Types of Leaves in UAE: Understanding UAE’s Leave Policies

Types of Leaves in UAE: Understanding UAE’s Leave Policies https://uae.hrsgonline.com/wp-content/uploads/2025/02/Untitled-design-4.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp February 13, 2025 February 13, 2025

In order to ensure employee well-being and better work-life balance, the UAE government entitles employees to various types of leaves. In fact, the Federal Decree No. 33/2002 also known as the United Arab Emirates Labor Law deals specifically with employer-employee relations.

This comprehensive legislation was introduced to better regulate the private sector and a big part of it deals with the frameworks for granting leaves to employees.

Understanding different types of leaves under the UAE labor law policy is very important if a business wants to remain fair to its employees while showing compliance with the government guidelines at the same time.

This blog explores all the main types of leaves in the UAE that every business operating in the region should know. This can allow them to facilitate their employees better which can lead to a more harmonious and well-regulated environment so keep on reading till the end.

Annual Leave

Weekly Day Off

Emergency Leave

Sick Leave

Maternity Leave

Compassionate/Bereavement Leave

Parental Leave

Public Holiday Leaves

Sabbatical Leave

Umrah and Hajj Leave

Study Leave

Following are some of the most notable leaves that employees in the UAE are entitled to:

Annual Leave

Article 29 of the UAE employment law and the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the “UAE Labour Law” states that every employee must be awarded an annual leave during each year of service. This leave may not be less than:

Two days per month in respect of the employees who have more than six months and less than 12 months of service in that organization.
30 days paid leave per year for employees whose period of service is more than 12 months.
In case the employee’s service ends before they use their annual leave balance, employees will receive leaves proportional to the fraction of the final year worked.
For part-time employees, the actual working hours they spent as specified in the contract will be used to determine annual leaves.
Employees must use the annual leaves in the year of the entitlement.
Both the employer and employee may set the dates of the leaves according to work requirements.
According to UAE labor law, employers have to notify their employees about the date of the annual leave at least one month in advance.
The calculation of the annual leaves will include official holidays and other leaves that the employee took that fall within the annual leave period unless there are other provisions in the contract.

Annual Leave UAE

Weekly Day Off

Every private sector employee is entitled to at least one day off per week. This is mandated by Article 21 of the UAE labor law. Based on their own leave policies, employers may increase the number of weekly day offs.

Government employees work five days and get a half day on Fridays. The private sector may also align its policies accordingly to boost employee productivity and promote wellbeing.

Emergency Leave

According to the emergency leave UAE labor law, employees are entitled to emergency leaves in the UAE and the number of leaves depends on the severity of the situation. Employees, however, need to apprise the employer at the earliest to ensure the regular work goes on without major hiccups.

The leave rules of each company are what govern emergency leaves and the UAE labor law has no specific guidelines in this case since it is difficult to predict emergencies and the leaves needed.

These leaves can be either paid or unpaid based on the leave policy of that company.

Sick Leave

Article 31 of the UAE labor law states that, after the probation period, the employees will get a 90-day continuous or intermittent medical leave in the UAE per annum.

Following are some of the main points of the sick leave policy in UAE:

First 15 days with paid leave.
The next 30 days with half pay.
Any remaining period will be unpaid leave.
During the probation period, the employee can get sick leave without compensation subject to the employer’s approval based on valid medical reports from a certified source.
Employees are not eligible for paid sick leave if they are on probation or if the medical issue results from their own misconduct.
They are also not eligible for paid sick leave if they violate safety instructions mentioned in the effective legislation in the UAE or the rules set out in the firm’s regulations.
To get sick leave, employees must notify the relevant personnel within a maximum of 3 days and attach a medical report issued by recognized authorities with the application.

Maternity Leave

According to the maternity leave UAE labor law, female employees can get maternity leaves of 60 days out of which 15 are at half pay while 45 are at full pay. After 60 days, these employees are also entitled to a 45-day unpaid maternity leave that they can either take continuously or intermittently. The maternity leaves can be applied before 30 days of the expected date of delivery.

Mothers can also take an additional 30 days of paid maternity leave in the UAE if the baby is unwell. Female workers are also entitled to fully paid one or two up to 1 hour breaks each day for six months for nursing their child.

Compassionate/Bereavement Leave

Employees are entitled to bereavement or compassionate leave in the UAE when a close family member passes away. They can get:

Five days leave for the death of your spouse.
Bereavement leave in UAE is 3 days for the death of a close relative like a parent, child, sibling, grandchild, or grandparent.

Parental Leave

Under the leave policy in UAE, new parents (both mother and father) are entitled to five days of paid parental leave that they can use from the day the child is born to the day it gets six months old.

Parental Leave UAE

Sabbatical Leave

According to the leave policy in UAE, Emirati nationals are entitled to a paid sabbatical leave to complete their national duty or service as mandated by the Federal Decree-Law No. 6/2014. Emirati nationals are required to obtain approval before undertaking their national duty from the UAE National and Reserve Service Committee of the Armed Forces General Command.

Umrah and Hajj Leave

Employees in the UAE can get unpaid Hajj leave for up to 30 days only once during their employment in the company.

There are no special provisions for the Umrah leave in UAE labor law. It is up to the employer to decide whether to add this leave to the annual leave or consider them as unpaid leaves based on their own policies.

Study Leave

The UAE government also allows for higher study leaves for its employees. However, this leave is only applicable if the employee is studying within the UAE. Another prerequisite for getting this leave is that the employee must have a service period of two years within that company.

For the study, employees can get 10 paid leaves annually to pursue their education and take exams. This step has been introduced to upskill the workforce and promote higher education in the region.

Public Holiday Leaves

According to Article 28 of the Labour Law in the UAE, every employee is entitled to fully paid leave on all official or gazetted holidays. Essential workers who have to work on these days are entitled to get proper compensation (pay for the day plus 50% of their basic wage) or they can get alternate leaves that they can use on their own will or according to the agreement they come to with the employer.

Following are some public holiday leaves that you can get in the UAE:

Commemoration Day (1st December)

National Day (2nd and 3rd December)

Gregorian New Year (1st January)

Eid Al Fitr

Arafah Day

Eid Al Adha

Hijri New Year: 1 Muharram

12th of Rabi al Awwal (Prophet Mohammed’s birthday)

Conclusion

People working in the UAE enjoy fairly relaxed leave policies under the provisions of the UAE Labor Law which aims to create cordial employee/employer dynamics by protecting the rights of both parties.

The government in the region takes the wellbeing of its workforce very seriously which is why they have laid out an extensive framework when it comes to leaves both in public and private sectors.

Every business operating in the region must consider these leave policies when coming up with employee contracts. The leave policies of the UAE aim to create a healthier work environment where employees feel valued. This can in turn create a more motivated workforce that can drive your business as well as the country’s economy towards new heights.

You can visit us at HRSG today to get the best-integrated facility management, recruitment, and organizational development solutions to ensure long-term success in your business in the UAE.

Tax Registration Number UAE: Everything You Need to Know

Tax Registration Number UAE: Everything You Need to Know https://uae.hrsgonline.com/wp-content/uploads/2025/01/Untitled-design-2-1.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp January 29, 2025 January 29, 2025

A Tax Registration Number (TRN) is a unique number that consists of 15 digits and is assigned to businesses or individuals that get registered for VAT in the UAE. Also known as the VAT registration number, the TRN is assigned by the FTA to each business in the region for identification as well as differentiation purposes.

