A: An employee will be automatically confirmed upon expiration of the probation period, unless terminated. This is irrespective of what may be stated in the employment contract and/or offer letter. Furthermore, probation period cannot be extended, for any reason.
A: There is no default provision in the UAE Labour prohibiting employees from joining a competitor. The non-competition limitation must be contractually agreed. If there is no non-competition clause in the employment contract, then there is no restriction on joining a competitor. If, however, there is a non-competition clause in the employment agreement, it will be valid if it is reasonable in its scope. Furthermore, a non-competition claim requires proof of actual damages.
A: For the purpose of calculating the end of service benefits under Article 132 of the UAE Labour Law 8 of 1980 (as amended), the salary used for the calculation includes everything, except allowances and occasional bonuses. This means that any regular payments, such as commissions and regular bonuses (regardless of their description), other than allowances, are considered as part of the salary used for the end of service calculation. This principle was established by the Dubai Courts of Cassation more than twenty years ago and has been regularly applied by the courts ever since.
A: Yes, if the following conditions are met:
1. The employee has a valid labour card.
2. The employee’s visa’s sponsor gives a No Objection Certificate (“NOC”) permitting the additional employment.
3. You obtain a part-time work permit from the Ministry of Labor/ Free zone authority for the employee.
A: As a general rule, the UAE does not monitor whether or not a UAE resident was working while outside the UAE. However, should the resident spend more than six consecutive months (180 days) outside the UAE, their UAE residence visa will be canceled.
A: No. Your end of service benefits becomes due upon the termination of your UAE employment contract.
A: When an employee breaches a limited contract, she or he can be held liable for damages incurred by the employer as a result of the early resignation. These damages may not include visa-related expenses and may not exceed the value of one-and-a-half months’ of the employee’s salary. If the employee has less than three months left in the employment contract, the maximum penalty is the value of half a month of the employee’s salary for every month remaining on the employee’s limited contract. If the early termination penalty exceeds one-and-a-half months’ of the employee’s salary, it will not be enforced. The aforementioned compensation requires a Court order. It should not be applied automatically.
A: No. It is illegal to require an employee to pay for visa expenses, regardless of how long the employee has been employed or the circumstances of the employee’s termination.
A: Assuming that you are paid on a monthly or yearly basis, your annual basic salary is calculated using the 365-day year. To calculate your end of service benefit entitlement, multiply your current monthly Basic Salary by 12. Then, divide this number by 365. The result is your daily Basic Salary, as it will be calculated for your benefits. You are entitled to the equivalent of 21 days’ worth of basic salary for the first 5 years of your employment and 30 days’ worth of basic salary for each additional year, provided that the total amount may not exceed the equivalent of two years’ pay.
A: This is incorrect. A woman on a spousal visa may work full-time or part time, provided she has the proper No Objection Certificate and her employer obtains the proper permits.