Khaleej Times, Sun, Mar 17, 2024 | Ramadan 7, 1445
UAE: Can employees get paid for overtime hours in Ramadan?
Emirates:
Question: Can I earn overtime by working more than the normal Ramadan
working hours in a mainland company? How does that work?
Answer: Pursuant to your query, the provisions of Federal Decree Law
No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution
No. 1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021
Regarding the Regulation of Employment Relations are applicable.
An employee is entitled to two hours of reduced working hours during the month
of Ramadan in UAE. This is in accordance with Article 17(4) of the Employment
Law read with Article 15(2) of the Cabinet Resolution No. 1 of 2022, which
states, “The regular working hours shall be reduced by two hours during the holy
month of Ramadan.”
Furthermore, an employee may be entitled to overtime payment, if his or her
employer calls upon its employee to work on an overtime basis. This is in
accordance with Article 19 of the Employment Law, which states, “1. The Employer
may employ the employee for additional working hours, provided that they do not
exceed (2) two hours a day, and the employee may not work more than such hours
unless according to the procedures and conditions specified by the Executive
Regulations of this Decree-Law. In any event, the total working hours shall not
exceed (144) one hundred forty-four hours in (3) three weeks.
2. If the work circumstances require that the employee be employed for hours
exceeding the ordinary working hours, such extended time shall be deemed
overtime for which the employee shall be paid his basic salary for his normal
hours of work plus a supplement of at least (25%) twenty-five per cent of that
salary.
3. If the work circumstances require that the employee be employed for extra
hours between 10 pm and 4 am, the employee shall be paid his basic salary for
his normal hours of work plus a supplement of at least (50%) fifty per cent of
that salary. This paragraph shall not apply to employees by shifts.
4. If the work circumstances require that the employee be employed on the rest
day specified in the employment contract or the internal work regulations, he
shall be compensated with a substitute rest day, or be paid his basic salary for
his normal hours of work plus a supplement of at least (50%) fifty per cent of
the salary.
5. The employee may not be employed more than two consecutive rest days, except
for the daily employees.”
Moreover, if an employee is in a managerial or supervisory position, he or she
may not be entitled to any overtime pay. This is in accordance with Article
15(4) (b) of Cabinet Resolution No. 1 of 2022, which states, “The following
categories shall be exempted from the provisions relating to the maximum working
hours”.
b. The persons occupying supervisory positions if such positions vest in them
the powers of the employer.”
Based on the aforementioned provisions of law, an employee may be entitled to
overtime payment if they work for additional hours other than the stipulated
Ramadan period working hours. However, allotting overtime work is the discretion
of an employer.