The United Arab Emirates (UAE) is a country that offers several benefits and welfare programs to its workers. Among these benefits are competitive salaries, paid vacations, health insurance, and severance pay, among others. The Ministry of Labour UAE is the body whose purpose is to regulate and supervise these programs and benefits. In addition, it protects the rights of workers and employers.
In this article, we are going to explore the main benefits and wellness programs that exist in the UAE. Specifically, for workers, both foreign and national. We will also see how the Ministry of Labour UAE ensures compliance with labor laws and resolves disputes that may arise between the parties. Finally, we will analyze the opportunities and challenges facing the labor sector in the UAE in the current context.
Understanding Employee Benefits in the UAE
Employee benefits are those provided to you by your organization in addition to your salary or predetermined salary. Furthermore, these benefits can take the form of monetary or non-monetary features. In this way, they can improve the overall compensation that employees receive. Among the most common examples of employee benefits, we find:
- A provident fund for employees.
- Health insurance.
- Statutory permits.
- Leave for maternity and paternity leave.
- Different subsidies, such as transportation subsidies.
- Bonus for one year of service.
- Refunds for bills such as internet, mobile, etc.
Federal law decree number 33 of 2021 is the main law that regulates the UAE labor laws and their correlative executive regulations. In addition, all other ministerial orders that implement all these provisions. In this way, the laws are responsible for regulating all relationships between employees and their employers.
Knowing employment rights is essential and also for those who apply the laws. However, these laws apply to all national and international workers except for:
- Workers and officials of local and federal governments.
- The armed forces, security agents, and police.
- Those workers who are subject to the Employment Law number of the DIFC. In addition, workers who are subject to the ADGM Employment Regulations of 2019.
These laws are responsible for protecting employees from any wrongful termination of their employment. Additionally, it guides employers on minimum wage standards, employee benefits, and compensation. Also retirement plans and other matters related to employment.
Overview of UAE Ministry of Labour
The MOL UAE is responsible for supervising the entire workforce. In addition, it regulates the entire employment process in the private and public sectors. In this way, its mission is not only to enforce labor laws but also to foster a harmonious work environment. MOL UAE’s operations demonstrate its commitment to safeguarding the rights and interests of employees and employers.
Therefore, it plays the role of maintaining the balance of the employment landscape in the United Arab Emirates. In this way, it strives to defend the principles of justice, compliance, and equity of labor laws and regulations. For this reason, it guarantees that national and foreign employers enjoy the same protection.
In order to fulfill this mission, MOL UAE offers channels such as the MOL UAE consultation and a toll-free number for labor complaints. In this way, workers can express all their concerns and find a solution. Among the objectives of the MOL UAE, we find:
- Regulations of labor practices.
- Guarantee the protection of all workers.
- Promote sustainable employment.
- Streamline all business operations.
- Labor inspections.
Mandatory Employee Benefits in the UAE
Among the things you have to learn before opening a business in Dubai are mandatory employee benefits. Below, you will see all the benefits imposed by the Ministry of Labour UAE for workers.
Minimum wage: In essence, there is no universal minimum wage or mandatory wage for foreigners in the UAE. On the other hand, nationals have a minimum salary according to their university degree, that is:
- Graduation less than high school: AED 3,000 per month
- High school graduation: AED 4,000 per month.
- University certificate: AED 5,000 per month.
Payroll cycle: The payroll cycle in Dubai and the other emirates is monthly.
13th Salary: There is no rule about offering the 13th salary in the UAE.
Working hours: In the UAE the working hours are 48 hours per week. That is 8 hours a day. But, for public sector employees, university and school work weeks are 4 days and hours. For instance, if an employee makes a job relocation, they also have to follow this work schedule.
On the other hand, employees have one or more breaks during the work day. Specifically, if the job lasts more than five hours.
Overtime: An employer may ask you to work overtime. If this is your situation, you have to know that it cannot be more than two hours a day and they must be paid the corresponding remuneration. For instance, on normal days, the remuneration per extra hour will be at a rate of 125%.
Minimum number of leaves in a year: Depending on the compensation structure in the UAE, there are leave policies in place. Leave benefits in the UAE require that employees be eligible for a minimum of 30 days of paid leave. In addition, holidays such as UAE National Day are additional to these mandatory licenses.
Additional Welfare Programs by the Ministry of Labour
In addition to the mandatory employee benefits, an employer may choose to offer some additional benefits. The idea of these additional benefits is to try to retain workers in the companies. For instance, life insurance, additional vacations, flexible work schedules, family health insurance, and flexible work schedules can be offered. Below you will see a brief description of some of these complementary benefits.
