LABOUR LAW IN THE U.A.E.

Company / Commercial Laws

LABOUR LAW - INTRODUCTION
Federal Law No. 8 of 1980 regulating labour relations as amended by Federal Laws Nos. 24 of 1981, 15
of 1985 and 12 of 1986 (the "Law").
1. To whom does the law apply?
According to Article 3 of the Law, the Law applies to all staff and employees working in the United Arab
Emirates, whether UAE national or expatriate. However certain categories are exempted from its
applicability:
1. Staff and workers employed by the federal government, government departments of the member-
emirates, the municipalities, public bodies, federal and local public institutions and those staff and
workers employed in federal and local governmental projects are exempt.
2. Members of the armed forces, police and security units.
3. Domestic servants and their like.
4. Agricultural workers and persons engaged in grazing (this exemption does not include persons
who are employed in corporations which process agricultural products and or those who are
permanently engaged in the operation of/or repair of machines required for agriculture.

2. What aspects of the employer employee relationship does the law deal with?
The law covers all aspects of employee-employer relationships (Chapter 12). It governs all aspects of
employment contracts, restrictions on the employment of juveniles and women, maintenance of records
and files, wages, working hours, leave, safety and protection of employees, medical and social care,
codes of discipline, termination of employment contracts, end-of-service benefits, compensation for
occupational diseases, labour inspections, penalties and employment related accidents, injuries and
fatalities.

II. LABOUR APPLICATION

1. By whom is the Law enforced?
The Law is a federal legislation applicable to all the emirates of the federation. It is enforced by the
Ministry of Labour and Social Affair (the "Ministry"). Labour related litigations are adjudicated by the
federal and local courts of the UAE.
2. What is the primary pre-requisite for employment?
An application must be made to the Ministry of Labour to employ any expatriate employee in the UAE.
The application is to be approved by the Ministry of Labour before the employee enters the UAE.
Employment permits are valid for three years subject to renewals for similar periods.
In the case of national employees, an employment contract may be entered into at any time. Employment
contracts for non-nationals must be drawn in the format approved by the Ministry of Labour on an
application made by the employer. Employment contracts for national employees need not, however, be
in writing and the terms and conditions of employment may be proved by any means of proof admissible
by law. A labour permit for an expatriate employee will not be issued by the Ministry of Labour unless a
formal written labour contract is filed with the Ministry.

III. EMPLOYMENT CONTRACT

1. What are the permitted tenures of employment contracts?
Two types of employment contracts are permissible: Limited employment contracts which are contracts
for a specified duration with specific commencement and completion dates, and unlimited contracts by
which the employee will continue to work for the employer from a specific date till such time as the
employment contract is terminated by either party after giving prior notice.

2. What is the difference between a limited and an unlimited employment

contract?
A limited contract has the following characteristics:
1. It has a commencement and completion date.
2. Its term cannot be in excess of a period of 4 years. It can however be renewed on mutual consent
for a similar or lessee period.
3. The employment will terminate at the end of the contract period.
4. If the employer terminates the contract for reason other than those specified in Article 120, he
would be liable to pay compensation to the employee. This compensation shall be determined on
the basis of the wages due for a period of three months or for the remaining period of the contract
whichever is less, unless an article in the contract states otherwise.
5. If the contract is cancelled by the employee for reasons other than those stipulated in Article 121,
he will be liable to compensate the employer against any loss resulting from its cancellation. The
amount of compensation shall be computed on the basis of half-a-month's wages for three
months or for the remaining period of the contract whichever is less, unless the contract states
otherwise.
The characteristics of an unlimited contract are as follows:
1. The contract will state a commencement date but no completion date i.e. the date on which the
contract will end.
2. A contract will be considered "unlimited" if it is a oral contract or if it is not for a specified period or
it had been for a specified period and the parties continue to act on its terms & conditions after its
expiry, without any written contract specifying the completion date, or if the purpose of the
employment is to complete work not estimated within a specified time-frame or which is by very
nature not renewable.
3. The contract may be terminated on a mutual agreement by either of the parties by giving the
other 30 days notice of termination.
4. The contract may be terminated for a justified cause at any time on giving 30 days notice of
termination by either party to the other. The notice period may be less for an employee working
on daily basis.
5. The notice period may be extended for a period exceeding 30 days. It would then not be
acceptable for the parties to waive this notice period.
6. The employees wages during the notice period should be paid in full for the entire notice period
served.
7. In the event that no notice had been given, the person who ought to have given the notice must
compensate the other with the payment of a month's wage in lieu of the notice period.
8. As per Article 120, the employer may terminate the employee's contract without notice.
9. The employee may terminate the employment contact without notice in accordance with Article
121.
10. The employee will be entitled to compensation if the termination of the contract had been for an
unjustified cause. The court may award the employee damages, against the employer, provided
 that the damages so awarded does not exceed three months wages of the employee (calculation
to be based on the last wage paid to the employee).
11. The compensation for damages if any, awarded to the employee for unreasonable dismissal, will
be without prejudice to the employee's entitlement of end-of-service gratuity and payments in lieu
of notice, if notice had not been properly given.

3. What information should be stated in an employment contract?

The only information required by law to be specified in the employment contract is as follows:
1. Date of the employment contract
2. Date of commencement of the employment contract
3. Nature of the contract (limited or unlimited)
4. Designation/category
5. Term of the contract (for limited contracts)
6. The compensation package

IV. PROBATION PERIOD

1. What is stipulations regarding the probation period?
During the probation period either the employer or the employee may terminate the employment contract
with immediate effect without the employee being liable to pay end of service gratuity or the employee,
compensation for damages. According to Article 37 of the Law, the probation period can be for a
maximum period of six months. It is not permissible for the same employer to employ any person on
probation, more than once.

2. Is the period of probation included for the purposes of calculation of gratuity

and other terminal benefits?
The probation period, once completed, will be considered as employment with the employer. It will be
taken into account in calculating gratuity and other terminal benefits.

3. Are employers liable to pay repatriation and other benefits for probationary
termination?
All wages and benefits occurring during the probation period must be paid along with the repatriation
costs unless the termination of the employment contract had been at the behest of the employee. The
employer is however not required to pay end-of-service gratuity or compensation in lieu of notice or
damages should the employment contract be terminated without notice (during the probationary period).

4. Can the probationary period be waived?

The parties to the contract may agree to commence the employment without probation. Probation is not
compulsory. Further it is left to the discretion of the parties to agree upon the actual term of the
probationary period subject to a maximum of six months.

