The new UAE Labour Law prohibits employers from terminating workers on probation without notice. Mike Young / The National
The new UAE Labour Law prohibits employers from terminating workers on probation without notice. Mike Young / The National
The new UAE Labour Law prohibits employers from terminating workers on probation without notice. Mike Young / The National
The new UAE Labour Law prohibits employers from terminating workers on probation without notice. Mike Young / The National

'Can I be terminated without notice?'


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Can a company terminate a contract without notice? I have been with my employer for three months on an unlimited contract but they have told me that my job is not needed and I must leave straight away. Can they do this? UT, Sharjah

UT is still in his probationary period and the recent change in the UAE labour law affects his situation. Before February 2, 2022, an employer did not have to provide any notice if they terminated an employee during probation. However, this has now changed in accordance with Federal Decree Law No 33 of 2021.

Article 9, clause 1 of the law, states: “The employer may terminate the service of the worker during this period after notifying the latter of the same in writing fourteen (14) days at least before the date specified for the termination of service.”

It appears that many companies are still unaware of the changes in the law, so this needs to be brought to their attention.

I would add that UT is entitled to his salary for all days worked, including the notice period.

We work for a Dubai company but our employer has not renewed our medical cover, which expired in April 2021. He says he will do when he has time. We said we thought it required by law to have medical insurance and that the employer was responsible for arranging it. However, he claims it is only recommended. How can we convince him to arrange medical cover for staff? FM and RC, Dubai

Dubai Health Insurance Law No 11 of 2013 came into effect in stages. The final deadline for all Dubai employers and sponsors to have Dubai Health Authority-compliant cover in place was December 2016.

Regardless of the size of the company, this is a legal obligation and not the choice of the employer.

The responsibility of an employer is set out in Article 10 of the Dubai Health Insurance Law. This states: “The employer shall be obliged to do the following: 1. Cover the employees thereof by health insurance in accordance with the health insurance policy applicable thereby, providing to comply with the provisions of this law and the resolutions issued pursuant thereto; 2. Bear the costs for such health insurance coverage rather than making the beneficiaries bear such costs; 3. Verify that the health insurance of the employees thereof is valid for the length of their work period at the employer; 4. Bear the health services and medical intervention costs in emergencies for any of the employees thereof, if any of them has no health insurance in accordance with the provisions of this law; 5. Give the employees thereof the health insurance card; and 6. Provide the health insurance policy upon the residence issuance or renewal of the employees thereof.”

I am including the full list of requirements so that FM and RC can show it to their employer.

Few insurance companies now issue physical insurance cards but soft copies are provided and they are linked to Emirates identity cards.

Not only is there a requirement to ensure appropriate medical insurance is in place, any employer that fails to do this can be heavily fined. Article 23 of the Dubai Health Insurance Law states that if an employer fails to provide suitable medical cover, the DHA may impose penalties ranging from Dh500 to Dh150,000. Persistent offenders can receive further fines of up to Dh500,000.

I work as a housemaid but my employer is not paying me. I have not received my salary for two months and they want me to work seven days a week. The family says the UAE labour law does not apply to me. Are there laws for housemaids, as I need the money to send to my family? CK, Abu Dhabi

There are laws to protect housemaids in the UAE, specifically Federal Law No 10 of 2017 on Domestic Workers.

Regarding the payment of salary, Article 10 of this law states: “The monthly wage shall be paid in UAE dirhams within a period not exceeding 10 days from its due date.”

Article 12 of the same law covers working days and times: “1. The worker shall have the right to a weekly rest day with a comprehensive wage … He may be employed on his weekly rest day, in which case he shall have the right to an alternative day off or a monetary allowance; 2. The implementing regulations of this law shall regulate the worker’s working and rest hours where the daily rest shall not be less than 12 hours per day, including at least eight consecutive hours.”

If any employer fails to comply with the law, a case can be raised with the Ministry of Human Resources and Emiratisation.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: February 20, 2022, 5:06 AM