#uae labour law leave salary

[opspayroll]

Decoding UAE's New Labor Law: What Limited Contract Employees Need to Know

The UAE has made significant modifications to its labor laws which affect unlimited and limited contracts. Both employers and employees knowing these changes are crucial to ensure compliance and benefiting from the new rules. This blog focuses on the details that employees with limited contracts in the UAE must know when investigating key areas like Minimum wage for Dubai and leave pay and contracts of all kinds.

Limited and Unlimited Contracts: The Basics

The UAE law of labor allows two major kinds of contracts for employment:

Limited Contracts: Long-term contracts with specific start and expiration dates. They are commonly used in industries that require projects as their main focus.

Unlimited Contracts: Open-ended contracts which allow for the continuation of employment until either party decides to end it with a reasonable notice.

The new labor law limited contracts now have to have a maximum duration of three years. It is which can be renewed upon an agreement between the parties. UAE Unlimited contracts are now being removed to make a more uniform labor market, encouraging fairness and flexibility.

Key Updates on Limited Contracts

1. Minimum Wage in Dubai

The new law on labor in the UAE insists on an equitable compensation system for employees. Although there is no particular minimum wage for employees in Dubai the private sector, wages should be in line with industry standards and provide adequate living conditions for employees. In addition, the law stresses equal pay for both women and men with similar jobs.

2. Leave Salary in UAE

Employers who work under a Limited contract in the UAE have the right to take leave with benefits. This includes:

Annual Leave The annual leave is 30 calendar days following the end of one calendar year.

Workers are entitled to receive 90 days of labor sick leave under the law in UAE which includes paid and unpaid days provided they have the correct documentation.

Maternity Leave 60 calendar days with pay structure varying.

The new framework also streamlined calculation of UAE labor law leave salaries to ensure transparency for employees.

3. Working Hours and Flexibility

In accordance with UAE laws on working hours in the UAE is set for employees to work a minimum of 8 hours per day or for 48 hours per week. Flexible hours are permitted in certain sectors, but they are required to be paid. Flexible work arrangements made in law allow for remote and part-time work arrangements and allow for more balance between work and family.

Sick Leave in Dubai: What Employees Should Know

Employees have the right to a sick time under labour law in the UAE as long as they

Inform their employer immediately.

Make sure you have valid medical documents.

The sick leave allowance of 90 days includes:

15 days pay in full.

30 days of half-pay.

Remaining days unpaid.

If an employee is found to be in violation of sick leave, the employer may initiate disciplinary measures according to Dubai rules of labor law.

Insurance and Compliance

Dubai Labour Insurance Last Date

Employers are required to offer workers with insurance for their labor even those on restricted contracts. Insurance will cover workplace accidents and illnesses, providing workers' protection. The Dubai deadline for submitting a claim for compliance is based on the timeframe for renewal of the agreement and it is essential that employers stay informed.

Why Choose a Limited Contract in the UAE?

The UAE limited contract has specific terms, such as:

Fixed employment duration.

Benefits from predetermined gratuities.

It is easier to enforce contract terms for both the contracting parties.

These contracts are perfect for short-term projects as well as temporary jobs, providing stability for employers and employees.

What Happens When a Limited Contract Ends?

According to the Dubai Labor contract regulations:

An employee must finish the contract in order to avoid penalties unless their termination occurs on a mutual basis.

A premature termination by the employer will result in compensation, which is typically three months' pay or the balance of the contract.

The calculation of gratuities remains the same, with employees being entitled to 21 days of base pay for each year of service. The amount increases to 30 days after five years.

Conformity to the New Law

Employers and employees need to make the change to the new labour law framework. The law provides greater rights, especially for employees who work under UAE labour law through promoting equality and transparency.

Wages.

Benefits of leave.

Processes for termination.

The changes also introduce more severe penalties for violations, and urge employers to make changes quickly.

Conclusion

New labor laws in the UAE highlight the country's dedication to modernizing its framework for employment and ensuring the rights of workers. For those who are on a restricted contractual agreement with the UAE, knowing the latest developments concerning leave pay or sick leave as well as what is the minimum wage for Dubai is crucial to make educated career choices.

If you're in need of professional assistance to navigate these changes OPS can assist you. Our expertise will make sure that employers and employees know their rights and obligations under the new UAE labour law which allows for the creation of a harmonious and compliant workplace working environment.

[legalconsultingblog]

Can a labour lawyer in Dubai assist with disputes over final settlement amounts?

Yes, a labor lawyer in Dubai can significantly assist with disputes over final settlement amounts. In the UAE, labor laws govern the rights and obligations of both employers and employees. The final settlement typically includes payments such as salary, unused leave, end-of-service gratuity, and other dues. Discrepancies in these amounts often arise when either the employer or employee disagrees…

[delta-hrms]

Key HR and Payroll Challenges in Dubai and How HRMS Can Solve Them

Managing HR and payroll operations in Dubai's dynamic business landscape presents unique challenges for organizations of all sizes. From navigating complex labour laws to handling multicurrency payroll calculations, HR professionals face an increasingly demanding role in ensuring smooth business operations.

In today's fast-paced UAE market, manual HR processes and traditional payroll systems are not just inefficient—they're a liability. Companies struggle with time-consuming administrative tasks, compliance risks, and error-prone salary calculations, leading to decreased productivity and potential legal complications. These challenges are further amplified by Dubai's diverse workforce and strict regulatory requirements.

The solution lies in modern Human Resource Management Systems (HRMS), which are revolutionizing how businesses handle their HR and payroll functions. This article explores the critical challenges faced by Dubai-based organizations and demonstrates how implementing an HRMS can transform these pain points into streamlined processes. From automated attendance tracking to precise payroll calculations, discover how technology is reshaping HR management in the UAE.