This blog covers the ins and outs of TRN verification UAE. This information will help you learn the eligibility, documentation requirements, and the complete TRN obtaining process so keep on reading till the end.

What is the TRN Number in UAE?

Format of the TRN

Why is TRN Verification Important?

Eligibility Criteria to Get TRN in UAE

Required Documents to get TRN or VAT Number
Step-By-Step Process for Getting TRN Number in the UAE
Processing Time

Tax Report Dubai

What is the TRN Number in UAE?

TRN or tax registration number is a 15-digit distinct number that the Federal Tax Authority (FTA) of the UAE issues to those entities that have registered for tax purposes in the region.

All taxable entities in the UAE must obtain this number if they are to fully comply with UAE’s tax laws including the corporate tax and VAT. The TRN verification number is extremely important as it facilitates the identification of businesses for VAT purposes. This number is a part of all key tax-related transactions or correspondences including VAT return filings, tax credit notes, as well as tax invoices.

All businesses whose taxable supplies exceed the VAT registration threshold must obtain a tax identification number UAE and display it on their every tax and other financial document.

This number not only ensures tax compliance but also authorizes businesses to charge VAT on their goods thus playing a key role in UAE’s tax system and overall economy.

Businesses can use FTA’s online portal for TRN by adding accurate information along with required documents. After the approval of your application, you will be officially registered for VAT. You will receive essential documents like a VAT TRN, a generated international bank account number (GIBAN), along with a registration certificate.

You can easily download this certificate from your EmaraTax account portal. All of these documents are essential for confirming your VAT registration status and for showing compliance with the tax requirements in the region.

Format of the TRN

Here is the format of TRN:

123-456789012-345

In this number

The first three digits represent the FTA
The next nine digits are unique identifiers for each business
The last three digits are check digits that are determined based on the previous nine digits

Why is TRN Verification Important?

Here is why TRN verification is crucial for businesses in the UAE:

Businesses are legally required to add their TRN in VAT returns, tax invoices, credit notes, etc. This way they can validate their VAT registration and show compliance in all transactions.
It ensures hassle-free communication between buyers and sellers by allowing businesses to track all transactions.
It allows businesses to claim back tax they already paid on certain purchases.
TRN gives your business a unique identity.
This number when used in your invoices makes your business look authentic and legitimate which builds customer trust.
Any communication with FTA is valid only when businesses add this number to the financial documents.
Every business operating in the UAE is mandated to use the Emaratax portal by the FTA to register for tax registration and get a TRN. This unique identification number is a must for businesses and individuals to fulfill their tax obligations and show compliance with the country’s laws.
Only those businesses that have a valid TRN certificate and a TRN are allowed to charge VAT to their customers.

Upon registering for VAT, you automatically get a 15-digit unique number i.e., TRN from the FTA. This number sets that entity apart from the rest and they are required to add it to all of their VAT documentation.

The inclusion of TRN in such documents allows the government to track all of your financial transactions to ensure transparency as well as accountability in all financial activities.

Tax Return Dubai

Eligibility Criteria to Get TRN in UAE

For any company to register for VAT and get a TRN, it must meet a certain revenue threshold. Following are the main types of VAT registration and their criteria in the UAE:

Voluntary Registration

Businesses whose taxable supplies exceed the revenue threshold of AED 187,500 can voluntarily register for VAT. The revenue range for this type of registration is between AED 187,500 to AED 375,00.

Businesses with a revenue less than AED 187,500 are not required to register for VAT. However, they can still choose to register and get benefits like reclaiming input VAT on their expenses.

Mandatory Registration

The mandatory revenue threshold for businesses in the UAE is AED 375,000. If the revenue of a business exceeds AED 375,000 in the past year or is expected to cross this threshold in the next 30 days, such entities must register for VAT to avoid penalties.

These rules ensure businesses of all sizes fulfill their tax responsibilities by adhering to all tax regulations. These criteria force larger businesses to mandatorily register for VAT to avoid fines and smaller businesses to register voluntarily to enjoy extra benefits.

Tax Form Dubai

Required Documents to get TRN or VAT Number

Following are some key documents that you must have by your side when applying for a TRN in UAE:

Business Documents

These include the Incorporation Certificate of the Company, Articles of Association (AoA), and Memorandum of Association (MoA).

Identification Proof

Copies of Emirates ID and Passports of the directors, partners, and authorized signatories of the company.

Authorization and Contact Details

Proof of authorization for the person applying for registration along with their contact information such as address, cell no, and email.

Financial Documents

These include bank statements that validate the business’s bank account details. Audited financial statements or financial reports such as proof of financial status are also required.

Additional Documents

You will also need:

Power of attorney documentation (if applicable)
Partnership deeds (if applicable)
Customs registration documents (if applicable)
Details of business activities or the nature of supplies
Other relevant documents about the specific nature of the business

Step-By-Step Process for Getting TRN Number in the UAE

Following is a detailed step-by-step procedure to help you apply for the VAT registration number:

Step 1: Visit the FTA’s official website and create an EmaraTax account by adding your email and other relevant information. Activate this account using the confirmation email sent to your email ID.

Step 2: Log in to your account using accurate credentials. After that, navigate to the dashboard to proceed.

Step 3: Create a new taxable person profile. To do this, you need to add details like legal name, trade name, contact info, business activities, and other business details.

Step 4: Next, you can click on “View” to access your profile or newly created taxable person account.

Step 5: Go to the VAT section and click on “Register” to initiate the process.

Step 6: Fill out the registration form by adding the information about your finances, bank accounts, annual turnover, etc. After that, upload copies of your required documents that were mentioned in the previous section.

Step 7: Review the entire application one more time with great care to ensure accuracy. After verification, you can submit your application and wait for the approval.

Step 8: The FTA will review your application and request additional clarification or relevant information if the need arises. If everything checks out, the FTA will approve the application and issue a VAT registration certificate along with a unique UAE TRN.

These are the steps that you must follow to successfully register for VAT services and get a TRN to ensure compliance with UAE’s tax laws.

Processing Time

It can take up to 20 business days for a business to obtain a TRN in the UAE. In some cases where FTA needs more information to make the decision, it can take some extra days before you get the approval.

Conclusion

Every business operating in the UAE that is eligible for VAT must also obtain a TRN. This number gives your business a distinct identity and it helps you ensure legal compliance. Obtaining TRN is crucial since failure to do so can lead to fines and penalties.

This unique number facilitates better communication between your business and FTA. This number makes your business appear authentic which builds credibility in your customers when it comes to the legitimacy of VAT charges.

This is why you need to obtain your TRN as soon as possible to resume your operations in the region without major disruptions.

You can contact us at HRSG to get the best tax and TRN registration services in the UAE. Our dedicated team of experts can guide you to ensure accurate document filing. With our ongoing support, we can guarantee tax compliance as well as adherence to FTA guidelines for your business in the UAE.

