NOTICE: This is a SUMMARY which provides a quick reference for employers on the new regulations for employing UAE Nationals in the Private Sector. For the complete decree, please refer to the Ministry of Human Resources and Emiratization (MoHRE).
The new rules regulating the employment of UAE nationals in the private sector were introduced through Ministerial Decision No. 212 of 2018 by the UAE's Minister of Human Resources and Emiratization. This decision supersedes the previous regulations from 2015 and 2009, aiming to create a balanced work environment and enhance the competitiveness of UAE nationals in the private sector.
First: The employer shall submit the required documents set out in the Employment Guide, to apply for a NATIONAL work permit, through any of the Ministry’s approved service channels.
Second: Upon approving the employment application of the national, the Ministry shall:
– Issue a package for the NATIONAL that includes the employment permit and contract, Absher card, Guide of the Rights and Obligations of Private Sector Workers as well as any other material provided for in the service guide.
– Provide counselling and qualification services for the NATIONAL who needs such counselling and qualification
services, through engaging him in training programs as required to perform his jobs according to the needs of the labor market.
– Send the details of the work permit and contract to GPSSA or any other local or insurance fund, according to the Ministry’s applicable regulations.
Third: Within 6 months from the approval of the work permit, the employer shall update the national worker’s file in terms of his data of contribution to GPSSA or any other local or insurance fund, according to the Ministry’s applicable regulations
The term of a NATIONAL employment contract shall be two years and shall be renewed by mutual agreement according to the conditions set out in the service guide.
Either party (the employer or the worker) acts unilaterally to terminate the contract during its renewal period, provided the terminating party shall do the following legal procedures:
a) Notify the other party in writing of his wish to terminate the contract, one to three months before the times fixed for the termination (as the parties may agree). If the parties fail to agree on the said notice period, the same shall be three months.
b) The party deciding to terminate the contract shall continue performing his contractual obligations throughout the notice period.
c) Pay the notice period payment as agreed between the parties, subject to a maximum of three months gross salary. If the parties fail to agree on the notice period payment, the same shall be three months gross salary.
Either party terminate the contract after serving a notice to the other party and continuing performing his contractual obligations during the notice period, which may not be less than one month and may not exceed three months.
The employer shall submit an “exit interview” report with the NATIONAL worker to identify the reasons for the termination or expiry of the relation. The guides issued by the Undersecretary regulates the actions to be taken in this regard.
The rules and regulations provided for in the Ministerial Decree No 765 of 2015 Concerning the Termination of Labor Relation, shall be followed. Download decree.
The service of a NATIONAL worker shall be illegally terminated if:
First: The termination is not based on one of the requirements provided for in Article 120 of the Law on the Regulation of Labor Relations, attached herewith in Appendix (2).
An employer may dismiss a worker without notice in any of the following cases:
If the worker adopts a false identity or nationality or submits forged certificate or documents;
If the worker is engaged on probation and is dismissed during the probationary or on its expiry;
If the worker makes a mistake resulting in substantial material loss for the employer, on condition that the latter notifies the Ministry of Labour of the incident within 48 hours of his becoming aware of its occurrence;
If the worker disobeys instructions respecting industrial safety or the safety of the workplace, on condition that such instructions are in writing and have been posted up at a conspicuous place and, in the case of an illiterate worker, that he has been acquainted with them orally;
If the worker does not perform his basic duties under the contract of employment and persists in violating them despite the fact that he has been the subject of a written investigation for this reason and that he has been warned that he will be dismissed if such behavior continues;
If the worker reveals any secret of the establishment in which he is employed;
If the worker is finally sentenced by a competent court for an offence involving honour, honesty or public morals;
If the worker is found in a state of drunkenness or under the influence of a drug during working hours;
If, while working, the worker assaults the employer, the responsible manager or any of his work mates;
If the worker absents from his work without a valid reason for more than 20 non-consecutive days, or more than seven consecutive days, in any one year.
Second: If it is established that the owner of the establishment has a NON-NATIONAL worker performing the same duties of the NATIONAL whose service is terminated, or, if it is established that the objective of terminating the NATIONAL’s service is to replace him with a NONNATIONAL in the same job, without providing a justification acceptable by the Ministry in such two cases.
Third: If the employer terminates the labor relation for reasons completely unrelated to the job, especially if the reason behind terminating the NATIONAL’s service is that the national employee submitted an earnest complaint to competent authorities or filed an action against the employer, which is proven to be true.
Fourth: If it is established that there is a failure to observe the rules provided for in Article 5 hereof.
(Article 5):
The employer shall submit an “exit interview” report with the NATIONAL worker to identify the reasons for the termination or expiry of the relation. The guides issued by the Undersecretary regulates the actions to be taken in this regard.
The rules and regulations provided for in the Ministerial Decree No 765 of 2015 Concerning the Termination of Labor Relation, attached herewith in Appendix (1), shall be followed.