Common HR Challenges in Dubai

Managing Diverse Workforce Demographics

Dubai's multicultural workforce presents unique management challenges, encompassing diverse nationalities, languages, and cultural norms. Organizations must navigate:

Cultural sensitivity training requirements

Multiple language communication needs

Various religious observances and holidays

Different work style preferences

Visa and Work Permit Complexities

Employment visa processing in Dubai involves intricate procedures and strict compliance requirements:

Visa Process Stage

Key Challenges

Initial Application

Document authentication

Processing

Timeline management

Renewal

Status monitoring

Cancellation

Exit procedures

WPS Compliance Requirements

Wage Protection System (WPS) compliance demands meticulous attention to:

Timely salary disbursement

Accurate payment documentation

Banking system integration

Regular compliance reporting

Employee Documentation Management

Document handling poses significant challenges for HR departments:

Multiple document formats and languages

Storage and retrieval systems

Document expiration tracking

Security and confidentiality maintenance

Regular updates and renewals

These challenges require systematic approaches and sophisticated solutions. Modern HRMS platforms offer integrated tools specifically designed to address these complexities while ensuring compliance with local regulations.

Critical Payroll Pain Points

Multi-currency Salary Processing

Processing salaries in multiple currencies presents significant challenges for businesses in Dubai. Organizations must manage exchange rate fluctuations, maintain compliance with local banking regulations, and ensure accurate conversions for international employees.

Challenge

Impact

Exchange Rate Variations

Affects budget planning and salary consistency

Bank Processing Fees

Increases operational costs

Documentation Requirements

Demands additional administrative effort

End of Service Benefits Calculations

Computing end-of-service benefits requires precise calculations based on:

Duration of employment

Basic salary components

Applicable gratuity rates

Leave balance settlements

Leave Salary Management

Leave salary administration involves complex calculations incorporating:

Annual leave entitlements

Public holidays

Sick leave policies

Unpaid leave adjustments

Variable Pay and Commission Structures

Managing variable compensation elements requires:

Commission tracking systems

Performance-based bonus calculations

Sales target achievement monitoring

Incentive scheme administration

Tax and Social Insurance Requirements

Despite Dubai's tax-free status, organizations must handle:

VAT compliance for certain transactions

Social insurance contributions for UAE nationals

Pension fund management

Healthcare insurance requirements

Managing these payroll components manually increases the risk of errors and compliance issues. Modern HRMS solutions offer automated calculations, built-in compliance checks, and streamlined processing capabilities. These systems ensure accuracy in multi-currency transactions, automate end-of-service benefit calculations, and maintain precise records for audit purposes.

Now, let's explore how HRMS solutions can streamline these administrative challenges through automation and integrated systems.

HRMS Solutions for Administrative Tasks

Automated Document Processing

Modern HRMS platforms transform document handling by digitalizing traditional paperwork processes. The system automatically generates, processes, and routes essential HR documents such as offer letters, contracts, and policy acknowledgments. This automation reduces processing time by up to 70% while minimizing human errors.

Digital Employee Files

HRMS creates centralized digital repositories for employee records, offering several advantages:

Secure storage with role-based access controls

Instant document retrieval and sharing

Automated document expiry notifications

Compliance with UAE labor laws

Reduced physical storage requirements

Workflow Automation

Workflow automation streamlines key HR processes through predefined approval chains and automated notifications:

Leave management

Document approvals

Onboarding sequences

Performance review cycles

Training program administration

The system tracks each step of these processes, ensuring transparency and accountability while maintaining detailed audit trails. This systematic approach reduces administrative burden by approximately 40% and ensures consistent policy application across the organization.

Now that administrative tasks are streamlined through automation, let's examine how HRMS revolutionizes payroll management in Dubai-based organizations.

Payroll Management Through HRMS

Automated Salary Calculations

Modern HRMS platforms streamline payroll processes by automating complex salary calculations. The system handles basic salary, allowances, deductions, and overtime payments with precision, eliminating manual errors.

WPS Integration

HRMS solutions in Dubai seamlessly integrate with the Wage Protection System (WPS), ensuring compliance with UAE labor laws. The system automatically generates SIF files and facilitates direct salary transfers to employee bank accounts.

Leave Management Integration

The payroll module synchronizes with leave management features to:

Automatically adjust salary calculations based on leave types

Process unpaid leave deductions

Calculate leave salary during annual vacations

Track sick leave payments according to UAE labor law

Gratuity Calculations

Advanced HRMS platforms incorporate UAE's gratuity calculation rules:

Automatically compute end-of-service benefits

Consider employment duration and basic salary

Apply appropriate calculation rates (21 days vs. 30 days)

Update calculations in real-time as employment terms change

This comprehensive payroll management approach through HRMS ensures accuracy, compliance, and efficiency in handling all compensation-related tasks. The integration of various modules creates a seamless workflow, reducing administrative burden while maintaining precise financial records.

Benefits of Implementing HRMS

Compliance and Risk Reduction

HRMS implementation significantly reduces compliance risks by automating regulatory requirements and maintaining updated labor law adherence. The system automatically tracks changes in Dubai's labor laws and ensures all HR processes align with local regulations.

