In the event of a job offer paid exclusively by percentage of sales or on a results basis, without a fixed monthly salary, federal labor laws and relevant regulations apply in the United Arab Emirates (UAE).
In the event of a job offer paid exclusively by percentage of sales or on a results basis, without a fixed monthly salary, federal labor laws and relevant regulations apply in the United Arab Emirates (UAE).
Employment contracts based solely on commission or performance-based payments are recognized in the UAE according to Labor Legislation and Executive Provisions. In such schemes, the employer and employee agree on a payment amount that constitutes a certain percentage of the income generated through the employee's work and efforts. It is important to note that all such agreements and contracts are subject to approval by the Ministry of Human Resources and Emiratisation of the UAE, as well as competent courts.
For employment relations governed by Labor Legislation, an employment contract must be concluded between the employer and the employee. According to Article 8(1) and Article 8(2) of the Labor Law, the contract must be drawn up in two copies—one for the employer and one for the employee, in accordance with the templates established by the executive provisions. The employee or their representative has the right to prove the terms of the employment contract, salary, and any other rights by any means of evidence.
The Labor Law defines 'salary' as the base rate plus allowances, whether monetary or in kind, stipulated by the contract or law. This may include in-kind benefits equivalent to money, allowances for effort or risk, and compensation for living expenses or a percentage of sales. Similarly, 'basic salary' is defined as the amount stipulated in the contract for the work, excluding any other allowances or benefits.
Commissions paid as a percentage of sales or profit are also considered part of the 'salary' (the employee's total pay). According to Article 22(1) of the Labor Law, it is mandatory to specify the amount or type of 'salary' in the contract; otherwise, a competent court may consider this an additional dispute.
Article 10(1) of the Executive Provisions stipulates that the employment contract must contain, among other things, the name and address of the employer, the name, nationality, date of birth, and identification documents of the employee, their qualifications, position, start date, place of work, working hours, days off, probationary period, contract duration, agreed salary including benefits and allowances, annual leave duration, notice period, procedures for termination of employment, and any other information determined by the ministry.
When employed on a commission or performance-based payment, the contract must clearly outline the payment structure, criteria for achieving results, intervals for commission payments, and any other conditions governing such payments.
Severance pay is calculated in accordance with Article 51(2) of the Labor Law. A foreign employee who has worked for one year or more of continuous service is entitled to compensation calculated based on their basic salary: twenty-one days for each year of the first five years of service and thirty days for each subsequent year.
For commission-based positions, the contract usually specifies a nominal basic monthly salary. Severance pay and other payments are calculated based on this base rate. If such an amount is not specified, the employment relationship is classified as piecework. In this case, if the employee claims compensation, the absence of a basic salary leads to the calculation of a daily basic rate based on the average salary for six months prior to filing the claim, according to Article 23 of the Labor Law. This approach was upheld by the Dubai Court of Cassation.
Even if the job offer is based solely on commission, the employee can discuss additional contractual benefits with the potential employer, such as housing and transportation allowances, air tickets, extended medical insurance, company car, mobile allowance, or performance bonuses. Once these conditions are included in the employment contract, they become legally binding on the employer.
Thus, a commission-based payment structure is permissible in the UAE provided that all conditions are clearly documented in the employment contract. Before accepting an offer, it is essential to carefully review the contract to ensure that the remuneration structure, the basis for calculating commissions, the basic salary (if applicable), established rights, and all contractual benefits are clearly stated, thereby avoiding disputes.
In the United Arab Emirates (UAE), employers are not required to start the process of amending employment contract terms from scratch if changes occur in employee data, such as a salary increase or a change in position. The Ministry of Human Resources and Emiratisation (MOHRE) provides a means to promptly and securely make adjustments to work permits and employment contracts.
This service is available through the ministry's website, a dedicated mobile application, and authorized service centers, which simplifies companies' ability to keep employee records up-to-date and comply with labor legislation. The process of modifying employment contracts is regulated by the Federal Decree-Law No. (33) of 2021 on Labour Relations, ensuring the protection of rights for both employees and employers.
There are specific conditions that applicants must meet. Employees engaged in specialized or licensed professions must comply with requirements established by current legislation. An employer does not have the right to change contract terms, including salary, position, or nature of work, without the explicit written consent of the employee and in accordance with approved MOHRE procedures. All requests to change contract details must be submitted exclusively through the Ministry's electronic systems; any amendments not officially documented and approved by the Ministry are legally invalid.
When changing professions, the new position must correspond to the enterprise's line of business. Furthermore, the enterprise must hold a valid license without registered violations that could lead to the suspension of its operations under applicable laws. The application for change must be submitted by an authorized signatory of the enterprise. Any condition or agreement that contradicts the provisions of Federal Decree-Law No. (33) of 2021 on regulating labour relations will be deemed invalid if it reduces the minimum rights of the employee, unless it provides the employee with more favorable terms.
