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Time of India
07-07-2025
- Business
- Time of India
Can you start a business while working full-time in UAE? Legal do's and don'ts clarified
Navigating UAE's legal rules for starting a business while working full-time/ Representative Image Starting a business while being employed full-time in the UAE can be a complex issue, especially if your new venture is in a field similar to your current job. Many employees wonder if they can legally launch a company alongside their existing employment without violating any laws or contractual obligations. Here's a detailed explanation based on the latest UAE labour laws and expert insights. Establishing a Business While Employed : The Basics According to UAE law, a full-time employee may establish a new business or become a partner or shareholder in an existing company. However, this is contingent upon obtaining a No Objection Certificate (NOC) from their current employer. The NOC is a formal approval allowing the employee to pursue entrepreneurial activities legally while still employed. For example, if you work in the HR department of a company and want to start an HR consultancy, it's crucial to first secure this NOC from your employer. Without it, the new business may be considered unauthorized and could lead to legal complications. Competition and Non-Competition Clauses in Employment Contracts If your planned business operates in a sector similar to your employer's, like your case with HR consultancy, and your employment contract includes a non-competition clause, then starting this business could be problematic. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mucus in Lungs? Do This if You Feel Breathlessness Neuracare Learn More Undo Article 10(1) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations specifies that if the employee's job grants access to the employer's customers or business secrets, the employer may include a clause preventing the employee from competing with them during or after employment. Key points about the non-competition clause: It must clearly define the place, time, and type of work to protect the employer's legitimate business interests. The non-competition period cannot exceed two years after the employment contract ends. When Non-Competition Clauses May Not Apply There are exceptions where the non-competition clause may not apply, especially once your employment ends: If you and your employer have agreed in writing that the clause will not apply after the contract ends, the restriction is lifted. This is outlined in Article 12(4) of Cabinet Resolution No. 1 of 2022 concerning the executive regulations for Federal Decree Law No. 33 of 2021. The clause can also be exempted under certain conditions, according to Article 12(5) of the same resolution: If you or your new employer pay the former employer compensation not exceeding three months' wages (as per your last contract) and the former employer consents in writing. If the employment contract is terminated during the probationary period. If your profession falls under categories determined by the Ministry of Human Resources and Emiratisation as needed in the UAE labor market.
Hi Dubai
11-06-2025
- Business
- Hi Dubai
Hiring in Dubai: Labour Laws and Best Practices in 2025
Dubai's skyline sparkles with ambition, and its workforce mirrors that energy. As a global hub for business, innovation and talent, the city attracts companies and professionals from every corner of the world. In 2025, hiring in Dubai is about navigating a dynamic legal landscape, embracing cultural diversity and aligning with the UAE's vision for a sustainable, inclusive economy. For business owners, HR managers and startups, understanding the updated UAE Labour Law and adopting smart HR practices is critical to thriving in this competitive market. The stakes are high: compliance ensures smooth operations, while strategic hiring builds teams that drive growth. Recent reforms, particularly Federal Decree Law No. 33 of 2021 and its 2024 amendments, have reshaped the employment scene. From mandatory fixed-term contracts to stricter Emiratisation quotas, the rules are evolving fast. Add to that Dubai's unique position as a magnet for expatriates (who make up over 88% of the population) and its push for local talent through programs like Nafis, and you've got a hiring environment that demands both precision and creativity. Dive into the essentials of hiring in Dubai in 2025, offering clear guidance for businesses and residents alike. Whether you're a startup in a free zone or an established firm on the mainland, here's how to hire smart, stay compliant and build a team that reflects Dubai's global spirit. Key UAE Labour Laws to Know The UAE Labour Law, anchored by Federal Decree Law No. 33 of 2021 and amended by Federal Decree Law No. 9 of 2024, governs private-sector employment across the UAE, including Dubai. These laws apply to both UAE nationals and expatriates, with exceptions for federal employees, armed forces and