Legal Procedures before Employment - Assignment Example

Labor Law Case Study and Questions and Employment Contract Case Study: Law Part A: Labor Case Questions Question Legalprocedures before employment Employment of employees must always follow the required procedure by law for it to be considered valid. More specifically, the labor law requires the private companies to follow its clauses in hiring foreign employees as well as UAE employees strictly. In the case of Walter and Sharon, specific procedures must be ensured before they start work at ADICC. First, they have to append their signatures to their employment contract between them and the company. After this, ADICC must attach the employment contract to a formal application letter to the Ministry of Labor to seek for them work permit. After the issuance of work permit, the workers will be required to obtain a UAE Visa to start their employment finally at ADICC. Question 2: Limited Contract There are two different types of the employment contract, the limited contract, and the unlimited contract. According to the Federal Labor Law, (No. 8 of 1980), a limited employment contract is a contract for a specified duration or term clearly indicating the start date and end date. More precisely, it cannot go beyond 4years though it is renewable for either four years or less. Precisely, the limited employment contract ultimately comes to an end after the four years. Question 3: Specified Information in the Employment Contract Even though, for the UAE workers the employment contract may not be necessarily in writing, for the ex-pat (foreign) employees such as the case of Walter and Sharon the law requires the agreement to be in writing with specific information. This must include the information about the job description, job location, compensation package, the start date of the employment, the date when the contract is assigned. More specifically, the employment contract must include the limited term of the employment contract between the two individuals and the company. Question 4: Probation Period While Sharon’s employment contract contains probation period, Walters contract does not. It is presumed that this may cause confusion and as such there is a need for an explanation for this under the Labor Law. The probation period is the duration under which the employee at the start of the employment may serve under trial for a maximum of six months or less. The probation period is not compulsory and as such not all employment contracts may contain it. For the employment contracts with probation period, the employee is not given maternity, sick, holiday leave during this time. Under the Federal Labor Law, both the employer and employee may terminate the contract during this period without notice or by giving a valid reason for doing so. Question 5: Wages a. The difference between total wage and basic wage Wages are the compensations or payments made to the employee as a return for their work at the organization. This includes allowances, the cost of living as well as bonuses for their work. There are two different wages; the total wage and the basic wage. The basic wages are the totals paid to the employee without including allowances and bonuses or commission.On the other side, the total wage is an inclusion of the basic wage plus the allowances (housing, transport or ticket). b. End of service gratuity It is very critical to understand the difference between the total wage and basic wage since they determine the calculation of the end of employment benefit. In the end or termination of the contract on a valid basis, the employee is entitled to a gratuity calculated based on the last basic wage. Question 6: Payment Mode or Currency Even though, the federal labor law requires wages to be paid in the national currency; the payment may be done in any currency as agreed by the parties in the employment contract. As in the case of Walter, the payment of his wages in US dollars must be agreed upon in the employment contract between him and ADICC. Essentially, the parties agree on the currency of payment. Question 7: Working Time The Federal law enshrines or stipulates the working hours, overtime and required breaks within the working workers. Sharon’s Sunday, Monday and Wednesday schedules do not comply with the Federal Labor Law. Even though, it gives Sharon a break of one hour; there is a lapse. However, same to the Tuesday and Thursday work plan may comply with the overtime payment as required by the Federal law, but they do not comply to the compulsory break given to the workers by law.On this specific days, Sharon is required to work continuously for six hours before breaking for her lunch break. Ideally, this is ultra-vires to the five-hour ultimatum stipulated by the law. According to the Federal Labor laws, an employee must and should not work exceeding five hours without either breaking for the rest or food. In this light, the work plan for the week is null and void under the Federal Labor Laws (No.8 of 1980). On the other hand, Sharon is only given an overtime work on Friday between 10am and 1pm. This totally contravenes the federal labor law on various aspects. First, an employee should only work for a maximum of two hours overtime. The contract provides for a three hour overtime that is against the Federal Labor Law. On the other hand, the Fridays overtime should be paid an hourly wage plus 50% benefits but this contract provides for only hourly wage plus 25% compensation. Arguably, this contravenes the federal labor laws. Question 8: Employment leave The Federal Labor law is quite clear when it comes holidays and leaves as far as employment contracts are concerned. After two months of the start of