a supplement of at least 25 per cent of that wage.
3. If the work circumstances require that the worker be employed for extra hours between 10pm and 4am, the worker shall be paid his basic wage for his normal hours of work plus a supplement of at least 50 per cent of that wage. This paragraph shall not apply to workers by shifts.
4. If the work circumstances require that the worker be employed on the rest day specified in the employment contract, or the internal work regulations, he shall be compensated with a substitute rest day, or be paid his basic wage for his normal hours of work plus a supplement of at least 50 per cent of that wage.
5. The worker may not be employed more than two consecutive rest days, except for the daily workers.

Following categories shall be exempted from the provisions relating to the maximum working hours:

Position at work:

• The chairpersons and members of the boards of directors.
• The persons occupying supervisory positions if such positions vest in them the powers of the employer.

Occupation type:

• The crews of naval vessels and the seafarers who enjoy special service conditions due to the nature of their work.
• Those engaged in work which is required by reasons of technical nature to be carried on continuously by a succession shift, subject to the condition that the average working hours do not exceed (56) hours per week.
• The preparatory or complementary works that should necessarily be carried out beyond the time limits laid down for the general working of the establishment.