The key Labor Law applicable in the RAK Free Trade Zone is the UAE Labor Law N8 and the further amendments to it. This law regulates most of the characteristics of employer and employee relations, such as working hours, leave terms, labor contract termination rights, medical benefits, repatriation, etc. This law is applicable in all Emirates of the UAE including RAK whereby some Free Zones have some additional regulations on the labor law which can not contradict the UAE labor law. In the case of any disputes between employer and employee the UAE Ministry of Labor will act in an effort to resolve matters amicably. If a party wishes to appeal any such decision such case can be taken to the court.
The regular maximum working hours are eight hours per day or 48 per week, whereby these working hours may be increased to nine daily for people working in the retail, hotels, restaurants and other similar establishments.
Friday is the end of the week. In fact, many companies work 40-45 hours per week. Weekend for office workers – are Friday and Saturday.
The employee is entitled to 30 days annual paid leave for every completed year of service.
The labor laws above are also enforced under the Ras Al Khaimah Free Trade Zone rules and regulations.
All sponsored employees must sign an employment contract and have it registered with the RAK Free Trade Zone.
The following terms shall be included in the RAK Free Trade Zone company employment contract:
- Salary;
- Contract signing date, employment commencement date;
- Contract duration;
- Probation period, notice period position.
The RAK FTZ employment contract may be terminated in the following cases:
- By mutual agreement between the employer and employee and with the approval of the Free Zone Authority.
- By the employee or employer during, or at the end of the probationary period (without notice).
- By the employee or employer giving notice in writing (after probation period, minimum notice period is regularly 30 days).
- On contract expiry on condition that within 30 days of the contract it will not be renewed.
- In case of the employee illness or injury resulting employee’s incapacity to work (subject to provision of the respective medical report).
In the event when the nature of an employee’s duties allow the employee to have knowledge of the employer’s clients or business now how and secrets, the RAK Free Trade Zone company employment contract may have the noncompetition clause means after the termination of the employment contract the employee is prohibited from competing with the employer or from being employed by a business competing with the employer former.
In order for the non-competition clause to be valid such clause must have the terms of being limited in time, place and nature to the extent necessary to safeguard the employer’s business interests.
The RAK FTZ company as the employer may also include in the employment contract the provisions on the confidentiality to safeguard its trade secrets, and require an employee to sign the respective confidentiality agreement as the part of the employment contract.
