قرار رقم (1) لسنة 2019

We, Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates,

After perusal of the Constitution; Federal Law No. (1) of 1972 concerning the Competencies of the Ministries and the Powers of the Ministers and its amending laws; Federal Decree-Law No. (11) of 2008 concerning Human Resources in the Federal Government and its amending laws; Federal Law No. (14) of 2014 concerning the Combatting of Commercial Fraud; Federal Law No. (2) of 2015 concerning Commercial Companies and its amending laws; Federal Law No. (8) of 2017 concerning Value Added Tax; Federal Decree-Law No. (19) of 2018 concerning Foreign Direct Investment; Federal Decree-Law No. (7) of 2020 concerning the Adjustment of the Provisions of certain Laws to the Federal Decree-Law No. (11) of 2008 concerning Human Resources in the Federal Government; Federal Decree-Law No. (26) of 2020 concerning the Amendment of certain Provisions of the Federal Law No. (18) of 1981 concerning the Organisation of Commercial Agencies; Federal Decree-Law No. (32) of 2020 concerning Trademarks; Federal Decree-Law No. (36) of 2020 concerning the Regulation of Trade Names; Federal Decree-Law No. (37) of 2020 concerning Commercial Register; Federal Decree-Law No. (45) of 2020 concerning the Protection of Personal Data; Federal Decree-Law No. (46) of 2020 concerning Electronic Transactions and Trust Services; And based on what the Cabinet approved,

We have promulgated the following Decree-Law:

Chapter One: Definitions and General Provisions

Article (1): Definitions In the application of the provisions of this Decree-Law, the following words and expressions shall have the meanings assigned to each of them, unless the context otherwise requires:

1. State: The United Arab Emirates.
2. Ministry: The Ministry of Human Resources and Emiratisation.
3. Minister: The Minister of Human Resources and Emiratisation.
4. Employer: Any natural or legal person who employs one or more employees in return for a wage, and is subject to the provisions of this Decree-Law, whether he is the owner of the establishment or its director or responsible for it.
5. Employee: Any natural person who performs work in return for a wage for the benefit of an employer and under his management or supervision, and is subject to the provisions of this Decree-Law.
6. Establishment: Any economic unit, company, or institution, whether industrial, commercial, agricultural, or service, in which one or more employees work.
7. Employment Contract: An agreement concluded between the employer and the employee, whereby the employee undertakes to work for the employer and under his management or supervision, in return for a wage.
8. Wage: The basic wage, in addition to all allowances, benefits, and in-kind payments, which are paid to the employee in return for his work.
9. Basic Wage: The wage stipulated in the employment contract, which is paid to the employee in return for his work, and does not include any allowances, benefits, or in-kind payments.
10. Working Hours: The period during which the employee is at the disposal of the employer, and performs the work assigned to him.
11. Overtime: The additional hours worked by the employee beyond the normal working hours.
12. Annual Leave: The paid leave granted to the employee annually, in accordance with the provisions of this Decree-Law.
13. Sick Leave: The paid or unpaid leave granted to the employee in case of illness, in accordance with the provisions of this Decree-Law.
14. Maternity Leave: The paid leave granted to the female employee in case of childbirth, in accordance with the provisions of this Decree-Law.
15. Paternity Leave: The paid leave granted to the male employee in case of childbirth, in accordance with the provisions of this Decree-Law.
16. End of Service Gratuity: The amount of money that the employee is entitled to at the end of his service, in accordance with the provisions of this Decree-Law.
17. Probationary Period: The period during which the employee is evaluated by the employer, to ensure his suitability for the work.
18. Non-Compete Clause: A clause in the employment contract that prohibits the employee from working for a competing establishment after the termination of his employment contract.
19. Confidentiality: The obligation of the employee to maintain the confidentiality of the information and data of the employer, which he obtains during his work.
20. Trade Secrets: The confidential information and data of the employer, which give him a competitive advantage, and which he takes measures to protect.
21. Labour Dispute: Any dispute arising between the employer and the employee, or between a group of employers and a group of employees, concerning the application of the provisions of this Decree-Law.
22. Collective Labour Dispute: Any labour dispute that involves a group of employees, and affects their collective interests.
23. Emiratisation: The policy of the State to increase the participation of citizens in the labour market.
24. Juvenile: Any natural person who has not completed eighteen years of age.
25. Official Holidays: The holidays stipulated by law, during which the employee is entitled to a paid leave.
26. Work Permit: The permit issued by the Ministry to the employer, allowing him to employ a foreign employee.
27. Electronic System: The electronic system approved by the Ministry for the registration of employment contracts and other labour-related procedures.
28. Competent Authority: The local government authority concerned with regulating labour affairs in the free zones.

