UAE Labour Law 2018

New Labour Laws in the UAE 2018:

MOL Decree 764 – Approved Standard Employment Contracts

The job offer letter submitted by the employer must abide with the “Standard Employment Contract” as specified by the Ministry of Labour in order for the Employer to get a temporary approval to hire the foreign worker. The contract should be agreed upon by both the employer and the employee before the employer can submit it to MOL and both must sign the agreement.

No changes should be made to the contract letter without proper approval from Ministry of Labour and changes should be abiding withe MOL’s legal requirements.

The above decree also applies to those who are already in the UAE and the employees should first sign an offer letter before the employer can apply for the temporary approval to admit the worker.

MOL Decree 765 – Rules and Conditions for Termination of Employment Relations

An employment contract between the employer and employee can be terminated with the following conditions:

Fixed-Term Contracts (e.g. Limited Contracts) can be terminated as follows:

– The duration of the contract has finished and was not renewed

– Both the employer and employee mutually agrees to end the contract

– Either the employer or worker decides to terminate the contract by following the legal steps below:

  • Notice period of not less than 1 month but not more than 3 months
  • Continue to follow the contractual obligation during the course of the notice period
  • Compensate the other party as agreed by both parties but must not exceed 3 month’s wages.

– The employer can act to end the contract if the worker has committed violations under Article 120 of the Federal Labour Law

– The terminating party shall bear the legal consequences for the early termination of the contract

For Non-Fixed Term Contracts (Unlimited Contracts) can be terminated as follows:

– Both the employer and employee mutually agrees to end the contract

– Either the employer or employee decides to terminate the contract but provides a notice period of not less than 1 month and not exceeding 3 months

– If the employee violates any violations under Article 120 of the Federal Labour Law

MOL DECREE 766 – Granting a New Work Permit to the Worker by a New Employer (6-month Ban Can be Cancelled)

– A new work permit can be granted to the worker provided that the contract has been properly terminated and both parties has agreed for the termination of the contract. In this case, the worker can immediately get a new job in a new company without any automatic ban from the Ministry of Labour as long as the decree has been fully abided (Click here for the full decree)

– This only applies to Levels 1-3 workers (Post Grad Degree until High School Degree) and doesn’t apply to Level 4 and 5 workers (Without degree)

For more information, please read the MOL Labour Law here.



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