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Employment Rules Update Date: 12 December 2022 Version 3
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EMPLOYMENT RULES
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Table of Contents
1 Application ...................................................................................................... 3
2 Introduction to UAE Labour Law ...................................................................... 3
3 General ........................................................................................................... 3
4 Employee Sponsorship .................................................................................... 4
5 Entry Permits and Visas .................................................................................. 4
6 Employment Approval and Access Approval .................................................... 4
7 Recruitment ..................................................................................................... 5
8 Employee Passports ........................................................................................ 5
9 Contract of Employment .................................................................................. 5
10 Working hours ................................................................................................. 5
11 Leave .............................................................................................................. 6
12 Insurance ........................................................................................................ 7
13 Employee Accommodation .............................................................................. 7
14 Disciplinary Matters ......................................................................................... 7
15 Harassment in the Workplace .......................................................................... 7
16 Termination of Employment ............................................................................. 8
17 Visa cancellation ............................................................................................. 9
18 Internships ....................................................................................................... 9
19 Absconding ..................................................................................................... 9
20 Dispute Resolution .......................................................................................... 9
21 Miscellaneous ................................................................................................ 10
22 Definitions ..................................................................................................... 10
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1 Application
1.1 These rules apply to all Licensees and their employees and any other person who
operates, conducts or attempts to operate or conduct business in or from the DMCC Free
Zone.
2 Introduction to UAE Labour Law
2.1 The UAE Labour Law sets out the statutory minimum position regulating the employment
relationship between Licensees and their employees. Licensees and employees must at all
times comply with their obligations under the UAE Labour Law.
2.2 It is open to Licensees to enhance the statutory minimum position under the UAE Labour
Law and DMCCA encourages its members to do so. It is not however possible to contract
out of the UAE Labour Law (i.e. to agree with employees that certain aspects of the UAE
Labour Law, such as end of service gratuity for example, do not apply).
2.3 To facilitate compliance with the UAE Labour Law, some of its key provisions are
summarised below.
3 General
3.1 An employee of a Licensee may not work outside the DMCC Free Zone without first
obtaining prior written approval from the Licensee.
3.2 Approval to work outside the DMCC Free Zone must also be obtained from any other
relevant or applicable authority, having jurisdiction over such matters and in the location
where the employee intends to work. It is the Licensee’s responsibility to ensure that all their
employees are working in accordance with the terms of its commercial licence and all
applicable laws.
3.3 An employee of a Licensee or any other person who is seeking to work on a temporary basis
on behalf of a Licensee must not work inside the DMCC Free Zone until they have been
provided with an Employment Approval or Access Approval.
3.4 DMCCA reserves the right to charge the Licensee for certain services in accordance with the
Schedule of Charges.
3.5 A person who commits a contravention of these Rules or any other legislative or regulative
requirement administered by DMCCA may, at the absolute discretion of DMCCA, be subject
to a Sanction.
3.6 The charges and Sanctions referred to in Rules 3.4 and 3.5 are the sole responsibility of the
Licensee and may not be recovered from employees under any circumstances.
3.7 DMCCA shall be entitled to deduct any monies owed to DMCCA or any of its affiliates
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(including but not limited to any item in the Schedule of Charges, Sanctions and visa
cancellation costs as provided for in Rule 17.2) from a Licensee’s portal account.
4 Employee Sponsorship
4.1 The Licensee is the sponsor of their employees and is responsible for discharging all of its
obligations to their employees in accordance with the UAE Labour Law.
5 Entry Permits and Visas
5.1 Licensees wishing to employ personnel, other than nationals of GCC countries, from outside
of the UAE are required, in the first instance, to apply for an entry permit.
5.2 All unused entry permits must be returned to DMCCA for cancellation.
5.3 DMCCA will, upon request, arrange for the procurement of entry permits and residence visas
for employees and, if applicable, their dependents on behalf of all Licensees.
5.4 The fees applicable for processing entry permits are set out in the Schedule of Charges,
which is available to be viewed at www.dmcc.ae. All fees must be paid by Licensees in
advance of the submission of the visa, entry permit or residence application.
5.5 There are certain travel documents and passports which are not acceptable for entry into the
UAE. If in doubt, clarification on such restrictions should be obtained from DMCCA or the
Federal Authority for Identity and Citizenship before applying for an entry permit or residency
visa.