Article (2): Objectives of the Decree-Law This Decree-Law aims to:

1. Regulate employment relationships in the State, and protect the rights of both parties.
2. Provide a flexible and attractive labour market, that supports the national economy.
3. Enhance the competitiveness of the State in the global labour market.
4. Promote Emiratisation and provide equal opportunities for citizens.
5. Ensure a safe and healthy working environment.
6. Develop the skills and capabilities of employees.
7. Resolve labour disputes efficiently and fairly.

Article (3): Scope of Application

1. The provisions of this Decree-Law shall apply to all establishments and employees in the State, whether in the private sector or in the free zones, unless otherwise stipulated by special laws.
2. The provisions of this Decree-Law shall not apply to: a. Employees of the federal and local governments. b. Employees of the armed forces, police, and security forces. c. Domestic workers. d. Agricultural workers, unless otherwise stipulated by a resolution of the Cabinet. e. Employees working in family businesses, who are relatives of the employer up to the second degree.

Article (4): Public Order The provisions of this Decree-Law are considered to be of public order, and any agreement or condition that contradicts its provisions shall be null and void, unless it is more beneficial to the employee.

Article (5): Calculation of Periods

1. The periods stipulated in this Decree-Law shall be calculated in Gregorian calendar days, unless otherwise stipulated.
2. If the end of any period falls on an official holiday, the period shall be extended to the next working day.

Article (6): Non-Discrimination It is prohibited to discriminate between employees on the basis of race, colour, sex, religion, national origin, social origin, or disability, which would impair equal opportunities or undermine equality in employment.

Article (7): Equal Opportunities The employer shall provide equal opportunities for all employees, without discrimination, in terms of employment, training, promotion, and wages.

Article (8): Emiratisation The Ministry shall, in coordination with the competent authorities, develop policies and plans to promote Emiratisation in the private sector, and shall issue the necessary resolutions to implement them.

Article (9): Work Permits

1. No foreign employee may be employed in the State without obtaining a work permit from the Ministry, in accordance with the conditions and procedures stipulated in this Decree-Law and its executive regulations.
2. The employer shall bear the fees for obtaining and renewing the work permit, and any other fees related to the employment of the foreign employee.

Article (10): Recruitment and Employment Costs

1. The employer shall bear the costs of recruitment and employment of the employee, and it is prohibited to collect any fees or expenses from the employee in return for his employment.
2. Any agreement or condition that contradicts the provisions of this Article shall be null and void.

Article (11): Employment of Juveniles

1. It is prohibited to employ juveniles who have not completed fifteen years of age.
2. The employment of juveniles who have completed fifteen years of age and have not completed eighteen years of age shall be subject to the conditions and procedures stipulated in the executive regulations of this Decree-Law.
3. It is prohibited to employ juveniles in hazardous or arduous works, or in works that may harm their health, safety, or morals.

Article (12): Employment of Women

1. It is prohibited to discriminate between men and women in terms of wages for the same work or for work of equal value.
2. The employment of women in hazardous or arduous works, or in works that may harm their health or morals, shall be subject to the conditions and procedures stipulated in the executive regulations of this Decree-Law.

Article (13): Obligations of the Employer The employer shall:

1. Provide a safe and healthy working environment for employees.
2. Pay wages on time, in accordance with the provisions of this Decree-Law and the employment contract.
3. Provide adequate housing, transportation, and medical care for employees, in accordance with the provisions of this Decree-Law and the executive regulations.
4. Respect the dignity of employees, and refrain from any form of harassment or abuse.
5. Provide training and qualification for employees, to develop their skills and capabilities.
6. Comply with all the provisions of this Decree-Law and its executive regulations.

