Club Fit For Business, Employment Law Workshop presentation by Luke Tapp, Head of Employment (UAE) at Pinsent Masons

1. CLUB FIT FOR BUSINESS
Employment Law Workshop
Luke Tapp, Senior Associate
5 November 2014

2. Agenda
Key relationship issues
Employment contracts and visas
Remuneration and discrimination
Termination of employment and
the Court process

3. THE EMPLOYMENT RELATIONSHIP

4. Employment jurisdictions
Onshore/
mainland
Other Free
Zones
DIFC

5. Employment relationship

6. Employment legislation
• UAE Labour Law No 8 of the Year 1980
• Free Zone Regulations
• DIFC Employment Law No 4
of 2005
• UAE Penal Code
• Cyber Crimes Law

7. EMPLOYMENT CONTRACT
AND VISA ISSUES

8. Employment contract
• Offer letters
• Onshore/Free Zones outside DIFC:
– Ministry of Labour / Free Zone
Contract
– Discretionary internal employment
contract
• DIFC:
– One employment contract only

9. Employment contract
• Limited or unlimited contracts
 Notice periods
 Termination considerations
 End of service gratuity

10. Employment contract - key terms
• Restrictive covenants
• Deductions from salary
• Location

11. Temporary employment contract
• Manpower supply arrangement
• Secondment from other companies
• Fixed term contract

12. Visas
• Mandatory requirement
• Sponsored by employer/free
zone/spouse?
• Minimum wage to sponsor
dependents
• Evidence of health insurance?

13. Visas
• Potential penalties for non-compliance
 Financial penalties
 Non-financial sanctions
 Exposure to company’s general manager/HR team
 Exposure to individual

14. REMUNERATION

15. Remuneration
• Basic salary
• Allowances
• Other benefits

16. Remuneration
• Profit share
• Fixed or discretionary bonus
• Commission based

17. DISCRIMINATION

18. Discrimination in employment
Senior HR Director
/Consultant -UAE role -
Pharmaceuticals
Division Head -Banking,
Finance, Insurance ,FMCG &
Pharmaceutical Recruitment
Senior HR Consultant /Director for a very large
Pharma company in UAE
- Male candidates above 50 years of age
- Open to all nationalities across the globe -We can
hire candidates from outside GCC Boundaries as
well - Preference will be given to Western
nationals

19. Discrimination in employment
• DIFC Employment Law > UAE Labour law
• Discrimination on protected grounds
• Sexual orientation and the Penal Code
• Harassment

20. TERMINATION OF EMPLOYMENT

21. Onshore/Free Zones outside DIFC

22. Onshore/Free Zones outside DIFC
• Unlawful dismissal:
– Early termination of a fixed
term contract
– Arbitrary dismissal

23. Dismissals in the DIFC
• No concept of unfair dismissal
• Discrimination – less favourable treatment
• Penalty for delay in final termination payment

24. Termination payments - end of service
gratuity
• Statutory formula
• Reduction for resignations
• Limited exemptions

25. Termination Payments
• Notice pay or PILON
• Accrued entitlements
• End of service gratuity
• Repatriation
• Pro-rata bonus?
• Ex gratia?

26. MANAGING LABOUR DISPUTES

27. Onshore/Free Zones outside DIFC
• Ministry of Labour /
Free Zone Authority consultation
• Court of First Instance
• Court of Appeal
• Court of Cassation

28. DIFC employment disputes
• Small Claims
Tribunal
• Court of First
Instance
• Court of Appeal

29. Contact details
Luke Tapp
Senior Associate
D: +971 4 373 9750
M: +971 50 649 5245
E: Luke.Tapp@pinsentmasons.com

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more of those subsidiaries or affiliates as the context requires. © Pinsent Masons LLP 2014
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