5.6 Licensees are required to have a valid commercial licence in order to sponsor employees
and all applications for sponsorship must be submitted to DMCCA for approval. DMCCA
reserves the right to reject applications for sponsorship at its absolute discretion.
5.7 Licensees are responsible for the timely renewal of all employees’ residence visas.
6 Employment Approval and Access Approval
6.1 All employees of a Licensee must be provided with Employment Approval before
commencing work in the DMCC Free Zone.
6.2 All other personnel who are seeking to work on a temporary basis for a Licensee in the
DMCC Free Zone must be provided with an Access Approval before commencing work in
the DMCC Free Zone.
6.3 It is the responsibility of the Licensee to ensure that it has in place the proper Employment
Approvals and Access Approvals at all times. Licensees should refer to www.dmcc.ae for
further details on Employment Approvals and Access Approvals.
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7 Recruitment
7.1 All costs of recruitment and other employment related services (including, but not limited to,
the costs of obtaining a UAE residency visa and Employment Approval or Access Approval)
must be born solely by the Licensee.
7.2 Under no circumstances may a Licensee, recruitment agent, subcontractor or other third
party working directly or indirectly on behalf of the Licensee, recharge or pass all or any part
of such costs to a recruited employee.
8 Employee Passports
8.1 All Licensees are reminded that employee passports are the property of the issuing country.
8.2 No Licensee may hold the passport of an employee without the employee’s prior written and
genuine consent.
8.3 Where an employee has consented in writing to a Licensee holding his or her passport, the
Licensee must have effective procedures and controls in place to ensure that retained
passports are held in a safe and secure facility and can and will be returned to the employee
promptly at the employee’s request.
9 Contract of Employment
9.1 A Licensee must have a written contract of employment with each employee. The terms and
conditions of such contract of employment are a matter of negotiation between the Licensee
and the employee.
9.2 The contract of employment must, as a minimum, comply with the provisions of the UAE
Labour Law. Any term in the contract of employment which is less favourable to an
employee than the statutory minimum position under the UAE Labour Law shall be void and
unenforceable.
9.3 The contract of employment must be for a limited duration, subject to renewal, as agreed by
the employee and employer.
10 Working hours
10.1 All Licensees will be bound by the provisions of the UAE Labour Law in relation to working
hours (including provisions relating to overtime and Ramadan working hours).
10.2 Licensees and employees should refer to the Ramadan Guidelines for businesses
operating in the DMCC Free Zone for further details on Ramadan working hours.
10.3 To facilitate a diverse workforce, Licensees are encouraged to consider flexible work
arrangements such as part-time working and job sharing. Licensees and employees should
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refer to the Guidance Note on Flexible Work Arrangements for further details.
11 Leave
11.1 Licensees are required to provide employees with at least the statutory minimum leave
entitlements under the UAE Labour Law, summarised below:
a) Employees with more than six (6) months but less than twelve (12) months' service
accrue two (2) Days' annual leave per month.
b) Employees with twelve (12) months or more service accrue thirty (30) Days' annual leave
per annum (roughly twenty-two (22) working days).
c) Employees who have completed the probationary period are entitled to up to ninety (90)
Days' sick leave per year of service:
• the first fifteen (15) of which are at full pay;
• the next thirty (30) of which are at half pay; and
• the final forty-five (45) of which is without pay.
d) Female employees are entitled to sixty (60) Days' maternity leave:
• the first forty-five (45) of which are at full pay;
• the following fifteen (15) of which are at half pay.
Employees are also entitled to this leave if they deliver a baby after six (6) or more months
of pregnancy where the child is stillborn or dies post-birth.
e) Both mothers and fathers are entitled to five (5) Days of paid parental leave which can
be taken within six (6) months of the child’s birth (either consecutively or inconsecutively).
f) Employees are entitled to paid bereavement leave of:
• five (5) days for the death of a spouse; and
• three (3) days for the death of a parent, child, sibling grandchild or grandparent.
g) Employees who are affiliate students or full-time students at an accredited educational
institute inside the UAE may be granted study leave of up to ten (10) working days per year
for the purpose of taking exams, subject to having at least two (2) years’ service
11.2 DMCCA encourages Licensees to enhance the statutory minimum leave entitlements
under the UAE Labour Law, particularly in relation to family friendly entitlements.
11.3 Licensees and employees should refer to the Family Friendly Leave, Entitlements and Policies
Guide for further details on maternity leave and other family friendly entitlements.
