The UAE Labour Law (Federal Decree-Law No. 33 of 2021) governs all private-sector employment relationships. Key compliance pillars include the Wage Protection System (WPS), End of Service Gratuity, annual leave entitlements, and strict overtime regulations enforced by the Ministry of Human Resources and Emiratisation (MOHRE).
All private-sector companies must disburse salaries through the Wage Protection System to guarantee timely, verifiable payment. Failure to comply blocks the company from obtaining new work permits and incurs escalating fines. Salaries must be paid within 10 days of the due date.
How ClockIt Helps
ClockIt automatically generates the SIF (Salary Information File) required by approved banks and exchange houses for WPS processing, eliminating manual errors and ensuring on-time submission.
Foreign employees are entitled to an End of Service Gratuity upon termination: 21 days' basic pay per year for the first 5 years, and 30 days' basic pay for each subsequent year. Employees who resign before 1 year receive nothing; between 1–3 years, 1/3 of the amount; between 3–5 years, 2/3 of the amount.
How ClockIt Helps
ClockIt's payroll engine tracks exact tenure and calculates gratuity accruals in real-time using the latest basic salary, flagging any changes that would affect the final payout.
The standard work week is 48 hours (8 hours/day, 6 days). Overtime is calculated at 125% of the hourly basic rate for normal overtime, and 150% for work between 10 PM and 4 AM or on designated rest days. Total working hours including overtime must not exceed 144 hours over any 3-week period.
How ClockIt Helps
ClockIt handles complex overtime tiers automatically, applying the correct 1.25× or 1.5× multipliers based on precise shift timing, ensuring zero manual miscalculation.
Employees with less than one year of service earn 2 days' leave per month. After completing one year, they are entitled to 30 calendar days of paid annual leave per year. Leave salary must be paid before the employee takes leave.
How ClockIt Helps
ClockIt's leave module tracks accruals from day one, calculates pro-rated entitlements, and automatically triggers leave salary advance notifications before the vacation start date.
Employees are entitled to 90 days of sick leave per year after completing their probationary period: the first 15 days at full pay, the next 30 days at half pay, and the final 45 days unpaid. A medical certificate from a MOHRE-accredited facility is mandatory.
How ClockIt Helps
ClockIt logs sick leave against the statutory tiers and flags any leave exceeding the permitted 90-day threshold, giving HR an early warning before disciplinary action becomes necessary.
Private companies with 50+ employees must meet Emiratisation (UAE national) hiring quotas that increase by 2% annually until 2026. Non-compliant firms are subject to quarterly contribution fees per unfilled Emirati position.
How ClockIt Helps
ClockIt's workforce dashboards display real-time Emiratisation ratios, alerting management when the ratio risks falling below the required threshold.
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