UAE Labour Law: Understanding Your Legal Entitlements and Benefits in 2024

Last Updated on July 10, 2024 by Vadim

Navigating job transitions in the UAE can be challenging, but understanding your rights under UAE labour law can provide peace of mind. Let’s explore the key entitlements and benefits for workers in the Emirates.

New Savings Scheme: Enhancing End-of-Service Benefits

UAE labour law now offers private sector workers a voluntary alternative end-of-service benefits system. This scheme aims to provide higher gratuity returns upon service completion.

Key Features of the New Savings Scheme:

  1. MOHRE manages company subscriptions and employee registrations
  2. Existing gratuity entitlements remain protected
  3. Workers receive investment returns within 14 days of employment termination

Calculating Gratuity Under UAE Labour Law

UAE labour law entitles all full-time private sector workers to end-of-service gratuity. Here’s how it’s calculated:

  • Less than 1 year: No gratuity
  • 1-5 years: 21 days’ basic salary per year
  • Over 5 years: 30 days’ basic salary per year after the first 5 years

Remember, total gratuity cannot exceed two years’ wages, and unpaid absence days don’t count in the calculation.

Unemployment Protection: The ILOE Scheme

The Involuntary Loss of Employment (ILOE) scheme offers financial security for terminated employees. To benefit from this UAE labour law provision:

  1. Subscribe for at least 12 consecutive months
  2. Submit claims within 30 days of termination
  3. Note that resignations or disciplinary dismissals don’t qualify

Repatriation Benefits Under UAE Labour Law

When your contract ends due to termination, UAE labour law requires your employer to cover your flight home. However, this benefit doesn’t apply if you:

  • Resign
  • Join another company
  • Stay in the UAE
  • Face termination for misconduct

Understanding these UAE labour law entitlements empowers you to protect your rights and plan for your financial future in the Emirates. For more detailed information, consult the official MOHRE website.

Further Reading:

In our latest blog article, we cover several key topics related to employment in the UAE. For those looking to stay updated on the latest employment trends and practices, here are some essential reads:

  1. Etihad Airways Pilot Recruitment
  2. UAE Job Loss Insurance: Can You Claim After Leaving the Country? [2024 Guide]
  3. Get Free UAE Job Experience Certificate Instantly [2024]
  4. UAE Job Market Insights: 10% Workforce Growth, IT Jobs Surge 77%
  5. Who Pays for Visa and Recruitment Costs in the UAE?
  6. UAE: Travelling while Pregnant? Rules and Guidelines
  7. How to Get a Job in UAE: Expert Guide for 2024
  8. Got a Job in UAE? Essential Guidelines for New Expat Workers [2024]
  9. UAE Labour Law: What to Do If Your Work Contract Differs from Offer Letter [2024 Guide]
  10. 5 Job Hunting Mistakes to Avoid in UAE [2024 Expert Guide]
  11. 9 Legal Ways to Earn a Side Income in the UAE: Comprehensive Guide [2024]
  12. Comprehensive Guide to Freelance Options in the UAE [2024]
  13. Abu Dhabi Freelancer License: Comprehensive Guide [2024]
  14. Working in the UAE After 60: A Comprehensive Guide [2024]
  15. Comprehensive Guide to Applying for Government Jobs in UAE [2024]
  16. 10 Violations That Can Lead to Immediate Dismissal in UAE [2024 Guide]
  17. Most Paid Jobs in Dubai 2024
  18. Jobs in Demand in Dubai in 2024