The Labour Law applies to employment in the private sector. Transition issues are presented not only by the work week but also by the coverage of the new Labour Law. An employee who is required to work on a Friday (but not more than two consecutively) will be subject to the rules on overtime, meaning that the employee will be entitled to either another day during the week as the day of rest in lieu of Friday, or to payment of overtime compensation (Salary plus 50% of Basic Salary). For overtime on the weekly day(s) of rest or on an official holiday, the employee is entitled to a substitute rest day or compensation equal to Salary plus 50% of Basic Salary.Īn employee may not be required to work more than five consecutive hours without a break, to work overtime in excess of two hours daily, to work in excess of 144 hours during a single three-week period, or to work on the day of rest for more than two consecutive weeks.Ī private-sector employer who switches to the public sector work week in January 2022, one month before the new Labour Law takes effect, will have to treat the four Fridays that fall during the month of January as weekly days of rest. The figure becomes Basic Salary plus 50% for overtime after 10 p.m. The new Law gives scope to employees who wish to work remotely, either within or outside the UAE, to reach mutual agreement with their employers on working hours.Īn employee who works in excess of the daily or weekly threshold is entitled to compensation equal to Basic Salary plus 25%. Friday is no longer designated as the official day of rest, and the Cabinet may add to the weekly day of rest - or change work hours - by Resolution. The work week continues to be defined as eight hours per day, six days per week, and 48 hours per week. The new Labour Law opens the door but does not step through. Indeed, the public sector is moving in that direction, and it must be expected that the private sector will follow. There has been much discussion in recent months about the UAE possibly moving to a Western work week, Monday to Friday, with eight working hours per day, and 40 working hours per week. However, since the Federal Government has now announced a switch to a Monday-Friday work week, I would like to start this inBrief with a discussion of the provisions of the work week that appear in the new Labour Law. Some of those earlier remarks are further developed below. In that earlier inBrief, I discussed what I thought were the most significant departures from previous law, including the new rules on termination of contracts with notice, on end-of-service gratuity, on overtime, and on non-compete clauses. For an initial snapshot, see my inBrief dated 21 November 2021. As promised, this is a more detailed discussion of the new Labour Law, which takes effect on 2 February 2022.
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