What is HR Outsourcing (HRO)? Types & Benefits

What is HR Outsourcing (HRO)? Types & Benefits https://uae.hrsgonline.com/wp-content/uploads/2025/01/Untitled-design-2.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp January 29, 2025 January 29, 2025

Struggling between recruiting, payroll, and compliance? You may barely have the time to focus on the core aspects of your business. Sounds familiar? If so, you are not alone. Hundreds and thousands of business owners struggle to balance operational tasks with growth activities. In fact, 36% of HR leaders lack the resources to recruit top talent.

This is where HR outsourcing, otherwise called HRO, comes into the picture. What is it? What are its types and why should you explore this? We’ll answer all of this and more in this blog.

What is HR Outsourcing?

HR Outsourcing refers to the practice of hiring a third-party expert to handle all your HR operations—hiring, payroll, compliance, employee engagement, and more. This third party may manage some or all of HR operations, depending upon a business’s unique needs.

Why would they do it? The short answer is access to specialized experts, top talent pools, advanced tools, and scalable solutions. This is beneficial for companies of all sizes that may lack the necessary resources to build a fully functional and well-equipped HR team in-house.

Types of HRO Services

As we mentioned, a third-party expert may handle some or all of your HR needs. To help you understand it better, here is a breakdown of the specific sub-services that make up the larger umbrella of HR outsourcing services.

Recruitment Process Outsourcing (RPO)

Recruiting employees is not as simple as it used to be. With complex role functions and newer job roles, finding a candidate who fits the bill can be challenging. Moreover, you need to undertake a needs assessment to identify your company’s unique hiring needs.

Not to forget the long screening, assessment, and interview cycles that may take anywhere from a couple of days to weeks and months to fight for the ‘right’ candidate. “Why?” you may ask. Well, because you may not have access to a qualified talent pool in the first place. Another hurdle could be offer management. This includes creating the perfect offer that aligns with the company’s needs, is compliant with the industry standard, informs the candidates about it, and answers an endless list of questions that they may have.

RPO is your company’s strategic decision to make screening and hiring more efficient and effective. RPO experts take care of everything for you. They:

Have access to the qualified talent pool.
Will work with your internal team to conduct a needs assessment.
Will study how your hiring is affecting your operations.
Will create a custom solution.
Have the necessary Service Level Agreements (SLAs), technology, and reporting systems in place.
Are experts at screening, assessing, and interviewing candidates to identify the fit.
May also support your team during onboarding.
Provide you with important reports like time-to-fill and cost-per-hire.

Payroll Outsourcing

Payroll is an important function of a company. Unfortunately, it can get equally complicated, especially with tax deductions, law compliance, printing pay cheques, setting up direct deposits, and more.

Payroll outsourcing teams take all this headache away, ensuring your employees get paid on time, and your company is compliant with legal regulations. As a payroll outsourcing team, they will need access to your business bank account and employee time tracking system. Once they have access to this, they will take care of your payroll activities. This means:

Tracking and implementing benefit deductions
Calculating taxes and withholding the right amount.
Maintaining confidentiality on wage garnishment and corporate tax filing.
Eliminating software concerns.

Payroll Dubai

Compliance Outsourcing

Compliance outsourcing means having experts take care of monitoring, auditing, and implementing compliance with legal and regulatory requirements. As such, these experts help you avoid penalties, follow labor laws [local, national, and international], as well as maintain industry standards. These experts will also assist you in developing policies and evaluating potential risks. Additionally, they may also provide employee training on legal and regulatory requirements.

Benefits Administration Outsourcing

Employees deserve more than just salary for the way they help your company grow—for instance, health insurance, wellness programs, and retirement plans. Unfortunately, finding the right partner who will offer these to your employees on your behalf at a cost-effective price is challenging.

A third-party benefits administration outsourcing partner has all the contacts you need. They can get your employees high-level programs at low costs which are attractive, compliant, and related to your employee’s needs.

Training and Development

As an employer, you are responsible for your employee’s learning and professional growth. Consequently, you need to periodically invest in training programs and workshops that bridge the skill gap and enhance present skills.

Training and development outsourcing gives you access to top-class professionals, each well-known in their field for designing and delivering employee training programs. They offer customized learning solutions that are best suited for your employees.

Training and Development

Employee Relations

Another important function of HR that can be outsourced is employee relations. This means that a third-party partner acts as a mediator between you and the employee. They offer counseling and conflict resolution sources. Some of the key areas they can address on your behalf include:

Workplace issues
Handling grievances
Labor relations
Attendance issues
Performance issues
Disciplinary actions

Performance Management

Employee performance is key to your company’s success and growth. Performance management outsourcing gets you expert support for managing your employee performance reviews, goal setting, and feedback processes. In fact, it makes the entire process extremely simple, objective, and streamlined, considering that feedback processes can often get complex and biased at times.

Benefits of HR Outsourcing

By now, you must have figured out a couple of benefits of HRO services. We will state them explicitly for you for better clarity and understanding.

Saves Precious Time

HR outsourcing services can take care of routine, repetitive tasks such as employee attendance, tax withholding, and payroll. This way, your in-house HR team can focus on other activities.

Cost Efficiency

Companies often spend a lot to attract top talents, approach them, and hire them. Moreover, when employees leave, the cost of hiring a new employee may be high. HRO services take care of everything from attracting to hiring talents. In fact, they have a talent pool often readily available for you to hire from.

Furthermore, when you outsource HR functions, you may not require a full in-house team and train them. At most, you may need 1-2 individuals to collaborate with the third-party partner.

Access to Expertise

HRO providers are experts in their fields. They stay updated on the latest HR trends, laws, and technologies, ensuring your business benefits from industry best practices

Better Compliance

HRO providers are also well-versed in labor and employment laws. Consequently, they not only help you bridge the current gaps in your practices but also point out potential risks and give you solutions for them. This keeps you free of penalties and legal actions.

Scalability and Flexibility

As your company grows, your need for HR efficiency grows with it. HRO provides you with the necessary resources and flexibility to expand as you like.

Conclusion

Outsourcing your HR functions can be a complete game-changer for your company. It can free up essential time, which can be invested into better processes that help your company grow.

We, at HRSG, can support you to streamline your HR functions and improve their efficiency. Our tech-enabled solutions are built keeping in mind your company’s unique needs. The solution combines a variety of HR functions, relieving you from day-to-day tasks and allowing you to focus on other value-adding initiatives.

Our Managed Staffing solution, for instance, takes care of everything from onboarding to benefits, payroll processing, and matter monitoring. We also offer verification and screening services with the help of activities such as pre-employment background checks to ensure your workplace is safe with every hire.

Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, is happy with you.

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs?

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs? https://uae.hrsgonline.com/wp-content/uploads/2025/01/Untitled-design-6.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp January 29, 2025 January 29, 2025

Dubai is a thriving hub for IT and tech. This flourishing tech ecosystem aligns with Dubai’s aim to become a premier hub for tech companies by 2030. At present, the city is home to more than 2,300 technology companies. Moreover, initiatives like Sandbox Dubai, a startup accelerator program for ambitious pre-seed to seed stage tech entrepreneurs, are helping founders test and market new products and technologies for greater innovation.

Consequently, you can expect more role openings and better opportunities. You may ask, “What does the payout look like?” Today, we are going to answer this question for you. This blog will explore what makes Dubai a tech hub and compare the IT salaries here with other major tech hubs.