Cost and Time Savings

Implementation of HRMS delivers substantial cost reductions through:

Elimination of manual paperwork

Reduction in administrative staff requirements

Decreased error-related costs

Streamlined approval processes

Automated payroll calculations

Enhanced Data Security

Modern HRMS platforms offer robust security features:

Multi-level authentication protocols

Encrypted data storage

Regular automated backups

Role-based access control

Audit trail monitoring

Real-time Analytics and Reporting

Advanced analytics capabilities enable organizations to:

Generate instant compliance reports

Track key performance indicators

Monitor employee productivity metrics

Analyze payroll trends

Create custom dashboards for decision-making

The system maintains comprehensive data integrity while providing actionable insights through automated reporting tools. These features enable HR departments to make data-driven decisions and maintain strategic alignment with organizational goals.

Moving forward, organizations can leverage these HRMS benefits to transform their HR operations from tactical to strategic, focusing on value-adding activities rather than administrative tasks.

Managing HR and payroll operations in Dubai's dynamic business landscape presents unique challenges that require modern solutions. HRMS technology has emerged as a transformative tool, effectively addressing administrative burdens, ensuring compliance with UAE labor laws, and streamlining payroll processes. From automating routine tasks to maintaining accurate employee records and processing WPS-compliant salaries, HRMS solutions provide comprehensive support for HR professionals.

The implementation of a robust HRMS system is no longer optional but essential for businesses in Dubai. Organizations that embrace these digital solutions position themselves for improved efficiency, reduced compliance risks, and enhanced employee satisfaction. By leveraging HRMS capabilities, companies can focus on strategic initiatives while ensuring seamless HR and payroll operations aligned with local regulations and business objectives.

[rehasaleh]

Termination of Employment in the UAE: A Comprehensive Guide to Your Rights and Duties

Terminating an employment contract in the UAE is a common occurrence that can happen for various reasons. Whether you are the employee choosing to leave or the company deciding to end the contract, understanding the rights and duties of each party is crucial to ensure a smooth process without any legal disputes.

Reasons for Termination of Employment

By mutual consent: When both parties agree to terminate the contract, whether due to the employee's transfer to another job or personal reasons.

At the initiative of the employee: The employee may decide to terminate the contract for various reasons such as finding a better job opportunity or wishing to return to their home country.

At the initiative of the employer: The employer may decide to terminate the contract for reasons related to the employee's performance or for economic reasons.

Read More: Employee rights in uae

Employee's Rights Upon Termination of Employment

End-of-service gratuity: The employee is entitled to an end-of-service gratuity in accordance with the UAE Labor Law and the company's regulations. This gratuity is calculated based on the basic salary and length of service.

Outstanding wages: The employee is entitled to all outstanding wages up to the date of termination, including wages related to unused annual leave.

Compensation for termination of service: In some cases, the employee may be entitled to additional compensation for termination of service if the termination is in violation of the law.

Read More: Verbal Termination of Employment in UAE

Employee's Duties Upon Termination of Employment

Return of company property: The employee must return all company property, such as mobile devices and documents.

Notice to the company: The employee must notify the company of their intention to terminate the contract within the period specified in the contract.

Read More: non renewal of contract letter

Employer's Rights Upon Termination of Employment

Termination of the contract for a valid reason: The employer has the right to terminate the employee's contract for a valid reason, such as misconduct or poor performance.

Retention of company property: The employer has the right to retain any company property that has not been returned by the employee.

Read More: air ticket policy for employees in uae

Employer's Duties Upon Termination of Employment

Payment of dues: The employer must pay all financial dues to the employee, including end-of-service gratuity and outstanding wages.

Issuance of a certificate of service: The employer must issue a certificate of service to the employee indicating the length of their service and the type of work they performed.

Read More: salary change in labour contract

Important Tips

Read the employment contract carefully: Before signing an employment contract, carefully read all of its terms, especially those related to termination of the contract.

Contact the Ministry of Human Resources and Emiratization: In case of any dispute regarding the rights of employees, the employee can contact the Ministry of Human Resources and Emiratization for assistance.

Seek legal advice: In complex cases, it may be helpful to consult with a lawyer specializing in labor law.

Conclusion Termination of employment in the UAE is subject to specific laws and regulations. By understanding these laws and the rights and duties of each party, many legal problems can be avoided and the termination process can be carried out smoothly.

[hrblusky]

5 Tips for HR When Handling Redundancy 

Most HR departments will concede that one of the most stressful and complex challenges they face is handling redundancies amongst employees. Apart from the emotional stress this can cause for all parties involved, there are logistical and legal implications to consider. Also, the need to ensure that the employee is adequately supported during the leaving process – for their sake and for the organization's reputation. 

What is redundancy, and how is it managed in UAE Labour law? 

Redundancy refers to an employee’s dismissal because of a reduction in the business requirement for that employee’s services. 

According to the UAE Labour Law, redundancy regulations are covered under Ministerial Resolution 279 of 2020. Employers must provide their employees with sufficient notice (usually 30 days), notice pay (if the employee has completed probation), and the right to end of service payment (assuming one year of service). 

Employees also have the right to compensation for accrued and untaken annual leave, repatriation flights, and any other elements stipulated in the contract. The actual employee rights in each case are dependent on the fixed rules specified in their employment contract. 

Under the Resolution, employers must consider putting an employee on unpaid leave, on which both parties must agree. If an employee is made redundant, employers must continue to provide benefits (except salary), including housing, transport, and medical insurance, until the employee leaves the UAE or is employed elsewhere. 

This article provides you with five tips you can follow to help you manage the process effectively.  

1. Identify the criteria for selecting employees for redundancy 

It is vital that you put time into selecting which groups of employees are to be made redundant. There are several ways of grouping people depending on the reason for the redundancy, such as: 

Employees in similar roles; 

Employees in specific departments or sections; 

Employees based in a particular location; 

Employees whose work has stopped or been reduced (or is likely to stop soon). 

