Federal Law of the UAE - Case Study Example

Introduction to business law: Federal Law of UAE Introduction UAE is one of the GCC countries which have Abu Dhabi as its capital city. UAE is a gulf country and it is in the Middle East. It is at southeast of the peninsula of Arabia. The UAE has seven emirates in its federation, and the popular city Dubai is one among them. The capital of UAE is Abu Dhabi, which is also its political cultural and industrial centre. UAE got independence in 1971 and at the same time the country constituted its political system. It has federation which consists of seven monarchies and ruler of each monarchy has absolute power over their emirate (Tony, 1992). UAE federal law became formulated by the government of United Arab Emirates during the period of 1971 which lasted up to 2011.The federal law of UAE from the initial times itself became documented in Arabic language. Despite the fact that UAE laws recommends a president, the country cannot be considered as a monarchy or republic. It is the rulers of the seven monarchies which has the strong control over their emirates (Tony, 1992). In UAE, the president and prime minister has to be selected by the Supreme council according to the UAE law. nevertheless, the position can be acquired according to hereditary lineage. According to this lineage, the president is the ruler of Abu Dhabi while Prime minister is the ruler of Dubai. The prime minister is also the vice president of UAE. UAE and Federal law The federal law comes into action, when there are different political units in a country. Similarly, UAE also has different political territory which is to be governed by the body of law. The body of law created by country for governing all territories can be known as federal law. In the federal law of UAE, all the concepts related to a country, can be covered. To have a federal law, there should be a federation where different states can be joined together. The different provinces are seven in number and come together to form a federation. The various provinces in UAE are Abu Dhabi, Dubai, Ras Al khaima, Fujairah,Al Ain, Sharjah and. Every province needs a body of law so as to safeguard the human rights, and freedom of individuals (Tony, 1992). One of the critical factors coming under the federal law is the labor law which describes the provisions of labor and their employers. UAE federal law in detail explains about the rights of employees and employer when they are under an employment contract.This labor law helps in fighting the exploitation which laborers or employers encounter during the period of employment contract. The labor law also describes the remuneration package which an employee receives during his period of employment with a company. According to Article 3 of the Law, the Law applies to all staff and employees working in the United Arab Emirates, whether UAE national or expatriate” (Tony, 1992). The Exemptions in Labor law of UAE The labor law of UAE is applicable to all employees and workers residing and working in the country of UAE. However, the labor law is not applicable to the workers who are working under the government bodies or federal government. This is the case if the worker is UAE national or an expatriate. The members who are working in the police units and military can not be subjected to UAE labor law. The domestic servants are also not subjected under labor law of UAE. The agricultural workers, those who are into farming can also be exempted from the UAE labor law, the exemption can be made more or less valuing the service the employees’ offers to the country (Tony, 1992). The provision of labor law in an employee and employer relationship is to avoid lack of law and order in the working system of organization. Anyone who contravenes in the employment contracts makes the contract null and void. It would not be null and void in the case that it gives more advantages to employees in the place of employer. The provision, which can be seen as null, needs to be severed from the employment contract and the rest of the contract continue to remain valid. Workers Protected by Labor law The Labor law of UAE is applicable to all people working in the country of UAE whether they are national or non- national. Only certain people can be exempted; like those working in government, police, military, domestic servants and agricultural workers. The labor law looks into the employment contract deeply to analyze the importance of it for the organizational goals and objectives. The government made sure that, both parties that it is the employee and the employer does not manipulate or exploit each other at any point of time. The federal law on labor covers all types of employees except those who can be exempted. The labor law is applicable to all provinces of the UAE (Tony, 1992). The labor law shows concern of the relationship of the employer and employee and covers all aspects related to it. It also covers all areas of employment contracts to avoid intervention by the employer to manipulate the employees. The labor law restricts the employment of women and juveniles. It deals with the maintenance of records and files, wages and compensation issue, working hours and annual leave and sick leave provision and other benefits and allowances offered to employees. Moreover, the provision for employment related injuries and accident can be covered under the labor law of the country. Nevertheless, a work accident is an accident which an employee suffers at the workplace, or while travelling to or from the workplace (Tony, 1992). Law Regarding Employment Contract In the UAE there two types of employment contract, which can be allowed limited employment contract and unlimited employment contract. Limited employment contract can be called fixed term contract, and it is a contract which lasts for a period or duration with a particular commencement and ending date.In unlimited employment contract, the employees work for the employer until the termination of contract without date for completion. Here, the contract gets terminated with the prior notice of employer and employee regarding its completion. Both the fixed term contract and unlimited contract differ from each other on some points. A fixed term contract has an initiating date and an ending date while unlimited contract only has a commencement date (Tony, 1992). There are other matters, which needed to be mentioned in the labor contract. The wages and remuneration of the employees,can hence be an crucial matter to be mentioned in an employment contract. The date of commencement of employment is crucial to be seen in the employment contract. The date of the employment contract is also essential to be written in the contract. The contract should verily mention the nature of it as in limited or unlimited. The next matters are the nature of the work, duration of the contract and location of the employment. The standard employment contracts can beare compiled by the labor office, and the employee and employer need to fill in the blanks of contract. The employer and the employee must follow the labor law, and this is mandatory for the smooth functioning of an organization (Tony, 1992). Law Regarding the Employment Elements i) Working hours and leave entitlement According to law the maximum time for which an employee can work during a day is eight hours and forty – eight- hours in case of a week. However, if an employee is working for trade, hotels or cafeterias his working hours may be increased up to nine hours. Moreover, the person who