Article (14): Obligations of the Employee The employee shall:

1. Perform the work assigned to him diligently and faithfully, and in accordance with the instructions of the employer.
2. Comply with the working hours and the disciplinary regulations of the establishment.
3. Maintain the confidentiality of the information and data of the employer, and protect his trade secrets.
4. Preserve the tools, equipment, and materials of the employer, and use them properly.
5. Cooperate with the employer and his colleagues, to achieve the objectives of the establishment.
6. Comply with all the provisions of this Decree-Law and its executive regulations.

Article (15): Training and Qualification

1. The employer shall provide training and qualification for employees, to develop their skills and capabilities, and to enable them to perform their work efficiently.
2. The Ministry shall, in coordination with the competent authorities, develop policies and plans for training and qualification, and shall issue the necessary resolutions to implement them.

Article (16): Employment Records and Files

1. The employer shall maintain an employment record for each employee, containing his personal data, employment contract, wages, leaves, and any other relevant information.
2. The employer shall maintain an employment file for each employee, containing his academic qualifications, experience certificates, and any other relevant documents.
3. The executive regulations of this Decree-Law shall specify the details of the employment records and files, and the period for which they must be kept.

Article (17): Disciplinary Regulations

1. The employer shall issue disciplinary regulations for the establishment, specifying the disciplinary penalties that may be imposed on employees, and the procedures for imposing them.
2. The disciplinary regulations shall be approved by the Ministry, and shall be displayed in a prominent place in the establishment.
3. The executive regulations of this Decree-Law shall specify the details of the disciplinary regulations, and the penalties that may be imposed.

Article (18): Transfer of Employees

1. The employer may transfer the employee from one work to another, or from one location to another, provided that the new work or location is not substantially different from the original work or location, and that the transfer does not prejudice the employee's rights.
2. If the transfer results in a change in the employee's wage or working conditions, the employee's consent must be obtained.

Chapter Two: Employment Contract

Article (19): Employment Contract

1. The employment contract shall be in writing, and shall be in Arabic, and may be in another language in addition to Arabic.
2. The employment contract shall specify the type of work, the wage, the working hours, the duration of the contract, and any other conditions agreed upon by the parties.
3. The employment contract may be for a definite or indefinite period.
4. The executive regulations of this Decree-Law shall specify the details of the employment contract, and the procedures for its registration with the Ministry.

Article (20): Probationary Period

1. The employer may subject the employee to a probationary period, not exceeding six months, from the date of commencement of work.
2. During the probationary period, either party may terminate the employment contract, without notice, and without end of service gratuity.
3. If the employment contract is terminated by the employer during the probationary period, the employer shall bear the costs of returning the employee to his home country.
4. If the employment contract is terminated by the employee during the probationary period, the employee shall bear the costs of returning to his home country, unless otherwise agreed upon.
5. The probationary period shall not be extended for more than one time.

Article (21): Non-Compete Clause

1. If the work entrusted to the employee allows him to know the employer's clients or access his trade secrets, the employer may stipulate in the employment contract that the employee shall not, after the termination of the contract, compete with the employer or participate in any competing project.
2. The non-compete clause shall be valid for a period not exceeding two years from the date of termination of the employment contract, and shall be limited to a specific geographical area and a specific type of work.
3. The non-compete clause shall be null and void if the employer terminates the employment contract without a legitimate reason.

Chapter Three: Working Hours, Leaves and Wages

Article (22): Working Hours

1. The normal working hours shall not exceed eight hours per day, or forty-eight hours per week.
2. The working hours may be increased to nine hours per day for employees working in commercial establishments, hotels, restaurants, and similar establishments, and for employees working in hazardous or arduous works, in accordance with the conditions and procedures stipulated in the executive regulations.
3. The working hours shall be reduced by one hour per day during the month of Ramadan.
4. The working hours shall not include the rest periods, which shall not be less than one hour per day, and shall not exceed two hours per day.
5. The executive regulations of this Decree-Law shall specify the details of the working hours, and the exceptions thereto.

