The Federal Labor Law regulates the main aspects of labor relations in the United Arab Emirates. The UAE National Immigration Service and the Ministry of Human Resources and Emiratization collaborated on the legislation. The provisions address all aspects of the employer-employee relationship, including employment contracts, restrictions on the employment of minors and women, record-keeping and file maintenance, leave rules, working hours, medical and social care, employee safety, disciplinary regulations, termination of employment contracts, end-of-service benefits, compensation for occupational diseases, penalties and accidents, labor inspections, and more. The immigration process is a crucial part of legal security and staying in the UAE as a tourist, business visitor, employee, investor, or permanent resident.
Our experience includes assisting with Labor and Immigration Laws that govern the relationship between employers and employees. Our employment practice includes advising and assisting clients with the drafting of limited and unlimited labor contracts, non-compete and non-disclosure agreements, and employee rights in unfair and arbitrary dismissal cases before all UAE Courts and the Ministry of Human Resources and Emiratization. In this arena, we provide:
- Legal advice on labor concerns;
- Drafting employment contracts
- Handling employment procedures to avoid
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Frequently Asked Questions
The means of dispute resolution are multiple, for example, the use of courts and arbitration. The UAE courts have two instances of litigation (first instance and appeal courts).
However, arbitration takes place on one instance only and litigants seek it for speedy settlement of the dispute and ensuring the judgment by an arbitrator specialized in the subject of dispute.
The parties of the dispute can specify the place to attend the hearings, the language of the arbitration proceedings, the different time periods and many procedures they agree upon to facilitate the resolution of the dispute.
Arbitration is done by an arbitrator or a tripartite arbitration committee, either through a specialized center (within one of the approved arbitration centers) or by external free arbitration.
After the arbitral judgment is issued, it shall be executed by the State Courts.
With issuance of Decree-Law No. 14 of 2022 applicable as from 2 January 2022, the crime of giving a cheque without balance was cancelled and the legislator dropped the penalty for this crime, which is the most common among the clients of the cheque.
But the punishment continued for the following crimes:
– Giving a non-withdrawable check.
– If the total amount is transferred or the account is closed before the cheque is issued.
– Signing of the cheque with a non-conforming signature of the bank.
– Issuing an order from the issuer of the check to the bank to stop cashing the check.
The new legislation introduced new ways of collecting the cheque; there’s now a partial collecting of cheque and opening a direct execution file against the source of the cheque. However, the law stipulated that the reason for the bank’s refusal is absence of balance or insufficient balance only. Other than these cases, normal procedures are taken to claim the value of the cheque by referring a notice of payment and then issuing a performance order.
– As the relationship was regulated by a contract between the parties, the developer must execute the contract in good faith and execute all the requirements of the contract.
– As the contract between the parties is a binding contract on both parties, the developer may not return, modify or terminate by a party, but the contract must be executed on all its terms.
– Any breach by the developer requires compensation or termination and compensation only according to the case and based on the buyer’s damages, both in terms of the developer’s breach or unilateral termination of the contract.- If the sale is on the map, the developer must register the sale in the initial register of the Land and Property Department.
– The developer must complete the execution of the sold unit at the agreed time and according to the specifications agreed upon in the contract.
– If payments are linked to the rate of achievement, the developer has not right to claim advance payments that exceed the percentage achieved in fact. The developer is negligent of its obligation if he does not achieve a percentage equal to the amounts received.
– Delaying in execution and breaching of specifications on the part of the developer that allow the buyer to claim termination of the sale contract and compensation.
– The space for the sale must not be less than 5% of the contract agreed and if it was less than that, the compensation for it would be deserved and anything more than, the developer had not right to claim.
– The developer must deliver the seller the origin of the sales contract.
– The developer must open an escrow account for the project and deposit all amounts received from buyers in the escrow account and not dispose of them, excepting for project execution works only.
Cybercrime has many definitions: any criminal activity that targets a computer, computer network and tries to use them. Including: a software attack and infecting a computer system or network with a computer virus or any other type of malware.
Cybercrime is any activity occurring through the Internet or via social media for the purpose of obtaining information or data to harm the other party or with the aim of obtaining money and causing material and moral harm to persons.
According to Decree-Law No. 34 of 2021 on combating rumors and cybercrime, cybercrime may be punished, including any electronic penetration in information systems of State institutions or other institutions, including damage to state institutions and vital facilities, an attack on personal or government data and information, data related to financial and commercial economic establishments, or to defraud the information network with the intent of committing a crime, or fabricating fake websites or electronic accounts for another person or entity in an unreal way, obstructing or objection of access to an information network, leaking data, communication or collecting people’s data without permission or fraud electronic documents.
The UAE law regulates the reasons for dissolving and liquidating companies and determine the cases in which the company ends, the law differentiated between general cases and cases related to partners (of a personal nature). In the following, we will present these cases.
– General Cases
a- Expiry of the reason for which the company was established or the expiry of its term.
b- Partners’ desire to dissolve the company.
c- Losing of all capital.
d- Losing of half of the capital in joint stock companies.
e- Integrating of the company with another company.
f- Issuing of a judgment of dissolution and liquidation.
Cases related to partners (of a personal nature)
a- Gathering of the partners’ shares with one partner.
b- Retreating of a partner if the company consists of two partners only.
c- Bankruptcy of a partner in the company consisting of two partners.
d- Death of a partner in the company consists of two partners and the heirs didn’t wish to continue in the company.
