Working Hours and Holidays
6.1 The maximum normal hours of work for Employees shall be 8 a day and 48 a week.
6.2 The Employees will be entitled to public Holidays as announced by the UAE Authorities for the private sector with full pay.
6.3 The daily hours of work shall be so arranged that no workers shall work for more than five consecutive hours without breaks or rest, meals and prayer amounting in aggregate to not less than one hour. Such breaks shall not be reckoned towards the hours of work.
6.4 The normal hours of work shall be reduced by two hours during month of Ramadan and this will apply to all Employees, regardless of their religion. Any additional hours worked shall be entitled for overtime payments.
6.5 Where the circumstances of the work require a worker to work more than normal hours, overtime shall be paid at the rate of 25% more of the basic hourly rate, and overtime worked on Public Holidays shall be paid at the rate of 50% more of the basic hourly a\rate.
6.6 Shift working of Employees in any of the parks must notified to the Free zone Authority, Administration Department, in respect of number of shifts, hours and numbers to be employed per shift.
Residence Visa and Staff Recruitment
6.7 Only the Free zone Authority shall sponsor the staff who are to be engaged to work for licensees in the RAK Free Zone.
6.8 In order to qualify for an investor visa, an individual must have invested not be less than AED 50,000.00 in the Free Zone entity. This is not applicable for branch entities,
6.9 A Licensee, who wants to recruit staff, will be required to sign a Personnel Secondment Agreement with the Free Zone Authority. This agreement lays down the conditions under which the Free zone Authority will act as sponsor for a Licensees’ Employees.
6.10 The Employee need to submit the necessary documents required by the Naturalization and Immigration Department for approval of the visas in a particular category.
6.11 The Licensees should give a Bank Guarantee in respect of each Employee sponsored by the Free Zone Authority. The Free Zone reserves the right to request for a single Bank Guarantee, on case to case basis, to cover the anticipated to total number of Employees.
6.12 The Free zone Authority will waive the requirement for a Bank Guarantee in respect of a maximum of five company officials included in any of the following grades; Owner, Partner, Director, General Manager, Manager
6.13 The Bank Guarantee for sponsored staff shall be calculated on the basis of Employee’s one month salary plus the cost of a one way Air ticket to the Employee’s point of origin at the published IATA rate.
6.14 Staff sponsored by the Free Zone Authority may only work in RAK Free Zone. The staff may live ad travel anywhere in UE.
6.15 When a Licensee requires an Employee to work outside the Free Zone for some particular job (e.g. installation, repair, or maintenance of specialist equipment) the Free zone Authority shall permit on temporary basis.
6.16 Sponsored staff are only allowed to work with the Licensee they are seconded to. Under no circumstances they will be allowed to work for other Licensees, even during their free time or holidays. Licensees shall not recruit, employ o make use of Employees of other Licensees.
6.17 Transfer of Employees between the Licensees inside the Free Zone are permissible, provided, both the Licensees agrees and the Free zone approves.
6.18 The Authority does not accept application to transfer sponsorship to a company outside the Free Zone other than Government organization and other Free Zones.
Employing Non-Sponsored Staff
6.19 Licensees can employ non-sponsored staff in the Free Zone, either temporarily or permanently, from the following category only:
e. A female sponsored by parent or husband.
f. Employee of a parent Company registered in the UAE.
g. Employees sponsored by Sister Concerns of Licensees.
6.20 Approved non-sponsored staff must obtain the appropriate ID card or entry for entry in to out of the Free Zone Parks.
Employment Contract, Minimum Salary and Other Benefits
6.21 Free Zone licensees who will be recruiting Employees under the sponsorship of the Authority are responsible to bear the following costs. Under no circumstances will these expenses be charged to the Employee or deducted from his/ her salary.
a. Cost of processing the Entry Permit.
b. Cost of air ticket from the Employees’ point of origin.
c. Cost of processing the Residence permit.
d. Cost of Health Card and Medical Check-up.
e. Cost of Finger Print.
f. Cost of renewal of residence permit and Health card (Including the cost of Medical Fitness Certificate)
g. All medical expenses incurred by the Employee during the sponsorship.