V. PAYMENT OF WAGES
1. What constitutes wage according to the Law?
Wages according to the Law, has been defined as follows:
"Remuneration paid to the employee in return for his services under a labour contract, whether in cash or
in kind; annually, monthly, weekly, daily, hourly, on a piece-rate, productivity linked. "Wage" include cost
of living allowances, incentives in recognition of honesty or efficiency, provided that these incentives have
been specified in the labour contract or in the establishment's internal rules and regulations, have become
customary or if the employees of that establishment have come to regard such incentives as part of the
wages as opposed to a donation.

2. What is the difference between "Wages" and "Basic Wage"?

"Basic Wage" is the wage specified in the labour contract and as agreed between the parties for the term
of the contract. Allowances of whatever nature are not included in the basic wage. Therefore,
accommodation, housing, transport and travel allowances will not be included in the basic wage.
Basic wage is significant in the calculation of end-of-service gratuity, which is determined on the basis of
the last drawn basic wage and not on the basis of the total wage. Allowances will not form part of the
basis for this calculation.

3. Does the Law prescribe a minimum wage?

No minimum wage has been prescribed under the UAE Labour Law. However, an employee with a
monthly salary of less than Dhs. 4,000.00 will not be able to sponsor a resident visa for his spouse. This
is a labour regulation and does not form part the labour law.

4. How are wages to be paid?

Wages may be paid on a monthly, weekly, or on a daily basis. The parties may mutually agree on the
manner in which wages would be paid or remitted. It may be paid in the UAE or elsewhere.

5. In what currency are wages to be paid?

Wages may be paid in any currency, in UAE Dirhams or any other currency. The parties may agree on
the actual currency. Neither the Labour law nor any other law of the United Arab Emirates restricts
repatriation or transfer of monies.

6. Does the law require evidence of payment of wages?

In the case of any dispute, the employer would be required to prove that the employee had been paid his
wages along with such allowances as applicable. Such evidence must be in writing. However, the
employee can prove non-payment of wages by any means stated in the law of evidence. It is necessary
that the employer maintains adequate record and books recording payment of wages and allowances.

VI. EMPLOYMENT OF JUVENILES

1. Does the law restrict the employment of any category of persons?
1. Employment of Juveniles (of either sex) under the age of 15 is prohibited. Before employing a juvenile,
employers must retain copies shall obtain from him the following documents in the Juvenile's personal
file:
a. A birth certificate or age-estimation certificate issued by a specialized physician and certified by
the concerned health authorities.
b. A certificate of physical fitness for the nature of proposed work, issued by a specialized physician
and certified y the concerned authorities.
 c. A written consent from the juvenile's guardian.
2. Further the employment of juveniles is prohibited under the following circumstances:
a. At night in industries.
b. In hazardous jobs or work which is harmful to health.
c. With working hours in excess of six hours per day (one or more breaks for rest is to be provided within
the stipulated six hours).
d. To work overtime under any circumstances or to remain at the place of work after their working hours.
e. Work on holidays.
f. Employment of women at night between 10.00 p.m. to 7.00 am is prohibited, save and except for the
following situations/categories:
i. During work stoppages due to force majeure.
ii. Employees in relatively technical and administrative position.
3. Health workers - other jobs as determined by the Minister of Labour and Social Affairs, provided that
the woman employee does not usually perform a manual job.
g. Woman are not to be employed in hazardous or difficult work and, other duties harmful to health or
morals, or in other jobs as may be specified by the Minister of Labour and Social Affairs.

VII. WORKING HOURS

1. What are the prescribed working hours?
The maximum prescribed working hours for an adult employee is eight hours daily or forty-eight hours per
week. However, the working hours may be increased to nine hours per day in the case of persons
employed in trades, hotels, cafeterias, guards.

2. Would travelling to and from work be included in working hours?

No, the time travelling to and from work is not included in working hours.

3. Are breaks included during working hours?

The employee may not work for more than 5 consecutive hours per day without breaks for rest, food and
prayer. However, the resting and the food will not be included in calculating the working hours. In the case
of factories where people work day and night, shifts or jobs where for technical and economical reasons,
continuance attendance is required, the ministers shall specify the manner in which the employee may
take intervals for rest, prayer and meals.

4. In what situations does overtime exist, and on what basis is it calculated?

If the nature of the job requires overtime, the employee shall be paid overtime and the payment shall be
equivalent to the wage paid for the ordinary working hours plus an increase of not less than 25% of his
wage for the overtime period. However, if the employee's overtime fall between the hours 9.00 p.m. to
4.00 p.m. the employee will be entitled to an overtime equivalent to the normal working hours plus an
increase of not less than 50% of his wage for the overtime period.
If circumstance of work require the employee to work at the place of work on Friday, he shall be given
another day for rest during the week as a substitution or be paid a basic wage plus a minimum of 50% of
that wage. However, the employee shall not be asked to work two consecutive Fridays unless his wages
are calculated on a daily basis.
In any circumstances, overtime shall not exceed two hours in a day except where work is necessary to
prevent big losses, a serious accident or to remove traces of such an accident, or reduce its effects.
The above provisions however, will not be applicable to the following persons.
1. Persons in a senior position, or in an administrative supervisory role, if such persons have similar
authority over employees, as the authority of the employer.
2. Crews of naval ships and marine employees who enjoy special privileges because of the nature
of their work. This does not include port employees engaged in loading and unloading and other
related work.

VIII. ANNUAL LEAVE

1. What are an employee's leave entitlements?
For every year of service, an employee is entitled to an annual leave of not less than the following:
i. Two days leave for every month if his service is more than six months and less than a year.
ii. 30 days annually if his service exceeds one year. At the end of the service the employee is
entitled to an annual leave for the fraction of the last year he spent in service.

2. Which official holidays are the employee entitled to ?

An employee is entitled to an official holiday with full wage for the following occasions:
1 Hijri New Year's Day one day
2 Gregorian New Year's Day one day
3 Eid Al Fitr (end of Ramadan) two days
4 Eid Al Ada and Waqfa three days
5 Prophet Mohammed's Birthday one day
6 Isra and Al Mi'raj one day
7 National Day one day

3. Are official holidays excluded from the calculation of leave?

No. The calculation of duration of annual leave shall include holidays specified by law or by agreement, or
by any other day because of sickness if they fall within the leave and shall be deemed to be part thereof.

4. What would be payable to the employee during his annual leave?

An employee shall be paid his basic wage plus the housing allowance, if applicable, and any other
allowances which he receives in the normal working month.