The process involves logging into the system using a username and password or via UAE Pass. Then, an application must be submitted through one of the service channels. Federal fees must be paid at the application submission stage. After this, the application is sent to the Ministry electronically for verification of compliance with requirements and documentation. If deficiencies are found, the enterprise is notified to rectify them. After fulfilling all requirements and providing documents, the amendment to the work permit or employment contract is approved, and the contract is electronically endorsed.
Services can be obtained through a service center, the MOHRE website, the MOHRE mobile application, or through Tawseel—mobile service vehicles that deliver official MOHRE services directly to the client. Required documents include the employment contract, approved by the Ministry and signed by both parties. Academic certificates are also required: for qualification levels 1 and 2, a bachelor's degree or higher is needed; for levels 3 and 4, a technician's diploma or higher; for level 5, a secondary school certificate. For levels 6–9, a certificate is not required. It is important to note that employees earning less than 4000 dirhams per month or who do not have a diploma are not considered qualified. A professional license issued by a competent authority (such as the Ministry of Health or the Ministry of Education) is also necessary.
According to MOHRE data, the entire process takes two days, after which the client receives notification of the request completion. Applicants can track the status of their applications. Regarding costs, the commission of business centers is limited to 72 dirhams, and federal fees amount to 50 dirhams. When using the MOHRE website and mobile application, the service is provided free of charge, excluding taxes and service charges.
Those who dream of becoming teachers abroad need not worry even if they hold a B.Ed degree from India, as teaching by Indian teachers in Dubai has become a common practice. This is due to several advantages that teachers receive, including tax-free salaries, a high standard of living, and a large number of Indian families in the region.
The United Arab Emirates (UAE) is experiencing rapid growth in private education, especially schools following the CBSE curriculum. However, the regulations there are very strict, requiring specific diplomas, document verification, and a special government license to work as a teacher.
In Dubai, the Knowledge and Human Development Authority (KHDA) regulates schools. Nevertheless, for Indian teachers, private schools are a more preferred option, as hiring foreigners in public schools is extremely rare. Therefore, Indian specialists are advised to focus on vacancies in international schools, such as CBSE, British, or American schools, where positions are constantly opening up.
According to UAE rules, teaching in a school requires at least a four-year bachelor's degree or a specialization in the relevant discipline. If the goal is primary level teaching, only a B.Ed degree is sufficient. However, if the subject is secondary or high school level, one must possess not only a B.Ed but also a bachelor's degree in that specific subject.
An important step is the verification of documents to ensure their authenticity. First, diplomas must be apostilled by the Ministry of Human Resources and Development of the respective state in India, then by the UAE embassy in Delhi, and after arriving in the UAE, the seal of the UAE Ministry of Foreign Affairs (MOFAIC) must be obtained.
Since English is the medium of instruction in the UAE, proficiency in the language must be at a high level. If a candidate applies for an English teacher position, they will require a good score on the IELTS.
Although newcomers can apply for this job, they should have one to two years of teaching experience in a reputable school in India. Furthermore, possessing a professional education license, known as the Teacher and Education Leadership Standards (TLS), is mandatory for working in the UAE. Even after receiving a job offer letter, the candidate must register on the government portal. An exam is then conducted to assess knowledge and teaching methodology. A first failure is not a cause for concern, as a second attempt is provided.
According to UAE legislation, a domestic worker has the right to switch to a new employer provided that all terms of the employment contract are met and the procedures established by the Ministry of Human Resources and Emiratisation (MOHRE) are followed, while the rights of the current employer must be protected.
In accordance with Article 21 of Federal Decree-Law No. (9) of 2022 on domestic workers, an employee may switch to a new employer if all contractual requirements are fulfilled, the rights of the original employer are taken into account, and the conditions set by the minister are observed.
Furthermore, if a domestic worker transfers to another employer within the framework of current legislation, the current employer is relieved of the obligation to pay for the worker's return ticket to their home country.
If a domestic worker hired by name or position wishes to change employers during the term of the first contract, the new employer is obliged to reimburse the original employer for part of the recruitment costs incurred by them. The amount of this reimbursement is calculated according to the formula set out in the Executive Regulations.
Moreover, the new employer must compensate for government fees paid by the original employer for hiring and employment, unless otherwise agreed upon by the parties. This is regulated by Article 6(7) of Cabinet Resolution No. 106 of 2022.
It is also stipulated that if a domestic worker wishes to switch to a new employer after the renewal of the employment contract, the new employer must reimburse the government fees that the original employer paid for the contract renewal, provided that such a transition occurs within the first three months after renewal, unless otherwise agreed between the parties.
Thus, if a domestic worker intends to find other employment in the UAE, they can switch to a new employer provided that all obligations under the employment contract are met. To prevent disputes, all outstanding debts should be settled, and the relevant visa cancellation or transfer procedures should be completed through the competent authorities.
