magmaggy

I have just been offered a job at a DMCC Free Zone company (Jumeirah Lake Towers) and the given contract does not specify the basic salary (usually 70:30), only a gross basic monthly rate (which is the full salary amount, no allowances). No mention to gratuity is made. They also mention that the company contract overrides the UAE Law in case of a dispute.

Is it a trap? Or can I really just ignore it, because the UAE Labou Law would prevail and I would get a gratuity based on the full salary

I have been so excite to start my new job, but now it has totally put me off. Although I have not much choice, I need this job

magmaggy

Anyone?

Paracletus

Sounds legit...

GingerWizard

Gratuity is based on the basic element of the salary package and this should still apply in all Free Zones, maybe contact the Free Zone or check their website out - but it does sound like they are making provisions to deter employees from questioning their decisions - basically you would need to lodge a complaint with the Free Zone if anything went wrong re labour dispute during employment

scrubbedexpat141

I'd angle it more towards 60:40 but that's just what I see.

A pal of mine says that UAE Labour Law presides over everything, so even when a Freezone says you get paid gratuity on bonuses, they don't HAVE to because UAE law says so.

Also gratuity payable from visa date not start date is another thing I've been told.

NB: All of the above is second hand information. I cannot be crucified if any is wrong.

Scamp

oommeng

Free Zone companies are exempt from UAE labor laws

Meow

No they are not. They can have their own rules to a certain extent, but are not exempt from Labour Law.

Let me quote article 3 of UAE Labour Law:

The provisions of this Law are not applicable to the following categories:

a) Officials, employees and workers of the Federal Government, Governmental Departments of the Member Emirates of the State, Officials, employees and workers of municipalities as well as other officials, employees and workers, working in Federal and local public Departments and organizations, as well as the officials, employees and workers appointed for Governmental Federal and Local Projects.

b) Members of the Armed Forces of Police and Security.

c) Domestic servants working in Private residences and the like.

d) Workers employed in Agriculture or pastures, other than those persons employed in the agricultural corporations engaged in processing their products or those permanently engaged in operating or repairing mechanical machines required for Agriculture.

mission

i work for a freezone company in Jebel Ali - the labour law absolutely supersedes any freezone regulations.

we have our books audited by KPMG and its one of the first things they look for ie a provision for EOSB in the accounts for all employees.

mission

total BS - as stated above i work for and set up our company in the freezone. If anything working for a freezone company is much more favourable in terms of employee rights then working for a company that is outside the freezone.

magmaggy

Guys, this info is priceless. Thank you so much!

The Dean

You're welcome, I'm sure, but what are you going to do about this:

They also mention that the company contract overrides the UAE Law in case of a dispute.

Ignore it? Clarify it now? Tell them to remove it from your contract?

Meow

I think it is worth me clarifying a point here. In many cases, if you have signed a contract agreeing to terms different to labour law then that document takes precedence. For example, I have come across people who have a company savings plan and have waived their right to end of term gratuity, so are no longer eligible. Another common one is agreeing to refund all visa costs upon leaving.

People need to be careful what they are signing.