Ramadan Employment Laws: Understanding Overtime Compensation in UAE

As the holy month of Ramadan graces the UAE, questions arise regarding employees’ rights to overtime pay amidst reduced working hours. The labyrinth of legalities is unravelled to shed light on this matter.

According to Federal Decree Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, employees enjoy a reprieve of two hours from their regular work hours during Ramadan. This concession, mandated by Article 17(4) of the Employment Law and Article 15(2) of the Cabinet Resolution, aims to accommodate religious observances.

However, if an employer necessitates additional work beyond these stipulated hours, overtime compensation comes into play. Article 19 of the Employment Law outlines the framework for such scenarios. Employees engaged in overtime work are entitled to their basic salary plus a supplement of at least twenty-five percent for extended hours and fifty percent for work between 10 pm and 4 am.

Exceptions exist for managerial and supervisory positions, exempting them from overtime pay as per Article 15(4)(b) of Cabinet Resolution No. 1 of 2022.

It’s crucial to note that overtime allocation remains within the employer’s discretion, emphasizing the need for clear communication and understanding between parties.

Navigating these legal intricacies requires expertise, and individuals seeking clarity are encouraged to consult legal professionals versed in UAE employment law.

In this labyrinth of regulations, clarity is key to ensuring fairness and compliance for both employers and employees alike.

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