5. Who determines when the leave starts and for how long?
The employer has the right to determine the beginning of the annual leave, and when necessary, he has
the right to divide the leave into two sections.
If however, work circumstances require keeping the employee during whole or part of his annual leave
and the leave has not been carried over for the following year, then the employer shall pay him his wage
in addition to a leave allowance for the day he worked equal to his basic wage.
In all cases, no employee shall be required to work during his annual leave more than once during two
consecutive years. In other words, the employer may only defer the annual leave once in two consecutive
years and at the same time pay the employee the annual leave wages.
6. At which point should annual leave wages be paid?
Before taking his annual leave, the employee shall be paid his full wage, plus the wage of his leave days
he deserves according to the provision of this law.

7. Is the employee entitled to payment in lieu of leave if his services are

terminated?
The employee is entitled to payment of his wages for his leave if his employment is terminated, or he left
his work after the period of notice determined by law. The employee will be entitled to receive wages for
the annual leave that he has not taken. Payment will be calculated on the basis of the wages he received
at the time when the leave was due.

IX. SICK LEAVE

1. Is the employee entitled to sick leave?
The employee must report to the employer any injuries or illness preventing him from working, within a
maximum period of two days.
The employee will not be entitled for any sick leave during the probation period.
After a period of three months continuous service following the probation period, the employee is entitled
to:
1. Full wage for the first 15 days.
2. Half wage for the next 30 days.
3. Any following period will be without wage.
However, if the employee's illness is directly caused by his misconduct, he is not entitled to any wage
during the sick leave.

2. Can the employee resign from employment during the sick leave?
The employee may resign from employment during the sick leave and before the completion of 45 days
specified by law, provided the cause of resignation was approved by a government physician. In this
situation, the employer must pay the employee who resigned, all the wages of which he is entitled for until
the end of the 45 days referred to above.

3. Can the employer terminate the employee from service during his sick or
annual leave?
The employer may not terminate the employee from service during his sick leave or during his annual
leave. During this period any notice for termination will be considered null and void.
However, the employer is entitled to terminate the employment contract if the employee has exhausted
his full sick leave and is not fit to come back to work. In such a case the employee will be entitled for his
full gratuity and end of service entitlement according to this law.
Further, the employee will not be entitled to wages for the days that he has not reported to work after the
end of his leave. This will not prejudice the rights of the employer to terminate the employees contract if
he fails to report back to work within 7 consecutive days from the date on which he was due back.

4. Is going to Haj for pilgrimage considered part of the annual leave?.

The employer must give the employee once during his employment a special leave without pay to go for
Haj ( pilgrimage) which should not exceed 30 days. This 30 days will not be part of the employee's annual
leave or any other leave for which he is entitled.

5. Maternity leave entitlement

A working woman shall be entitled for 45 days maternity leave with full pay to include the period before
and after the delivery, provided she has served continuously for not less than one year. The maternity
leave shall be granted with half pay if the woman has not completed one year.
At the end of the maternity leave, a working woman has a right to extend her maternity leave for a
maximum of 100 days without pay. This unpaid leave can be continuous or interrupted if the interruption
is caused by illness which prevents her from coming to work. The illness must be confirmed by a certified
government physician licensed by the competent health authority.
Maternity leave in either of the above cases shall not be deducted from any other leave for which the
woman employee is entitled.
During the 18th months following the delivery, the working woman, who fosters her child has the right to
have two daily intervals which do not exceed half an hour each for the purpose of nursing her child. Those
two additional intervals shall be considered part of the working hours and no deduction in wages shall be
made.

X. EMPLOYEE RECORDS
1. What types of records must be kept by the employer?
An employer who has 5 employees or more in his service, shall adhere to the following:
1. Keeping a file for every employee giving his name, trade or profession, age, nationality, place of
residence, marital status, date of commencement of service, wage and any change in it, vacation,
illness and injuries, and the date of termination of service and the reason for termination.
2. A "leave card" for every employee to be kept in his file. It should be divided into three sections:
The first for annual leave, the second for sick leave and the third for other leave. The employee or
any one acting on his behalf shall note on his card all leaves taken by the employee for future
reference.
In addition to this, an employer who employs 15 employees or more shall keep in every place of
work or a branch of the place of work the following records and documents :
3. A record of payroll listing the employee's names according to the date of their recruitment along
with the daily, weekly or monthly wages, allowances or payments for piece work, commission as
well as length of service and date of leaving the job.
4. A record for work injuries listing work injuries or occupational diseases immediately the employer
is informed.
5. The basic rules and regulations for work should be displayed in a permanent, visible place, at the
site of work showing the basic regulations for work including working hours, weekly holidays,
official holidays, and the necessary safety precautions to avoid work hazards and fire dangers.
The implementation of these regulations and any amendments thereto have to be sanctioned by
the labour dept. within 30 days from the date of their submissions.
6. The company regulations relating to disciplinary measures must be permanently displayed in the
place of work. This must outline measures which may be taken against those who violate the
regulations.
The implementation of these regulations and the amendments thereof, will have to be sanctioned by the
labour department within 30 days from the date of submission.
 XI. SAFETY REQUIREMENTS
1. What are the safety regulations and measures required by law?
The UAE Federal Labour Law specifies certain provisions for employee safety and health care, stipulated
under Article 91 to Article 101. The provisions of the law require the following measures and procedures
to be adhered to:
1. Every employer should provide his employees with suitable means of protection against injuries,
occupational diseases which may be contacted during work, fire and hazards which may result
from the use of machinery and other work equipment. The employer shall apply all the other
precautionary measures specified by the Ministry of Labour and Social Affairs. The employee
however, has to use the safety equipment and clothes given to him for this purpose. He shall also
follow his employer's instructions which aim to protect him from danger.
2. Every employer shall display in a permanent and prominent place at the work site, detailed
instructions regarding the means of preventing fire and the means of protection of employees
from hazards to which they may be exposed during work. These instructions shall be in Arabic
and if necessary another language understood by the employee.
3. Every employer shall make available a first aid kit or kits containing medicines, bandages and
other first aid material as directed by the Ministry of Labour and Social Affairs.
4. Every employer shall keep every place of work clean and well ventilated. These places should
have adequate lighting and be provided with water suitable for drinking, and bathrooms.
5. An employee shall assign one or more physician to examine thoroughly those of his employees
who are exposed to the possibility of contracting one of the occupational diseases listed in the
schedule attached to this law. At least once every six months, these, "at risk" employees should
be examined and results recorded on their files.
6. An employer shall provide his employee with the means of medical care up to the standard
determined by the Ministry of Labour and Social Affairs in consultation with the Minister of Health.
7. The employer or his deputy shall inform the employee of the dangers of his job and the means of
protection that he has to take. He shall also display detailed written instructions concerning that at
work premises.
8. No employer, his deputy, or any person who has authority over employees shall bring or allow
others to bring any kind of alcoholic drinks for consumption on work premises. He shall also not
allow any person to enter the establishment or to remain in it, while he is intoxicated.
Every employer employing employees in remote areas not served by public means of transportation, shall
provide his employees with the following services:
a. Suitable transportation.
b. Suitable accommodation
c. Suitable drinking water
d. Suitable food
e. First aid services
f. Means for entertainment and sports activities
All the above services apart from food material will be on the employer's account.

