UAE labour law: Key things to check in your employment contract after receiving job offer

Received a tempting job offer that's hard to resist? Before rushing to sign on the dotted lines, take your time to carefully review the details of the employment contract.

Employment contracts in the UAE vary based on the nature of the work and the agreed terms between the employer and employee. These contracts may specify full-time or part-time roles, with arrangements such as temporary, flexible, remote work, or job sharing.

Once the contract is signed, any changes to the offer letter terms require the employee's consent and must comply with legal regulations. A thorough check can save you from potential issues down the line.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Receiving a job offer

When you are offered a job in the Emirates, the process includes receiving a formal job offer, signing a contract, and getting your work permit and residency visa. The job offer details the role and includes an annexe summarising important parts of UAE labour law. Both you and your employer will need to sign these documents to move forward.

Once you and your employer have signed the offer letter, it legally becomes your contract. Under labour rules introduced in 2016, employers cannot change the terms of the offer letter unless you agree to the changes; they are within the law, and your rights are still protected.

Signing the contract

Before you sign, the employer is responsible for making sure you have read and understood the offer letter. If it is proved that you did not go through the annexes properly before signing, the employer could face a fine of Dh20,000 for providing incorrect details to the Ministry of Human Resources and Emiratisation (Mohre).

For workers already in the UAE, you will need to sign the offer letter before your employer can get preliminary approval for your employment from Mohre. Once the offer letter is signed, a copy is submitted to Mohre and kept in their system. Your work permit will be issued based on the details in this offer letter.

Job title and description

An employment contract in the UAE is an agreement between you and your employer. It outlines your job responsibilities and management structure in exchange for the agreed salary or benefits provided by the employer.

Ensure that your job title and description align with what was promised during the recruitment process. This impacts your role's scope, career progression, and visa classification.

This contract is based on the job offer letter that both you and your employer sign. The employer must submit the signed contract to the Mohre within 14 days of your arrival in the UAE (using an employment entry permit) or after your visa status changes if you are already in the country and eligible to transfer.

Salary and benefits

The contract should specify the agreed upon basic salary, allowances (e.g., housing, transportation), and any additional benefits like bonuses or commissions. It is important to find out whether salary payments are specified as monthly or otherwise.

Working hours

Confirm your working hours comply with UAE labour law. According to the law, the normal working hours for the private sector is eight hours per day, or 48 hours per week. This may be increased or decreased for certain economic sectors or certain categories of workers.

Home to office commutes are not included in the working hours, except for “certain categories of workers”.

If an employee works for more than one employer, he/she may not be required to work more than the hours agreed upon in the employment contract, unless the worker agrees to do so in writing.

If the worker requests to perform work remotely, and it is granted, the employer must stipulate specific working hours.

An employee is entitled to break(s) in between working hours (if required, in intervals) which may not be less than one hour in aggregate. Further, an employee may not work for more than five consecutive hours in a day without a break.

Overtime work

Employees can be asked to work overtime, provided the number of extra hours do not exceed two in a day.

If an employee is required to work beyond the normal hours, the pay for the extra time is hourly wage (basic) plus 25 per cent of that amount. This could increase to 50 per cent if overtime is done between 10pm and 4am. This rule does not apply to employees who work in shifts.

Leave entitlements

Review annual leave entitlements, sick leave, maternity/paternity leave, and provisions for public holidays.

Employees are entitled to a fully paid annual leave of:

According to the law, the employer may not prevent the employee from using their accrued annual leave for more than two years. On termination of employment, any accrued leaves will be calculated on basic salary only.

Part-time employees are entitled to annual leave according to the actual working hours they spent at work, as specified in the employment contract.