What Makes Dubai a Tech Hub?

We will keep it short and crisp. Here are the top reasons Dubai is a leading tech hub to watch out for:

#1 – Tech Infrastructure & Ecosystem

UAE, specifically Dubai, continuously seeks ways to upgrade its infrastructure to make it one of the best to exist. This has resulted in many tech parks, innovation centers, and research and development hubs. Moreover, the officials are working on improving the state of the internet, connectivity, and digital infrastructure as well, all while keeping in mind the privacy and security of the users.

Dubai has the most significant data center ecosystem in the UAE, featuring the following:

18 colocation data centers
237 cloud service providers
18 network fabric providers

This rapid expansion is expected to add $181 billion (AED664.79 billion) to UAE’s economic value over the next 10 years. While tech giants like Microsoft, SAP, and AWS are already operating here, other players like Equinix are also expanding their presence.

Collaborative platforms and initiatives like the Sandbox Dubai further help balance novelty and experience, allowing new tech entrepreneurs to learn from seasoned tech leaders. This helps them test and refine their products and technologies early on, setting up the stage for global expansion.

#2 – Booming Tech and ICT Landscape

Information and Communication Technology (ICT) spending in the UAE has increased considerably, thanks to increased digitalization. Moreover, the adoption of leading technologies like the Internet of Things (IoT) and artificial intelligence (AI), cloud, big data, and more has led to a boom in the industry. As a result, leading companies are investing in research and development to enhance these technologies further.

#3 – Favorable Environment

Another very important factor contributing to Dubai’s growth as a tech hub is free zones. These include the Dubai World Trade Centre, Dubai Internet City (DIC), and Dubai Silicon Oasis (DSO). These free zones operate with:

Tax exemptions
Allowance for 100% foreign ownership
Ease of business setup

How Do the Salaries in Dubai Compare to Other Major Tech Hubs Globally?

IT Salaries in Dubai

The average IT salary in Dubai, United Arab Emirates, is AED 8,250 monthly. Furthermore, the average salary for an IT engineer is around AED 6,500 – AED 12,000 per month. Similarly, for a software engineer, it ranges from AED 227,997 to AED 440,760.

IT Salaries in Silicon Valley

Located in San Francisco Bay, Silicon Valley is unarguably one of the best tech hubs in the world. It houses some of the biggest giants like Google, Meta, Tesla, and Apple. What makes it the best is the presence of excellent funding, the pool of talented employees, and an innovative culture.

A back-end software worker’s average IT salary in Silicon Valley is around $158,000 annually. For an AI engineer, it is approximately $156,648 and $200,000; for a data scientist, it is $120,931; and for an information system manager, it is $164,070.

Google Office Silicon Valley

IT Salaries in the Greater Boston Area

The Greater Boston Area is another well-known tech hub and home to prestigious institutes like Harvard and MIT. This area is a major player in biotech and AI research.

The average IT salary here is $89,749, typically between $78,770 and $98,898 per annum. That for a Software Engineer is $161,700, IT Specialist is $95,005, Senior Software Engineer ranges from $160,400 to $253,750, and Cloud Architect is approximately $160,000 annually on average.

IT Salaries in Beijing

Home to major tech companies like Baidu, Tencent, and Huawei, the tech scene in Beijing is driven by the Chinese government’s investment as well as research and development centers like the Chinese Academy of Sciences.

Salaries in IT here range from 17,500 CNY to 55,000 CNY monthly. The average salary for an AI/machine learning analyst is 34,100 CNY, a Blockchain developer is 29,200 CNY, an Information Security Engineer is 30,100 CNY, and an SAP Consultant is 33,000 CNY.

IT Salaries in Berlin

Probably one of the largest tech hubs in Germany, Berlin is one of the leading cities in digital transformation in Europe. The average salary for an IT Support is €44,900 per year. Similarly, the average annual salary for a software engineer is approximately $80,000 to $113,192; for a data scientist it is €43,000 – €76,000; and for an Information Security Engineer, it is $75,000.

IT Salaries in Bangalore

Touted as the Silicon Valley of India, the tech city of Bangalore has a new startup that is mushrooming almost every day. It is a hub for public sector industries like aerospace and telecommunications. In fact, global titans such as Amazon, Uber, Cognizant, Texas Instruments, Wipro, Microsoft, SAP LABS, and more have their headquarters here.

The average salary for IT roles in Bangalore is approximately ₹5,60,000 annually. Specifically, the average annual salary for an IT specialist is around ₹12,95,000, an Automation Engineer is ₹ 1,250,000, and an IT engineer is approximately INR ₹8,75,000. Entry-level roles start at ₹ 500,000 per year, while the most experienced ones could make up to ₹ 2,500,000 per year.

Microsoft Office Banglore

IT Salaries in Singapore

Over the years, Singapore has become a sought-after destination for tech innovation. Multinational companies find Singapore attractive for their operations, thanks to the excellent government initiatives and access to regional business opportunities. Moreover, the country has a highly skilled workforce with a diverse tech ecosystem.

The average IT salary here is approximately S$60,000 per year. Entry-level positions start at S$42,000, while those who are significantly experienced can expect to make up to S$92,700 per year on average. The annual average salary for a Project Manager is S$75,000, a technology manager is S$78,000, and a network engineer is S$66,000.

IT Salaries in New York

New York is another well-known hub in the tech ecosystem. The average IT salary here is $93,512 annually, ranging between $82,073 and $127,500. A well-experienced individual can even make as high as $160,000 per year. An IT Technician can expect to make $63,259 per year, an Information Technology Specialist around $85,498, and an IT Applications Manager about $125,855 per year on average.

IT Salaries in Tokyo

Japan is constantly adapting to the challenges posed by digital transformation. In fact, Tokyo is ranked #10 in the Global Startup Ecosystem. Some of the best IT companies, such as Sony, Toshiba, Fujitsu, Hitachi, and more, offer exciting IT careers for professionals.

Some of the highest-paying job roles here include IT manager, security manager, and business analyst. The average salary for Information Technology is JP¥1,08,50,000 per year in Tokyo. For an IT Engineer, the average annual salary is approximately ¥4,800,000. Similarly, the average for an IT specialist is JP¥ 52.5L per year.

IT Salaries in LA

Los Angeles is another exciting destination for IT professionals. The average salary here is $134,977 per annum. An IT technician can expect $60,537, an IT Specialist is $72,172, a Systems Engineer is $134,997, and a Network Engineer is $125,043 on average annually.

IT Salaries in London

Finally, there is London. The average salary here is around £37,500 per year, ranging between £27,000 and £57,500. An IT Engineer can expect £37,415, an Automation engineer £51,605, an Automation Architect £70,701, and a Systems Engineer £60,239 per year on average.

Conclusion

Dubai is home to many more IT companies, such as HCL Technologies, Cognizant, KNZ Solutions, Mind Tree Info Tech, and more. The UAE government’s initiative to boost the tech space supports the companies and more.

Besides the golden opportunity for growth, the salaries offered are attractive and very well compared to wages in other major tech hubs. In the coming years, one can expect the average salaries to increase, given the boom and influx of investments. It is important to note that the salaries mentioned here are averages of the highest and the lowest paying roles. The exact salary could be much higher or lower based on your experience and specialty.