Some of the options listed are easier than others. If an entire department or physical location is closing, then everyone involved is impacted. However, if there are people in different departments or teams doing similar roles, it can be challenging to identify who should be selected. 

2. Determine whether you can offer voluntary redundancy 

It may make the process easier to offer voluntary redundancy rather than make the selection centrally. This approach will depend on circumstances but can enable employees to feel more of a sense of control and fairness in uncertain times. 

Often voluntary redundancies will be enough to manage the company’s issues. However, sometimes it will be necessary to make selections if the uptake has been too high or too low. Employees who volunteer for redundancy are considered legally redundant and have the same rights as anyone facing compulsory redundancy. 

3. Make sure you meet affected employees face to face 

Meeting employees to explain redundancies, outline the process to be followed, and discuss individual employee concerns is a critical element of handling redundancies effectively – but it is arguably the most difficult due to the emotions involved. 

This process has b for these meetings to be successful, the HR representative must be well prepared with facts and be ready to handle employees with empathy and care when they may be angry, hurt, or upset. Several meetings will likely take place during the process as the employee gets closer to leaving. Frequent meetings are likely in organizations with a large expatriate workforce, where issues such as end-of-service benefits, visa cancellation, repatriation and impact on family sponsorship are additional steps to consider. 

4. Support employees in looking for alternative internal or external roles 

If there is any possibility of reallocating the employee to another position within the organization, this should be explored. Issues can be faced in finding roles with similar grades and benefits packages. Still, most organizations widen the search to a grade below if feasible to give the best opportunity possible. 

In an expatriate labor market, benefits packages can be a deal-breaker in transferring internally, as elements such as education allowances can make reduced packages unworkable. 

It is essential that organizations also seek ways to support employees to find work in the broader external marketplace. Support may include various activities such as structuring CVs, providing training allowances for a period of skills development, providing paid time off for job search and interviewing, posting CVs on job boards and using contacts in other organizations, for example. 

5. Easing the Final Days 

No matter how well the process has been planned and executed, the final few days of leaving for any employee are fraught with emotions. They are losing tangible benefits such as their income, but they also lose their colleagues and the sense of belonging to an organization. These feelings can be exacerbated when there has been a long service duration. 

It is essential to show empathy and support the employee in whatever way they feel most comfortable. Some want a get together with colleagues, while others prefer to leave quietly with little public acknowledgement. 

become more challenging during the pandemic as meeting face to face has been severely constricted, but even if the meeting can only be done online, it should not be missed out in the process. 

As an organization, the more support you can give at this stage, the better the chance that the employee leaves with a positive experience and can adjust at their own pace to the new reality of being unemployed if this is the case. 

It is also crucial not to forget the employees who will remain with the organization as they may fear that they could be the next to be asked to leave or feel a sense of loss, both of which will reduce motivation and engagement. 

In Summary 

Redundancy creates a challenging time for HR and employees, so anything you can do to make the process fair, empathetic, and respectful will make a significant difference to all concerned. 

Taking time to plan and carry out the steps correctly will show respect to your employees and protect your reputation as an employer. 

Contact us at HRBluSky today to explore how we can support you in managing your workforce. 

[scribblesoul-20]

Job title: Fetal Medicine Consultant – Hospital Job Vacancy in Dubai Company: Envolve Recruitment Job description: We are currently recruiting for a Fetal Medicine Consultant to join our client's talented team at their state-of-the-art hospital in Abu Dhabi.This is an exciting and rewarding opportunity for the right individual, with an exceptional, tax-free monthly salary and amazing benefits.Benefits of working in Dubai:TAX Free monthly salary,45 days of annual leave per year,Sick Pay,Free malpractice insurance,Travel allowance,Free private health cover,Return paid flights,End of year additional 1 month salary (Gratuity) as per UAE labour law!Prestigious working conditions in established, reputable state of the art hospitals.Live in one of the most exciting, vibrant and safest cities in the world with all year-round sunny weather with beautiful beaches.Please note that all packages are tailored by the hospital on an individual basis by the hospital director based on experience, age and availability.Position RequirementsMust be western trained. Expected salary: 80000 per year Location: Dubai Job date: Fri, 23 Feb 2024 02:47:45 GMT Apply for the job now!

[awslegals]

Labor Law In Dubai

The labour law primarily dictates employee work hours, wages and salaries, vacation days, sick leave, workplace safety standards, and more. All employees are subject to the UAE labour law regardless of their status as citizens or residents

Furthermore, all commercial industries are subject to labour and employment laws. The UAE’s labour force is exceptionally diverse. As such, the details and specifications of said labour laws are considerate and protective of all employee backgrounds, nationalities, and religious views.

Labor Lawyers in Dubai

Employment laws in Dubai can be complex, and both employees and employers need to be aware of their rights and obligations. Our Labor Lawyers in Dubai are well-versed in the local labor laws and can provide expert guidance on matters such as employment contracts, workplace disputes, wrongful termination, and labor court representation.

[sunilc087]

What is the basic knowledge of UAE Labour law?

Having a basic knowledge of the UAE Labour Law is essential for both employers and employees. It covers various aspects such as employment contracts, working hours, leaves, termination, and end-of-service benefits. The law establishes guidelines for minimum wages, occupational health and safety, and protection against discrimination. Employers must adhere to the law's provisions, including proper documentation and timely payment of salaries. Employees have rights to fair treatment, timely payment, and safe working conditions. Understanding the basic principles of the UAE Labour Law helps maintain a harmonious working relationship and ensures compliance with legal obligations.

