UAE Working Hours and Overtime Rules

Both employers and employees in the UAE need to be aware of the working hours, and the rules of overtime. It’s important to know how the system works, whether you’re a worker trying to make sure you are paid fairly for extra hours, or an employer trying to make sure you are compliant with the law. Working hours and overtime rules in the United Arab Emirates were not very clear.

Standard Working Hours in the UAE

In the UAE, the standard workweek is normally 48 hours on 6 days a week with Friday as a day of rest. This translates to workers working for eight hours a day. But the companies may have different schedules according to their policies. For example, some could choose to work more hours in over fewer working days or fewer working days with other days off.

Overtime Regulations: What You Need to Know

Overtime is any work done outside your employer’s regular hours of work. UAE labor laws have been set up so that employees are economically compensated for these additional hours.

• Standard Overtime Rate: You’re entitled to an overtime pay of 125% your usual hourly rate if you work beyond your regular hours.
• Public Holidays: Working on a public holiday? In fact, public holidays pay even more in overtime compensation, 150 percent of your regular rate.
• Rest Days: If you are required to work your rest day (usually Friday), you are entitled to either an extra day off or to extra pay at the overtime rate.

Who Is Eligible for Overtime Pay?

Usually, UAE employees are entitled to overtime pay. However, there are some exceptions and specific conditions depending on the nature of the job:

• Eligible Employees: Clerical and administrative staff, manual laborers and those working in non managerial positions qualify for overtime pay, unless their contract indicates otherwise.
• Ineligible Employees: Among these are senior managers and supervisors who oversee operations, or work supervising employees, and who may not be entitled to overtime pay. But it all depends on what their job responsibilities are.
• Special Cases: This does not mean that all sectors can afford overtime at anyone, different sectors, such as civil defense and emergency services may have their own overtime rules due to specific nature.

How to Calculate Overtime Pay

The calculation of overtime pay in the UAE is outlined clearly in the labor law, but it can differ depending on how employees are paid:

• Hourly Workers: If you’re paid by the hour, your regular hourly rate will be increased to 125 percent for overtime pay.
• Salaried Workers: If you are on a monthly salary then you get paid overtime based on your basic salary. Calculate your hourly rate by dividing your monthly salary by the number of hours in the typical workweek, then multiplying by 1.25 for the hours that you work over time.
• Piecework and Commission-Based Employees: If you’re paid per task or commission, the calculation is a little more complex. Your overtime pay is determined by employers by figuring out what your average earnings have been over the last few months and comes out to an hourly rate.
• Bonuses: Overtime calculations include some bonuses, particularly non discretionary bonuses that are regularly paid out. Discretionary bonuses, however, are typically not part of the calculation of overtime pay.

Employee Rights Regarding Overtime

In the UAE, employees have a number of rights regarding overtime pay:

• Right to Extra Pay: If you work overtime you are entitled to be paid at the stipulated overtime rates.
• Right to Refuse Excessive Overtime: You are entitled to refuse overtime work which exceeds two additional hours per day, except in the case of emergency to prevent serious damage to the company.
• Right to Rest Days: If you are asked to work on your designated rest day, you should either get paid extra or you get an extra compensatory rest day.
• Transparency and Fairness: You’re also entitled to be clearly communicated to about your overtime expectations and to be fairly paid for any additional work.

Apart from overtime pay, rest days, employees in the UAE are also entitled to sick leave. It’s important to know sick leave rights because employees may not be able to work because of illness.

Employer Obligations and Penalties for Non-Compliance

The overtime rules and such payments by employers in the UAE must be ensured. Here’s a rundown of employer responsibilities:

• Accurate Record-Keeping: Employers need to keep track of working ours and overtime to make sure that people are paid for the time that they work.
• Limit on Overtime: Employees can not be made to work more than two extra hours per day except for certain reasons such as that the work prevents accidents or deals with emergencies.
• Penalties for Non-Compliance: If you don’t comply with these overtime laws, employers can be taken to court, receive fines and damage their business image.

Apart from overtime regulations, employees should also be conscious of their rights in respect to pay for termination of employment. Severance pay, notice periods, and other compensation rights under UAE labor law, are also included. If you would like to know more about the compensation you might be eligible for when you are terminated from your job in the UAE, visit our detailed article on Compensation for Termination of Employment in UAE.

Special Considerations and Exceptions

While the rules are straightforward, there are some situations where the standard overtime rules don’t apply:

• Unauthorized Overtime: Employers do not have to pay you for overtime work if you don't have prior approval to work overtime. But, if the overtime is beneficial to the employer, they may have to cover you anyway.
• Exemptions: There are certain employees, like high level managers or employees in a consultancy position, who could be exempt from overtime provisions, because the nature of their work. For instance, government employees or emergency service employees may be under other overtime rules.
• Emergency Situations: Employees working in case of emergency such as natural disasters or in emergencies requiring immediate intervention may be asked to work beyond their regular working hours without overtime compensation.

Disputes and Legal Recourse

In case where there is a disagreement about overtime pay, employees can take legal action. To begin with, it’s always in your best interest to try to resolve the problem directly with your employer. If you cannot get your employer to back down you can file a complaint to the Ministry of Human Resources and Emiratization (MOHRE) which will mediate the issue.

If mediation doesn’t work, the case can go to the Labor Court. Before approaching lawyers, employees need to collect all the paper trail, including pay slips, working hours records and the employment contract.

If you have concerns about where you stand legally regarding absconding status, you should check your status regularly and especially if there are concerns with your employment record. To know how to check your absconding status in the UAE, visit How to Check Absconding Status in UAE. It can also help you keep an impeccable employment history in order to avoid any legal issues.

While working hours and overtime in the UAE can be a complicated business, once you have the basics down, you’ll find that you and your employer are on the same page. Following this UAE Labor Law, businesses will create a better working environment, which will be fair and transparent, whereas employees will have their rights to be paid fairly for overtime work. If you work a standard 9 to 5 job, or often put in extra hours, it’s important to understand your rights and obligations under the UAE overtime rules.