Labour Law of the UAE - Assignment Example

INDIVIDUAL PROJECT REQUIREMENTS You are required to complete the following exercises as an individual Answer all the questions for the case study and worksheet. 2. Once you have completed the case study and worksheet you are to submit the completed documents to the teacher. 3. The Individual section of this assessment is to be completed by hand. 4. Please use your e-textbook - Chapter 6 – “UAE Labour Law” as a reference to assist in the completion of these tasks but you need to answer the questions in your own words not simply taking the information from the e-text book. 5. This is an Individual task not a group task UAE LABOUR LAW - Worksheet 1. Does UAE Labour Law apply to expatriates only? Answer: YES 2. Does this Law apply to everyone? No, it does NOT apply to the following categories: Answer: a) Staff and workers of the Federal government and government departments of the emirates b) Municipalities, public bodies, federal and local public institutions and their staff and workers on federal and local governmental projects c) Armed forces, police and security services d) Domestic workers & agricultural workers of a nomadic nature 3. Does UAE Labour Law apply to the following employees: YES or No? a) Nilu, who works in Muna’s villa as a ‘House Maid’. No b) Maria, a nurse, at Medcare Orthopaedics Hospital in Al Safa. Yes c) Ashok, working at Al Rawabi Dairy ‘processing milk products’. Yes d) Ahmed, a Captain in the Armed Forces in Abu Dhabi. No e) Abdul Rahim a Pakistani working for ‘Nice Foods’ in Jebel Ali. Yes f) Dr Watson who works in Dubai Hospital, Emergency Section. Yes 4. List any SIX aspects of the employer/employee relationship: a) Employment contracts d) Safety and protection of workers b) Restrictions on employing of women & juveniles e) Code of discipline c) Working hours f) Medical and social care 5. Name the TWO types of employment contracts: a) Fixed term b) Unlimited term contracts Labour Law Case Study ASCONCO LLC Abulaziz is the CEO of ASCONCO, a Dubai based Construction Company involved in several large development projects and employing over 800 construction workers who work 10 hours per day with an hour for lunch with Friday off every week. Abulaziz has just offered Bob (UK certified architect ) a three year ‘fixed term’ employment contract with no ‘Probation Period’ but 30 days annual leave, monthly salary of aed 35,000 Free Accommodation and Annual Tickets for Bob, his wife and 2 kids. 1. What’s the procedure if Abulaziz wants to employ Bob as an architect? (Give details) Answer: First of all, ASCONCO must deal with the immigration authorities and ensure that they secure a valid permit for Bob to stay and work in the UAE. After that, the contract ought to be in writing and it must show the commencement date of Bob’s employment and termination date, which will be 3 years from the current period. The wages payable, which is AED 35,000 and other benefits including accommodation and ticket must be stated on the face of the contract. The nature of contract, which is a fixed contract must be disclosed. This will also include the nature of work to be carried out by Bob, the duration and location of employment. This should be signed by Bob and a representative of ASCONCO, which could be Abulaziz or a person in a sufficiently high position and lodged with the labour office at the Ministry. They could fill out a standard form which will be in English or Arabic which is available at the Ministry. However, if they draft their own agreement which has terms they have prescribed, (1) the terms must not be contrary to UAE laws, particularly the Labour Law and it must be in Arabic only before being filed at the labour office. Once this is done, the contract between ASCONCO and Bob is valid. 2. Would the procedure be the same if Abulaziz employs Noura who is a UAE National? Answer: NO Abulaziz will not need to make an immigration application in the name of ASCONCO for Bob. He will also not need to put the employment contract in writing. This means that he can orally tell Noura that she is hired and there will be a valid employment contract. In terms of enforceability, forms of employment that are not written ought to be in a form that can be proven. Therefore, Noura will need to show evidence of her employment and all the relevant features including remuneration and other terms of the employment. However, the key difference is that it could be unwritten whilst Bob’s contract has to be in writing and it has to be filed at the Ministry. 3. What are the features of a ‘Limited Contract’? Answer: (i) Has a commencement and completion date (ii) Cannot be for more than 4 years (iii) Employment naturally terminates after contract years and can only be renewed by mutual consent of the parties (iv) If contract is terminated by employer for reasons other than what is specified in Article 120, the employer will be liable to pay compensation to the employee (v) Where contract is terminated by the employee for reasons other than that specified in Article 120, the employee will be liable to pay compensation to the employer. 