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Home » Is it acceptable for new employees to request bonuses to be included in their job contracts in the UAE?

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Is it acceptable for new employees to request bonuses to be included in their job contracts in the UAE?

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Last updated: 2024/10/06 at 7:02 AM
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Employees in the UAE have the right to demand certain benefits, such as increments and bonuses, as part of their employment contract. According to the Federal Decree Law No. 33 of 2021 and the Cabinet Resolution No. 1 of 2022, any benefits, whether monetary or in kind, can be included in an employee’s contract. The contract should include details such as the employer and employee’s information, job details, salary, benefits, annual leave entitlements, notice period, and termination procedures. Additionally, employers with more than 50 employees are required to have internal regulations related to employee benefits.

It is essential for employers to have their own internal handbook or HR policy outlining additional benefits and rules related to employment. This helps regulate the relationship between the employer and employees. Establishments with 50 or more employees must have rules regarding work organization, including regulations on work instructions, penalties, promotions, rewards, and termination procedures. These rules should also specify the criteria and rules for promotions and rewards, ensuring transparency and fairness in the workplace.

As an employee moving to a new company, you can suggest to your new employer to include a clause in your employment contract regarding increments and bonuses. This should be mutually agreed upon by both parties. If your employer agrees to include the details of the increments and bonuses, it can be added to the contract. By discussing these terms with your new employer and reaching a mutual agreement, you can ensure that your rights to increments and bonuses are protected under the UAE labor law.

Ashish Mehta, the founder and Managing Partner of Ashish Mehta & Associates, advises employees to communicate their requirements to their employer when negotiating their employment contract. As a qualified lawyer in Dubai, the United Kingdom, and India, he emphasizes the importance of clarity and transparency in employment contracts. By seeking legal advice and understanding your rights as an employee, you can make informed decisions when discussing benefits with your employer.

In conclusion, employees in the UAE have the right to demand increments and bonuses as part of their employment contract. By following the guidelines set forth in the UAE labor law, employees can negotiate with their employers to include these benefits in their contracts. It is crucial for both parties to reach a mutual agreement on the terms of increments and bonuses to ensure clarity and transparency in the employment relationship. Seeking legal advice from experts like Ashish Mehta can help employees understand their rights and negotiate effectively with their employers.

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