The Employment Contract Policy serves as a foundational document for organizations operating in the United Arab Emirates, establishing standardized procedures and terms for employment relationships in compliance with UAE Federal Law No. 33 of 2021. This document is essential when setting up or updating employment practices, particularly during company establishment, organizational restructuring, or following significant changes in labor laws. It provides comprehensive guidance on contract formation, mandatory and optional terms, benefits, working conditions, and termination procedures, while considering specific requirements for different employee categories and free zone regulations. The policy ensures consistency in employment practices while maintaining flexibility to accommodate various business needs and workplace arrangements, all within the framework of UAE employment legislation.
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1. Introduction: Purpose and scope of the policy, including its application to different categories of employees
2. Legal Framework: Reference to UAE Labor Law and other applicable regulations that govern the employment relationship
3. Types of Employment Contracts: Definitions and terms for different contract types (unlimited, fixed-term, part-time, etc.)
4. Recruitment and Selection: Standard procedures for hiring, including visa sponsorship requirements and documentation
5. Working Hours and Days: Standard working hours, flexible arrangements, overtime policies, and weekend/public holidays
6. Leave Entitlements: All types of leave including annual, sick, maternity/paternity, study, and other statutory leaves
7. Compensation and Benefits: Salary structure, allowances, bonuses, and mandatory benefits including end-of-service gratuity
8. Performance Management: Performance evaluation procedures, frequency, and impact on employment terms
9. Code of Conduct: Expected behavioral standards, dress code, and professional ethics
10. Disciplinary Procedures: Progressive discipline steps, grounds for warnings, and termination procedures
11. Grievance Procedures: Process for raising and addressing employee complaints
12. Termination of Employment: Notice periods, procedures for resignation and termination, final settlement calculation
1. Remote Work Policy: Guidelines for remote work arrangements, applicable when company offers remote work options
2. Intellectual Property Rights: IP ownership and confidentiality terms, essential for technical or creative roles
3. Non-Compete Clause: Post-employment competition restrictions, used for senior positions or sensitive roles
4. Commission Structure: Detailed commission calculations and terms, applicable for sales positions
5. Training and Development: Professional development policies and training obligations, for companies with formal development programs
6. Health and Safety: Specific health and safety procedures, particularly important for industrial or high-risk environments
7. Travel Policy: Business travel terms and allowances, for roles requiring regular travel
8. Supplementary Benefits: Additional company-specific benefits beyond statutory requirements
1. Schedule 1 - Salary Structure: Detailed breakdown of basic salary, allowances, and other monetary benefits
2. Schedule 2 - Leave Application Forms: Standard forms for various types of leave requests
3. Schedule 3 - Performance Evaluation Forms: Standard performance review templates and procedures
4. Schedule 4 - Disciplinary Action Forms: Templates for warnings and disciplinary actions
5. Schedule 5 - Job Description: Detailed role responsibilities and requirements
6. Appendix A - Code of Conduct Guidelines: Detailed behavioral expectations and examples of violations
7. Appendix B - Grievance Procedure Flowchart: Visual representation of the grievance resolution process
8. Appendix C - End of Service Benefits Calculator: Formula and examples for calculating gratuity and final settlement
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