domestic workers. Staying compliant is non-negotiable, as violations can lead to fines ranging from AED 50,000 to AED 200,000. Here's what businesses need to know. Recent Updates The 2024 amendments, effective from August 31, 2024, refine the 2021 law to align with international standards. Key changes include stricter anti-discrimination measures, enhanced maternity leave (60 days paid, plus 45 days unpaid for pregnancy-related illness), and mandatory enrollment in government-approved savings plans like the DEWS scheme, replacing traditional end-of-service gratuity for some employees. The law also caps working hours at 48 per week (40 in Dubai's private sector) and mandates overtime pay at 1.25 times the regular rate. Employment Contract Rules Unlimited contracts are history. All employment contracts must now be fixed-term, typically lasting two to three years and renewable. Probation periods are capped at six months, with a 14-day notice required for termination during this period. Notice periods post-probation range from 30 to 90 days, depending on the contract. All contracts must use Ministry of Human Resources and Emiratisation (MoHRE) templates, available in Arabic and English, and be registered digitally by Q3 2025. Work Models The law now supports diverse work arrangements: full-time, part-time, freelance, temporary and flexible. Part-time and flexible models are gaining traction, especially for remote work, but employers must clearly define terms in contracts to avoid misclassification. Freelance permits allow self-sponsored foreigners to work without a traditional employment contract, ideal for project-based roles. Emiratisation Quotas The UAE's Emiratisation push requires private-sector companies with 50 or more employees to achieve a 2% annual increase in UAE national hires, reaching 10% by 2026. Smaller firms (20-49 employees) in sectors like IT and real estate must hire at least two Emiratis by 2025. Non-compliance triggers monthly fines of AED 6,000 per unfilled position. Compliance Issues Common pitfalls include failing to register employees with MoHRE, neglecting the Wages Protection System (WPS) for timely salary payments and ignoring health and safety standards. Employers must also avoid fictitious Emiratisation practices, such as falsifying data to meet quotas, which can lead to fines and repayment of government incentives. Hiring Emiratis: What Businesses Need to Do Emiratisation is a cornerstone of the UAE's Vision 2021 and 2030, aiming to integrate 75,000 UAE nationals into the private sector by 2026. For Dubai businesses, this is an opportunity to tap into local talent and align with national goals. Companies with 50 or more employees must hire one Emirati for every 50 skilled workers, increasing annually. By 2025, firms with 20-49 employees in 14 key sectors must employ two Emiratis. MoHRE's Tawteen Gate system reserves 160 senior job titles for UAE nationals, blocking new expatriate permits for these roles. Free zones like DIFC are exempt, but mainland businesses face strict oversight. The Nafis programme, launched in 2021, supports Emiratisation through training, job placement and financial incentives. Employers who meet quotas gain priority in government tenders, while non-compliant firms face penalties. Nafis also offers a recruitment portal to connect businesses with Emirati job seekers, though its use is voluntary. To integrate Emiratis effectively, offer competitive salaries (matching expatriate counterparts), provide mentorship and invest in training aligned with Nafis initiatives. Highlight career growth opportunities to attract young Emiratis, as 70% of UAE employers now prioritize local talent. Regular diversity training ensures Emiratis feel valued in multicultural teams. With expats comprising 88% of Dubai's workforce, hiring international talent is a core business strategy. However, the process involves navigating visas, permits and mandatory benefits. Work Visa Process To hire expatriates, employers need an establishment card from MoHRE and must sponsor work permits. The process involves: Obtaining MoHRE approval for a job offer. Securing an entry permit from the General Directorate of Residency and Foreigners Affairs (GDRFA). Arranging a medical fitness test and Emirates ID for the employee. Standard work visas last two to three years. The Golden Visa (for high-skill professionals) and Green Visa (for self-sponsored workers) offer longer-term options but require specific qualifications. Free zones like Dubai Multi Commodities Centre offer benefits like 100% foreign ownership and tax exemptions, but employment laws align with federal standards. Mainland companies face stricter Emiratisation rules but have broader market access. Both require MoHRE-approved contracts. Remote work is permitted, but contracts must specify terms like hours and deliverables. Cross-border hiring requires compliance with UAE immigration laws, and employers must clarify tax obligations for remote workers abroad. Employers must provide health insurance for