employment, Sharon may be denied access to paid leave based on the interests of the law. According to the requirements of the law, an employee may only take annual holiday leave after being in employment for six months. Further, there is only two-holiday leave days in each of the employment months within the first year but an employee may be given 30-holiday leave days in the second year of employment. However, the employer has the right to arrange for the annual leave days on behalf of the employees. Question 9: Employment of Minors i. Requirements before hiring There are usually regulations that guides the hiring or employment of minors within the organization. Before contracting the services of Rebecca and David at ADICC, Mohamad must obtain copies of their birth certificates, certificates of physical fitness from the practitioner doctor depending on the nature of work, and finally a letter of consent must be obtained from their parents. ii. Employment Contract for the Minors. Even though, the employment terms for Rebecca may look fair in the perception the parents and the company, the Federal Labor Law does not allow for the employment of minors under the age of 15 years. Her contract with ADICC contravenes the requirements of the law and as such should be considered to be null and void. David’s employment contract is allowed within the confines of the Federal Labor Laws. His Tuesday and Thursday worktime employment terms completely comply with the requirements of labor laws. As in the law, David works within the confines of the required time and does the required tasks. However, the Monday and Wednesday employment terms do not comply with the regulations. According to the UAE Federal Labor Law (No.8 of 1980), the minors must not be employed for work time exceeding six hours. Davids work times during this days goes for up to 8 hours that goes against the law. Also, the law does not require the minors to work at night and do hazardous jobs. ADICC contracts David from 3pm to 10pm that part falls at the night time.This could be hazardous for a construction. This contract term violates the Federal Labor Law. Question 10: Compensation during maternity leave. When a worker or an employee goes on maternity leave, he should be entitled to full compensation. In the case of Sharon, Mohammad completely goes against the law by providing 30 days maternity leave with 15 days full pay and the other 15 days a half-paid. According to the confines of the Federal Labor Laws, a woman is entitled to 45 days maternity leave that can be taken before or after delivering. This leave is fully paid for the requirements of the law depending the number of years she has taken in the organization. Sharon is in her second year of employment and as such is entitled to 45 maternity leave days of full payment. The law requires that in the first year of employment one may be entitled a half paid maternity leave but after working for at least one year she should be given a 45 maternity leave days with full payment. Question 11: Employees Safety a. Procedures to be taken for an accident The safety of employees must always be ensured within the organization. According to the labor laws, the organizations are always required to take safety measures that avoid injuries and sufferings to its employees. In case of accidents within the organization as in the case of Malik at ADICC then the necessary procedures should be taken. The ADICC must take the step to report the accident to both the police and Ministry of Labor. In the report, the organization must reveal injuries involved, and the disease contracted due to their negligence. As clear in the case of Malik, the building was lacking scaffolding, and this must be included in the report of ADICC to the Ministry of Labor and the police. b. Liability ADICC in this situation is held liable for the accident. According to the Federal Labor Law, the organizations are required to take safety measures at construction sites to avoid injuries to the employees. ADICCs construction site of 9m lacked scaffolding and the required suspended walkways to make the working environment secure to the employees. The law clearly stipulates that scaffolding and suspended walkways of the required sufficient width must be accompanied by barriers of heights exceeding 8m. c. Consequents for ADICC Within the confines of the Federal labor law, ADICC is completely liable for Maliks injuries. As such, ADICC must take the step and responsibility to pay Maliks medical treatment cost, the travel expenses and his full wages for the first six months. After the sixth month, ADICC is required within the confines of the law to provide a half pay to Malik for the seventh month. Subsequently, the organization will be compelled by law to ensure the safety measures are in place to avoid future accidents. Question 12: Labor Camp Law a. Ten Tripple bunk bed As per the requirement of the law, ADICC does not comply within the confines of the law. Only eight and a maximum of 10 people should be allowed in each room. The triple beds go above the requirement of two meters, and this contravenes the law. b. Bathroom with one shower and a washing basin This provision complies with the requirement of the law. According to the rules governing labor camps in Abu Dhabi, the employer is required to provide a minimum of one shower, one washing basin, and one toilet. Fixtures to hang clothes, mirrors, cabinets, hot and cold water, should also be provided. c. Mess room and ceiling The materials used to fabricate the mess room, and its ceiling do not comply with the Federal laws governing camps. According to the law governing buildings, the materials used must be environmentally friendly and non-flammable. No asbestos