6.22 All sponsored Employees shall sign an Employment Contract and get it attested by the Free Zone remitting the prescribed fee by the Free Zone. Those who are exempted from providing a Bank Guarantee are required to sign an undertaking in lieu of the Employment Contract to the effect that they shall not make any claims against the Free Zone Authority as Sponsor. The effective date of the contract shall be the date of entry on the employment visa, or with the transfer date at immigration.
Passports
6.23 For security reasons, the Passports of the Employees of Licensees, who are sponsored by the Authority, should be deposited with the document storage companies or bank lockers listed by the Free Zone Authority. A receipt of the same shall be submitted to the Free Zone Authority.
6.24 The Employees shall make sure that they hold a passport at all time.
Salary and Leave
6.25 The salary and other benefits for staff recruited by Licensees may be negotiated between the Employer and Employee. But, the minimum salary acceptable to the Authority for sponsored staff is AED 500.00 per month plus food, accommodation and transport.
6.26 The Licensee shall pay the salary and all benefits due to the Employees in time and date scheduled.
6.27 The proof of payment and receipt of salary payment shall be submitted to the Free Zone accounts department upon request. Failure to prove the payment of salary will result in sanctions from the Free Zone
6.28 Every worker shall, within each year of service, be granted a period of annual leave not less than 30 days a year provided the workers service is more than 6 months.
6.29 All other leaves as per the prevailing labor law of UAE shall be applicable to the Employees.
Termination of Employment Contract
6.30 A contract of Employment may be terminated in either of the following cases:
a. By mutual agreement between the Employer and Employee and with the approval of the Free Zone Authority.
b. By the Employee or Employer during, or at the end of probation period (without notice).
c. By the Employee or Employer giving 30 days notice in writing (after the probationary) period
d. On expiry of the service period prescribed in the contract, provided 30 days notice not to renew is given by wither party.
e. If the Employee dies during service
f. Illness of, or injury to, the Employee resulting in a total incapability to work (which is subject to the provision of a medical report by an acceptable authority.)
6.31 An Employer or Employee shall be entitled to 30 days notice before termination of service.
6.32 The employee shall be entitled to full pay during the notice period. The Employee may be required to work during the notice period should the Employer so wish.
6.33 If an employer reduces the notice period the Employee will be entitled to payment for the full notice period of 30 days, even if only part of the full period is worked.
6.34 If an Employee wishes to reduce the notice period the Employer will be entitled to receive payment from the Employee for any portion of the prescribed 30 days notice period not worked.
6.35 The Employee’s contract may be terminated by the Employer without notice (subject to approval by the FZA), if the Employee:
a. Adopts a false identity or nationality or submits forged certificates or documents.
b. During or on expiry of the probation.
c. Causes substantial loss to the Employer.
d. Violates safety riles.
e. Is finally convicted by any competent court for an offense involving honor, honesty or public morals.
f. Is found drunk or under the influence of drugs during working hours.
g. Are ill disciplined, assaults the Employer, higher authorities or work mates while at work.
h. Is absent for work without a valid reason for more than 7 consecutive days or over 20 days in one year.
6.36 An Employee may cease work without notice (subject to approval by the Free Zone Authority) if:
a. The Employer fails to fulfill the terms of the contract of employment
b. The Employer, or his representative, assaults the Employee.
6.37 Dismissal for any reason other than those in clause 6.35 shall be deemed to be an arbitrary dismissal. In such cases the Employee shall be entitled to compensation in additional to severance payments.
6.38 The amount of compensation to be paid shall be assessed by the Free Zone Authority and shall not exceed three times the basic monthly wage specified in the Employment Contract. The Authority’s decision shall be final.
6.39 Where a change occurs in the form or legal status of an establishment, Employment Contract that were valid at the time of the change shall remain in force between the new Employer and the existing Employees of the establishment and their service shall be deemed to be continuous.
6.40 If an Employee transfers to another Employer, service will not be considered to be continuous unless special arrangements to the contrary are agreed.