XII. DISCIPLINARY CODE

1. What is the nature of the disciplinary code in the UAE Federal Law?
Yes, there is a disciplinary code in the UAE Federal Labour law which provide for the provision of
disciplinary measures which any employer or his representative may impose upon his employees. They
are as follows:
1. Warnings
2. Fines
3. Suspension from work with a decrease in wages for not more than 10 days.
4. The prevention of periodical allowances or the postponement of in establishments where such
allowances exists.
5. The deprivation of promotion in establishments where promotions exist.
6. Termination of service without prejudice to the payment of all end of service benefits.
7. Termination of service and the forfeiture of all or some of his gratuity. This punishment shall not
be imposed for any reason other than those mentioned in Article 120 of this law.

2. What is the maximum fine an employer can impose on his employee?

A fine may be a fixed sum of money or an amount equivalent to the employee's wage for a certain period.
A fine for one violation shall not exceed 5 day's wages, and indeed in any month total fines shall not
exceed an amount equivalent to 5 day's wages.

3. If a fine is imposed, who should keep the money deducted from the employee's
wages?
A fine imposed on an employee shall be entered in a special register giving the reason or the
circumstances, name of employee and his wage. A special account shall be kept for these fines, the
monthly total of which shall be spent on social welfare for the employees.

4. How often and for what length can an employer deprive an employee from the
periodical allowances or promotion.
Any punishment depriving an employee of his periodical incentives may not be imposed more than once
within one year. His incentives shall not be postponed for more than six months.
Further, no employee shall be deprived of more than one promotion. The punished employee shall be
promoted in the first succeeding opportunity if he satisfies the necessary conditions.

5. What are the limitations and the conditions required by the law pertaining to
the use of disciplinary codes?
The employer may not impose any disciplinary measures on the employee unless the following conditions
are met:
1. No disciplinary action shall be taken against any employee because of something he committed
outside the place of work unless it is related to work, the employer or the manager in charge of
the work.
2. No more than one punishment shall be imposed for one violation. A disciplinary punishment shall
not be accompanied with deduction of part of the employee's wages.
3. None of the punishment provided for referred to here above shall be imposed on a employee
unless he is informed of his violation in writing and given a chance to defend himself. His
 statement and defense shall be noted and written in his file, and the punishment imposed shall be
spelled out at the end of the said note.
4. An employee must be informed in writing of the punishment imposed on him, stating its type and
amount, the reason thereof and the punishment he shall be subject to in case of recurrence.
5. No employee shall be accused of an offense after the lapse of 30 days of its discovery. No
disciplinary action shall be imposed after the lapse of 60 days from the end of investigation
regarding the violation, and the confirmation of its recurrence.

6. Under what conditions can an employer suspend an employee from

employment?
An employee may be temporarily suspended from work when he is accused of committing a deliberate
crime such as physical assault, or financial crime, crimes of honour, or going on strike.
The suspension shall take effect from the date of informing the concerned authority of the incident until a
decision is taken by these authorities regarding that incident. An employee shall not be entitled to his
wages during the suspension period. If the verdict relieves the employee from standing trial or acquits
him. He shall be reinstated in his work and given his full wage for the suspension period if his suspension
was a malicious act by the employer.
XIII. WORK ACCIDENT
1. What is the nature of reporting labour accidents and occupational diseases?
If the employee suffered a work accident or an occasional disease, the employer or his representative
shall report the accident immediately to the police and labour department or one of its branches under
whose jurisdiction the place of work falls. The information shall include the employee's name, profession,
address,
nationality and a brief description of the incident and its circumstances, and the measures taken for
treatment or first aid.

2. Would the employer be prosecuted for an accident or an injury to an

employee?
Upon receiving the information from the employer, the police shall perform the necessary investigation
stating in their report testimony from witnesses, the employer or his representative, and the injured person
if his condition allows him to testify. The report shall specifically state whether the accident related to
work, whether it took place intentionally, or as a result of misbehavior on the part of the employee.
If the report came to the conclusion that one of the employer's personnel or Managers were at fault or
negligent, he may be prosecuted in a criminal court for the act or omission.

3. Would the employer be liable for the compensation?

In case of work accident and occupational diseases, the employer shall under take to pay the cost of the
employees treatment in one of the government or private clinics till the employee recovers or his disability
becomes certain. The treatment shall include hospital and sanitary fees and cost of surgical operations,
X-rays and laboratories fees in addition to the cost of medicine and rehabilitation equipment and artificial
parts for those whose disability is proven. The employer shall also pay the travel expenses needed for the
employees treatment.

4. What would the employer pay if the employee were not able to perform his
work after the accident?
If the injury prevented the employee from performing the duties of his job, the employer shall pay him a
grant equivalent to his wage during the treatment period
or for six months whichever is less. If the treatment takes more than six months, then the grant shall be
reduced by half for another six months or till the employee recovers, his disability becomes certain, or he
dies, whichever comes first.

5. How much would the employer pay the employee during his treatment?
The financial grant made by the employer shall be calculated on the basis of the last wage the employee
was paid in respect of those who are paid monthly, weekly, daily or hourly and on the basis of the
average wage for those who are paid on piece work basis.

6. Would the employee be entitled for compensation other than his wages?
The employee will not be entitled to claim compensation from the employer other than his wages and
compensation for disability according to the schedule published by the labour office. A copy of this
schedule is attached herewith to this catalogue. This is, of course, without prejudice to the employee's
right to claim compensation against any third party who may participate in causing the accident or the
disability suffered by the employee.

7. Is the employee's family entitled to claim compensation?

The employee's family is not entitled to claim compensation unless the accident caused the death of the
employee or his permanent disability. The compensation shall be equivalent to the basic wage of the
employee for a period of 24 months. The value of the compensation shall not be less than Dhs. 18,000/-
and not more than Dhs. 35,000/-. It shall be calculated on the basis of the last wage the employee was
paid before his death and divided among inheritors according to the rules of the list annexed law.