Article (23): Overtime

1. If the employee is required to work beyond the normal working hours, he shall be paid an additional wage for the overtime, not less than 25% of his basic wage.
2. If the employee is required to work overtime between 9 p.m. and 4 a.m., he shall be paid an additional wage for the overtime, not less than 50% of his basic wage.
3. The total working hours, including overtime, shall not exceed 144 hours every three weeks.
4. The executive regulations of this Decree-Law shall specify the details of overtime, and the exceptions thereto.

Article (24): Daily Rest The employee shall be entitled to a daily rest period of not less than one hour, after working for five consecutive hours.

Article (25): Weekly Rest

1. The employee shall be entitled to a paid weekly rest of not less than one day, which shall be Friday, unless otherwise stipulated in the employment contract or the disciplinary regulations.
2. If the employee is required to work on his weekly rest day, he shall be paid an additional wage for the work, not less than 50% of his basic wage, and shall be granted a compensatory rest day.

Article (26): Annual Leave

1. The employee shall be entitled to an annual leave of not less than 30 days for each full year of service.
2. The employee shall be entitled to an annual leave of not less than two days for each month of service, if his service period is more than six months and less than one year.
3. The employee shall not be entitled to an annual leave if his service period is less than six months.
4. The employer may determine the date of the annual leave, and may divide it into two or more periods, with the consent of the employee.
5. The employee shall be paid his basic wage, in addition to the housing allowance, for the period of his annual leave.
6. The employee shall not work for another employer during his annual leave.
7. The executive regulations of this Decree-Law shall specify the details of the annual leave, and the procedures for its calculation and payment.

Article (27): Leave for Study

1. The employee shall be entitled to a paid leave for study, not exceeding 10 days per year, for the purpose of taking examinations, provided that he is enrolled in an accredited educational institution.
2. The executive regulations of this Decree-Law shall specify the conditions and procedures for granting leave for study.

Article (28): Maternity Leave

1. The female employee shall be entitled to a maternity leave of 60 days, of which 45 days shall be with full pay, and 15 days shall be with half pay.
2. The maternity leave may be extended for an additional 30 days, without pay, in case of illness of the mother or the child, which is proven by a medical report.
3. The female employee shall be entitled to two additional hours per day for nursing her child, for a period of six months from the date of childbirth, without affecting her wage.
4. The executive regulations of this Decree-Law shall specify the details of maternity leave, and the conditions for its granting.

Article (29): Paternity Leave The male employee shall be entitled to a paid paternity leave of five working days, which may be taken consecutively or intermittently, within six months from the date of childbirth.

Article (30): Sick Leave

1. The employee shall be entitled to a sick leave of not more than 90 days per year, which shall be calculated as follows: a. The first 15 days: with full pay. b. The next 30 days: with half pay. c. The remaining 45 days: without pay.
2. The sick leave shall be granted on the basis of a medical report issued by an accredited medical institution.
3. The employee shall notify the employer of his illness within 24 hours from the date of his absence from work.
4. The executive regulations of this Decree-Law shall specify the details of sick leave, and the conditions for its granting.

Article (31): Unpaid Leave The employee may, with the consent of the employer, take an unpaid leave, for a period not exceeding 30 days per year.

Article (32): Official Holidays

1. The employee shall be entitled to a paid leave on official holidays, which shall be determined by a resolution of the Cabinet.
2. If the employee is required to work on an official holiday, he shall be paid an additional wage for the work, not less than 50% of his basic wage, and shall be granted a compensatory rest day.

Article (33): Wages

1. Wages shall be paid in the national currency of the State, or in any other currency agreed upon by the parties.
2. Wages shall be paid at least once a month, and may be paid more frequently, if agreed upon by the parties.
3. Wages shall be paid through the Wage Protection System, or any other system approved by the Ministry.
4. The executive regulations of this Decree-Law shall specify the details of wages, and the procedures for their payment.