4. What information MUST be specified (by law) in Bob’s employment contract? Answer: (i) Wages and remuneration payable (ii) Date of the employment contract (iii) Commencement date of the employment (iv) Nature of the contract, whether limited or unlimited (v) Nature of the work to be done by Bob (vi) Duration of the contract, which is 3 years in this case 5. Bob is confused with his ‘Limited Employment Contract’ from Abulaziz. It does not mention the ‘Probation’ period! What is the position in LAW? Answer: A limited employment contract simply means a contract that has a fixed time of commencement and completion. This implies that the contract has a definite beginning and a definite end. These limits refer to the time that the contract comes to force on agreement by the parties and the time that the contract ends naturally. After the contract period ends, the contract can only be renewed when they enter a completely new and different agreement for that. Probation period is for prospective employees who are given up to six months to train on a trial basis. In the period, the employer could terminate employment without notice as per Article 37. This is a period of training and adjustment and the contract is seen to be transient in nature. By not mentioning probation, ASCONCO has employed Bob to take up full responsibility of his position instantly. He is also entitled to all the full benefits at this period. 6. Bob is confused with his ‘Limited Employment Contract’ from Abulaziz. It gives different figures for basic wage and total wage! What is the difference? Answer: The term Remuneration refers to all the benefits that an employee is paid for taken up a given employment or role. This includes the basic wage and all other benefits including family benefits and benefits in kind. In this case, the UAE law requires that Abulaziz specifies all the wages and remuneration in the contract and this will include the worth of the free accommodation, free tickets for him and his family as well as the paid leave. This comes together to describe the total package. Obviously, the total package is going to be larger than the basic wage of AED35,000 7. Bob wants to be paid weekly in STERLING. Is this allowed by UAE Law? Answer: NO (with some limits*) In the strict legal sense, it is not allowed to take payment in Pound Sterling because Article 55 of the Law states that wages shall be paid in the official national currency. This is therefore means that it is not permitted by law to pay in foreign currency. *However, since there is the possibility of drafting an agreement in their own terms and filing it, ASCONCO and Bob can come to an agreement and insert it in the contract and file it. Since no law in the UAE forbids such agreements, the contract to be paid in Sterling can be valid and it can be carried out without any restrictions in existing law. 8. Bob asks Abulaziz to give his teenage children part time jobs at the construction site. What is the legal position here? Article 20 of the Labour Law prohibits the employment of a person under the age of 15. Therefore, any of Bob’s teenage children under the age of 15 cannot be employed in the UAE. For those above 15 and below 18, there are many stringent conditions and requirements that will make it difficult for them to be employed at a construction site. And in most cases, this will be further complicated by the need for a working visa. First of all, the teenagers will have to show proof of their age, a certificate of fitness attesting that they can work in the construction site and a written consent from Bob and his wife (Article 21). The employer must enter their details in a special children’s register. The employer must also ensure that the children are not exposed to danger (Article 24) and they do not work art night (Article 23). They will have to work for no more than 6 hours a day and should not work overtime (Articles 25 and 26). 