Under the Dubai International Financial Centre (DIFC) Employment Law, the laws on working hours and overtime are aimed at keeping in mind the employees’ rights while guaranteeing a smooth process for employers. It operates as a separate jurisdiction within the UAE, governed by its own set of laws and regulations. One of the key aspects of DIFC Employment Law is the control of working hours and overtime, which targets to balance the interests of employers and employees while making sure a fair working environment.
The overall decree governing employment in the DIFC is the DIFC Employment Law No. 2 of 2019, as revised by DIFC Employment Law No. 4 of 2021. These laws in the Act give out specific provisions with respect to the working hours, resting times, overtime, and necessary compensation, which are a must for all employers and employees functioning within the DIFC.
This blog is a part of our DIFC Employment Laws: A Primer for Businesses in the DIFC pillar post
Working Hours
Under the DIFC Employment Law, the standard working hours for employees are set at 48 hours per week. This is typically for a six-day workweek, even though a five-day workweek is also common and followed by most companies in Dubai. Employers and employees may have different working hours, nonetheless any such agreement must be followed in compliance with the 48-hour work week time frame, mandatorily. The law does not mention a fixed number of daily working hours but underlines that the total should never exceed 48 hours per week.
Employees are entitled to a minimum rest period of 11 consecutive hours between in each 24 hour period.
Overtime Regulations
Overtime in the DIFC is severely regulated to protect employees from excess work demands. The law differentiates between normal overtime and those required during exceptional circumstances. Overtime is stated as any work being done outside the standard working hours. Employees cannot be required to work more than two hours of overtime per day unless a special needful situation arises wherein it is required and important.
There are no express overtime provisions in the DIFC Employment Law; however, as above, the maximum weekly working hours is an average of 48 hours per seven-day week, which can be waived if the employer has obtained the employee’s consent in writing. This waiver may, for example, be included in an employment contract.
There is no statutory entitlement to overtime pay in the DIFC Employment Law, however an employment contract or internal company policy may include entitlement for overtime pay. Without sufficient evidence to determine that an employee is entitled to overtime (i.e. a contractual entitlement), the Court would likely dismiss a claim of overtime.
Specific categories of employees, such as those in managerial or supervisory roles, may not be included in overtime pay. However, this exemption must be clearly stated in their employment contract.
Exceptions and Special Circumstances
The DIFC Employment Law has specific exceptions to the general rules on working hours and overtime:
- In cases of emergency or where the nature of the work needs continuous attention, the restrictions on working hours and overtime can be relaxed. Nevertheless, such situations must be reasonable, and employees must still receive appropriate compensation.
- During the holy month of Ramadan, employees are eligible to reduced working hours without a reduction in pay. This decrease is typically two hours less than the regular working hours.
- Furthermore, it is essential that the employers maintain timely and apt records of their employees’ working hours, overtime, and rest periods. This is key for abiding with the law and for resolving any disputes that may arise. The DIFC Authority has the control to review these records.
- Employers who fail to comply with the regulations on working hours and overtime may face penalties, including fines and legal action.
- Lastly, if an employee undergoes any situation wherein their rights have been violated, they can file a complaint with the DIFC Authority, who will investigate their issue, guide them and support to solve it as well.
Conclusion
The DIFC Employment Law provides a clear framework for working hours and overtime, designed to ensure fair labor practices while allowing for flexibility in business operations. Employers must adhere to these regulations to avoid consequences and build a positive working environment. Employees, on the other hand, should be aware of their rights and the legal avenues available to them in the case of disputes.
Understanding these provisions is crucial for both employers and employees within the DIFC to navigate the complexities of the employment landscape in this unique jurisdiction.