Article (34): Minimum Wage The Cabinet shall, upon the proposal of the Minister, issue a resolution specifying the minimum wage for employees in the State.

Article (35): Deductions from Wages

1. It is prohibited to deduct any amount from the employee's wage, except in the cases stipulated in this Decree-Law or by a court order.
2. The deductions from the employee's wage shall not exceed 25% of his basic wage, except in the case of alimony, where the deduction may reach 50%.
3. The executive regulations of this Decree-Law shall specify the details of deductions from wages, and the conditions for their application.

Article (36): Priority of Wages Wages and end of service gratuity shall have priority over all other debts of the employer, in case of bankruptcy or insolvency.

Chapter Four: Termination of Employment Contract and End of Service Gratuity

Article (37): Suspension of Employment Contract The employment contract shall be suspended in the following cases:

1. Sick leave.
2. Maternity leave.
3. Paternity leave.
4. Leave for study.
5. Unpaid leave, with the consent of the employer.
6. Detention of the employee by the competent authorities, provided that he is acquitted or released without charge.
7. Any other case stipulated in the executive regulations of this Decree-Law.

Article (38): Termination of Employment Contract The employment contract shall be terminated in the following cases:

1. Expiration of the contract period, if it is for a definite period.
2. Mutual agreement of the parties.
3. Death of the employee.
4. Total disability of the employee.
5. Resignation of the employee, with notice, in accordance with the provisions of this Decree-Law.
6. Termination by the employer, with notice, in accordance with the provisions of this Decree-Law.
7. Termination by the employer without notice, in accordance with the provisions of this Decree-Law.
8. Termination by the employee without notice, in accordance with the provisions of this Decree-Law.
9. Any other case stipulated in the executive regulations of this Decree-Law.

Article (39): Termination of Employment Contract by the Employer

1. The employer may terminate the employment contract for a definite period before its expiration, or the employment contract for an indefinite period, by giving the employee a written notice of not less than 30 days, and by paying him all his dues.
2. The employer may terminate the employment contract without notice, in the following cases: a. If the employee assumes a false identity or submits forged documents. b. If the employee commits a mistake that results in a gross material loss to the employer. c. If the employee violates the instructions of the employer concerning the safety of work or workers, provided that these instructions are in writing and displayed in a prominent place. d. If the employee is absent from work without a legitimate reason for more than 20 intermittent days, or more than 7 consecutive days, during one year. e. If the employee discloses any trade secrets of the employer. f. If the employee is convicted of a crime involving honour or honesty. g. If the employee is found in a state of intoxication or under the influence of drugs during working hours. h. If the employee assaults the employer or any of his managers or colleagues. i. If the employee fails to perform his basic duties under the employment contract, and fails to remedy such failure after being given a written warning. j. Any other case stipulated in the executive regulations of this Decree-Law.

Article (40): Termination of Employment Contract by the Employee

1. The employee may terminate the employment contract for a definite period before its expiration, or the employment contract for an indefinite period, by giving the employer a written notice of not less than 30 days, and by returning all the tools and equipment of the employer.
2. The employee may terminate the employment contract without notice, in the following cases: a. If the employer fails to fulfil his obligations under the employment contract or the provisions of this Decree-Law. b. If the employer assaults the employee or any of his family members. c. If the employer or his representative commits an act of fraud or deception against the employee. d. If the employer assigns the employee to perform work that is substantially different from the work agreed upon in the employment contract, without the employee's consent. e. If the employer fails to provide a safe and healthy working environment for the employee. f. Any other case stipulated in the executive regulations of this Decree-Law.

Article (41): Notice Period

1. The notice period for termination of the employment contract shall not be less than 30 days, unless otherwise agreed upon by the parties, provided that it does not exceed 90 days.
2. During the notice period, the employee shall be entitled to his full wage, and shall be allowed to search for another job for a period of one day per week, with full pay.
3. If either party fails to comply with the notice period, he shall pay the other party a compensation equal to the employee's wage for the notice period, or the remaining part thereof.

