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In the UAE, the following must be adhered to under strict local legislation:
There are no employer or employee tax contributions for expats in the UAE. This makes it an extremely attractive place to work and hire. For UAE nationals, there is a minimum wage, determined by their level of education, of no lower than 3000AED per month.
The standard working week is from Sunday to Thursday with full time employment considered as 8 hours per day. These hours can vary depending on industry and holidays. If an employee has been employed for over a year they will be eligible for 30 days’ paid leave per year. There are also 14 public holidays.
To dismiss an employee in the UAE requires a minimum notice period of 30 days. However, under DIFC law the notice period will extend dramatically if the length of service is over 5 years. Pay in lieu of notice is allowed in both instances, with the severance payment also determined by length of service, up to a maximum of 2 years’ salary. If for some reason the termination is not acknowledged by UAE law, the employee could potentially claim an additional compensation of up to 3 months’ salary.
PeoplePay Global are here to assist with all your Payroll and HR requirements in United Arab Emirates.