Working on Commission Only in the UAE

The UAE labor laws provide guidelines for workers employed on a commission-only basis, applicable to permanent, temporary, or flexible work patterns. Below are key points concerning commission-based employment as per UAE labor regulations.

1. Employment Contract

According to Article 8 of Federal Decree-Law No. (33) of 2021, every worker must have an employment contract that specifies the type and amount of wage. If the wages are to be commission-based, this must be clearly stated in the contract.

2. Commission Structure

The law permits various compensation structures, including performance-based wages such as commissions. The specifics of the commission model (e.g., percentage rates, conditions for earning commissions) should be thoroughly detailed in the employment contract.

3. Payment Method

Employers are obligated to pay employees their salaries or wages on due dates established by the Ministry. This includes utilizing appropriate methods for commission-based payments, ensuring workers receive their entitled earnings stemming from commissions based on sales or services rendered.

4. Rights of Workers

Workers on commission retain all rights under labor law, such as:

• Right to compensation for work-related injuries
• No fees or costs should be charged associated with their employment

5. Regulation of Work Patterns

The Implementing Regulation delineates the obligations of both the employer and the worker for each type of work pattern, including commission-only arrangements. This may encompass stipulations about:

• Working hours
• Conditions for earning commissions
• Other relevant employment conditions

Conclusion

In summary, working on a commission-only basis in the UAE is permissible under labor law as long as it is explicitly stated in the employment contract and adheres to the general obligations and rights established by UAE labor regulations.