HRSG offers tech-enabled solutions that are built to deploy the right resources at the right time for you. Our People solutions cater to recruitment, executive search, and organizational development, while our Business Solution addresses Integrated Facilities Management services. On the financial front, we offer accounting and bookkeeping, corporate tax, audit and compliance, and other related solutions.

KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers

KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers https://uae.hrsgonline.com/wp-content/uploads/2025/01/Untitled-design-4.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp January 15, 2025 January 15, 2025

The labor laws in the Kingdom of Saudi Arabia, KSA otherwise, are a set of rules and regulations that govern the labor practices in the kingdom. Initially issued by the Royal Decree in September 2005, these labor laws have undergone significant amendments, the most recent being 2024.

The recent amendments to the labor laws aim to create an attractive work environment and achieve Saudi’s Vision 2030. This blog explores the KSA labor laws to help prepare employers and employees for the year 2025. It will answer important topics around women’s employment, key changes to the laws, labor regulations, vision 2030, and more. Let’s start.

Vision 2030: What You Need to Know

Vision 2030 is Saudi Arabia’s effort to diversify the economy, develop its public sectors, as well as enhance the overall quality of life for Saudi citizens. The Vision Realization Programs are the driving force behind Vision 2030. Each program has a distinct way forward and an approved delivery plan that meets pre-defined objectives and key performance indicators. Some of the programs included are:

Fiscal Sustainability Program
Public Investment Fund Program
Financial Sector Development Program
Human Capability Development Program
National Industrial Development and Logistics Program

Some of the goals, as shared by the key leaders, are:

Harness the strong investment capabilities to stimulate the economy and diversify it.
Leveraging the strategic location and transforming it into a global hub connecting Asia, Europe, and Africa.
Better partnership opportunities with the private sector

Labor Laws: Key Changes & What You Should Remember

The new amendments are said to affect 38 articles of the Labor Law, with 7 articles being deleted and 2 new articles being added. The following is a detailed breakdown of the changes and what you should be aware of in 2025.

Employment Laws: The Basics

Age (for Employers)

KSA has a minimum age requirement for employment. For males, it is 21 years old, and for females, it is 22 years old. Moreover, anyone who is 15 or older but younger than 18 years of age is considered a ‘minor’ and cannot be employed in hazardous roles or any job that endangers their health, safety, or morals. That being said, any individual younger than 15 years cannot work or enter a place of work. These laws apply to every employee, no matter their nationality.

Health & Dress Code (for Employees)

All employees must submit a certificate of fitness by undergoing a medical assessment at an accredited medical center to prove their fitness for the role. As for dress codes, females have a dress code that is suggested to follow in the workplace. The dress code is as follows:

Top: Full-sleeved clothing with a high neckline and loose-fitting
Bottom: Full-length and loose skirts or bottoms

Time Management Laws

The time management laws in the KSA regulate working hours, over hours, rest periods, etc. Here’s a breakdown of the hours.

Working hours: 8 hours a day and 48 hours a week. During Ramadan, the hours are reduced to 6 per day and 36 per week.
Rest periods: Employees are entitled to a minimum of 30 minutes of break for rest, meals, or prayers after 5 consecutive hours of work.
Overtime: Overtime hours will be entitled to overtime pay at 1.5 times their regular hourly wage. Alternatively, the employer and employees can agree to a paid compensatory time off instead of overtime pay.
Weekly rest: All employees are entitled to one day of full rest. Officially, Friday is a weekly off in Saudi Arabia. However, businesses can change this.
Public holidays: All employees are entitled to paid leaves for the 5 officially recognized public holidays.
Annual leaves and holidays: After 1-5 years of service, the employees are entitled to 21 days of paid annual leave. This increases to 30 days after 5 years of service.
Sick leaves: Employees can take up to 30 days of paid sick leave with medical certificates. The next 60 days may go from one-third to the third quarter.
Maternity Leave: Maternity leave for all female employees has been increased from 10 weeks to 14 weeks now.
Paid Bereavement Leave: 3 days of paid leave in the event of the death of a spouse or a relative.
Hajj leave: Muslim employees can take 10-15 days of paid leave to perform the Hajj pilgrimage after completing 2 years.

Ministry of Human Resources and Social Development KSA

Saudization

The 2024 amendments have introduced several key measures and reinforced the policy of Saudization. In simple words, Saudization, or Nitaqat in local terms, requires businesses to hire Saudi Arabians. Each business has a hiring quota to fulfill, which depends on the following:

Classification of the business
Size of the business
Percentage of current Saudi Arabians in the workforce

Here’s what the current quota looks like:

Businesses with 5 or fewer employees must have 1 Saudi employee
International companies must have a Saudi national holding a role next to a general manager
Businesses with more than 100 employees need to have 30% Saudization

Probation Period

If the worker is subjected to a probation period, it must be clearly stated in the work contract, and the duration shall not exceed 180 days. Originally, the probation period was 90 days at maximum, and employers had to have a written agreement to extend this period.

Termination

The employment contract can be terminated under the following circumstances:

Upon expiry of the contract, unless the contract has been explicitly renewed in accordance with the laws.
Mutual agreement, given that the worker’s consent is in writing.
The notice period of termination for the fixed contract is a 30-day notice period if the termination is from the employee’s side and a 60-day notice period if from the employer’s side.
In the case of an indefinite contract, termination can occur due to discrimination by either party. The employer must give a 30-day notice period, while the employee must give a 15-day notice period.
A new provision for termination on account of bankruptcy has been introduced. The employment contract will be terminated upon the issuance of a final court order in bankruptcy proceedings.

Renewal of Employer’s Work Permit

Previously, the Ministry had the right to decline the request to renew an employer’s work permit if they violated the Saudization requirements set by the Ministry.

Under the new amendment, which is an addition to Article 35, the Ministry can decline the request if the employer violates conditions mentioned in the Regulations, not just the Saudization requirements. Following this amendment, the Regulations will regulate the non-renewal procedures. It ensures that the worker is not affected by the non-renewal of the work permit, including the possibility of transferring the worker’s services to another employer without the consent of the non-compliant employer.

Regulations for Non-Saudis/Expatriate Workers

Although the contract of the non-Saudi was to be written in a fixed term, if the term of employment was not specified, the duration of the contract was considered equal to the duration of the work permit.

Post the amendment, if the duration of the contract is not specific, it is considered to be 1 year from the date on which the worker actually assumes their duties. If the worker’s work continues after the term, the contract is considered to be renewed automatically for a similar term of 1 year.

Furthermore, employers cannot employ non-Saudis for a role other than the role specified in the work permit. Even foreigners cannot change their profession without necessary legal measures.

Training and Development

Before the amendment, the employer was required to ‘prepare’ his Saudi employees and enhance their technical, vocational, and other skills to replace the non-Saudi workers gradually. Moreover, the employer was required to keep a list of Saudi workers who had replaced non-Saudi workers.

Under the new law, ‘prepare’ has been replaced by ‘develop a policy to train and qualify,’ which implies a more structured approach. Furthermore, the amendment removes the requirement of a list. It just states that the Regulations will determine the relevant provisions in this regard.