Article (42): End of Service Gratuity

1. The employee who has completed one year or more of continuous service shall be entitled to an end of service gratuity at the end of his service.
2. The end of service gratuity shall be calculated on the basis of the basic wage, as follows: a. 21 days' wage for each of the first five years of service. b. 30 days' wage for each year of service after the first five years.
3. The total end of service gratuity shall not exceed two years' wage.
4. The executive regulations of this Decree-Law shall specify the details of the end of service gratuity, and the procedures for its calculation and payment.

Article (43): Cases of Deprivation of End of Service Gratuity The employee shall be deprived of his end of service gratuity in the following cases:

1. If he is terminated for any of the reasons stipulated in Article (39) of this Decree-Law.
2. If he resigns before completing one year of continuous service.
3. If he resigns after completing one year and less than three years of continuous service, he shall be entitled to one-third of the end of service gratuity.
4. If he resigns after completing three years and less than five years of continuous service, he shall be entitled to two-thirds of the end of service gratuity.
5. If he resigns after completing five years or more of continuous service, he shall be entitled to the full end of service gratuity.

Article (44): Payment of Dues Upon the termination of the employment contract, the employer shall pay the employee all his dues, including wages, end of service gratuity, and any other benefits, within 14 days from the date of termination.

Chapter Five: Non-Compete Clause, Confidentiality and Trade Secrets

Article (45): Non-Compete Clause The provisions of Article (21) of this Decree-Law shall apply to the non-compete clause.

Article (46): Confidentiality and Trade Secrets

1. The employee shall maintain the confidentiality of the information and data of the employer, which he obtains during his work, and shall not disclose them to any third party.
2. The employee shall protect the trade secrets of the employer, and shall not use them for his own benefit or for the benefit of any third party.
3. The obligation of confidentiality and protection of trade secrets shall continue even after the termination of the employment contract.
4. Any violation of the provisions of this Article shall entitle the employer to claim compensation for the damages incurred.

Chapter Six: Health and Safety, and Protection of Employees

Article (47): Health and Safety

1. The employer shall provide a safe and healthy working environment for employees, and shall take all necessary measures to protect them from occupational hazards and diseases.
2. The employer shall provide employees with the necessary training and instructions on health and safety procedures.
3. The employee shall comply with the health and safety instructions and procedures, and shall use the personal protective equipment provided by the employer.
4. The executive regulations of this Decree-Law shall specify the details of health and safety, and the obligations of both parties.

Article (48): Protection of Employees

1. The employer shall protect employees from any form of harassment, abuse, or violence in the workplace.
2. The employer shall establish a mechanism for receiving and investigating complaints from employees concerning harassment, abuse, or violence.
3. The executive regulations of this Decree-Law shall specify the details of the protection of employees, and the procedures for dealing with complaints.

Chapter Seven: Labour Disputes

Article (49): Labour Disputes

1. If a labour dispute arises between the employer and the employee, either party may submit a complaint to the Ministry.
2. The Ministry shall endeavour to settle the dispute amicably between the parties.
3. If the dispute is not settled amicably, the Ministry shall refer it to the competent court.
4. The executive regulations of this Decree-Law shall specify the procedures for settling labour disputes.

Article (50): Collective Labour Disputes

1. If a collective labour dispute arises, the employees or their representatives may submit a complaint to the Ministry.
2. The Ministry shall endeavour to settle the dispute amicably between the parties.
3. If the dispute is not settled amicably, the Ministry shall refer it to the competent court.
4. The executive regulations of this Decree-Law shall specify the procedures for settling collective labour disputes.

Chapter Eight: Penalties

Article (51): Penalties

1. Without prejudice to any harsher penalty stipulated in any other law, any person who violates the provisions of this Decree-Law or its executive regulations shall be punished with a fine of not less than (5,000) Dirhams and not more than (1,000,000) Dirhams.
2. The fine shall be doubled in case of recurrence of the violation.
3. The court may, in addition to the fine, order the closure of the establishment, or the suspension of its activity, for a period not exceeding six months.
4. The court may, in addition to the fine, order the deportation of the foreign employee.