8. Who will be considered the heirs of the employee, entitled to receive

compensation?
In applying the rules of the Labour Law, the family of the deceased means those who depend for their
livelihood entirely, or mainly, on the income of the deceased person at the time of his death. They must
qualify by being included among the following categories:
1. Widower.
2. Children who are : sons under 17, and those under 24 who are enrolled as a regular student in
the institution of learning, and also those of his sons who are physically or mentally unable to
earn their living. The word "Son" shall include sons of the husband or the wife who are under the
care of the deceased employee at the time of his death.
3. Unmarried girls including unmarried daughters of the husband or the wife who are under the care
of the deceased employee at the time of the death.
4. Parents
5. Brothers and sisters according to the conditions set for sons and daughters

9. Would deliberate self injury receive a compensation or medical leave?

If it was evidenced in a report provided by the labour office or the police that the employee had
intentionally caused his own injury in order to receive compensation or medical leave then he would not
be entitled to either compensation or medical leave, and would be liable for criminal charges to be
brought upon him.
 XIV. TERMINATION OF CONTRACT
1. When does an employment contract terminated ?
An employment contract can be terminated in any of the following circumstances:
1. If the two parties agree to cancel a contract provided that the employee consents to this in writing.
2. If the contract term has come to an end, unless the contract has been explicitly or implicitly
extended according to the rules of the law.
3. As a result of a wish by one of the two parties, and the labour contract has an unspecified term,
provided that they observe the provision of the law referred to above, regarding notices and
acceptable reasons to cancel the contract without prejudice.

2. Would an employment contract be terminated by the death of the employee or

the employer?
An employer's death shall not constitute an end to the labour contract, unless the subject of the contract
is related to him personally. However, the contract will be terminated upon the death of the employee or
upon his total disability to perform his work.
However, if the employee's disability was partial, and he was able to perform other works which suited his
health, the employer shall transfer the employee to another such work, if the employee so requests and
give him the same wages for a similar job.

3. Under which circumstances can an employer terminate the employment

contract without notice and with immediate effect?
An employer may dismiss an employee without any notice in any of the following cases:
1. If the employee assumes a personality or a nationality other than his own, or has submitted fake
documents or certificates.
2. If the employee was appointed under probation and the termination happened during that period
or at its end.
3. If the employee commits a mistake causing the employer a big financial loss, provided the
employer informs the labour department of the incident within 48 hours.
4. If the employee violates instructions relating to safety in the place of work, provided those
instructions were written and displayed in a permanent place, and the employee has been
informed of these instructions orally if he is illiterate.
5. If the employee fails to carry out his basic duties as stated in the contract and continues to do so
inspite of a written interrogation and a warning that his service will be terminated if he repeats his
actions.
6. If he discloses a secret of the establishment for whom he is working.
7. If he is conclusively convicted by the concerned court of a crime involving honour or his honesty
and public moral.
8. If he is found drunk or intoxicated by drugs during working hours.
9. If he commits a physical assault on the employer or manager or one of his colleagues during
work.
10. If he becomes absent without a legitimate reason for more than 20 intermittent days or more than
7 continuous days within one year.
4. Can an employee terminate a contract without notice?
An employee may leave his work without notice in either of these two cases:
1. If the employer has not fulfilled his obligation towards him as provided in the contract or in this
law.
2. If he was assaulted by the employer or his legal representative.

5. Would changes in the structure of the company or its ownership be considered

a termination to the contract?
If there is a change in the form of the establishment or its legal position, any contract valid during the time
of change shall remain valid and the service considered continuous. Both the previous and the new
employer shall be jointly responsible for six months in executing the obligations relating to the contract of
the employee in the period prior to the change.
After the end of this six month period, the new employer shall alone be responsible.

6. Can an employee after the termination of contract be employed by other

employer in the UAE?
If the nature of the position held by the employee allows him to know his employer's clients or the trade
secrets of the employer, the employer may stipulate in the contract that after the end of his contract, the
employee shall not compete with him or share in any competing product. The employee has to be 21
years old at the time of signing the contract for this agreement to be legal. The agreement shall be, as far
as time, place and nature of work are concerned, limited to what is necessary to protect the legal interest
of the employer. However, if there were no agreements, the employee may work for another employer
provided in case of the employee being non-national, he is one of the categories exempted from six
months or a one year ban, and that he has not committed any violation to the law which makes him
subject to a one year ban from working in the UAE.

7. What employment ban provision apply upon the termination of an employment

contract ?
One year ban will be stamped on the employee passport by the Immigration office if the employee
violates the employment contract or the UAE Labour Law and Regulations. The six months ban will be
stamped on the category whom not permitted to transfer visa and on the cancellation of the some.
The following category are permitted to transfer of Residence visa:
1. Engineers.
2. Doctors, Pharmacists and hospital attendants.
3. Agriculture instructors.
4. Teachers
5. Qualified Accountants and Auditors
6. Qualified Administration officials.
7. Technicians of scientific electronics and laboratories.
8. Drivers licensed to drive heavy transport vehicles and (buses)
This is in case of transferring the sponsorship from a company or establishment to its counterpart
or to any governmental body.
 9. Employees of private oil companies are entitled to transfer their sponsorship from one company
or establishment to its counterpart or to any governmental body.
Provided always that:
1. The employee shall occupy with the new employer the same position he used occupy with the
previous employer.
2. The employee must have a valid residency stamped on his passport.
3. the employee should have completed at least one year with the previous employer.
4. The employee must obtain the consent of the sponsor to transfer the sponsorship.
With the following exception to the above rules:
1. If the transfer was to be from one branch to another branch within the same company,
establishment or an establishment owned by the same employer.
2. If the transfer was because of the transfer of the ownership of the company, establishment or a
branch of it to the ownership of another company, establishment or person.
3. If the sponsor breached his liabilities and this resulted in the closing of the establishment.
4. If a court judgment was delivered the bankruptcy or the wind up and termination of activities of
the establishment.
5. In the case of the death of the original sponsor and his heirs do not intend to continue in running
the establishment and consequently it was closed.
This Rules has been -------- by Ministerial Decree No. 13 of 1991.

8. Which rules, if violated, will result in termination of the contract, and thus the
employee being banned from working in the UAE for one year?
If the employee without a justified cause, before the end of a specified employment contract, or in the
case of unlimited contract, leaves the employer, without giving one month's notice of termination, or
leaves his employment before the lapse of one month's notice.

9. Is the employer obliged to give an end of service certificate to the employee at

the end of the service?
An employer shall give his employee at his request at the end of the contract a service certificate free of
charge, stating the date of commencement of service, the expiry date, total service period, nature of work
carried out by the employee, his last wage and any allowances, if they exist.
The employer shall also return to the employee all that he has deposited with him like certificates, papers,
instruments etc.

