United Arab Emirates

on the Arabian peninsula.

Since oil was first discovered in 1958, the nation has rocketed to rapid growth in infrastructure, healthcare, and technology, and a tourism industry that sees over 20 million tourists visiting Dubai and Abu Dhabi.

The UAE, particularly Dubai, Abu Dhabi, and Sharjah, are home to a huge population of expats. Some of the world’s most talented professionals call the Emirates home and a significant portion of these workers have experience working with multi-nationals. Global employers will find a haven of talent on this small slice of Arabian land.

Provisions for employee protections and workers’ rights are spelled out in the Labour Law of 1980 and the Federal Law No. 24 of 1981. Employees in the United Arab Emirates enjoy protections against discrimination based on age, religion, and race.

General Components of Remuneration in United Arab Emirates

Salaries are one way companies recognize and reward their employees for working hard. Salaries may include both monetary benefits like pay rates, bonuses or profit sharing agreements as well as non-monetary rewards such as health care plans with no deductibles that come straight out of your paycheck every month.

The general components of remuneration in the United Arab Emirates are as follows:  

Resident Tax Information

The United Arab Emirates is one of the most progressive countries when it comes to taxes. There are no legal laws for personal tax residence or income, but there's an active Double Tax Treaty (DTT) in place which allows any individual who wants their own certificate confirming they've met all criteria requirements with UAE Federal Tax Authority and can thus be issued a residency permit from them as well

Social Security

The United Arab Emirates has two social security systems for its citizens. One that applies only to UAE residents, and another which covers non-GCC members like Egyptians or Saudis who work in the country but don't hold citizenship there—and must therefore rely on their own government's programs instead.

The country's social security system was created by an emir with policies put into place to protect workers' rights as well provide them benefits such medical care or retirement funds- which are available only through employment

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Statutory Benefits

Statutory benefits in UAE are mentioned below:

UAE Social Security

The employee's share of the social security contribution is 15%. The employer contributes 12.25%, while governments chip in with a six percent payment on each worker's behalf - for an total 20% contribution from all parties involved, which can increase up to 26%.

Dubai International Finance Center (DIFC) Employee  

The DEWS is a workplace saving scheme that only the employer contributes to at an effective rate of 5.83% or 8%.

Maternity Leave

The UAE guarantees female employees 60 days of paid maternity leave and up to 6 months after the birth of their child.

Study Leave

Any employee studying under any institution which is UAE certified can avail of 10 days per year of paid leave for examinations.

Fringe Benefits

In UAE, fringes benefits are given to employees. These can be either monetary or non-monetary depending on the business requirements and budgets set for providing them as well as what goals one might want their company reach through this practice of offering perks that help attract quality staff members who will work hard towards achieving those objectives.

• Assistance for relocation
• Private healthcare insurance
• Severance pay (Gratuity pay)
• Transportation Allowances
• Educational Leaves
• Hajj and Umrah Leaves
• Return Ticket allowances
• Paid Leave

Exempt Benefits

Exempt Benefits in UAE are as follows;

• Accommodation allowances

• Travel allowances

• Allowance for Food

• Allowance for vehicle

• Allowance for furniture

• Mobile and Internet bills allowances

Long-term Incentives

The long-term incentives given to employees in the United Arab Emirates are an example of how that country stands out as one with unique, creative ideas.

DEWS (Dubai International Finance Centre Employee Workplace Saving Scheme)

DEWS was introduced as a way to replace the End Of Service Gratuity benefit, which ensures that employees will get one-time payments after completion of employment. The employer contributes at 5% or 8%, depending on an employee’s base salary and benefits package provided by them.

Termination process

Employee contracts can only be terminated according to terms spelled out in the Emirati Labour Law, and the relevant authorities must be informed accordingly.

Notice period

For unlimited term employment contracts, the minimum notice period is 1 month. The statutory maximum notice period is 3 months.

• 30 day written notice if the period of services is less than five years;
• 60 day written notice if the period of service exceeds five years; and
• 90 day written notice if the period of service exceeds 10 years.

During the probationary period, either party may terminate the employment without notice unless a probationary notice period is expressly provided in the employee's contract.

For fixed term contracts there is no obligation to provide a notice period. However, upon renewal, a notice period of between 1 -3 months must be provided for.

Severance pay

Employees who have been employed for at least a year are entitled to 21 working days’ pay for every year of employment and 30 days’ wages for each additional year, capped at two years’ pay.