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DMCC Rules For Employees: Dubai Multi Commodities Centre Labor Laws

DMCC Employees Rules In UAE

If you are working in the Dubai Multi Commodities Centre (DMCC) Free Zone as an owner or an employee, you must know the DMCC rules to create a fair workplace on the DMCC premises. For that purpose, the DMCC Labour Law lays out important guidelines for employer-employee relationships. It includes details about wages, working hours, and how to terminate employment.

In this article, we explain the employee rules in DMCC and also express the DMCC Employees Termination Rules. The Experts at Now Consultant helps businesses and employees working in the DMCC to stay updated and compliant with these rules.

Employee Rules In DMCC:

Companies in the DMCC must follow the labor laws and regulations established by the UAE government. This implements fair and clear employment practices. These laws help protect both employers and employees, creating a positive work environment.

1. Job Agreements:

Companies in the DMCC must give employees written job agreements. These agreements should detail the terms and conditions, such as salary, benefits, working hours, job roles, and probation periods.

2. Age Requirements for Employment:

UAE labor laws establish minimum age limits for workers under employment in the DMCC Free Zone. Generally, people under 15 years old cannot be employed, although there are some exceptions for certain industries.

3. Work Hours:

DMCC employees work eight hours a day and 48 hours a week. During the holy month of Ramadan, the daily work hours are shortened to six.

4. Extra Hours and Days Off:

Employees working in the DMCC who work more than their regular hours are eligible for overtime pay.  Also, they must have at least one day off each week.

5. Vacation Time:

According to the rules, DMCC companies are required to provide employees with at least 30 days of vacation after one year of continuous service.

6. Sick Leave and Health Benefits:

In order to maintain health measures, employees can take sick leave with full pay if they provide a medical certificate. Additionally, some employers include extra health benefits in their employee packages.

7. Benefits Upon Termination:

When an employee finishes their time with a DMCC company, they must receive end-of-service benefits. This includes gratuity pay that depends on how long they worked there.

8. Ending Employment and Notice Periods:

When ending employment, the notice periods outlined in the job contract must be followed. The length of the notice period can differ based on the contract and the employee’s position.

9. Non-Competition Clauses:

Employment contracts may include non-compete clauses that stop employees from joining competitive companies for a set period after leaving their current job.

10. Fairness and Anti-Discrimination:

UAE labor laws prohibit any type of discrimination based on gender, religion, nationality, or ethnicity. Every employee in DMCC should be treated fairly and avail equal fundamental rights.

11. Safe Work Environment

DMCC companies must ensure a safe and healthy work environment for their employees. It is mandatory to follow health and safety regulations set by the UAE government.

12. Wages Protection System (WPS):

DMCC companies must implement the Wages Protection System (WPS) to guarantee that employees receive their salaries on time and accurately.

13. Employment of Nationals:

Employers in the UAE are encouraged to focus on hiring UAE nationals. Some industries have specific quotas for Emirati employees.

DMCC Employees Termination Rules

The following are the DMCC employees’ termination rules:

  1. Employees with unlimited-term contracts must give at least 30 days written notice before ending their employment. Also, they are given any longer notice period specified in their employment contract.
  1. In the case of the Licensee, ending an unlimited-term employment contract must be for a valid reason related to the employee’s job. In the absence of a valid reason, it may be considered an arbitrary dismissal. The maximum compensation for this type of dismissal is three months of total pay, along with any unpaid statutory and contractual benefits.
  1. A Licensee can also end an employee’s contract immediately. In this case, there is no need to give notice or provide an end-of-service gratuity to the employee. This applies if any of the specific situations listed in Article 120 of the UAE Labour Law are relevant.
  1.  Licensees and employees should consult the Limited Term Contracts and Notice Period Guide for information on how to terminate limited-term contracts.
  1. When an employee’s contract ends for any reason, both the Licensee and the employee must provide a signed confirmation letter. This letter should follow the format specified by DMCCA. It must state that:
  1. the employment has ended; and
  2. The licensee has paid all amounts owed to the employee, including any end-of-service gratuity.
  1. When employment ends, licensees must arrange a repatriation flight for the employee back to their home country unless:
  1. the employee secures new sponsorship in the UAE within 30 days of their residency visa cancellation; or
  2. the termination is due to the employee’s actions (unless the employee cannot afford the flight, in which case the Licensee is responsible). Licensees should not attempt to recover these costs from the employee.

How Can We Help You?

The DMCC Labour Law provides a detailed legal framework that explains the rights and responsibilities of employees and business owners in the DMCC. This law promotes a fair, transparent, and productive relationship between employers and employees. 

The experts at Now Consultant help business owners and employees keep updated and provide guidance for the implementation of the employee’s rules working in the DMCC Free Zone. 

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