XV. REPATRIATION OF EMPLOYEE

1. Who bears the repatriation expenses?
At the end of the contract, an employer shall sustain repatriation expenses of the employee to the place of
recruitment or to any other place which the two parties have agreed upon. If the employee served with
another employer at the termination of his contract, the new employer shall pay the cost of the travel at
the end of the service. However, if the employee is responsible for terminating the contract, he shall be
repatriated at his own expense if he has sufficient means.
2. Does the repatriation of the employee means that the employer has also to pay
for furniture and family members?
If the employer had paid for the travelling expenses of the employee, his family and the furniture or such
provision as stipulated in the contract, the employer then will have to pay for the family and the furniture
and any expenses incurred therewith. However, if at the time when the contract was commenced there
was no agreement on payment of family repatriation costs or furniture shipment costs and the employer
didn't pay for these at the commencement of the contract, the employer will not be liable to pay the same,
unless the rules within the establishment specify otherwise.

3. When does the employee have to vacate his accommodation if it was provided
to him by the employer?
In cases where the employer provides accommodation to the employee, the employee shall be obliged to
vacate the premises within a period that does not exceed 30 days from the date of termination of his
services. The employee may not extend this period for whatever reasons provided that the employer
actually pays for the following:
a. The repatriation expenses as agreed.
b. End of service benefits and other entitlements which are provided by the labour contract or the
regulation of the establishment.
In case of a dispute between the employer and the employee, the labour office must give the
recommendation of expenses within a week from the date the complaint is filed, and inform the employee
of the amount payable. In such a case, the 30 days will commence from the date the employee deposits
the amount recommended by the labour office with its office as deposit. In a situation where the premises
were not vacated, the Ministry of Labour will order the vacation of the premises with the assistance of the
local police in the emirate concerned. This of course, is without prejudice to the employee's right to
challenge the amount recommended by the labour office at the court.

XVI. PAYMENT OF GRATUITY

1. What is the employee entitled to at the termination of the employment
contract?
The employee at the termination of the employment contract will be entitled for to the following:
1. A notice period, or any amount due in lieu of the notice period, in the case of an unlimited
contract.
2. Compensation for the unreasonable dismissal if the contract was terminated by the employer for
unreasonable cause, in the case of an unlimited contract.
3. In the case of a limited contract, compensation equivalent to the period until the end of the
contract, or three month's salary whichever is greater.
4. Payments equivalent to the balance of unutilized leave or any part thereof.
5. Payments for overtime or any balance of wages due and not yet paid.
6. End of service gratuity calculated on the duration of the employment.
7. Repatriation expense as per the law or the contact.

2. What does the term end of service gratuity mean in terms of compensation?
An employee who completes one year or more in continuous service shall be entitled to gratuity at the
end of the service. The gratuity shall be calculated as follows:
 1. 21 day's wages for each year of the first five years.
2. 30 day's wages for each additional year on condition that the total of the gratuity shall not exceed
the wages of two years.

3. How is gratuity calculated?

Gratuity is calculated on an annual basis if the employee has actually completed one year of employment
with the employer or more. The day of absence from work without pay shall not be included in calculating
the length of service. However, if the employee completed a year in service he will be entitled to a gratuity
for the fraction of the year proportional for the part of the year he spent in work provided that he has
completed one year in continuous service.

4. On what basis is gratuity calculated?

Without prejudice to what is stipulated by some laws in the granting of pensions or retirement benefits to
employees, in some establishments gratuity for those who are paid monthly, weekly or daily wages shall
be calculated as follows:
Basic wage which is taken as a basis for the calculation of gratuity is that which is last received by the
employee before the termination of the employment contract. This wage will be the basis for calculating
the gratuity for all the years during which the employee works for the employer calculated at the rate
advised here above.

5. What does a basic wage mean?

A basic wage means anything received by the employee as a wage excluding housing, transport,
travelling allowances and overtime, family allowances, entertaining allowances and any other allowances
or a bonus.

6. Would a commission or payment by percentage be considered a basic wage?

According to recent judgment delivered by the UAE court, any amount payable to employee as wage
other than allowances or bonus including wages paid by percent, commission or by performance will be
considered a wage and will be taken into consideration in calculating gratuity.

7. Would an employee employed prior to the law coming into use be entitled to
gratuity?
According to the UAE law, employees who are working with their employer prior to the date on which the
law came into force will not be entitled for gratuity for the period preceding the law. Without prejudice to
any entitlement or payment they were entitled to under laws or regulations. However, gratuity for those
employees will be calculated on the date the law came into force thereafter.

8. Can the employer deduct any payment from the gratuity payable to the
employee?
The employer may deduct any amount due and payable to the employee to the employer from the end of
the service gratuity and make payment for the balance to the employee. If there is any dispute over
payment of gratuity or amount payable to the employer, the matter should be put to the labour office for
mediation.
9. Does it make difference to the amount calculated for the gratuity if the
employee resigned from employment?
An employee employed under a contract for unlimited period who resigned after a continuous service of
not less than a year and not more than three years is entitled to one third of the end of service gratuity
provided above. If the period of continuous service was more than three years and less than five years he
is entitled to two thirds of the gratuity.
If his continuous service was more than five years, he shall be entitled to the full gratuity.
If an employee who is employed under a contract of limited period, resigned with his free will before the
end of the contract, he shall not be entitled to the end of service gratuity unless his continuous service
exceeds five years.

10. Can an employee be deprived of his end of service gratuity and under what
circumstances?
An employee may also be deprived of his gratuity in either of the following two cases.
He has been dismissed for one of the reasons stated in Article 120 of this law, or if he left work to avoid
dismissal.
If he left his job voluntarily without notice in cases other than the two provided for in Article 121 of this law.
This applies to unlimited period contract and in cases where the employee did not complete five years of
continuous employment in a contract of limited term.
If the establishment or company has a pension scheme which is beneficial to the employee, would it be a
substitution for payment of gratuity?
If the employer has pension scheme applicable to all employees at the company or the establishment,
such a scheme must be published and known to all employees, and at the same time, specify that this
scheme will be a substitution for the gratuity rules governed by the UAE Federal Labour Law. It must be
more beneficial to the employees than the gratuity provision of the law. Otherwise the employee may
benefit from both.

11. Can the employee and the employer agree to pay gratuity for determination of
the employment contract for the proceeding period?
The employer and the employer may agree to pay at a certain time the gratuity to the employee for the
years during which the employee served the employer, and to start with a new contract for the future
period. Provided always however, that this agreement is clearly stated, acknowledged, and agreed
between the employee and employer whereby gratuity will be paid for the proceeding period, and a new
contract will be entered into for the future relationship. This, bearing in mind that the employee's
employment with the employer will still be considered as a continuous period for the purpose of the
calculation of the interest, or at the time when he resigns, calculating the years during which he was
employed with the employer.