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12 Insurance
12.1 All Licensees must procure and maintain a medical insurance policy for all of its employees
in accordance with applicable law. Evidence of a valid medical insurance policy must be
provided to DMCCA upon request.
12.2 All Licensees must procure and maintain employer's liability insurance (covering
workmen’s compensation and workplace health and safety insurance), as required by
DMCCA and for such minimum level of cover as DMCCA may require from time to time.
Evidence of valid employer's liability insurance must be provided to DMCCA upon request.
12.3 The costs of such medical insurance and workmen’s compensation and workplace health
and safety insurance must be borne solely by the Licensee and must not be passed to
employees whether directly or indirectly.
13 Employee Accommodation
13.1 Where Licensees provide accommodation to employees, such accommodation must
comply with applicable statutory minimum requirements in relation to standards of
accommodation (in relation to lighting, ventilation, size, sanitation etc.).
13.2 It is the Licensee's responsibility to familiarise itself with the relevant rules and regulations
in this regard which will depend, for example, on the size of the Licensee's operation and its
sector.
14 Disciplinary Matters
14.1 Licensees and employees should refer to the Disciplinary Procedures Guide for
further details on disciplinary matters including:
a) the statutory minimum disciplinary process under the UAE Labour Law;
b) permitted sanctions;
c) company disciplinary policies; and
d) managing performance.
15 Harassment in the Workplace
15.1 DMCCA expects all Licensees to share its commitment to providing a working environment
free from harassment and bullying and ensuring that all employees are treated, and treat
others, with dignity and respect.
15.2 Harassment is any unwanted physical, verbal or non-verbal conduct that has the purpose
or effect of violating a person's dignity or creating an intimidating, hostile, degrading,
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humiliating or offensive environment for them.
15.3 Sexual harassment is any unwanted physical, verbal or non-verbal conduct of sexual
nature that has the purpose or effect of violating a person's dignity or creating an
intimidating, hostile, degrading, humiliating or offensive environment for them.
15.4 Bullying is offensive, intimidating, malicious or insulting behaviour involving the misuse of
power that can make a person feel vulnerable, upset, humiliated, undermined or threatened.
16 Termination of Employment
16.1 Following the probationary period, both the employer and employee may terminate the
limited term employment contract before the expiry of the contract for a legitimate reason by
giving not less than thirty (30) Days' advance written notice of termination or any greater
period (subject to a maximum of ninety (90) Days) provided for in the contract of
employment.
16.2 During the probationary period, both the employee and employer can terminate the
employment contract by serving at least fourteen (14) Days written notice of termination prior
to the expiry of the probationary period. However, where the employee is serving notice
during the probationary period in order to join another employer in the UAE, the employee
must serve at least thirty (30) Days’ notice.
16.3 A Licensee may terminate an employee's employment immediately (without any obligation
to provide notice or payment in lieu of notice) if any one of the exhaustive list of
circumstances set out under Article 44 of the UAE Labour Law is applicable
16.4 Licensees and employees should refer to the Limited Term Contacts and Notice Period
Guide for further guidance on the termination of limited-term contracts.
16.5 Where an employee’s contract of employment terminates for any reason whatsoever, both
the Licensee and the employee must deliver a signed letter of confirmation, in such format as
may be specified by DMCCA from time to time, confirming that:
a) the employment has come to an end; and
b) that the Licensee has paid and the employee has received all sums due and owing to
the employee (including, without limitation, any applicable end-of-service gratuity
payment).
16.6 All payments due to the employee on termination of employment should be paid to the
employee within fourteen (14) Days of the termination/expiration of the contract.
16.7 On termination of employment, Licensees will be required to provide the employee with a
repatriation flight back to his/her home country unless:
a) the employee obtains new sponsorship in the UAE within 30 Days of the cancellation
of his/her residency visa; or
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b) the reason for the termination is attributable to the employee (unless the employee
does not have the means to purchase the flight, in which case the obligation falls
back to the Licensee), and must not seek to recover such costs from the employee.
17 Visa cancellation
17.1 The Licensee and the employee must cooperate to arrange the cancellation of the
employee's residency visa following the termination of the employee's employment.
17.2 The Licensee shall use its best endeavours to cancel the employee’s residence visa. In the
event that the employee’s residence visa is not cancelled by the Licensee following the
termination of the employee’s employment, DMCCA reserves the right to cancel the
employee’s residence visa, and all fees incurred in relation to the cancellation of the
employee’s residence visa shall be deducted by DMCCA from the Licensee's portal account.
