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UAE: Can employees receive payment for working overtime hours during Ramadan in the UAE?

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Question: Can I earn overtime by working more than the normal Ramadan working hours in a mainland company? How does that work?

Answer: Pursuant to your query, the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations are applicable.

An employee is entitled to two hours of reduced working hours during the month of Ramadan in UAE. This is in accordance with Article 17(4) of the Employment Law read with Article 15(2) of the Cabinet Resolution No. 1 of 2022, which states, “The regular working hours shall be reduced by two hours during the holy month of Ramadan.”

Furthermore, an employee may be entitled to overtime payment, if his or her employer calls upon its employee to work on an overtime basis. This is in accordance with Article 19 of the Employment Law, which states, “1. The Employer may employ the employee for additional working hours, provided that they do not exceed (2) two hours a day, and the employee may not work more than such hours unless according to the procedures and conditions specified by the Executive Regulations of this Decree-Law. In any event, the total working hours shall not exceed (144) one hundred forty-four hours in (3) three weeks.

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2. If the work circumstances require that the employee be employed for hours exceeding the ordinary working hours, such extended time shall be deemed overtime for which the employee shall be paid his basic salary for his normal hours of work plus a supplement of at least (25%) twenty-five per cent of that salary.

3. If the work circumstances require that the employee be employed for extra hours between 10 pm and 4 am, the employee shall be paid his basic salary for his normal hours of work plus a supplement of at least (50%) fifty per cent of that salary. This paragraph shall not apply to employees by shifts.

4. If the work circumstances require that the employee be employed on the rest day specified in the employment contract or the internal work regulations, he shall be compensated with a substitute rest day, or be paid his basic salary for his normal hours of work plus a supplement of at least (50%) fifty per cent of the salary.

5. The employee may not be employed more than two consecutive rest days, except for the daily employees.”

Moreover, if an employee is in a managerial or supervisory position, he or she may not be entitled to any overtime pay. This is in accordance with Article 15(4) (b) of Cabinet Resolution No. 1 of 2022, which states, “The following categories shall be exempted from the provisions relating to the maximum working hours”.

b. The persons occupying supervisory positions if such positions vest in them the powers of the employer.”

Based on the aforementioned provisions of law, an employee may be entitled to overtime payment if they work for additional hours other than the stipulated Ramadan period working hours. However, allotting overtime work is the discretion of an employer.

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