should be used as in the case of ADICC camps. d. Condition of the medical clinic This again does not comply with the law, the law requires the floors to be cemented or concreted. e. One small window and no air conditioning This does not comply with the rules. The laws governing camps and buildings in Abu Dhabi requires the organizations buildings to have sufficient lighting, proper ventilation and good electricity and gas supply. Part B: Employment Contract. EMPLOYMENT CONTRACT Between ADICC, a privately owned company, located in Abu Dhabi (“the employer”) & Sara Al Abdallah (“the employee”) Who agree that Sara Al Abdallah (“the employee”) shall be employed by ADICC (“the employer”) under the following terms and conditions: i. JOB TITLE AND DUTIES The employee shall be hired by the employer at the ADIC business building located at Office # M4, Mezzanine Floor Muroor Road of P.O.Box: 47550 in Abu Dhabi, as a Human Resource Manager. The employee agrees to execute the following duties and responsibilities: a. Design and maintain the work structure within the organization by updating the job description and requirement for all the job positions. b. Maintain a working staff for the organization by establishing recruitment process provide testing standards, interview applicants and train the managers in the selection of employees to the organization. c. Prepare new employees for tasks by conducting induction or orientation and training programs for the employees d. Conduct job evaluation, prepare pay budget and implement the pay structure revision to the employees e. Plan, monitor and carry out performance appraisal training to the line managers to instill discipline in employees. f. Maintains employees benefits program, schedule management conferences, counseling employees, hear and resolve employee grievances to the employees. g. Enforce legal adherence to the resource federal and state requirements by conducting investigations and maintaining clear records on employee conducts. h. Maintains the historical human resource records by developing a filing system that can be retrieved in keeping the past and current records. i. Attend educational workshops and create personal networks to upgrade the technical knowledge of the employees within the organization. j. Contributes to the general performance of the organization by building team effort in achieving the desired results to the organization. ii. CONTRACT TERM The employee shall be employed by ADICC for a limited term of three years starting 1st June 2015 to 1st June 2018. The organization may renew the contract if deemed fit. iii. PROBATION PERIOD The employee shall serve a probation period of three months. During this period, the employee or the worker shall not be entitled to any paid leave (sick, holiday and maternity leave). iv. BASIC WAGE The employee or the personnel shall be paid a basic wage of $ 9000 into his personal bank account before the 25th day of each month. v. ALLOWANCES The employee shall be entitled to this list of following monthly allowance: a. Housing Allowance $ 1440 b. Transport and Air ticket $ 5000 c. Education Allowance $ 1000 vi. WORK HOURS The employee shall work as follows; a. Sunday, Monday and Wednesday report at 8 am and leave at 5pm with a one-hour lunch break between 1 pm and 2 pm. b. Tuesday and Thursday; 6am to 3pm with a one-hour lunch break between 11am and 12 pm and additional one hour overtime paid on hourly wage plus 25% compensation c. Friday 8am to 9 am vii. HOLIDAY LEAVE The employee shall be entitled to a fully paid 24 leave days in his first year of employment and 30 fully paid leave days in the subsequent years annually. viii. SICK LEAVE After three months of employment, the employee shall be entitled to 90 days sick leave. The first 15 days of the sick leave shall be fully be compensated during the next 30 days the employee will be paid a half of his wages. Subsequently, after 45 days the employees sick leave will progress without pay. ix. MATERNITY LEAVE The employee shall be entitled to a 45 days half paid maternity leave within the first year of employment but a fully paid 45 maternity leave days in the second and subsequent years. x. OFFICIAL HOLIDAYS The employee shall be entitled to a full paid official holiday during the following holidays; National Day (1 day) Prophets Mohammad’s Birth Day (1 day) Gregorian New Year’s Day (1 day) Hijri New Years Day (1 day) Eid Al Fitri (2 days) Aid Al Adha and Waqfa (3 days) Al Isra’s Wal Mi’raaj (1 day) xi. HAJ LEAVE The employee shall be entitled to a non-paid 25 days Haj leave annually. xii. OVERTIME HOURS AND PAY The employee may be required to work one hour overtime during Tuesdays and Thursdays between 2pm and 3pm. She will be entitled to overtime wages at the rate of the employees regular hourly compensation plus 25%. Besides, the employee shall be entitled to a two monthly Friday work overtime of one hour between 8 am and 9am. In this overtime, she shall be entitled to compensation equal to hourly wage rate plus 50%. xiii. TERMINATION OF THE CONTRACT FOR JUSTIFIED CAUSE The employee’s employment may be terminated for justified cause including accruing great loss to the organization, found to be dishonest in his identity and documents, found intoxicated during work time, assault other employees and found to violates the provisions of the contract. xiv. END OF SERVICE GRATUITY The employee shall get a service gratuity on termination of her contract of employment that amount as calculated as below; 21*300 *3= $ 189,000. DATED AND SIGNED AT ADU DHABI ON THE (28th Day of May 2015). Employer (Signed on behalf of ADIC by the CEO Saif Al Daher) ……….................. Employee (Sara Al Abdullah) …………..………………… Read More