End-of-Service Payment

The end-of-service payment for the first five years shall be half of a month’s salary for each year of service. For every subsequent year after five years, it shall be one month’s salary for every year.

Conclusion

Having robust HR policies and a foolproof contract for all your employees can help you navigate the KSA Labor laws with ease and comfort. It will also protect you from violating any of the regulations mentioned in the Regulations or outlined by the Ministry and paying a penalty for the same.

If you need assistance in your HR operations or help with navigating the employee agreements, you can contact HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management.

Gratuity Calculator UAE: How It Works and Why You Need It?

Gratuity Calculator UAE: How It Works and Why You Need It? https://uae.hrsgonline.com/wp-content/uploads/2024/12/Untitled-design-4-3.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp December 30, 2024 December 30, 2024

The UAE is globally known for creating policies that benefit employees and employers equally, striking a balance between the two. Moreover, these policies ensure that both parties receive their dues as deserved. One such policy is gratuity benefits.

Gratuities are an essential component that all UAE employees need to understand. Gratuities, also called end-of-service benefits, guarantee that workers receive payment for their years of service and dedication. In this blog, we will break down what Gratuity is and why it’s important. We’ll also explore how the calculations work in the UAE.

What Is Gratuity?

Gratuity is also known as end-of-service benefits. It is designed to reward employees for their tenure with an organization. In the UAE, labor laws govern these benefits. They depend on specific factors such as:

Employment duration
The type of contract
Reason for termination

According to UAE labor law, gratuity entitlement begins after one year of continuous service. The calculation is based on the employee’s basic salary and years of service using a distinct formula.

Moreover, Gratuity may accompany other end-of-service benefits, including payments for unused annual leaves or pending salaries. Consequently, reviewing employment contracts and understanding legal entitlements helps employees receive the full range of financial benefits upon leaving a job smoothly and without disputes. Similarly, it helps employers stay compliant with the latest regulations and avoid legal trouble.

Gratuity rules are further clarified under Article 51 of the UAE Labor Law. The highlights include:

A pro-rata gratuity for fractions of a year after one year of continuous service.
Calculations are based solely on the basic salary, excluding allowances like housing or transportation.
Deduction of owed amounts from gratuity payments, if applicable.
Mandatory payment of all dues within 14 days of contract termination.

Significant Change to Gratuity Rules

Post the revisions of the UAE labor law in 2022, the Ministry of Human Resources & Emiratisation (MOHRE) changed the way employers were hiring. Previously, expat workers or employees were employed in the UAE under two kinds of contracts: limited and unlimited contracts. Limited contracts had a predefined start and end date. In contrast, the unlimited contracts only had a start date with specific working terms and conditions.

After the revisions, unlimited contracts are no longer valid. The MOHRE has eliminated this particular type of contract to reduce disputes between employers and employees. Furthermore, they want to ensure equal gratuity benefits to all foreign workers in the private sector.

Rules for Gratuity based on Resignation and Termination

There are 6 different ways in which a work contract could end. Below is an overview of all of them, along with the expected gratuity outcome:

Resignation by the Employee

If the employee voluntarily resigns before completing a year of service, they are not eligible for gratuity benefits. The same applies in the case they resign without prior notice or completing their notice period.

However, if they resign after a year of service, they are eligible for the benefits.

2. Termination by the Employer

The employee is not eligible for the gratuity benefits if:

The employer terminated the contract a year ago. In this case, the employee is only entitled to compensation, that too if mentioned in the contract.
The employer has terminated the contract with a valid reason and evidence for employees breaking contract terms.

If the employer terminates the contract after a year but before the expiry WITHOUT valid reason, the employee is entitled to gratuity benefits and other end-of-service benefits.

3. Termination With Mutual Consent

The gratuity benefits are only entitled if the employer and the employee mutually terminate the contract after one year of service.

4. Termination by Contract Expiry

If the limited contract expires and the employer does not want to renew it, the employee will receive all the benefits. However, suppose the employment contract expires in less than a year or it expires later but the employee hasn’t worked continuously for a year. In that case, they are not entitled to the gratuity benefits.

5. Termination by Court Order or Police Arrest

In case a court order terminates the contract, the gratuity benefits are only applicable if they are mentioned in the order. Similarly, if the police arrest the employee and a case is filed, the employee is not entitled to Gratuity until the case is resolved.

6. Termination due to Redundancy or Restructure

If the employer terminates the contract due to lack of work (redundancy), the employee is entitled to a gratuity if they have worked for a year or longer. In the case of restructuring, the employee will receive a Gratuity if they have worked for a year or longer.

In addition to Gratuity, the employee is also entitled to 1 to 3 months’ salary as compensation if it is mentioned in the contract.

Contract Termination

Why Is A Gratuity Calculator Important?

The gratuity calculator simplifies complex calculations. It also ensures compliance with UAE labor laws. Here’s why it’s beneficial:

With its intuitive design, the Gratuity Calculator is accessible to both employees and employers. This makes it easy to calculate gratuity.
The Ministry of Human Resources & Emiratisation mandates using the official formula mandated. The calculator ensures precise results. This instills confidence in users.
The calculator clearly illustrates years of service and basic salary impact gratuity. So, individuals get empowered to make informed financial decisions.
Understanding Gratuity shows that employers value their workforce’s contributions. Also, employees gain the assurance that their efforts are recognized and rewarded fairly.

How Do You Calculate Gratuity?

Gratuity calculation in the UAE depends on the employee’s basic salary and length of service. The following example outlines the process:

Basic Salary Example: AED 10,000

Step 1: Identify Daily Wage

To begin, divide the monthly salary by 30 to calculate the daily wage:

AED 10,000 ÷ 30 = AED 333.30 (Daily wage)

Step 2: Multiply Daily Wage by 21

Next, multiply the daily wage by 21 (the number of days used for gratuity calculation in the first year):

AED 333.30 × 21 = AED 6,999.30 (21 days’ wage)

Step 3: Apply Service Duration Rules

For employees with different lengths of service, the gratuity calculation changes:

For 1-3 years: The employee is entitled to 1/3 of AED 6,999.30 for each year of service.
For 3-5 years: The employee is entitled to 2/3 of AED 6,999.30 for each year of service.
For 5+ years: The employee is entitled to the full AED 6,999.30 for each year of service.
For employees completing over five years, Gratuity increases to 30 days’ wage for each additional year. Employers may also deduct any amounts owed by the employee, such as for unpaid leave or damages, from the gratuity payment.

Note that this method ensures precision. But quick tools like the Gratuity Calculator automate these steps to simplify the process.

Factors to Keep in Mind While Calculating Gratuity

Several factors affect how Gratuity is calculated. This includes minimum service requirement, service term, basic salary, absence without pay, type of contract, and reason for termination. Understanding these factors helps in accurate calculations. It also helps employees negotiate fair settlements during end-of-service transitions.

The following is a brief overview of these factors:

Employees must complete at least one year of continuous service to qualify for Gratuity. If an employee leaves before completing one year, they are not entitled to Gratuity.
Employees who have worked between 1 and 5 years are entitled to 21 days’ salary for each year of work.
Employees who have worked for more than 5 years are entitled to 30 days’ salary for each additional year beyond the first five.
Gratuity calculations are based solely on the basic salary. This excludes any allowances or benefits such as housing, transportation, or bonuses.
Any days of absence without pay are excluded from the total service period used in the calculation. This means that employees cannot count unpaid leave days toward their total service for gratuity purposes.
If an employee resigns or is terminated for misconduct, gratuity payments may be affected. But if the termination is not due to misconduct, the employee is typically entitled to full Gratuity.