holds administrative and executive position need to work extended hours without expecting overtime pay. When it comes to annual leave, every employee can be entitled to it according to their service periods. If a person works for six months and less than one year period, then he can be entitled to 2 leave per month. If the service is more than one year, then one can be entitled to thirty days of annual leave. The annual leave can be calculated with the help of a calendar month instead of working days (Tony, 1992). Ii) Discipline code of employee and Accidents at work The labor law imposes certain disciplinary codes and measures in order to safeguard the working environment when an employee is breaking these laws they must be warned, fee can be imposed, or they can be suspended from the work. On greater in disciplinary action, the termination of the employment occurs along with ceasing of the gratuity payment. Accidents and occupational diseases suffered by an employee at the work place needs to report to the police and hospital by the employer at the earliest. The information must include the name, address and nationality of the employee. According to this book, each employer would provide vital safety measures to safeguard workers against the hazards of occupational injuries and diseases that may occur during work (Tony, 1992). Iii) UAE Labor law on termination of Employment contract. There are certain circumstances in which the employment contract can be terminated, and they are as follows: a) If both employer and employee agree to the termination of the contract and get it written from the hand of the employee. b) Once the contract period comes to an end. If the contract is implicitly or explicitly extended in align with the labor law. c) In case one of the parties has a contract with unspecified term provided that their action adhere to the labor law provisions. In the scenario of death of an employee, the contract can not be terminated, but the total disability of the employee tends to terminate the contract. On partial disability, the worker could be transferred to the work suitable to him by the employer (Tony, 1992). In some case, an employer has an opportunity terminate the contract without any prior notice, and they are as follows. A) If an employee pose himself as a fake nationality or personality or submit fake certificates or documents. B) On probation of an employee, the contract can be terminated on the completion of the period. C) If an employee becomes addicted to drugs, alcohol or substance abuse during the period of work and if he assaults the staff of the company in any manner. D) If the employees does not perform their duties well with regard to their job. E) If the employee let out the confidential matter related to employment. Iv)The employees and repatriation Repatriation is the travel of the employer from the organization he is working to his native country on the end of the employment contract. In usual situations, the travel expense of the employee can be taken by the employer, but if he takes up new employment in the same country, then the new employer would be obliged for the travel expense. In case the termination may be caused due to the employee then he is solely responsible for the repatriation costs (Tony, 1992). During the travel, the expense of family or shipment of furniture can be stipulated in the contract then the employer is responsible to pay for the same. If there is no mention for family travel expense and repatriation cost in the contract at the commencement of the employment, then the employer need not provide for the same. Many a times, the employer provides accommodation for the employee during their time in employment. In such cases, the employee has to vacate the house within 30 days of completing the contract with the employer. Sometimes the employee attempts to increase the time of 30 days given to him. This is not acceptable unless the repatriation expense and end of service benefit and entitlements cannot be paid by the employer. If there arouse a dispute among the employer and employee, then the ministry has the right to recommend its suggestion to both to finish the issue. If the case cannot be resolved or is pending, then the employee has the right to stay in the premises until the issues sorted out (Tony, 1992). V) UAE Law on Gratuity and Labor Dispute Gratuity is something an employee receives at the time of the termination of their employment contract. The gratuity can be paid to employees who worked longer period in an organization. The organization provides a notice period in case of unlimited contract, and compensation for dismissing the employee for not genuine reasons in limited contract. The employee can be paid for the unused annual leave they would be allotted by the company (Tony, 1992). Any amount of wages or overtime due to the employee by the company can be paid as gratuity to the worker on the end of the employment contract. Also, a gratuity for the service of the employee to the company can be paid by the employer to the employee along with repatriation expense. Labor dispute is another factor covered by the UAE labor law. In a large or small organization, disputes are common, and for this, there are provisions in labor law of UAE. The complaint has to be submitted in written form to the ministry, and it should mention the facts of the dispute and its summary. In case of the dispute between an employer and employee, an application must be sent to the ministry from the establishment of its location. Hence disputes may arise among the employees. In such case, they can also report to the ministry about the dispute. Thus, even the first thing to do when a case arises and you wish to file a complaint, is to peruse through your labor card, and confirm what entity is the issuing authority (Tony, 1992). Summary The UAE labor law is comprehensive in nature, and that covers all corners of labor relations between an employee and the employers. It is a balanced and advanced law system that clarifies the duties and rights of all parties existing in the employment. However, the labor system is not beneficial enough to the laborers working in the country. It is a common site to see, workers working at the construction sites without enough wages or allowances. The UAE law is more advantageous to the UAE nationals and less beneficial to the under privileged workers (Tony, 1992). The workers for domestic work and less privileged workers are coming from under developed, and developing countries and UAE labor law is not much favorable to them. A law should not be partial to anyone but justifiable to all parties. UAE labor law legally protects the labor rights, social rights and human rights of people in the country. Nonetheless, when one has a close glimpse at the circumstances in the country, one can find that the law is not substantial for the upgrade of health and well-being of the expatriates and labor class. The famous city like Dubai is trying to hold the position of the best city and in this rat race for power and wealth the poor workers and laborers can thus be exploited. It is not just enough that the provisions of labor law simply exist in black and white, but the measure has to be taken periodically to analyse it (Tony, 1992). The status of the employees and labor class, is not in a well to do state in UAE, as the government is ignorant slightly about many laws related to expatriates and labor class. References Tony, Thompson (1992). Law in totality in the UAE. London: Oxford Publishers. Read More