[simplysolvedagency]

Outsource HRM & Payroll Services For SMEs - HR.SimplySolved

HRM & Payroll Management Service

We provide a wide range of services. A comprehensive range of HRMS software is included in our packages. HR and Payrolls, Employee Self-Service, Recruitment Software, PA or Performance Appraisals, Human Resource Budgeting and Manpower, Planning and Training Management, as well as Software, are all included in this package, which also includes Service and Payroll Outsource Service. At HR Management Solution, our vision and goal has always been to understand and satisfactorily meet the needs and demands of our valued customers.

Our professional Payroll Services team, based in Dubai, UAE, and experts in the GCC payroll process, will work with you to understand your business and provide the best people and payroll results.

PAYROLL SERVICES

With HR Simply Solved fully outsourced payroll service, you may save up to 75%* on your payroll overhead costs. Our end-to-end payroll solution provides you with a professional payroll partner who will manage the processing and reporting needs for each pay run, allowing you to focus on what you do best: operating your business.

A well-defined payroll management system is a catalyst for an organization's seamless operation. It aids in maintaining confidentiality and complies with legal standards for performing basic payroll calculations in an efficient manner. From the outside, the payroll process appears straightforward, but it entails meticulous planning and computations on gross salary, leaves, advance loans, gratuity, and other factors. Outsourcing your payroll rather than relying on in-house financial teams is the ideal way to do this. Outsourced payroll services are available at a low cost, with better data security and control.

OUR PROCESS

Our cloud-based payroll services are so comprehensive that we take care of everything from start to finish, leaving you with nothing to worry about. We begin by gaining a thorough understanding of the relevant awards and pay rates for your sector and personnel.

VAT SERVICE In UAE

VAT (Value Added Tax) is an indirect tax applied at each point of sale on the use or consumption of goods and services. The end-user is ultimately responsible for the cost. The VAT is collected on behalf of the government by businesses and organisations. With the implementation of VAT in the UAE on January 1, 2018, consumers should expect to pay 5% more for the goods and services they use. You can easily handle the VAT components of your business by using the correct VAT services in Dubai, UAE. Your business must be registered under the UAE VAT law in order for the government to recognise it. Consulting a VAT service provider in the UAE simplifies all of your VAT-related processes, ensuring that your company follows Emirati VAT laws and regulations. CDA is a significant VAT service provider in Dubai and the United Arab Emirates, offering a variety of VAT services such as VAT registration, VAT deregistration, VAT return filing, VAT accounting, and more.

Accounting System Implement

We assist enterprises and companies in the UAE with the implementation of new accounting software or the upgrade of existing software. In exchange, you'll gain better financial data automation and a more effective accounting methodology. Additionally, the accounting system data can assist your administrative and management teams in making educated business decisions.

Government agencies, non-profit organisations, healthcare organisations, SMEs, and other organisations benefit from accounting system automation. But, above all, it is ideal for individuals who use bookkeeping and ledger accounting systems. However, getting used to the software can be difficult at first.

Working with the appropriate partner can make a huge impact in the success of your company.

HR SimplySolved provides guidance and domain experience to ensure that your company's HRM and Payroll operations are running smoothly.

To support our services, we draw on our knowledge of labour law. Our strategy to ensure employee satisfaction includes extensive training and deployment.

Dedicated Support & Account Management

We keep thorough operating procedures and service levels on file, and we back them up with trained employees. Account Managers are allocated to each client and are in charge of meeting service KPIs.

Our ISO Quality processes guarantee that our services are both affordable and dependable.

[opspayroll]

Essential HR & Payroll Solutions: GOSI Compliance, Employee Benefits, and Contract Rules in UAE

For companies operating within Saudi Arabia and the UAE, efficient administration of payroll and HR is essential to ensure compliance with the local rules and regulations as well as effectively manage employee benefits. This guide provides the basis for the GOSI Compliance, HR payroll solutions as well as the regulations for contracts to help companies navigate the complexities of regulations and help their employees.

Understanding HR Payroll Management in Saudi Arabia & UAE

Effective payroll management system does more than processing salary payments; it also helps ensure the compliance of local laws, improves benefits administration, and enhances overall efficiency. Businesses operating in Saudi Arabia and the UAE are faced with unique challenges when it comes to payroll. These range from figuring out the GOSI system in Saudi Arabia to managing benefits for employees in the absence of limitless contracts for the UAE.

Key Components of Payroll Management Software

Employing payroll software for managing payroll has numerous benefits especially for companies with a variety of employees and complicated needs for payroll. Here are a few key aspects to be looking for:

Automatic Payroll Processing Automating payroll will help to reduce errors, speed up the process and increase accuracy.

Monitoring Compliance is a way to verify compliance with local laws governing labor, like GOSI, which is a requirement in Saudi as well as UAE contract regulations.

Self-Service Portals for Employees allows employees to check their pay details, benefits, as well as leave balances quickly.

Integration with other HR Systems seamless integration with HR systems to automate processes like leave and attendance tracking.

GOSI Compliance in Saudi Arabia

The General Organization for Social Insurance (GOSI) is the social insurance system that is mandatory for Saudi Arabia, covering various benefits for employees including disability and retirement. The compliance with GOSI is vital for all companies operating within the Kingdom.

What is GOSI?

GOSI offers social insurance benefits to Saudi citizens as well as expats who work for private companies. Employers and employees also contribute to GOSI which helps with the retirement benefits, workplace hazards as well as disability and retirement benefits.

Employer's Contribution Employers must contribute 12 percent of the salary of the employee to GOSI in Saudi.

employee contribution Employees can also contribute 10 percent of their wages to GOSI.

