Question: I spent almost 5 years with a company where my performance was recognized, but this recognition was purely verbal. I received no financial rewards in the form of raises or promotions. Now, as I transition to a new job, can I request that my new employer include a clause for increments every two years and a bonus? Does UAE labor law permit me to demand such terms in my contract?
Answer: Based on your inquiry, it is presumed that your new employer is a mainland company in Dubai with more than 50 employees. In the UAE, any benefits, whether monetary or otherwise, provided to an employee can be included in their employment contract. This is in line with Article 8 of Federal Decree Law No. 33 of 2021 on Employment Relations, as supplemented by Article 10(1) of Cabinet Resolution No. 1 of 2022 on the Implementation of the aforementioned Decree Law. This resolution states, “Subject to the provisions of Article 8 of the Decree Law: The employment contract should include the name and address of the employer, the name, nationality, and date of birth of the employee, proof of identity, qualifications, job or occupation, start date of work, workplace, working hours, rest days, probation period (if any), contract term, agreed salary including benefits and allowances, annual leave entitlements, notice period, procedures for terminating the employment contract, and any other data determined by the Ministry to regulate the relationship between both parties.”
Additionally, an employer should have an internal employee handbook or HR policy detailing additional benefits and employment rules. This aligns with Article 13(3) of the Employment Law, which mandates, “The employer shall establish internal work regulations, including work instructions, sanctions, promotions, benefits, and other bylaws and internal regulations in accordance with the controls set by the executive regulations of this decree law.” However, this may not be compulsory for entities with fewer than 50 employees. For those with more than 50 employees, an employee handbook or HR Policy is required, as per Article 14(4) of Cabinet Resolution No. 1 of 2022, which states, “Subject to the provisions of Article 13 of the Decree Law, establishments employing 50 or more employees shall set rules regarding work organization, such as work instructions, penalties, promotions and rewards, and procedures for terminating the employment relationship, subject to the following: The regulation of promotions and rewards shall include criteria and rules related to promotions and rewards.”
Given these provisions, you may propose that your new employer include clauses for increments and bonuses in your employment contract. However, this must be mutually agreed upon by both parties. If your employer agrees to specify the amount and frequency of increments and bonuses, these terms can be incorporated into the contract.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, the United Kingdom, and India. For more details about his firm, visit: www.amalawyers.com. Readers can email their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