17.3 The Licensee shall be solely responsible for bearing any fees incurred in relation to the
cancellation of the employee's residency visa, Employment Approval or Access Approval (in
accordance with the Schedule of Charges) and is prohibited from recovering such costs from
the employee.
17.4 Licensees and employees should refer to the Visa Cancellation Guide for further details on
visa cancellation.
18 Internships
DMCCA encourages its member companies to engage interns in its business if it is able to
offer valuable work experience programmes. Licensees should refer to the Interns Guide for
details on engaging interns.
19 Absconding
If an employee is absent from work without a lawful reason for seven (7) consecutive days
or is otherwise believed to have absconded from his or her employment, and the Licensee is
not aware of the employee’s whereabouts, the Licensee should promptly file a report of such
unauthorised absence with DMCCA.
20 Dispute Resolution
20.1 DMCCA encourages Licensees and employees to attempt to resolve all employment-
related disputes internally.
20.2 If a dispute cannot be resolved internally between a Licensee and an employee, the DMCC
Disputes Centre offers a mediation service in respect of employment-related disputes.
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20.3 Mediation is a voluntary and flexible form of dispute resolution in which a neutral third party
assists the parties to work towards a negotiated settlement of their dispute. The parties
retain control of the decision on whether or not to settle and on what terms.
20.4 If a dispute cannot be resolved at mediation, the DMCC Disputes Centre will provide a
party with an NOC to proceed with their complaint to the UAE labour court in accordance
with the DMCC Disputes Centre’s NOC policy (as amended from time to time).
21 Miscellaneous
21.1 Any delay in the application of or failure to enforce these Rules shall not operate as a
waiver in respect of any breach of these Rules.
21.2 If any provision of these Rules is resolved by a judicial body, having the requisite
jurisdiction, to be invalid, unenforceable or illegal, the other provisions of these Rules shall
remain in full force and effect.
21.3 In the event of any conflict between the provisions of these Rules and any other Law, these
Rules will prevail to the extent permissible by the applicable Law.
21.4 In these Rules a reference to the singular shall include the plural and vice versa and a
reference to the masculine gender includes the feminine and vice versa.
22 Definitions
Within this document, the following words have the following meanings:
“Access Approval” means the access approval, provided at the discretion of DMCCA, to
enable an individual to work temporarily for a Licensee in the DMCC Free Zone;
"Company Regulations" means the Company Regulations 2019 of the DMCCA;
"Day" means a calendar day (and Days shall be interpreted accordingly);
"DMCC" means Dubai Multi Commodities Centre;
"DMCCA" means the DMCC Authority, governed by Law No.3 of 2020, as amended, issued
in the Emirate of Dubai, UAE, which authority has governance over the DMCC Free Zone;
“DMCC Disputes Centre” means the DMCC Disputes Centre as operated and
administered on behalf of DMCCA;
"DMCC Free Zone" means the DMCC free zone, governed by Law No.3 of 2020, as
amended, issued in the Emirate of Dubai, UAE;
“Employment Approval” means the employment approval, provided at the discretion of
DMCCA, to enable an individual who is an employee of a Licensee to work in the DMCC
Free Zone;
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“Implementing Regulations” means Cabinet Resolution No (1) of 2022;
"GCC" means Gulf Cooperation Council;
"Law" means all legislation, decrees, resolutions, acts, statutes, ordinances, rules or
regulations, directives and other orders, treaties, by-laws, codes of practice and other
subordinate legislation, of any Authority;
"Licensee" means a company or branch issued with a commercial licence by DMCCA (and
Licensees shall be interpreted accordingly);
"Sanction” means one or all of the following:
a) restriction or suspension of services;
b) a fine or penalty, as specified by DMCCA from time to time in accordance with the
process set out in Regulation 160 of the Company Regulations;
c) suspension of a Licensee’s commercial licence in accordance with the process set
out in Regulation 161 of the Company Regulations;
d) termination of a Licensee’s commercial licence in accordance with the process set
out in Regulation 162 of the Company Regulations;
e) an entity being struck off in accordance with the process set out in Regulation 162 of
the Company Regulations; and/or
f) such other sanctions as the DMCCA may deem appropriate from time to time.
"Schedule of Charges" means the list of fees imposed by DMCCA in relation to various
administrative processes, as amended by DMCCA from time to time;
"UAE" means the United Arab Emirates; and
"UAE Labour Law" means Federal Law No. 8 of 1980, as amended.
