: UAE Labor Law and Relations - Essay Example

In UAE human rights of individuals are enshrined in the constitution of the country. The main ones that inform the Labour laws formation and enforcement include equality, freedom of movement, association and liberty. UAE is considered one of the most liberal countries in the Arab world and this status reflects even in its laws and that is why it has grown into a huge Labour market (Construction Week Online, 2013). The extensive Labour market is supported by the booming economy. Since the country was formed, 40 years ago, its economy has been dependent on oil.

The economy has been growing at a rate of 5.6% annually and by 2011 it was considered the 7th in terms of the highest GDP per capita in the world. It was also considered the 14th best nation in the world as far as the economy and regulatory environment are concerned (CWO, 2013). However, the depleting oil reserves have forced the government to diversify its economy so as not to be over-dependent on the natural gas and oil exportation which account for over 85% of the country’s net exports. The industries that have thus been strengthened are the tourism, financial and, most significantly, the construction industry.

The construction industry in the UAE is the second biggest industry after the oil industry. It is then followed by the transport, tourism, textile and other industries in that order. In 2012, the industry was valued at Dirham 144.6 billion (US $41 billion) with an annual growth rate of 4.5% which was projected to increase to 9.5% as Labour influx continues. The industry employs nearly 2 million people as more and more construction companies set camps in UAE, especially in Abu Dhabi and Dubai.

The construction company therefore provides a significant percentage of all the employers and employees in the UAE (CWO, 2013). The UAE Labour Laws were established in order to regulate the Labour market, stabilize it and protect the rights of the minority, which in this case are the native Emiratis (UAE Labour Law, 2001). The Labour Laws were enacted in 1980, just like other major laws. Since then no significant amendments have been made to it even as the world rapidly changes. The UAE Federal Labour Law applies to all employees and employers in the UAE regardless of whether they are Emiratis or expatriates.

This law is enforced and managed by the UAE Federal Ministry of Labour in conjunction with the administrative agencies under it. The following are some of the stipulations of the UAE Labour Law that directly influence the relationship and interaction between employers and employees in the construction sector. It governs all the aspects related with employment including contracts and their termination, leave, employees’ safety, codes of discipline, compensational in case of occupational diseases, penalty, accidents relating to the employment and many other aspects This law, first and foremost, stipulates to whom this law applies to.

In accordance to the Article 3 of the Law, it should govern all staff and employees who are working in the UAE be they national or expatriates except; those contracted by the federal government and local governments to work on federal and local governments projects; the members of the armed forces, the police and other