The reporting requirement Companies must be able to accurately pay their employees to GOSI each month to ensure that they are in compliance.

Importance of GOSI Compliance

For businesses in Saudi Arabia, maintaining GOSI compliance is not only an obligation of law but crucial to create an environment that is positive for employees.

Avoiding penalties Infractions to GOSI rules can result in sanctions and legal consequences.

Benefits for Employees: GOSI compliance ensures employees are provided with insurance and retirement benefits which improve job satisfaction.

Reputation Management Compliance with GOSI shows that your company is committed to ensuring the security of your employees as well as establishing a positive company image.

HR Payroll Management in the UAE: Limited and Unlimited Contracts

In the UAE the employment contracts are classified by their terms as only and unlimited and have distinct rules for each kind. Understanding these distinctions is essential for companies, particularly when it comes to the calculation of benefits at the end of the service and coordinating the payroll.

Limited Contracts

The limit contract with the UAE is generally a fixed-term contract, with a term of one to three years. It is terminated automatically at the expiration date unless it is renewed.

The End-of-Service Benefits Employees who have contracts with a limited duration can receive a gratuity contingent on the duration of their service.

End of Contract Rules A termination that occurs prior to the expiration date of the contract could result in penalties unless the parties have mutually agreed on.

Renewal Limits and Renewal Renewal Contracts with limited terms can be renewed, however they have stricter rules for renewal and termination.

Unlimited Contracts

A Unlimited contract with the UAE doesn't have an end date fixed and can be ended by either party upon giving notice.

Flexible termination Employers and employees are able to terminate an unlimited contract at any time with notice, which makes this contract flexible.

Gratuity Rights The employees have the right to receive a gratuity in accordance with the number of years they have worked since their termination.

is a common choice for roles that last a long time Unlimited contracts are typically utilized for long-term and indefinite tasks, making them an increasingly popular option for permanent jobs.

Using Payroll Management Software for Compliance and Efficiency

Installing payroll management software will simplify the complicated demands for payroll for Saudi Arabia and the UAE. Here's how:

Automated Compliance Management

Payroll software helps with compliance by staying up-to-date on rules and regulations like GOSI, which is a part of Saudi Arabia and UAE regulations on employment.

Automated Calculation of Contributions It ensures the accuracy of GOSI and employee contributions to employers as well as employees working in Saudi Arabia.

Calculation of the Contract-Specific Gratification Calculates gratuities according to the conditions of limited contracts in the UAE.

Reduces the risk of errors made by manual Automating reduces the possibility of mistakes while ensuring that payroll processing is accurate.

Efficient Employee Benefits Management

The management of the benefits of employees through payroll software enables the administration of benefits to be simplified and improves employee satisfaction and efficiency of HR.

Self-Service Portals for Employees Employees have the ability to see their benefits, balances on leave and pay slips, increasing the transparency of their benefits.

Benefits packages that can be customized Payroll software allows you to handle a variety of benefits for employees including retirement and health insurance.

The Leave Management: Monitors annual absences, sick days, and other absences in order to calculate entitlements with precision.

Ideal for Small Businesses

For payroll firms that cater to small businesses employing tools for managing payroll is crucial to manage benefits and payroll with a limited amount of resources.

Cost-effective Many payroll software choices are designed to be accessible to small-sized companies.

Scalability as the business grows, payroll software is able to be adapted to handle a larger number of employees and the more complicated payroll requirements.

Time-Saving Automates tedious tasks. This frees HR resources to concentrate upon strategic projects.

Employee Benefits in Saudi Arabia & UAE

The provision of extensive employees with a wide range of benefits is essential for employers to keep and attract top talent from Saudi Arabia and the UAE. Here's a list of the most common benefits that are offered:

Health Insurance

Insurance for health is a compulsory obligation to be covered in Saudi Arabia and the UAE, with employers required to offer coverage to their employees.

Saudi The requirement Employers must provide healthcare insurance coverage to employees as well as their families.

UAE Requirements Health insurance is compulsory in all UAE residents. Employers generally cover dependent and employee insurance.

End-of-Service Gratuity

The end-of-service bonus is an important incentive for employees who work in UAE in the UAE and Saudi Arabia, calculated based on the length of their employment.

UAE Gratuity In the case of gratuity entitlements, they differ depending on the type of contract, whether unlimited or limited..

Saudi Gratuity Like similar to UAE, Saudi Arabia mandates gratuity payments to employees upon the completion of at two years of employment.

Leave Entitlements

Each country has its own specific regulations for annual leave,maternity leave and sick leave law. They must be effectively managed by payroll systems.

annual leave Employees have the right to at least 21 days of annual paid time off in the UAE.

sick leave The two countries Saudi Arabia and the UAE provide sick leave paid with specific limitations dependent on the length of employment.

Maternity Leave Employers are obliged to offer Maternity leaves in each country, generally between 45 and 90 days.

Insuring compliance with Payroll and Benefits regulations

For businesses operating in Saudi Arabia and the UAE and the UAE, compliance with requirements for benefits and payroll is vital to avoid penalties and create a positive work environment.

Best Practices for Compliance

Stay Up-to-date Review and update policies in order to be in sync with changes to GOSI laws in Saudi Arabia and UAE labor laws.

Install Payroll Software Make sure you invest in dependable HR payroll software to handle payroll and benefits as well as compliance easily.

Inform employees Keep employees updated about their rights and benefits as well as ensuring transparency and confidence.

