Legal expert clarifies Ramadan working hours and overtime entitlements for UAE mainland company employees
A UAE-based legal expert sheds light on the entitlement of overtime pay during Ramadan for employees working in mainland companies in the UAE.
Drawing from the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution No. 1 of 2022, Ashish Mehta, the founder and Managing Partner of Ashish Mehta & Associates emphasizes in his column in Khaleej Times, “An employee is entitled to two hours of reduced working hours during the month of Ramadan.”
This entitlement aligns with Article 17(4) of the Employment Law and Article 15(2) of the Cabinet Resolution, which clearly state, “The regular working hours shall be reduced by two hours during the holy month of Ramadan.”
Regarding overtime, Mehta clarifies, “An employee may be entitled to overtime payment if his or her employer requires work beyond the standard hours.”
This is backed by Article 19 of the Employment Law, detailing overtime compensation, including a minimum of 25% additional pay for standard overtime and 50% for work done between 10 pm and 4 am, or on designated rest days.
However, Mehta notes an exception for certain positions: “If an employee is in a managerial or supervisory position, he or she may not be entitled to any overtime pay.”
This is specified in Article 15(4)(b) of Cabinet Resolution No. 1 of 2022, highlighting exemptions for those with employer-like powers within their roles.
The laws provide a framework for understanding overtime entitlements during Ramadan, stressing the discretionary role of employers in allocating extra hours.