UAE Labor Laws Analysis

As an employee of the FSSKA group of companies’ earnings 50,500 per month as total salary breakdown as follow:

  • Basic salary 25,000 monthly,
  • Accommodation: 15,000 monthly
  • Transportation: 10500 monthly
  1. Show the calculations details of the final settlement of the employee.

Contract entitlement for 3 years = 25,000 multiplied by 3

The employee has served for two years and eight months, as per the UAE regulations, employees who have served between one year and three years, that is, 12 to 36 months is entitled to get seven days of basic pay for every year served.


Contractual gratuity entitlement = 25,000 per year for 3 years of service

Legal gratuity entitlement = [(Last basic salary * 12 months) / 365 days] * 7 days = [(25,000 * 12 months) / 365 days] * 7 days = [300000/365]*7 days = 821.92*7 = 5753.42

Payment from accrued/unutilized leave = 2,500 for 2 years

One-way ticket = 2,500/2 = 1,250 Full settlement = 75,000 + 5,753.42 + 5,000 + 1,250

= 87003.42

  1. Show the legal points according to the labor law not mentioned by the company

UAE Labor laws entitle employees to some benefits not mentioned in the contract. It is important that employees get acquainted with the provisions. There is a payment due in lieu of the notice period. Additionally, the employee should receive a payment equivalent to unused leaves periods as well as any accrued wages or overtime payments due. The law also provides for an end of service gratuity that is calculated based on employment duration. It is also important to note that the employee is entitled to a compensation for unreasonable dismissal in circumstances where the employer terminates the contract without providing a reasonable cause for then termination. There is also an entitlement for repatriation expenses to the employee’s country/region of domicile.

  1. Comment on the company FSSKA handling process

The company FSSKA handles its contractual processes through the HRD. Its approach is in line with the provisions of the law and even offers way better terms than the law provides for in case of contract termination. Additionally, they have provided a one-month’ notice as required by the law. In general, the company’s handling procedure is compliant to the general provisions of UAE’s labor laws.

  1. Discuss the reasons why employees are not aware about labor laws and recommend some guidance that can be helpful to make employees aware about the UAE Labor Laws to protect their own benefits

Despite the fact that labor laws are meant to secure the rights of employees, most employees are often unaware of these laws making them vulnerable to abuse by employers. Many reasons are attributed to lack of labor law awareness. Firstly, this can be attributed to lack of civic education. Civic education is important in create rights awareness among citizens. In essence, this means that a citizen base that lacks civic education is less likely to know its labor rights/laws. Other than lack of civic education, most people are simply ignorant and pay little attention to labor laws. It is typical of citizens to pay attention to laws that affect their lives. As a matter of fact, in many instances, citizens rarely pay attention to laws, save for those that touch on moral fabric of the society. Additionally, employees do little to educate employees on labor laws.

In order to offer guidance to employees on UAE labor laws, the government can make it mandatory through legislations, that employees attach a copy of UAE labor laws to contract forms. Additionally, media offers a good platform through civic education, primarily targeting labor laws are disseminated to citizens. Media advertisements can be included amidst widely watched programs such as News. This will ensure a large portion of the population interacts with laws. Additionally, employers should be directed to hold regular training programs for employee. Workers unions should also play a role in educating its members of labor laws.