Conclusion

Gratuity is more than just a financial benefit. It reflects an employer’s appreciation for an employee’s service and dedication. Understanding how Gratuity works under UAE labor law empowers employees to plan for their financial future. It also ensures that employers uphold their obligations transparently.

Tools like the Gratuity Calculator make calculations simple and precise. They ensure compliance. If you’re an employee preparing for a transition, it’s helpful. If you’re an employer, it provides clarity. So, staying informed about gratuity regulations is a key element. It also ensures financial security at work and lowers the risk of disputes. Thus encouraging a healthy, transparent relationship between employers and employees.

If you need assistance in your HR operations or help with navigating the employee agreements, you can rely on HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management.

UAE Labor Laws 2025 Unpacked: All the Key Details You Need to Know

UAE Labor Laws 2025 Unpacked: All the Key Details You Need to Know https://uae.hrsgonline.com/wp-content/uploads/2024/12/Add-a-heading.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp December 25, 2024 December 25, 2024

The UAE is well-known for its advanced approach to everything, including its labor laws. The government’s ability to stay ahead of the curve and meet the changing demands of the employees as well as the employers makes it one of the top destinations for building a global career.

This year, the UAE has made significant amendments to its UAE Labor Laws intending to modernize and enhance various aspects of employment for both parties involved. What are these changes? Here’s a breakdown of all the fundamental changes for you and what they mean.

UAE Labor Laws

The UAE Labor Law, or Federal Law 8 of 1980, governs employment relationships and all surrounding aspects to ensure fair practices. The changes in the labor law create a balanced and fair working environment. Additionally, it encourages employers to adopt a competitive and flexible labor market which supports economic growth as well as protects an employee’s rights.

Here are some of the critical changes that have come through:

1. Salary During Employment Disputes

According to this change, the employer may have to continue giving their employees salary for up to 2 months while any employment disputes are being resolved. Moreover, if the dispute isn’t settled within 14 days, The Ministry of Human Resources and Emiratisation (MOHRE) has the power to refer the dispute to a competent court.

The idea is to provide financial stability to the employees during lengthy disputes and give them more power.

2. Flexible Working Arrangements

Previously, only full-time working employment was allowed in the UAE. Part-time working arrangements were introduced in 2019. However, it is now that employers can hire employees for temporary, flexible, remote working, and job-sharing roles. Moreover, they have the option of compressed workweek options.

Additionally, some of the key requirements of remote work provisions include:

Mandatory written agreement
Specific working hours
Data security protocols
Guidelines on performance monitoring

3. Revised Claim Value for Disputes

If the labor dispute claim value is under Dh 50,000, then The Ministry of Human Resources and Emiratisation (MOHRE) has the power to make binding decisions. If it exceeds the said amount, the MOHRE will continue acting as a mediator and may refer it to a competent court. This is done to streamline the disputes based on monetary values.

4. MOHRE Decisions Are ‘Writ of Execution’

With this amendment, the decisions of The Ministry of Human Resources and Emiratisation (MOHRE) become legally enforceable, strengthening the body’s authority.

MOHRE UAE Labor Laws

5. Extended Time for Labor Claims

As per earlier labor laws, the employees had 1 year from the date of termination of the employment relationship to file a labor claim. Post amendments, employees now have a 2-year time frame from their date of termination to file any labor claims against their previous employer.

6. Increased Penalty for Violations by Employers

Besides having to pay wages for up to 2 months during a dispute, the amendments to the labor laws have increased the penalty for employer violations. These penalties can be anywhere ranging from AED 100,000 and AED 1 million, depending on the severity of the violation.

7. Extended Maternity Leaves

Earlier, female employees were only granted 45 days of maternity leave. With the amendments coming in, female employees will now enjoy 60 days of maternity leave

8. Increase in Emiratization

Emiratization is a program by the UAE government to increase the participation of UAE nationals in the private sector. As per the rules, if a private company has 50 or less than 50 employees, they need to have 1 Emirati. Similarly, if they have 51-100 employees, they need to have 2 Emiratis.

In 2025, this will increase to hiring 2 Emiratis for private companies with 20-49 employees. If they haven’t employed 2 Emiratis by 2025, the companies will have to pay a financial contribution of AED 108,000 to the government.

9. Non-Compete Restrictions

The latest amendments include specific rules for employee non-compete. The non-compete clauses must be necessary and limited in scope and duration. The new law states that the non-compete can exceed a duration of 2 years. Moreover, employees need to be compensated for agreeing to the non-compete clauses, which must be paid during the period the clauses are in effect.

Moreover, the employee can challenge the non-compete clauses if they are too restrictive or unreasonable. In such a situation, the labor court can review and invalidate the clause if deemed necessary.

How Can Employers Adhere to New Labor Laws?

Step 1 is ensuring that you adhere to new labor laws in 2025 and meet international standards to learn about their nitty-gritty in detail. Once you are equipped with all the knowledge, step 2 would be to review your existing employee contracts and make necessary changes to them to reflect the latest practices.

Consider including clauses for flexible working arrangements, salary continuation, and other aspects. As an employer, you need to develop clear policies addressing important topics such as harassment prevention, discrimination, as well as non-compete. Finally, informing your employees about the significant changes will help you stay compliant.

Conclusion

The new labor law focuses on further fine-tuning the work environment in the UAE, giving employees more power and helping employers retain top talent. It is aimed at creating a positive and fair work environment, which is globally appreciated and enhances a company’s reputation in the market.

Probation Period in UAE: What You Need to Know

Probation Period in UAE: What You Need to Know https://uae.hrsgonline.com/wp-content/uploads/2024/12/Untitled-design-4-1.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp December 18, 2024 December 18, 2024

The UAE has successfully established itself as a global hub for career opportunities and economic growth, attracting professionals from across the world. This makes it a global talent pool of the best of the best, with industries ranging from finance and technology to hospitality and healthcare. Yet, the job opportunities here are high if you have the right skill set and knowledge.

As much as the job prospects look promising (in fact, they are), navigating the employment landscape, regardless of the country, comes with its unique challenges, particularly around employment agreements. One such element is the probation period, an aspect that often raises questions.

If you are starting a new job in the UAE or considering relocating, understanding how probation works can save you from surprises. This blog explores the purpose of probation, what the UAE laws say about it, and how you can prepare yourself during this crucial phase.

Why Do We Need a Probation Period?

The basic idea behind having a probation period is to assess the employee’s performance in the first few weeks before offering them a permanent position. It is a crucial time for both employees and employers.

From the employer’s perspective, this period allows them to see if the employee can deliver and meet the organization’s expectations. It sets clear benchmarks for performance and allows for monitoring the progress without significant consequences if adjustments are needed. For the employee, it’s time to see if they align with the work culture of the organization and the type of work it has.

Thus, the probation period is mutually beneficial for both employers and employees.

What the Law Has To Say?