12. Can an employee mortgage or assign payment of his gratuity?

It is possible to mortgage or assign payment of the employee's gratuity to the employer or to the third
party by mutual agreements provided that in the agreement with the third party, the employer and the
employee should consent and agree to this in writing with an understanding of all parties that the
employee may forfeit his right for a gratuity which is not yet due if he has violated the provision of the law
as stipulated above.

13. When does gratuity become due and payable?

Gratuity will only become due and payable at the end of or at the termination of the contract.
14. Would end of service gratuity and other dues payable to the employee be
considered priority debts?
The employee's wages, overtime, and any other benefits, including the end of service gratuity, is
considered a preferential debt and the employee shall have a lien over any movable or immovable
property owned by the employer ranking second to government charges, judicial fees and family alimony
payments.

XVII. DISPUTE SETTLEMENT

1. In case of a dispute between the employee and the employer, how can either of
them proceed with a case?
In case of a dispute between the employee and the employer, or either, an application must be made,
should either of the party fail to settle the dispute, to the labour office in the emirate in which the
employer's establishment is located. The application must be made by written complaint with the
complaint department at the labour office, setting out a summary of the facts, calculation of the amount
due, and enclosing a copy of the labour contract. The application will be filed with the Ministry upon
collection of Dhs. 100 as registration fees. Either the employer or the employee will be summoned to hear
the argument at the labour office, and at the Ministry of Labour and Social affairs must make the
recommendation within two weeks from the date on which the application is filed. Should the party still fail
to settle the dispute as recommended by the Labour Office, the matter will then have to be referred to
court to be litigated in the normal matter. In such a case, the Labour Office will issue summary of the
case, the facts of the case, and the memorandum together with the recommendation, and the argument
put by either party. The court, within 3 days from the date on which application is received, shall schedule
a hearing date and summon the other party to hear the matter.

2. Should the application to the labour office and the court be made within a time
limit?
A complaint by either the employer or the employee must be made to the labour office within one year
from the date on which the amount or the entitlement becomes due. In other words, the one year time
period, is not from the date the employment is terminated, but from any date an amount become due and
not paid. A complaint therefore must be filed within a year from the date on which such an amount
becomes due, otherwise, it will be time barred.
In calculating time and period according to this law, the Gregorian calendar will be used. The year is
calculated as 365 days and the month 30 days.

3. Is the employer or the employee have to pay court fees if the matter was
referred to court?
Employees are exempted from court fees and his action will be filed in court and if an appeal is filed, to
the appeal court, without having to pay any court fees. However, an employer, if he would like to proceed
with the court action, should the matter fail to settle at the labour office, must pay court fees, which are
normally based at a percentage of the amount claimed.

4. Is there a different rule for the complaint filed by a group of employees against
one employer?
The law provides slightly different provision for hearing claims by the Labour Office for a number of
employees of the same establishment, filing a complaint against their employer. It may take longer to be
settled at the Labour Office and the Labour Office may form a committee to settle such a dispute.
 XVIII. LABOUR INSPECTIONS
1. Would the Labour Office or any other competent authority be entitled to inspect
the establishment or commercial entities established in the UAE?
The Labour Inspection Dept. and the personnel employed therein shall undertake labour inspections and
shall have the power provided in this law. The inspector shall carry the identification card issued by the
Ministry of Labour and Social Affairs, and shall be entitled to enter premises for inspection. Employers
and their agents shall present the labour inspectors with all necessary facilities and information to perform
their duties and shall consent to any summons to appear before them, or send a delegate to appear on
their behalf, if they are required to do so.

2. What is the jurisdiction and the authority of the labour inspectors?

A Labour Inspector has responsibility for the following:
1. Supervising the proper enforcement of the provision of the labour law especially terms of work,
wages and protection of the employees while performing their jobs and whatever relates to their
health and safety, and also in the employment of juveniles and woman.
2. Providing employers and employees with the information and technical guidance that will enable
them to adopt the best means for the enforcement of the provision of the law.
3. Informing the concerned authority of any loop holes which the provision enforcement fails to
remedy and recommending any necessary steps.
4. Recording incidents where the provisions of the labour law and the regulations have been
violated.

3. Do the Labour Inspectors have the authority to enter legal entities and
premises?
A Labour Inspector has the right to:
1. Enter any establishment that is subject to the provision of the labour law at any time during the
day or night without prior notice provided that such entry is made during working hours
2. Conduct any test or investigation that may be necessary to ascertain the proper enforcement of
the law.
3. The labour inspectors further may question the employee or the employer, examine all records
which have to be kept under the provision of the labour law, take a sample or samples of material
used, or handled, in the industrial activities, and ascertain that notices and pamphlets required to
be displayed at the site of the work are in accordance with the provision of the law.

