UAE: Can new employees ask for bonuses to be included in job contract?

KT reader wants to know whether employers can be asked to add a clause on increments

Ashish Mehta

Published: Sun 6 Oct 2024, 7:54 AM

Last updated: Sun 6 Oct 2024, 8:54 PM

Question: I worked with a firm for nearly 5 years and was acknowledged for my performance. But this acknowledgement was only verbal. I was not awarded financially in terms of increments and promotions. Now I’m moving to a new company. Can I demand that the new employer should include the clause of increment after every 2 years and a bonus as well? Does UAE labour law allow me to demand increments and bonuses in my contract?

Answer: Pursuant to your query, it is assumed that your new employer is a mainland company in Dubai having more than 50 employees.

In the UAE, any benefits either in monetary form or in kind provided to an employee may be included in an employment contract of an employee. This is in accordance with Article 8 of the Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations read with Article 10 (1) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022’), which states, “Subject to the provisions of Article 8 of the Decree Law:

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“The employment contract should include the name and address of the employer, the name, nationality and date of birth of the employee, proof of his identity, his qualification, the job or occupation, the date of work commencement, the workplace, the working hours, the rest days, the probation period, if any, the term of the contract, the salary agreed upon including the benefits and allowances, the annual leave entitlements, the notice period, the procedures for terminating the employment contract and any other data determined by the Ministry in order to regulate the relationship between both parties.”

Furthermore, an employer should have its own internal employees’ handbook or HR policy related to additional benefits to its employees and rules and regulations related to employment. This is in accordance with Article 13(3) of the Employment Law, which states, “The employer shall put in place internal work regulations, including work instructions, sanctions, promotions, benefits and other bylaws and internal regulations pursuant to the controls set by the executive regulations of this decree law.”

However, these may not be mandatory for entities which have less than 50 employees. But, in the event any entity having more than 50 employees, it should have its own employee’s handbook or HR Policy. This is in accordance with Article 14 (4) of Cabinet Resolution No. 1 of 2022, which states, “Subject to the provisions of Article 13 of the Decree Law, establishments that employ 50 or more employees shall set rules regarding the organisation of work, such as the regulation of work instructions, penalties, promotions and rewards, and the procedures for terminating the employment relationship, subject to the following:

The regulation of promotions and rewards shall include the criteria and rules related to promotions and rewards.”

In accordance with the aforementioned provisions, you may suggest your new employer add the clause in the employment contract pertaining to increments and bonuses. However, this is to be mutually agreed upon by both parties. Therefore, if your employer is agreeing to include the amount and the period of increment and bonus it may as well be included in the employment contract.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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