Conclusion

Controlling the payroll process, GOSI compliance and employee benefits, managing employee benefits, GOSI compliance, and payroll Saudi Arabia and the UAE requires a deep knowledge of local regulations as well as effective HR strategies. With the help of complete payroll management tools and staying current in terms of contract rules, businesses can simplify their operations and increase satisfaction of employees. Utilizing technology, like the HR payroll management software provided by OPS helps to be compliant and help the workforce efficiently, which is essential to the long-term success of these ever-changing markets.

OPS offers customized solutions to help companies operating in Saudi Arabia and the UAE adhere to the highest standards of compliance while offering the most efficient tools to manage the benefits of employees and payroll.

[legalconsultingblog]

Can a labour lawyer help with resolving disputes over employment benefits?

A labour lawyer in Dubai plays a crucial role in addressing disputes related to employment benefits, ensuring that both employees and employers receive fair treatment under the UAE Labour Law. Employment benefits, such as salaries, bonuses, end-of-service gratuity, leave entitlements, and health insurance, are essential components of any job contract. Disputes over these benefits can arise due to…

[fiorick]

Human Resources Manager - Start Now

Human Resources Manager – Start Now

Job title: Human Resources Manager – Start Now Company: GEMS Education Job description: concession, 52 days yearly annual leave and other benefits in line with the UAE Labour Law. If you meet the criteria… Manager to join our amazing team at GEMS Group Holdings Limited in dubai, dubai. Growing your career as a Full Time Human… Expected salary: Location: Dubai Job date: Fri, 15 Jul 2022 07:58:57…

[hlbhamtca]

PAYROLL PROCESS IN UAE

HLB HAMT is a payroll outsourcing provider in the UAE that has been assisting clients manage their payroll cycle, with 100 percent accuracy and confidentiality. Payroll process is a mandatory function in any business that requires time and an eye for detail. Even though payroll laws and regulations vary from country to country, the basic principle remains the same; paying all the employees on time, without any error in calculations.

HLB HAMT Level 18 City Tower -2, Sheikh Zayed Road PO Box No 32665 Dubai – United Arab Emirates. T: +971 4 327 7775 E-mail: dubai@hlbhamt.com

In the UAE, payroll requirements are taken care of by the labour law. The new labour law, Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, came into effect on 2nd February, 2022, replacing the previous Federal Law No. 8 of 1980. The new law intends to protect the rights of both employer and employee and it covers subjects connected to working hours, overtime, leaves, vacation and public holidays, employing juveniles, employee records, safety standards, minimum wage, termination of employment, end of service gratuity payments and work injuries. The law does not specify any minimum wage, but the salary provided to employees must be sufficient to fulfill their basic requirements.

It is the Ministry of Human Resources and Emiratisation (MoHRE) that is in charge of supervising the employer-employee relations and ensuring labour rights are maintained in the private sector.

Wages Protection System

For non-free zone companies and JAFZA free zone, payments are controlled as per the wages protection system. As per this system, employees’ wages will be transferred to their accounts in banks or financial organizations, which are authorized by the Central Bank of UAE. Unless a company registers with WPS, MoHRE does not involve in any kind of transactions or deals with them.

The payment can be made in the national currency of the country, Emirati Dirham or any other currency, provided it has been agreed upon by both the employer and employee in the employment contract.  The employees must be paid monthly or bi-weekly based on the type of contract.

Payroll is not subject to income tax in the UAE and as such there are no mandated tax deductions. But, UAE nationals will have to contribute towards national pension plans contributions.

Gratuity payment in UAE

Gratuity is a one-time payment made to employees following the end of their service, provided the employee has served in the company for more than a year. As the service period of the employee increases, gratuity sum also accrues. While calculating the end of service gratuity in UAE, the days of absence from work without payment are not considered. The gratuity amount is calculated as given below;

21 days pay for each year of the first five years of employment

30 days salary for each additional year

Outsourcing payroll in UAE

Companies usually find it bit difficult to manage payroll of multiple employees, when they have numerous other core business functions going on at a daily basis. In the case of larger enterprises, that has thousands of employees, the work increases. Moreover, when you do payroll on your own, the chances of error increase and the mistakes in the calculation of salaries can result in dissatisfied employees and can affect the work productivity.

Outsourcing the payroll function not just frees up the time of an entity, but also offers the assistance of a professional company that can provide accurate results, that is compliant with the laws and regulations. Another major advantage of outsourcing the payroll function in the UAE is the cost-effectiveness it provides. A company need not bear the cost of costly technology or skilled personnel as opposed to processing payroll internally.

UAE payroll is subject to numerous laws and regulations; hence the assistance of a professional squad who are well updated about the compliances and changes in the industry is mandatory. Outsourcing payroll also comes with additional data security as these consultancies will be equipped with highly updated resources and strategies to protect the sensitive information of employees.

READ MORE: hlbhamt.com/payroll-process-in-uae

[axolon-erp]

HR & Payroll Solutions Dubai

Top 3 Benefits of Implementing An Integrated Payroll & HR Software

ACCURATE PAYROLL REPORTING

With your HR software and payroll integrated on a single platform, customizing and generating payroll reports can easily be done with a few clicks. For instance, there may be times whereby you need to track expenses payments made to employees as part of internal auditing. Suppose your expenses tracking were made on your payroll software and you need to update these records manually on your payroll software. This may result in inaccurate data entries and risk incorrect calculations during salary calculations or tax filing.

By integrating key HR functions such as expense management and claims submission with your payroll software, it ensures real-time update of your payroll records. Concurrently, this data will be synchronized with your employees records and eliminates the risk of inaccurate payroll records.