XIX. OCCUPATIONAL DISEASES

NO. TYPE OF DISEASE WORK CAUSING DISEASE
Poisoning by lead and its Any work involving the use or handling of lead and compounds which
1
compounds contain leads.
Any work involving the use or handling of mercury or its compounds or
Poisoning by mercury and materials containing mercury and any work involving exposure to the
2
its compounds. dust or gases of mercury or of its compounds or materials containing
mercury.
Any work involving the use of handling of arsenic or its compounds or
Poisoning by arsenic and materials containing arsenic and any work involving exposure to the
3
its compounds dust and gases of arsenic or of its compounds or materials containing
arsenic.
 Any work involving the use or handling of antimony, its compounds or
Poisoning by antimony and
4 materials containing antimony and any work involving exposure to the
its compounds
dust and gases of antimony or of its compounds.
Any work involving the use of handling of phosphorus, its compounds or
Poisoning by phosphorous materials containing phosphorous and any work involving exposure to
5
and its compounds the dust of gases of phosphorus or of its compounds or materials
containing phosphorus.
Poisoning by petroleum, its
Any work involving the handling or use of petroleum, its derivatives and
6 derivatives, compounds
compounds and any work involving exposure to their dust or gases.
and by-products
Any work involving the use or handling of manganese, its compounds or
Poisoning by manganese materials containing manganese, and any work involving exposure to
7
and its compounds the gases or dust of manganese or of its compounds and any products
containing manganese.
Any work involving the use or handling of sulphur, its compounds or
Poisoning by sulphur and
8 materials containing sulphur, and any work involving exposures to
its compounds
gases or dust of sulphur or its compounds alloys.
Poisoning by petroleum, its Any work involving the handling or use of petroleum, its gases or by-
9 by-products and products and any work involving exposure to such substances, whether
compounds. in solid, liquid or gas state.
Any work involving the use or handling of chloroform or carbon
Poisoning by chloroform or
10 tetrachloride and by work involving exposure to their gases, or to any
carbon tetrachloride
gases containing such substance.
Diseases resulting from
Any work involving exposure to radium or to any radio-active materials
11 radium, radio-active
or X-ray
substances (X-ray)
Any work involving the use or handling of or transfer of tar carbon, tar
Chronic diseases of the
machines, mineral oil, kerosene or cement or flour and similar materials
12 skin and burns of the skin
such as dust and the components and by-products or deposits of such
and the eyes.
items.
Any work involving frequent or continued exposure to light, heat or rays
Injuries of the eyes by heat
from molten glass or from heated or melted metals, or exposure to
13 and light and their
strong light and intense heat as would result in damage to the eye or
complications.
impairment of sight.
Any work involving exposure to a newly-generated dust of silica or
Lung diseases resulting
substances containing more than 5% of silica such as mining,
14 from silica dust, asbestos
quarrying, stone cutting or grinding, working in a stone cement factory,
and cotton dust.
glassing metals with sand or any other activity involved.
Any work involving contact with animals infected with this disease, or
15 Anthrax with their skins or animals infected with souffl or their horns and
fleece.
16 Glanders All works involving contacts with animals infected with this disease.
17 Tuberculosis Work at hospitals for the treatment of this disease.
18 Enteric fever Work at hospitals specialized in the treatment of this fever.

XX. PERMANENT DISABILITY RATING

DEGREE OF
NATURE OF PERMANENT DISABILITY PERCENTAGE
DISABILITY
PERMANENT
Loss of both arms from the shoulders and loss of any two or more
1 100
limbs
2 Complete loss of sight in both eyes or loss of two eyes 100
3 Complete paralysis 100
 4 Dementia or complete mental derangement 100
Wounds and injuries to the head or brain which cause continuous
5 10
headache
6 Complete deformation of the face 100
Injuries and wounds to the chest and internal organs which cause a
7 100
continuous and complete deficiency in the function of these organs.
PARTIAL
8 Loss of both legs from the top 90
9 Loss of hands from the elbow or above 85
10 Severe deformation of the face 80
11 Loss of both hands from the elbow 70
Complete loss of the right arm from the joint of shoulder or from the
12 70
elbow
13 Loss of both legs from the knees or above 70
Complete loss of the left arm from the joint of shoulder or from the
14 60
elbow
15 Loss of one leg from the knee or above 60
16 Loss of the right arm from the elbow or below 60
17 Loss of one leg from above 60
18 Loss of both legs from below the knee 60
19 Loss of all the fingers of the right hand including the thumb 60
20 Loss of the left arm from above or below the elbow 50
21 Loss of the fingers of the left hand including the thumb. 50
22 Loss of one leg below the knee. 50
23 Complete and permanent deafness 50
24 Complete loss of the tongue or permanent dumbness 45
25 Loss of both feet from the heel or below the heel. 45
26 Loss of the sexual organ 45
27 Loss of sight in one eye. 45
28 Loss of the right hand from the wrist. 38
29 Loss of the thumb or four fingers of the right hand. 35
30 Loss of the left hand from the wrist. 34
31 Loss of the thumb or four fingers from the left hand. 25
32 Loss of the one foot from the heel or below the heel 20
33 Loss of all toes in one foot including the big toe 20
34 Loss of three fingers of the right hand excluding the thumb. 20
35 Loss of the right index finger. 15
36 Loss of the distal phalanx of the right thumb. 10
37 Loss of the left index finger 10
38 Loss of three fingers excluding the thumb 10
39 Loss of all toes in a foot excluding the big toe 10
40 Loss of the big toe. 10
41 Loss of the distal phalanx of the left big toe 6
42 Loss of the middle finger in the right hand. 6
43 Loss of the middle finger in the left hand. 6
44 Loss of the ring finger in the right hand 6
45 Loss of the ring finger in the left hand 6
46 Loss of the little finger in the right hand. 6
 47 Loss of any finger in the left hand 6
48 Loss of the distal phalanx of any finger excluding the thumb. 5
49 Loss of the second phalanx of the index finger in the right hand 5
50 Loss of toes of the foot excluding the big one 5
51 Loss of one molar tooth 3
52 Loss of a canine tooth. 2
1. A permanent total disability in the functions of any organ or part of the body shall be considered
as a complete loss to that part or organ.
2. If the injured person was left handed, all compensation for injuries of the left hand shall be
considered as if they were for the right hand.
3. In the case of deformation or unnatural change to any organ or part of the body or any of the
senses not mentioned in the list, the rate of disability shall be estimated by the Medical Board
provided in Article (148) of this law which shall take into consideration similar cases in the list.

XXI. TERM OF DISTRIBUTION OF DEATH COMPENSATION AMONG MEMBERS

OF THE DECEASED EMPLOYEE'S FAMILY
If the widow (or widower), lives with the parents and offspring who were supported by the deceased, the
compensation shall be divided as follows:
1. The widow (or widower) shall take one eighth and if there are more than one widow (or widower), the
one eighth shall be divided equally among them, the parents shall take one third divided equally between
them, but if either of the parents is dead then the mother shall take one sixth, and the father shall take
one third and the rest for the offspring. If there are no children, the widow (or widower) shall take two
thirds of the compensation (to be divided equally among them if there are more than one) and the father
shall take the remainder. In cases where both parents are living they shall share that remainder equally. If
both parents are dead, the widow (or widower) shall have one eighth of the compensation (to be divided
equally among them if there are more than one widow) and the offspring shall get whatever remains. In
cases where there are no children and no living parent, the widow (or widower) shall take the whole
compensation. If there are more than one widow, the compensation shall be divided equally among them.
2. If there exists one or both of the parents and a child who were supported by a deceased employee who
left behind no widow, the child shall take two thirds and the remaining third shall go to the parent or
parents, who take equal shares.
3. In the absence of a widow (or widower), parents, brothers and sisters, the compensation shall be
distributed equally among the children of the deceased. If there is only one child, he shall be paid the
whole compensation.
4. If there are only parents, who were under his care, in the absence of a widow (or widower) and
children, the compensation shall be divided equally between the parents. If there is only one, he or she
shall take the whole compensation. Brothers and sisters who were supported by the employee at the time
of his death shall be treated in the absence of parents as parents.