The Ministry of Labor in the UAE regulates the Law regarding employment and its practices. Particularly, the Federal Decree-Law No. 33 of 2021 outlines clear rules about probation. Here’s what you should know:

1. Maximum Duration

Article 9 (1) Federal Decree-Law No. (33) of 2021 states that:

“The employer may appoint the worker under a probationary period not exceeding (6) six months from the date of commencement of work.”

According to this clause, if the probation period exceeds six months, it will be considered unlawful. In such a case, the employer will be held accountable or may need to compensate the employee.

Does this mean that all companies have 6 months of probation? No. The duration of probation may be mutually discussed and determined, for instance, 3 months. However, the total should not exceed 6 months. Furthermore, if the relationship continues after the period and the contract is renewed, the employer cannot subjugate the employee to another probation period.

2. Contract Termination

The probation period is a trial period for both parties. During this period, either party can terminate the contract with prior notice. However, specific conditions apply:

The employer can terminate the limited agreement with a 14-day prior notice in writing before the date specified for termination. Furthermore, as per Article 9 (5), if either party terminates without following the provisions mentioned in this article, the said party will have to compensate the other party an amount (unless specified otherwise) that is:

Equal to the worker’s wage of the notice period, OR
The remaining period of the notice period.

contract termination

As for the duration of the notice period, here is what the rule says:

If the employer wants to terminate the limited engagement contract, the employer has to give a 14-day advance notice in writing.
If the employee wants to terminate the engagement contract, they have to give a:
- Month’s notice in writing if the employee wants to join another company in the UAE
- 14-day notice in writing if the employee wants to leave the UAE

In case you decide to come back to the UAE within 3 months and join a new company, your new employer may be required to pay the compensation as outlined in the Law unless specified otherwise.

3. Penalty for Not Serving the Notice Period

If you decide to leave the UAE without complying with the notice period, you will not be granted a work permit to the UAE for a year from the date of your departure. However, there are certain exceptions:

Workers on family-sponsored visa residency.
Those who apply for a new work permit at the same establishment.
Work with state-required professional skills and qualifications.
Those with golden visas.

4. Compensations & Benefits

The compensation and benefits awarded to an employee during the probation period are the same as the basic benefits awarded to permanent employees. This includes salary, overtime pay, and other allowances specified in the contract.

5. End of Probation

Once probation ends, the employment contract automatically becomes permanent unless otherwise terminated by either party. Employees who complete their probation enjoy additional protections under UAE labor law, including severance pay and termination benefits.

end of probation

How to Navigate Your Probation Period?

Navigating probation can be easier if you have clarity on all fronts. The following are some things to keep in mind:

For Employers

Set clear role descriptions and goals. Define performance metrics and communicate them to the new hires.
Make sure the onboarding process is very well outlined and detailed. It should include all important aspects such as day-to-day expectations, reporting duties, training for any software if required, and more.
Monitor and review progress regularly. It is best to assign a peer mentor at the start to help the new hire get accustomed to your workplace quickly.

For Employees

Read the contract thoroughly and be clear about your probation duration, allowances, and benefits. Also, ask for clarity on dos and don’ts during this period if they are not explicitly mentioned.
Discuss your key performance indicators and expectations at the start to avoid confusion.
Be open to learning new systems and workflows. Also, make sure you meet deadlines and deliver what you promised.
Maintain open communication with your manager and seek feedback to address challenges early on.

Conclusion

The probation period is a time to test your energies and make sure that both parties are in sync and at par. This period can vary from organization to organization, based on mutual discussions. However, it cannot exceed 6 months under any circumstances as laid out by the Law. To avoid any consequences, as an employer or an employee, make sure you thoroughly understand the terms of your probation period as well as the laws around it.

If you need assistance in your HR operations or help with navigating the employee agreements, you can rely on HRSG. Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, are happy with you.

IT Salaries in Dubai: Is UAE a Top Destination for Tech Professionals?

IT Salaries in Dubai: Is UAE a Top Destination for Tech Professionals? https://uae.hrsgonline.com/wp-content/uploads/2024/12/Untitled-design-4.jpg 800 500 HRSG HRSG //uae.hrsgonline.com/wp-content/uploads/2023/01/HRSG-Logo-removebg-preview.webp December 13, 2024 December 13, 2024

IT professionals can find myriad jobs and career advancement opportunities in the UAE. The region’s exponential economic growth, advanced infrastructure, attractive salaries, and best amenities are the driving factors behind tech professionals’ interest.

The IT sector in the UAE is growing at an unprecedented rate which means there is an increasing demand for skilled tech experts across all industries. But how much can you make as an IT professional in the UAE? And what makes UAE a top destination for you as a tech expert?

If you are looking for answers to these important questions, you are in the right place. This blog covers multiple IT roles and their salaries in the UAE to help you understand its potential in building a lasting career, so keep reading till the end.

Factors That Make UAE A Top Destination for Tech Professionals

Career Opportunities
Tax-Friendly Environment
Work-Life Balance
Investments in the IT Sector
Economic Growth

Average IT Salaries in Dubai

Mobile Applications Developer
Data Scientist
Security Analyst
Cloud Engineer
Technical Program Manager
Technology Analyst
Software Engineer
DevOps Engineer
AI Engineer

working in IT sector dubai

Factors That Make UAE A Top Destination for Tech Professionals

Following are a few points that show why the UAE is an ideal place to be for professionals in the Information Technology sector:

More Career Opportunities

Compared to some of the world’s top tech hubs like London, New York, Singapore, San Francisco, etc. UAE offers greater job opportunities. The rapidly growing economy of the region is in need of more skilled professionals than ever.

Apart from great career opportunities, the cheaper public transportation, as well as residential solutions, are what make Dubai an ideal destination for tech experts.

Tax-Friendly Environment

The UAE offers an extremely tax-friendly environment to its workforce. There is no personal income tax in the region which allows IT experts to enjoy more of their earnings.

Work-Life Balance

The private IT sector in Dubai is increasingly adopting a 4-day workweek strategy owing to its effectiveness in terms of productivity enhancement as well as cost saving.

The healthy work-life balance that you are able to enjoy working in the UAE along with the lifestyle amenities like world-class healthcare, recreational, and education facilities is what makes this place the best for building a career in IT.

Huge Investments in the IT Sector

The UAE government has made huge investments in the IT and innovation sectors. With projects like Dubai 10X, the Abu Dhabi Vision 2030, Golden Visa, the National Program for Coders, etc. the authorities aim to transform the region into a global technology hub that will create countless job opportunities for IT personnel.

Economic Growth

The UAE is a powerhouse of economic growth and stability. The region is attracting huge global investors for its booming trade, tourism, and real estate sectors.

The region also has a lasting commitment to sustainability. This is clear from the fact that the authorities plan to build the world’s largest net-zero carbon urban tech district in Dubai.

The convergence of tech excellence and suitability positions Dubai at the top among its peer technology hubs.

Average IT Salaries in Dubai

Following are some of the main IT roles in Dubai, UAE along with their average salaries:

Mobile Applications Developer

Mobile developers are responsible for creating user-friendly and interactive smartphone applications for businesses. From booking apps to e-commerce platforms, and from converting main websites to mobile responsive versions, these experts can ensure more people can access your business from anywhere in the world.