This article covers the key JAFZA employment rules and regulations in 2024.
It overviews the sponsorship process, employment agreements, employee rights, and related procedures. These rules ensure a transparent and structured relationship between employers and employees in JAFZA.
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Table of Contents
Jafza Employment Rules and Regulations Overview
The broader UAE Labour Law shapes JAFZA’s employment regulations, but specific provisions and policies are unique to the Free Zone.
These rules govern various aspects of the employment relationship, including recruitment, working hours, wages, benefits, termination, and dispute resolution. Companies operating within JAFZA must adhere to the following guidelines.
Sponsorship and Employee Sponsorship Agreement
JAFZA can sponsor employees for businesses operating in the Free Zone. To use this service, companies must sign a Personnel Sponsorship Agreement (PSA) with JAFZA and obtain a Computer Immigration Card (CIC).
Employers must not exceed the approved number of employees based on their space and operational needs.
A guarantee or security, approved by JAFZA, is required for each sponsored employee. This could include a bank guarantee or a cash deposit to cover potential liabilities like unpaid wages or airfare if the employee leaves the company.
Employment Agreements and Work Conditions
All companies in JAFZA must have an Employment Agreement with their employees outlining the terms of employment, including salary, job title, and duration.
Working hours are capped at 48 hours per week, with a one-hour break for meals. During Ramadan, working hours are reduced by two hours.
Employees are entitled to overtime pay for hours worked beyond the regular schedule. Public holidays align with the national calendar, and overtime pay rates are specified for work done during certain hours, such as late at night or on public holidays.
Visa and Residence Permits
JAFZA is responsible for processing residence visas for sponsored employees.
When an employee leaves the company, their visa is canceled, and the company must submit a cancellation request within 30 days. Employees cannot work for other companies without prior approval from JAFZA.
Termination of Employment
Employment may be terminated by mutual agreement or due to other reasons such as expiration of the employment contract, probationary period conditions, or legal grounds under JAFZA rules.
Employees are entitled to a notice period of at least one month unless otherwise agreed in the Employment Agreement.
In wrongful dismissal cases, companies may be required to compensate the employee based on UAE Labour Law. Additionally, upon termination, employees are entitled to airfare and a service certificate detailing their employment period.
Employees with a continuous service of at least one year qualify for an end-of-service gratuity, determined by their basic salary. For the first five years of service, they receive 21 days of basic salary for each year worked.
They earn 30 days of basic salary for each additional year for any period beyond five years.
Disciplinary Actions and Disputes
JAFZA mandates that all disciplinary actions against an employee be reported within 10 days. The company must follow a formal process, including informing the employees of the allegations and allowing them to respond before imposing any penalties.
In case of disputes, JAFZA’s labor section facilitates resolution if the unresolved issue can be transferred to the courts for further action.
Compensation for Industrial Accidents
Employees who suffer from industrial accidents or occupational diseases are entitled to medical treatment and compensation.
The company is responsible for the treatment costs, and employees may receive a cash allowance if the injury prevents them from working. In death, compensation is payable to the employee’s heirs.
Learn about UAE Labour Law Free Zone and read more about Dubai Free Zone Labor Law.
Legal Services Related to JAFZA Employment Law
The complexities of JAFZA employment rules and regulations require expert legal guidance. Our lawyer in Qatar offers legal services tailored to companies and employees within the JAFZA Free Zone.
Our team provides legal support in the following areas:
- Employment Agreements: Our lawyers ensure that your Employment Agreements align with JAFZA regulations and UAE Labour Law, safeguarding both employer and employee rights.
- Termination and Compensation: We provide guidance on the lawful termination of employment and handling disputes over severance pay, gratuities, and other termination-related issues.
- Disciplinary Actions and Disputes: If you face disciplinary challenges, we offer counsel on proceeding with fair investigations and penalties and ensuring compliance with JAFZA’s reporting requirements.
- Compensation and Employee Benefits: Our team supports employers and employees in matters related to compensation for industrial accidents, occupational diseases, and any claims for unpaid benefits.
With our expertise, companies can ensure full compliance with JAFZA’s employment regulations and avoid potential legal challenges.
FAQs about Employment Regulations in JAFZA
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