ENSURES PAYROLL COMPLIANCE

Ensuring payroll compliance with the multiple labour laws can be stressful particularly when you are processing payroll for several countries. An integrated HR and payroll platform can help to take away that stress by ensuring accurate salary calculations and tax deductions based on each country’s labour laws. This can be done by configuring your payroll software to calculate salaries and tax deductions based on the individual employee’s profile that is extracted from your HR software. Not only does this ensure that your payroll is compliant with the respective country’s labour laws, it helps you to easily generate historical payroll data during internal or external audits.

IMPROVES COMMUNICATION AND DRIVES TRANSPARENCY

A unified HR and payroll software can empower your workforce, improve internal communications and drive transparency. Timely and accurate salary disbursements plays an important role in employee engagement. Concurrently, implementing an integrated HR platform that is equipped with self-service tools for employees further enhances the employee experience.

Tools such as e-payslips, online leave balance and applications, e-claims submission and reimbursements allow for seamless access to payroll and employee’s personal details without having the need to constantly go through the HR department. It also provides employees with a sense of ownership as they are able to take charge of their own HR needs.

An integrated payroll and HR software allows both HR and payroll teams to access the same information, sensitive payroll data and employee records, on a single platform. Not only does it help to drive internal efficiency and data accuracy, it helps with payroll compliance as well.

As HR and payroll gradually intertwine to play a more strategic role within the organization, it would make more sense to pool together the department’s resources and seek as much integration between HR and payroll where possible.

Also human resource personnel are answerable to employees’ queries about salary considerations, wage increase, payroll processes and tax deductions clearly and confidently to deliver convincing answers. Hence matters such as these which consume a lot of productive man hours of HR personnel is entrusted to payroll service providers externally.

HR & Payroll Solutions Dubai

Axolon has developed clients to reach digital maturity by concentrating on technology, customer-centricity, and exponential return on investment; by integrating excellent user interface and data-driven methodologies. We provide you with the best HR & Payroll Solutions Dubai, UAE , Saudi Arabia, Oman, Bahrain, etc. If you would like to know more about our services, please feel free to call us at 800 296566 or email us at info@axolon.com.

[dubaiadvocates]

Labour and Employment Lawyers in UAE

Labour and Employment Lawyers in UAE is a popular term for those who have few skills, capacities, capabilities, and knowledge. These attributes can be described as follows; Lawyer with professional education A lawyer with a court license to practise A lawyer with experience in Labour Law Cases A lawyer with experience in court cases Lawyer with experience in communication and languages Lawyer with experience in UAE Labour Law Lawyer with a passion to work and serve in Labour Law UAE The Labour and Employment Law matters a Labour Lawyer or Employment Lawyer has to deal with can also be described as false terminations, outstanding receivables, unpaid salaries, harassment, immigration issues, absconding, gratuity issues etc. These are only a few types mentioned here, it can be several otherwise. A labor and employment lawyer in the United Arab Emirates normally focuses on legal issues or predicaments that may arise from the employer and employees relationship. These disputes are inevitable and have to be produced where there is a business. Especially where the market is UAE and the entire world is gathered over there for taking advantage. They interpret and provide valuable advice and guidance on numerous different kinds of labor and employment laws including the wages and salaries, hour laws, health and safety at the workplace, rest breaks laws, disability leaves and compensation, workplace harassment, wrongful dismissals, or terminations. Some of these employment lawyers in dubai litigate cases in the court of law while others extend help to companies and individuals crafting company policies and employee handbooks. These Labour and Employment Lawyers in Dubai is an authority. The authority also tells us about the interest of UAE in promoting businesses in the region and managing the employment disputes for the ease of businessmen and the employee. Read More: https://dubaiadvocate.ae/labour-and-employment-lawyers-in-uae/

[ask-the-law]

Legal Knowledge by Lawyers

Are partners considered an employee in the Business? Obviously not. Federal Law No. 8 of 1980, covers and governs all the Labour & Employment Cases. It says that Partners are not the employees. They are investors and they should be treated as the investor. But, if you are also holding Employee Status means working as Employee, having Employment VISA etc, then you can be treated as Employee. Above situation is only for those who are just investing the money and they are not holding any position at all as an employee. Legal Consultants should be checked for the latest updates.

The Labour and Employment Lawyers

Limited Contract bounds employees to complete it, he can be given a labour ban otherwise as well as he has to pay 45 Days Salary. If there is a mutual agreement signed between two parties then it can be the exception. The employer can not terminate a worker when he is on leave. Well, Labour & Employment Lawyers should be consulted by both parties in case of any dispute or Court Case, or for the updates in Labour Law UAE. Shareholder of a business company called LLC Business Company is only responsible up to of his shares in the company’s capital. But if he makes a scam or fraud then he is also responsible or only responsible for the fraud, he has committed. Check with business lawyers to get the latest updates. There are many Law Firms in UAE offering experienced corporate lawyers. When a pregnant woman goes on her maternity leave, then she can not be terminated. If she is terminated then she might ask for wrongful termination compensation. Therefore it is recommended to consult the legal consultants before hiring or terminating the employees. When an employee completes his contract and he does not want to renew his contract then he should be paid with his End of Service and other unpaid amounts at the time of VISA Cancellation or before the VISA Cancellation. As per the Law, it can not be paid after the VISA cancellation. The employer should be very careful while paying end of service at the right time, it can provide the option to the employee to take necessary legal action. The employee should also not accept the condition that the end of service will be paid once the VISA is cancelled. The court does not accept this justification. It does go into the favour of the employee as well if he makes a mistake like this, though still, he has the option to take the matter to Court.

https://askthelaw.ae/legal-knowledge-lawyers/