6.41 The employment Gratuity and Severance payment shall be made in compliance with the prevailing labour Laws of UAE.
6.42 On termination of service, (at end of contract or if the contract is terminated by the Employer prior to completion of contract), the Employer shall provide an air ticket to the International Airport nearest to the Employee’s home. This is not applicable for Employees who had submitted their resignation without proper reasons (to be judged by the Free Zone Legal Department) or had not completed at least two years of service with the same Employer.
6.43 If an Employees contract is automatically renewed in accordance with the Contract o Employment, then having completed his initial contract, he is entitled to an air fare either in the event of submitting his own resignation or on his dismissal, whenever this occurs.
6.44 The Employee, on termination of service may request, and the Employer shall provide if so requested, a Service Certificate to show period of Service, work performed while employed, last drawn salary and a character reference. Such service certificate shall be provided free of charge.
6.45 The authority is responsible for resolving any labour disputes arising between the Licensee and the Employee. Where the Legal department fails to make the two parties reach agreement, then the matter shall be referred to the Free Zone Management by the Legal Department. The decision of the Free Zone Management shall be binding on both Licensee and the Employee.
6.46 Any unexplained absence of seven days by a sponsored Employee must be notified by the Licensee to the Free Zone Authority Legal Department immediately on writing. The Free Zone Authority will then notify the immigration Authorities and will also advertise the absence in the Local Press. The cost of such advertisements plus related costs will be chargeable to the concerned Licensee.
Reporting of Accidents or Serious Illness
6.47 In the event of an Employee suffering any serious or fatal accident, it shall be the Employer’s responsibility to report it to the Free Zone Authority.
6.48 In the event of any Employee suffering from infectious disease, the Employer shall be required to promptly notify the Free Zone Authority.
Employees/ Third party Insurance
6.49 The Licensee’s are required to take out Employer Liability, Third party and Workmen’s compensation insurances from any of the Insurance companies in UAE.
6.50 Workmen’s’ Compensation insurance must include cover of Death, injury/ Disability compensation and related medical expenses in accordance with both the Federal Labour Law and Free Zone Rules.
6.51 A copy of the insurance policy for the employer liability, Third party Liability and for the Workmen’s compensation must be forwarded to the Free Zone Legal Department. A Certificate from the insurers is also to be addressed to the RAK Free Zone Authority.
Workmen’s Compensation
6.52 An Employee who is the victim of an accident at work which in total or partial permanent disability will be eligible for financial compensation. An accident, which occurs while traveling in the course of an Employee’s duties, or going to or coming from work, shall be treated as a work related accident and these rules will apply.
6.53 The Employer will be responsible for payment for all medical treatment, including hospitalization costs needed by an employee involved in such accident.
6.54 On submission of the relevant medical proofs, the Employer will pay an Employee who cannot work due to a work related accident, the monthly salary (including benefits other than traveling allowance). This payment will be made for three calendar months from the date of the accident. Thereafter, payment will be made at half the monthly salary rate for a further three-month period.
6.55 An Employee shall not be entitled to compensation in accordance with these rules if enquiries by the competent Authority establish that the Employee caused the accident through willful neglect or misconduct, International violation of safety regulations or being under the influence of drugs or alcohol.
6.56 In case of death resulting from an industrial accident, compensation of at least AED 35,000.00 will be payable by the Employer to the Employee’s next-of-kin together with any other monies due.
6.57 If an Employee is wholly, or partially disabled, compensation will be payable by the Employer in accordance with the classification of the degree of disability made by a competent Medical Authority appointed by the Free Zone Authority, or the Department of Health an Medical Services.
Employees Accommodation
6.58 Accommodations for Licensees’ Employees are available at the Industrial Park and Technology Park of RAK Free Zone.
6.59 Lessees who have leased Employee’s accommodations are required to comply with all terms and conditions of the Tenancy Contract, Free Zone Rules and Accommodation Regulations. Non compliance will result in the termination of Tenancy Contract without notice.
6.60 Licensees wishing to accommodate their staff outside the Free Zone labour accommodation must first seek the approval of the Authority. To obtain this approval, the following information should be submitted to Free Zone Operations Department:
a. Detailed address and Location of the premises which is to be used accommodation.
b. The number of people who will be occupying each room.
c. Copy of the tenancy contract.
6.61 The Authority shall carry out regular inspections in order to ensure that these standards are maintained.
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