expatriates (mandatory in Dubai) and often include housing allowances, negotiated during hiring. End-of-service gratuity (21 days' basic salary per year for the first five years, 30 days thereafter) is standard for employees with over one year of service, unless enrolled in DEWS. Best Practices for Hiring the Right Talent in Dubai Attracting top talent in Dubai's competitive market requires strategy and compliance. Here are five best practices: Build a Strong Employer Brand: Showcase your company's values, growth opportunities and commitment to diversity. Highlight Dubai's tax-free lifestyle and vibrant culture on platforms like LinkedIn. Leverage Multiple Channels: Post jobs on MoHRE's portal, LinkedIn and local agencies like Bayt or GulfTalent. Attend career fairs to connect with Emirati and expat candidates. Craft Compliant Job Offers: Ensure offers align with MoHRE templates, detailing salary, benefits and job scope. Avoid vague terms to prevent disputes. Conduct Legal Background Checks: Verify qualifications and references, but respect UAE data protection laws. Skill assessments must be role-relevant and non-discriminatory. Prioritize Onboarding: Provide cultural orientation and clear role expectations to help new hires integrate, especially in diverse teams. HR Contracts & Documentation: What Must Be in Place Proper documentation is the backbone of compliant hiring in Dubai. Mandatory Contract Elements MoHRE requires contracts to include job title, salary, benefits, work hours and notice periods. Contracts must be bilingual (Arabic and English), with the Arabic version legally binding in disputes. Offer Letters and Agreements Offer letters should mirror contract terms and be registered with MoHRE. Non-disclosure agreements (NDAs) and intellectual property (IP) clauses are common but must comply with UAE law, limiting non-compete clauses to two years. Digital HR MoHRE's digital platform supports e-signatures for contracts, streamlining registration. Use approved systems to ensure legal validity and avoid fines for non-compliance. Probation, Termination & Grievances: Avoiding Common Pitfalls Navigating probation, termination and disputes requires precision to avoid legal trouble. Probation Period The six-month probation period allows employers to assess fit, with a 14-day notice for termination. Employees switching jobs during probation must give 30 days' notice, and new employers may need to compensate for recruitment costs. Termination Rules Termination requires 30-90 days' notice, except for gross misconduct (e.g., fraud), where no notice is needed. Gratuity is paid regardless of termination reason, calculated on basic salary. Employees can file complaints with MoHRE within 30 days of termination. Handling Disputes MoHRE mediates disputes for claims up to AED 50,000, with appeals to the Court of First Instance. Timelines are strict; claims filed over two years post-termination are dismissed. Engage a Public Relations Officer (PRO) or labour lawyer for complex cases. Common Hiring Mistakes Businesses Still Make Avoid these pitfalls to stay compliant and competitive: Skipping MoHRE Approvals: Failing to register contracts or job offers risks fines and operational bans. Misclassifying Freelancers: Treating freelancers as employees without contracts can lead to retroactive penalties. Ignoring Emiratisation Quotas: Non-compliance incurs hefty fines and reputational damage. Inadequate Onboarding: Skipping cultural training or role clarity leads to high turnover. The UAE Labour Law and Emiratisation mandates set clear rules, but success lies in building a diverse, engaged team that reflects Dubai's global ethos. By leveraging programs like Nafis, using compliant contracts, and fostering an inclusive culture, businesses can attract top talent and avoid costly mistakes. Embrace it, plan smart, and watch your workforce thrive in this dynamic city. Also Read: Hiring Top Talent in Dubai: A Quick Guide Unlock Dubai's talent pool! Get practical tips on attracting, interviewing, and onboarding skilled employees, plus essential visa basics for hiring in Dubai. UAE's 15 fastest-growing jobs Over the past few years, the UAE's job market has been evolving very fast, with more focus on the services sector as well as new-age technologies. UAE Jobseekers Demand 30% Higher Salaries as Living Costs Rise and Talent Shortages Grow The UAE job market is currently experiencing a significant mismatch between salary expectations and offers, as jobseekers demand up to 30% more than employers are willing to offer, according to the latest Naukrigulf Hiring Outlook Report. UAE Job Market Shifts to Employers' Advantage as Influx of Talent Boosts Options As more people come to country looking for jobs, companies are getting more opportunities to choose from the available talent UAE Jobs: Hiring Picks Up in 2024 with Growing Emphasis on Diversity Hiring is expected to increase by at least 15 per cent this year driven by an optimistic market outlook, according to headhunters and HR professionals in the UAE.
