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Time of India
3 days ago
- 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.
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.
Khaleej Times
06-04-2025
- Automotive
- Khaleej Times
Dubai: Should employees pay for fuel, Salik when travelling for work?
Question: I am constantly on the road as part of my job. However, I pay for the fuel and Salik fees out of my pocket. Shouldn't the company be bearing this cost? What are my rights in this regard? Answer: In this case, it is assumed that you are employed by a mainland company in Dubai, therefore, the provisions of the UAE employment law and the subsequent cabinet resolution are applicable It should be noted that an employee, at the time of joining and before signing an employment contract should check the contents of the employment contract, particularly with regards to salary and the allowances which are offered to him or her. This is in accordance with Article 8 (2) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, which states "The employee, or his representative, may prove the employment contract, the salary and any other rights he is entitled to under the provisions of this Decree-Law and its Executive Regulations and implementing resolutions by any means of proof." Further, the aforesaid provision of law has been further clarified and elaborated in 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 law states: "Subject to the provisions of Article 8 of the Employment Law, the employment contract shall basically contain the name and address of the Employer, the name, nationality and date of birth of the employee, anything needed to prove his identity, his qualification, position or occupation, date of joining, place of work, working hours, days of rest, probationary period, if any, the duration of the contract, the agreed salary including benefits and allowances, the period of annual leave entitlement, the notice period, the procedures for termination of Employment Contract and any other details decided by the Ministry, as is required to regulate the relationship between the parties." Based on the aforementioned provisions of law, if your employment contract does not specify the provision of your employer providing car fuel and Salik under other allowances, you may not be entitled to claim the same. However, in the UAE, the employment contract generally includes a travel allowance, this may include the car fuel and salik. If the same is not be explicitly included, it is advisable that you may discuss the matter with your employer and may decide mutually. Applicable laws: 1. Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations 2. Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations
Hi Dubai
24-03-2025
- Business
- Hi Dubai
Can Your HR Refuse to Approve Annual Leave During Eid? Here's What You Need to Know
Question: I work in a managerial role in a mainland Dubai company. With the Eid break coming up, I wish to combine my annual leave with the holidays to have an extended vacation. Can my HR refuse my request citing my managerial responsibilities? Answer: If you are employed in a company with more than 50 employees, the answer largely depends on your employer's policies and the operational needs of the business. Under UAE labor law, it is within an employer's discretion to set annual leave dates, taking into account the company's operational requirements, or by mutual agreement with the employee. What does the law say? As per Article 29 (4) of Federal Decree Law No. (33) of 2021 on the Regulation of Employment Relations, an employer can decide the dates of annual leave based on work needs, in consultation with the employee. Furthermore, an employer is required to inform the employee of their leave dates at least one month prior to the start of the leave. Additionally, Article 13(3) of the UAE Employment Law mandates that companies with more than 50 employees must have internal regulations, including guidelines on leave policies. These regulations must be in line with the law but can offer more favorable conditions for employees. What about combining leave with public holidays? If your company's internal policies or HR handbook allow the combination of annual leave with public holidays, you are entitled to take advantage of that. According to Article 65(4) of the UAE Employment Law, an employer can create bylaws that provide more benefits to the employee than those stipulated in the law. In case of a conflict between internal policies and the law, the more favorable conditions for the employee will apply. Can HR refuse your leave request? While HR may refuse your request to combine annual leave with the Eid break, especially if your managerial role demands your presence during the holidays, it is crucial to discuss the matter. You may be able to reach a mutual agreement with your HR team to accommodate your request, considering both your personal and the company's needs. Ultimately, while your HR can refuse the request based on company policy or operational needs, the law ensures that employees' rights are protected, offering room for discussion and flexibility. News Source: Khaleej Times
Khaleej Times
23-03-2025
- Business
- Khaleej Times
Longer Eid break: Can UAE employers deny requests to combine holiday with annual leave?
Question: I work in a managerial role in a mainland Dubai company. With the Eid break happening in soon, I wished to combine my annual leave with the holidays to have an extended vacation. Can my HR refuse my request citing my managerial responsibilities? Answer: It is assumed that you are employed in a company which employs more than 50 people. In the UAE, it is at the discretion of an employer to determine the annual leave dates of its employees based on the company's operational requirements, or mutually in agreement with an employee. An employer must inform an employee of his/her annual leave dates (start date and end date) at least one month in advance before the commencement of the said annual leave. This is in accordance with Article 29 (4) of Federal Decree Law No. (33) of 2021 on the Regulation of Employment Relations which states: 'The employee shall use his leave in the year of entitlement. The employer may fix the dates of leave according to the work requirements and in agreement with the employee, or rotate leaves among employees for the smooth progress of work, and shall notify the employee of the date of his leave at least (1) one month before the same." Furthermore, an employer should have its own internal employees' handbook or HR policy related to rules and regulations of employment if it employs more than 50 employees. This is under Article 13(3) of the UAE 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, if your employer's human resources (HR) policy or internal rules and regulations mention that annual leave and public holidays can be combined, then you are entitled to the same. This is in accordance with Article 65(4) of the UAE Employment Law, which states: 'The Employer may establish and put in place organisation bylaws and programmes in the Establishment that would be more beneficial to the employee than those prescribed in this Decree-Law and its Executive Regulations. In the event of a conflict between such programmes and bylaws and the provisions of this Decree-Law, conditions that are more beneficial to the employee shall apply.' Based on the aforementioned provisions of law, HR may refuse your request to combine your annual leave with the Eid holidays citing your managerial responsibilities if the work requires you to attend the office or in accordance with the company's internal policies. However, you may discuss the matter with your HR/employer to mutually agree on combining your annual leave with upcoming public holidays on account of Eid.