9. Bob is concerned about ‘Health and Safety’ at work and particularly the dangers on construction sites. What are the legal requirements of ASCONCO? Health & Safety at Work Answer: The general preamble of the Labour Law of the UAE indicates that the individual responsibility of ensuring the health and safety of workers in the workplace falls upon the employer as per Article 91. This includes the obligation to provide protective clothing and other tools and gears that are necessary for the protection of employees from obvious situations and matters that are likely to be dangerous and perilous to employees in the normal course of carrying out business. The first point of relevance is that upon being hired and logically, before his first visit to the construction site, Bob has to be notified and warned of all the high risk and hazard-prone points and activities on the ASCONCO construction site or sites he will work on. Article 100 requires that an employer warns his employees of all risks and potentially dangerous activities and processes before work commences. Article 92 requires that ASCONCO provides conspicuous information and signs to employees of the company including Bob that will show risks of fire and other hazards that are inherent in the operation of the construction site. This must be done by ASCONCO in all situations and forms. There is the need for ASCONCO to provide first aid boxes and other safety and immediate relieve aids as per Article 93. This must be provided to ensure that in cases of emergency or injury, the pain and suffering that comes with it can be alleviated and put under control until appropriate action can be achieved. There is also an obligation on ASCONCO to ensure that they comply with all necessary health and safety warnings and rules issued by the relevant authorities for health and safety in the UAE (Article 94). This includes all the health and safety institutions and authorities that have a jurisdiction that affects the features of the workplace including ventilation and other safety standards. For all the elements and aspects of the construction site that are dangerous and comes with occupational hazards, there is a requirement for employers including ASCONCO to carry out regular medical checks on workers in a period of not more than six months (Article 95). This means that ASCONCO will have to ensure that they arrange for a medical professional to check Bob and his colleagues once every six months for signs of medical problems and complications that come with the job they do in the specific sense. There are also medical care facilities that are stipulated by the ministry and ASCONCO has to ensure that they provide Bob and other workers access to facilities of that level and standard (Article 96). There are also precautions and standards of safety that are issued by the Ministry of Labour and Social Affairs and the Ministry of Health for specific issues and matters on a regular basis. These are often in response to new issues and matters that endanger the lives of employees. ASCONCO is required to live up to all the directives and ensure that they honour them in all situations and contexts. There must be a health and safety officer and all the colleagues and other workers including persons on the construction site ought to adhere to all relevant rules on the site (Article 100). The requirement implies that there must be some way of enforcing and ensuring that that all the workers on the site are complying with the rules. Hence, there is the need for ASCONCO to get a health and safety officer. Furthermore, drinking at working hours are banned by Article 99. This means no one should be drunk on the site and this makes it more assuring and ASCONCO must ensure that this is actually being respected in full force. Also, in case the site of ASCONCO is in a remote and undeveloped part of the country, ASCONCO will have to put in place measures to ensure that the points of work are sufficiently safe and habitable and Bob and other workers can work in a comfortable and secured environment (Article 101). 10. Bob is also concerned about his workers having proper living accommodation at the ASCONCO labour camp in Al Quoz. Bob found out today that 40 workers are sharing 4 bedrooms. Each room is 36m (sq) and has 9 single beds and 6 clothes cabinets. There is one bathroom next to each room but the hot water boiler is broken so there is no hot running water. Plus none of the extractor fans are working. What is the legal position here? Could ASCONCO LLC be in breach of its legal duty? Labour Camp Answer: Yes, this is in direct contravention with Articles 97 and 101. Article 97 states that as a minimum, all employers must ensure that all workers of all categories and all levels have relevant forms of safety measures including safety, lightening, ventilated rooms, a dining room, supply of water, safe supply of water and the elimination of pollutants and stale air. Article 101 is concerned with the provision of proper and appropriate living conditions for remote areas of work and this includes transportation, suitable living accommodation, drinking water and food supplies amongst others. From the facts, it appears that ASCONCO’s labour camp in Al Quoz does not meet the basic requirements. The conditions are not ideal and the living conditions are detrimental. Also, the condition of every room with no hot running water directly contravenes Article 101 because the workers are not given the important and vital elements of their lives in these conditions. Therefore, in case of any inspection or the invocation of liability, ASCONCO will be liable to face penalties for the failure to secure a sufficiently high health, safety and living condition for these workers. 