Time of India
09-06-2025
- Business
- Time of India
Know your rights: 9 paid leave every private sector worker in the UAE should be aware of
UAE labour law grants private sector workers 9 distinct types of paid leave to support work-life balance/ Image: Pexels Balancing work with personal life can be challenging, but the UAE Labour Law offers several types of paid leave to support employees during significant life events and everyday needs. Whether you're welcoming a child, recovering from illness, pursuing education, or simply needing a break, the law guarantees that you don't have to sacrifice your income. Understanding these leave entitlements is essential for all private sector workers in the UAE mainland. The law not only protects your right to time off but also sets clear rules on how and when these leaves can be taken, ensuring fairness for both employees and employers. Federal Decree Law No. 33 of 2021 clearly outlines these paid leave types, ranging from annual leave to sick leave, maternity and parental leave, public holidays, and more. This article breaks down the nine types of paid leave you're legally entitled to, along with the conditions, duration, and payment details for each. Knowing this will empower you to claim your rights confidently and plan your time off accordingly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 내 뱃살만 안 빠지는 이유.. "이것" 녹이니 인생 최저몸무게 달성! 남재현 체지방 다이어트 더 알아보기 Undo 1. Annual Leave Employees who have completed one year of continuous full-time service are entitled to 30 calendar days of paid annual leave. If you have worked for at least six months but less than a year, you can take annual leave at the rate of two days per month worked. The UAE Labour Law (Article 29, clause 8) explicitly states that an employer cannot keep a worker continuously employed for more than two years without granting annual leave. Part-time employees also have the right to annual leave, but the number of days is calculated proportionally based on the hours specified in their contracts. Note: Companies face legal repercussions if they fail to pay employees for annual leave. 2. Weekly Rest Days Per Article 21 of the UAE Labour Law, private sector employees are entitled to at least one full paid rest day per week. Employers may grant more rest days if they wish, but one is the minimum guaranteed by law. This rest day ensures employees have regular time off to rest and recharge during the workweek. 3. Public Holidays Article 28 guarantees employees official leave on public holidays with full pay. The UAE observes a list of public holidays, and employees must be compensated for these days without loss of pay. If an employee works during an official public holiday, the law requires compensation for working on the leave day, either through additional pay or time off. 4. Sick Leave Employees who have completed their probation period are entitled to up to 90 days of sick leave per year, which can be taken continuously or intermittently. Salary during sick leave is paid as follows: Full pay for the first 15 days Half pay for the next 30 days No pay for the remaining 45 days During the probation period, sick leave is unpaid and subject to employer approval, which must be based on a medical report issued by an authorized medical entity. Employees should attest their sick leave certificates and medical reports online to comply with procedural requirements. 5. Parental Leave (For New Parents) Private sector employees are entitled to five working days of paid parental leave. This leave can be taken by either the mother or father. The leave must be used within six months from the child's date of birth. This provision supports new parents during the critical early stages of parenthood. 6. Maternity Leave Working mothers in the UAE private sector are entitled to 60 calendar days of maternity leave. This leave includes: 45 days fully paid 15 days half paid Mothers can apply for maternity leave up to 30 days before the expected delivery date. The law also addresses maternity leave rights related to miscarriage and stillbirth, ensuring protections for women in such circumstances. 7. Study Leave Employees enrolled in higher education within the UAE can take 10 days of paid study leave each year to sit for examinations. To be eligible, employees must have completed at least two years of service with their current employer. The educational institution must be located in the UAE. 8. Bereavement Leave Bereavement or compassionate leave is granted for the death of close family members. The UAE Labour Law specifies: Five days of paid leave for the death of a spouse. Three days of paid leave for the death of a parent, child, sibling, grandchild, or grandparent. This leave allows employees time to mourn and manage family matters without financial or work pressure. 9. Sabbatical Leave (Extended Break for National Service) Emirati private sector employees are entitled to paid sabbatical leave to perform mandatory national service. Federal Law No. 6 of 2014 on National Military Service and Reserve Force, as amended, mandates that all medically fit Emirati men complete national service. This leave is granted following approval from the National and Reserve Service Committee of the UAE Armed Forces' General Command. This ensures Emirati employees can fulfill national duties without losing pay or risking their job. The UAE Labour Law's detailed leave provisions reflect the country's commitment to safeguarding employee welfare and promoting a balanced work-life environment. Employees in the private sector should be aware of these nine paid leave types to make sure their rights are respected and they receive the support needed during significant life events or personal needs.
Time of India
07-06-2025
- Health
- Time of India
UAE labour law: Can private sector employees take 6 months sick leave for major illness?
