veer-418650045

UAE

Challenges and Difficulties Faced by Enterprises during Global Expansion

  • Work Visa Challenges
    The complex procedures and strict scrutiny faced by foreign employees when applying for work visas.
  • Management Difficulties
    The challenges of managing cross-cultural teams due to language barriers and cultural differences.
  • High Labor Risks
    Potential labor disputes and contract breaches that can arise during the employment process.
  • Difficulty Hiring Local Staff
    The challenge of finding and attracting suitable talent in a highly competitive job market.
Country UAE
Work Time ① No more than 8 hours per day and 48 hours per week.
② Daily working hours for certain industries or categories of employees may be increased or decreased according to special business requirements as prescribed by the Ministry of Labor and Social Affairs.
③ Standard working hours are reduced during the month of Ramadan.
Probation According to the regulations of the Ministry of Labor and Social Affairs in the UAE, the maximum duration of an employee's probation period is six months.
An employer may only stipulate a probation period once with the same employee.
Should the employee successfully complete the probationary period and be confirmed in their position, the contract shall take effect as per the agreed terms. The time spent in the probationary period shall count towards the employee's period of service with the employer.
Types of Employment 1. Full-Time (Permanent): Employees in this category work full-time hours exclusively for a single employer.
2. Part-Time: These employees work a specified number of hours or days for one or more employers.
3. Temporary: Employees in this category are hired for a specific period or to complete a certain type of task, with the employment concluding upon task completion.
Resignation regulations 1. Terminating the employment relationship during the probationary period: Requires at least a 14-day notice, or 30 days if the employee is joining another company within the UAE. Furthermore, the employer retains the right to request the new employer to reimburse the costs incurred in hiring the employee.
2. Terminating the employment relationship during the formal employment period: Should either party, the employer or the employee, wish to terminate the contract, written notice must be given to the other party with a notice period of not less than 30 days and not exceeding 90 days.
Labor Contract Starting from the enforcement date of the new Labor Law in February 2022, the sole type of employment contract permitted is a fixed-term contract. Employers are mandated to convert any existing indefinite-term contracts into fixed-term contracts no later than December 31, 2023.

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