Navigating the complexities of overtime allowances in the UAE can be challenging for many workers. Fortunately, insights from Mohammad Ebrahim Al Shaila, a renowned Emirati Lawyer and Legal Consultant, as featured in his column in Gulf News, provide clarity. Here’s a guide on how overtime allowances are calculated and your legal rights regarding overtime work.
Calculating Overtime Allowance
Basic Overtime Calculation: If you work beyond normal hours, you’re entitled to your normal wage (based on your basic wage) plus at least a 25% increase.
Night Overtime (10 pm to 4 am): For overtime during these hours, expect your basic wage plus a 50% increase. Shift workers are exempt from this rule.
Overtime Caps and Laws: As per Article 19 of the Labour Law, you can be asked to work a maximum of two extra hours per day. In every three-week period, total working hours shouldn’t exceed 144 hours. Exceptions exist under specific conditions outlined in the Implementing Regulation.
Rights and Choices Regarding Overtime
Refusing Overtime: The law allows your employer to instruct you to work overtime, but not beyond two hours daily. If you’re asked to work more, it must align with specific rules and conditions.
Weekend Work Compensation: If you work on a weekend (as per your employment contract), you can either take another day off or get paid for the day. This payment includes your normal wage plus a 50% increase. You cannot be made to work more than two consecutive weekends, except for day workers.
Vacation and Overtime: The law doesn’t specifically mention how to calculate overtime for vacation days. However, standard practices suggest that your overtime allowance is based on your basic wage plus the applicable percentage increase.
Opting for Cash Allowance: You have the right to choose between a compensatory day off or a cash allowance for working on a day off. This choice depends on your preference and company policy.
