The Minimum Wage Ordinance (Cap. 608) ("MWO") came
into effect on 1 May 2011. The Reference Guidelines for Employers
and Employees in relation to the MWO were released on 28 March
2011. The Chinese version of the industry-specific guidelines were
released in April 2011. The English version of those
industry-specific guidelines has just been released.
The industry-specific guidelines cover the real estate agency,
logistics, property management, security services and cleaning
services, hotel and tourism, catering and retail industries. They
aim to address the characteristics and particular modes of
operation in those industries and are drawn up by the Labour
Department in consultation with employers and employee groups in
the respective industries. The guidelines contain examples covering
situations and employment terms that are particular to those
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This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein. Please also read the JSM legal publications
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One of the most debated issues in an employment agreement is the legality of restrictive covenant provisions, such as a non-compete clause which prevents employees from working for a competitor upon termination of their employment agreement.
Employment relationships in the United Arab Emirates are governed by Federal Law No.8 of 1980 Regulating Labour Relations as amended by Federal Laws No.24 of 1981, No.15 of 1985 and No.12 of 1986 (the Labour Law).
As the name implies, end of service gratuity is an amount of money that every employee is entitled to receive, and every employer is liable to pay, upon termination of an employment relationship in the UAE, provided that the employee meets the conditions set out in the Labour Law (UAE Federal Law No.8 of 1980).
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