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Wages
Wages consist of the basic compensation that has been contracted between the
employee and the employer. In addition, the employees may receive rewards or
additional bonuses, which are also included in their total remuneration.
The UAE Law ensures that wages are paid on a scheduled basis, either-daily,
weekly or monthly. It allows for the wages to be paid in the UAE banks or outside
of the country. However, the law does not prescribe any minimum wage for the
workers. This means that setting a wage for any job position is left in the hands
of the employer, and depends on the hiring negotiations and terms of the
contract. . In addition, people with lower wages, less than Dhs. 4000.00 is not
allowed to sponsor their spouses. The wages can be paid in Dirhams or in other
currency as specified in individual contracts. The Labour law does not place any
restrictions on the mode of transfer of money so the employee and employers
decide where to repatriate the wages (UAE Labor Law, 2015).
The Labour law provides for a dispute resolution process that is required to be
followed before any cases can be filed in the court. In case of any conflicts or
disputes, the first step is for the employer to provide proof of the fact that wages
and allowances had been paid to the employee for the services rendered. As
written proof of payment of wages is required in an event of dispute, it is
mandatory for employers to maintain proper records of wages (UAE Labor Law,
2015).
In case of termination of employee forecast, the employer is required to pay
compensation to the employee. However this does not apply to terminations
related to reasons listed in Article 120.
The compensation is calculated as either the wages for the number of months left
in the contract, or for three months, whichever is less. The compensation can
however be predetermined in the original contract, in which case this is what
would be paid. In case the reason for termination is listed in Article 121, the
employer has the claim to receive compensation from the employee for any
losses that he may face. The compensation is calculated as the salary for 1.5
months or salary for the entire period of the remaining contract.
In addition, there are special labour laws related to people employed in the free
trade zones of the country. The employees in the free trade zones receive wages
and compensation according to their contracts with the companies hiring them.
Also, while the law applies to all people (native and expatriate) working in the
UAE, some people and categories of work are exempted from it. For example, the
Labor law does not apply to domestic servants or to the armed and police forces.
It also does not apply to public service organizations or federal government
organizations or to the members of any other departments in the Emirates.

Agricultural workers and pastoral employees are also exempt from the law. The
wages and compensations of these exempted workers are decided by their
individual employers. The dispute resolution process is also largely internal and
depends on contract terms and individual organizations policies.
References
Gulf News. (2013, July 11). UAE Labour Law section 5 Payment of Wages.
Retrieved from: http://gulfnews.com/guides/life/law-finance/ask-the-law/uaelabour-law/uae-labour-law-section-5-payment-of-wages-1.1208188

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