A Guide to Doing Business in the United Arab Emirates

VI. Labor

Employment relationships are governed by Federal Law No. 8 of 1980 concerning Labor Relations, as amended (the "Labor Law"), which imposes certain minimum standards on termination, working hours, vacation time, safety standards and other issues. Trade unions and collective bargaining are not permitted, and employee grievances are handled through a conciliation process administered by the Federal Ministry of Labor (the "MOL") outside the free zones and by the relevant free zone authority in a free zone. Government employees and domestic servants are exempt from the Labor Law.

As noted earlier, the DIFC has established its own employment law which is applicable to employment relationships established therein. Accordingly, the Labor Law is inapplicable in the DIFC.