Employees in the UAE's private sector may be entitled to extended sick leave depending on the severity of their illness, explains legal expert Ashish Mehta, founder and Managing Partner of Ashish Mehta & Associates. Tired of too many ads? go ad free now Mehta, qualified to practise law in Dubai, the UK, and India, outlined the UAE's official sick leave policy and conditions for long-term absence in a recent Khaleej Times article. Sick leave entitlement under UAE law As per Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, an employee who falls ill (from a non-work-related illness) must notify their employer within three working days and submit a medical certificate issued by a recognised medical authority. This requirement is explicitly stated in Article 31 (1): 'If the employee is infected by a disease not arising from a work injury, he shall inform the employer or his representative about his sickness, within a period not exceeding (3) three working days, and submit a medical report on his condition, issued by the medical entity.' Following the probation period, employees are entitled to a maximum of 90 days of sick leave per year, consecutive or otherwise. This is outlined under Article 31 (3) of the law, which breaks the 90 days down as follows: First 15 days: full pay Next 30 days: half pay Remaining 45 days: unpaid These rules apply regardless of the type or severity of the illness, as the law does not differentiate between medical conditions for leave eligibility. Options beyond the 90-day sick leave For employees needing more than 90 days, additional leave may be granted with the employer's approval. This provision is allowed under Article 33 (1) of the Employment Law: 'The employee may, after the consent of the employer, take an unpaid leave, other than leaves referred to herein.' In other words, while there is no automatic entitlement to more than 90 days, a worker can negotiate with their employer for extra unpaid leave on compassionate or humanitarian grounds, especially in the case of serious health conditions requiring extended recovery or treatment. Furthermore, combining unused annual leave with the 90-day sick leave may be an option. This would allow the employee to extend their overall time away from work with some continued income, provided the employer agrees. Tired of too many ads? go ad free now Employer's right to terminate after leave is exhausted Importantly, if an employee does not return to work after exhausting their official sick leave entitlement, the employer may legally terminate the employment contract. This is stated clearly in Article 31 (5): 'The employer may dismiss the employee if he fails to report to work, after exhausting his sick leave referred to in this Article, and the employee shall reserve all his entitlements pursuant to the provisions of this Decree-Law and its Executive Regulations.' This means that while dismissal is permissible, the employee still retains their legal rights to end-of-service benefits and any unpaid dues, as protected under the law. Legal summary and practical advice Summarising the legal position, Ashish Mehta stated: 'You are eligible for full salary for the first 15 days of your sick leave. Thereafter, half salary for the next 30 days of sick leave and without any pay for any subsequent period of your sick leave.' 'You must provide a medical certificate/report to your employer on availing sick leave within 3 days from the date of you availing sick leave.' 'As you intend to avail long sick leave, you may request your employer to combine your sick leave with annual leave and further if required you may also request to grant you unpaid leave due to your long-term sickness.' While UAE labour law offers structured sick leave entitlements, extended leave up to six months is not automatic and depends entirely on employer discretion and compassionate allowances. Employees facing major illnesses are advised to engage in open dialogue with their employer, supported by proper medical documentation, and consider blending paid, unpaid, and annual leave options where necessary.
Hi Dubai
19-05-2025
- Business
- Hi Dubai
UAE Employment Law: Is It Legal to Assign Tasks Outside an Employee's Contract?
Question: I was hired as an accountant in Dubai and granted a visa for that position, but later, the company assigned me to a different role, such as HR or administrative work. Is this legal in the UAE and how can I convince my employer that it is illegal? Answer: Under UAE labour law, employers are not permitted to assign an employee to work that is substantially different from what was agreed upon in the employment contract—unless there is an emergency or a need to prevent or fix a workplace issue, and even then, only temporarily. This is outlined in Article 12 of Federal Decree Law No. 33 of 2021. The law specifically states that any such temporary reassignment must fall under exceptional circumstances and cannot exceed 90 days in a calendar year. Moreover, Article 13 of Cabinet Resolution No. 1 of 2022 clarifies that a 'fundamental difference' in work refers to tasks completely unrelated to the employee's profession or academic qualifications. If your employer asks you to take on a role that is fundamentally different—like switching from accounting to HR or admin—without your written consent, it is a legal violation. In such cases, Article 45(4) of the Employment Law grants employees the right to resign immediately without serving notice, while still retaining all end-of-service entitlements. In addition, Article 14 of the same law protects employees from being forced to work against their will. To address this, you should first review your employment contract and visa to confirm your designated role. If there's a clear mismatch between your official designation and the tasks assigned, you may present these details to your employer. If the issue persists, you have the right to file a formal complaint with the Ministry of Human Resources and Emiratisation (MoHRE). Unless you have agreed in writing, your employer cannot legally change your role to something substantially different. You are within your rights to refuse the new tasks and seek support from MoHRE if needed. News Source: Khaleej Times