11. After the first year, Bob’s wife has her 3rd baby and Bob wants to take 2 weeks off work to help his wife at home with the children. Is Bob entitled to ‘Maternity Leave’ ? How can Bob take 2 weeks off work? Is there anything Abulaziz can do to help ? What is the legal position here? Answer: Paternity leave is not covered by the law. This means that Bob cannot gain maternity leave on the basis of the law. As an employer, Abulaziz has some rights and he is allowed to keep records on maternity leaves, sick leaves and other leaves (Article 53). Article 76 allows an employer to authorise annual leaves and ensure it is consistent with the work schedule of the organisation. There is some degree of flexibility in scheduling leaves and this includes the ability of employers to negotiate and reschedule leaves as and when the conditions require (Article 81). This implies that Bob can present a case to Abulaziz and tell him about the situation and the cultural importance for the two weeks required to stay at home and help his wife. This will include discussions on the situation and how compensation is going to be worked out in a private context. Abulaziz can classify this kind of leave under “other” leaves and this could be treated as a compassionate leave that Abulaziz can authorise. As to payment for the period of the leave and other implications, they can be arranged through negotiations since Bob has no statutory or legal rights under the law to embark on this leave. It can also be added that Abulaziz has the discretion to define whether and how to carry out these new arrangements. 12. After the second year, Bob becomes seriously ill following his annual leave and is in hospital for FOUR weeks. He asks Abulaziz to pay him his full wages so that he can pay the hospital. What is the legal position here as regards wages? Can Bob have his full wages? Answer: Article 77 states that sickness that occurs within a leave period can be seen as a stipulated or integral part of the leave. Hence, if Bob had fallen sick during the leave period, he would have considered the sickness period as part of the leave. However, in this case, he had resumed work. If he had reported to work before he fell sick or if he had notified Abulaziz appropriately of his condition, then he is entitled to his wages. He will be considered to have gotten sick during the normal course of employment. The only exception is if he did not show up for work after the leave or did not notify Abulaziz of his condition in the initial stages of sickness. This is because the law allows an employer to dismiss a worker who does not show up to work after his statutory leave. Also, according to Article 84, if the sickness of Bob was due to Bob’s misconduct like consuming alcohol or narcotics or exposing himself to a negative condition, Abulaziz can decline to pay his salary and medical bills. However, the onus is on Abulaziz to prove that the medical condition was a direct result of something negative or negligent that Bob did which contributed to the situation. This is complicated and will require all facts to be considered in the situation. 13. Bob is still very ill. He was in hospital for FOUR weeks (see Q.12) but after coming home for two days he was admitted to hospital again. Bob has now been off work in hospital for SIX WEEKS and it looks like he will be in hospital for at least another 2 weeks. So Abulaziz decides she wants to ‘FIRE’ Bob whilst he is still in hospital and to give his job to her friend, Noura. Is ASCONCO LLC permitted by law to do this? If not how can ASCONCO terminate Bob’s contract? What is the legal position here? Answer: Generally, Section 90 prohibits termination of employment when the employee is on leave. Therefore, this medical condition might be considered a sick leave and if that is the case, then Abulaziz cannot be dismissed. Article 102 also provides a series of situations and circumstances within which dismissal can occur. For instance, it must come with a warning, followed by a fine and then suspension amongst others. Therefore, it might be thought that Abulaziz has to commence the dismissal process for Bob over a longer period of time. Hence, this dismissal might be too sudden without sufficient notice. The only notable exception is if Bob failed to provide sufficient notice to Abulaziz of his conditions. In this case, it could be said that he had breached Article 120(10) which allows employers to dismiss employees who absent themselves from work for 20 days in a year without proper notification. In that case, Abulaziz might be able to terminate the employment without giving any form of notice. Read More