Flexible work schedules: The purpose of this policy is to give employees the freedom to work from wherever and whenever they want. As a result, employees can maintain work-life balance and enjoy work. Additionally, with this, you can increase employee loyalty to the company.
Additional Holidays: Offering additional leaves and holidays to employees can be an added benefit. Having to work for 8 or 9 hours a day continuously can be exhausting for employees. That’s why an extra vacation is an excellent opportunity to catch up with family and friends.
Workshops and training: Free courses and workshops are additional benefits for employees. Especially for those who want to learn and develop their skills. The idea is to help them improve their professional prospects. As an employer, you can offer free courses to workers and show interest in their personal development.
Health Insurance: Additional health benefits for your families and employees can be great additional benefits. A good option is to give gym memberships, health insurance, or other types of health benefits.
Rights and Protection of Employees under Law
The Ministry of Labour UAE also establishes the labor rights of employees. Simply put, workers’ rights are laws to ensure their protection. Specifically, on the intellectual and financial rights of employees. In addition, to obtain full rights in exchange for their work and to protect them from deception and fraud. The most important rights of employees in the UAE are the following:
Employment contract: All employees in the UAE must have a written employment contract. It must describe the terms and conditions of employment. For example, working hours, salary, leave entitlements, and notice period. An interesting fact is that this is one of the most important rights of workers.
Working hours: In the UAE, the standard working day is 8 hours per day or 48 hours per week. However, you have to know that during Ramadan or in some industries, the working day may be shorter.
Overtime: If a worker works longer than their normal working day, they must receive overtime pay. This is approximately 25% or 50% of your regular hourly wage.
Annual Leave: Employees may take annual leave upon completing one year of continuous service. These vacations are a minimum of 30 calendar days for employees with less than 5 years in the company. However, employees with more than 5 years in the company can enjoy annual leave for 45 calendar days.
Sick leave: Employees can take sick leave at full pay for a maximum of 90 days a year. To do this, you have to present a medical certificate from an authorized doctor.
Maternity leave: Employees may take maternity leave for a period of 45 days with full pay. You have to know that this time includes both the prenatal and postnatal periods. Additionally, this can be extended up to 100 days if a complication occurs.
Impact on Employee Retention and Satisfaction
Currently, in the UAE there is a dynamic and fast business environment. This is why job satisfaction plays a crucial role in the productivity and general well-being of employees. It is essential to understand the factors that are part of job satisfaction.
You have to know that all the benefits mandated by the Ministry of Labor UAE have an impact on employees. Specifically, in the form of satisfaction and retention. Below, you will see the description of the factors that are part of this impact or job satisfaction that employees enjoy.
Positive and welcoming work environment: A positive work environment must exist in the company; specifically, between employees or departments. In the UAE, companies prioritize providing a supportive or inclusive work culture. Additionally, the importance of collaboration, teamwork, and mutual respect is emphasized. In other words, everything that contributes to a harmonious work environment. This is why organizations in the country usually invest in employee well-being programs.
Rewards and Recognition: Rewarding and recognizing employee contributions and achievements is a critical factor in increasing employee satisfaction. That is why an interesting measure is to implement complementary benefits for outstanding workers. In addition, monetary rewards, performance-based bonuses, promotions, and others may be included.
Job security: Job stability is an essential factor in the United Arab Emirates. All employees value all long-term security options from companies. For instance, specific employment contracts, fair dismissal policies, and consistent performance evaluations.
Workload and stress management: Effective stress management strategies and efficient workload distribution are important factors in job satisfaction. Employers have to promote a healthy work environment. All you need to do is provide manageable workloads and stress reduction programs as part of your fringe benefits.
Conclusion: Future Trends in Employee Benefits
In the UAE, its benefits and employee welfare programs are vital to attracting and retaining human talent in the country. In this way, the Ministry of Labour UAE plays an important role in ensuring compliance with labor standards and harmony between the parties.
The UAE is a very important economic center worldwide. For this reason, it has great investment and work opportunities for nationals and foreigners. In addition, the UAE government has promoted many initiatives so that the country can position itself as one of the favorite destinations for investors.
Therefore, many foreign employees have chosen the UAE as the right place to work. For this reason, the MOL UAE ensures that all labor laws are complied with for both nationals and foreigners. This way, employees can feel safe in their jobs and have a place to complain and seek solutions to any work problems they have.
On the other hand, Human Resources UAE must also ensure that all laws and regulations are complied with in the company. In this way, the rights of the employees are guaranteed, and the company does not suffer any sanctions or fines. Therefore, if you want more about the UAE and all the work benefits that it provides to expatriates, we invite you to visit our blog and learn more about the UAE.