– Imprisonment.
– Travel ban.
– Arresting and bring the debtor.
– Reserving of balances, bank accounts, deposits and vehicles.
– Reserving of the debtor’s money with others.
– Reserving of trade license.
– Reserving of land and property.
The Federal Decree-Law on regulating labor relations in the private sector created three types of work, “part-time work”, “temporary work”, “flexible work” in addition to “remote work” and the previously existing types. The amendment also extended to include vacations, the new code introduced types of vacation such as mourning leave, parental leave, study leave, full-time leave to perform national and reserve service with paying (for citizens) and maternity leave.One of the most significant amendments in the new Labor Code is limiting the types of employment contracts to a fixed-term employment contract only and transforming all indefinite-term contracts to fixed-term contracts. Decree No. 14 of 2022 was also amended to conclude fixed-term contracts for any term and to be renewable in accordance with the parties’ agreement.
The trial period was also amended and the legislator required that it not exceed (6) six months. The law regulates cases of termination of work during the trial period. In case of the employee’s service is terminated by the employer during the trial period after notifying him in writing, fourteen (14) days before the date of termination of his service, On the other hand, if the employee leaves his job during the trial period, the employee who wishes to move to another job and is still in the trial period must inform the employer in writing “a period of no less than a month prior to the date of his desire to terminate the contract.”
The termination of contract was also amended in the leave period, parties of fixed-term contract can terminate the contract during the leave period, the duration of the notice agreed upon in the contract shall enter into force from the day following the employee’s return from leave.
The new Labor Code also permits if the termination of the employment contract by the employer, the employee has the right to be absent an unpaid working day per week to search for another job, provided that the employer is notified at least (3) days prior to the absence. The party that didn’t commit to period of notice stipulated in the contract must pay to the other party a compensation called “Notice Allowance”.
Arbitrary dismissal or compensation was also amended in favor of the employee and the legislator limited it to only one case. The employer is obligated to pay a just compensation to the employee estimated by the court. If the employer was dismissed because he filed a labor complaint and the compensation does not exceed the employee’s salary for a period of (3) three months, it is calculated according to the last salary he was receiving, in addition to notice allowance and end of service gratuity.
The new labor law also approved exempting labor cases from judicial fees at all stages of litigation and execution and requests submitted by employees or their heirs, not exceed 100,000 AED.
If was the purpose in the processing of seeking the arbitration in stead of court proceedings, being the expedition of adjudication the dispute, it would be logical to exclude or limit customary methods of appeal to the possible extent. Based on this logic, most laws (especially in international trade) refuse to challenge the arbitrators’ awards in any way whatsoever. This trend is based on the fact that, as long as the adversaries agree to exclude the jurisdiction of the State, at the same time they want to exclude the modification and reform of the arbitration award through the State’s jurisdiction as well.
This is in principle, but at the same time there is a consensus that the arbitrators’ respect for their functions must be considered by adopting a special claim of invalidity. That is what most of the world’s laws have adopted.
Comparative jurisprudence refers to the fact that the courts’ control of the arbitral award is essentially formal. When the tribunal is elected to hear the claim for annulment of an award, the tribunal does not act as an appellate tribunal reviewing the factual and legal aspects of the case, or as a court of cassation and discrimination examining the validity of the tribunal’s application of the rule of law and its interpretation, rather, the court conducts formal control over the arbitral tribunal’s award, for example, monitoring the proper installation of the arbitral tribunal, the extent to which the rules of public order are respected, and the validity of the arbitration agreement as detailed in its statement. Some jurists go on to renounce the challenge of nullity and to repeal it originally, and make executive formalities the only way to extend the judiciary’s control over arbitration. Despite the relevance of this proposal, it seems now for us, that it needs to prove its usefulness and effectiveness in reality.
It is originally for the competent judicial authority to order the execution of the arbitrator’s award, unless a litigant has applied for annulment, in accordance with the following cases specified exclusively in all legislation:If the judgement was rendered in the absence of an arbitration agreement, or on the basis of a null and void agreement, or falls beyond the deadline, or if the arbitrator departs from the limits of the agreement.
If the judgement is made by arbitrators who have not been appointed in accordance with the law, or is made pursuant to an arbitration convention in which the subject matter of the dispute is not specified, or by a person who is not eligible to agree on arbitration.
If the basic procedures, including the right of each party to submit its defence, are not respected. In addition, the Court’s decision to invalidate the arbitral award on its own initiative in the following cases:If the subject matter of the dispute is a non-arbitrable matter. “If the arbitral award contravenes public order and morals.
Bank customers think like this, when they believe the Bank is demanding undue amounts or when they pay the debt in full with interest. However, the Bank continues to claim additional amounts or take judicial action against them, such as travel ban or a reservation 0rder.In this case, we recommend that you follow the following steps: –
1. Prepare a consultant report from a banking expert or accountant that includes the customer’s account statement, the value of loans or facilities received from the bank and what has been paid to the bank and the liquidation of the account between the client and the bank.
2. register expert appointment-court case, and submitting the advisory report (and it is possible to commence with step 2 directly).
3. After obtaining the court report in favor of the client proving the client’s entitlement from the court expert to recover certain amounts, a claim against the bank is registered. The Court therefore assigns a banking or accounting expert to examine the rights and obligations of both the bank and the client (in the light of the client’s advisory report) and reach a conclusion in the report to liquidate the account and sends the report to the Court.
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