UAE Labor Law Compensation for Death

The Federal Decree-Law No. 33, commonly known as the New UAE Labor Law, went into effect, concentrating on the working relationship between workers and employers, as well as the liabilities of both individuals. The new labor legislation describes and governs several areas of employment.

This legislation intends to improve the efficiency of the labor market of the UAE in an attempt to attract international talent to the country. The goal is to develop a pleasant, secure, and productive working atmosphere that is globally recognized, establishing the UAE as one of the world's major business destinations. This legislation applies to all original and third-party employers i.e., those providing HR services in Dubai, UAE.

Worker’s Entitlements Upon His Death

Death is a natural phenomenon and it can occur anywhere including in the workplace. The legislations have to consider it and make policies for workers who die while working with an organization.

The new labor law has made employees’ entitlements clear in case of sudden death. It applies to a worker whose employment contract is active with an organization.

Since hiring third-party employers with the help of HR outsourcing in Dubai is a common practice nowadays, HR solutions companies in Dubai, UAE also fall under the scope of these provisions.

Also read: New Unemployment Insurance to be Introduced for All Workers In UAE.

Here Are the UAE Labor Laws for Death Compensation

Following is all the new UAE labor law has detailed about worker’s entitlements upon his/her death:

  • According to the new UAE labor law, when an employee dies during an active contract with the employer and has some wages or other entitlements due, the employer is responsible for paying those dues to the family of the dead employee. Employers nowadays acquire ultimate HR solutions in UAE by outsourcing employer responsibilities which are completely permissible by the new labor law. The third-party employer is responsible for paying entitlements in case of outsourcing.
  • If the employer has to give end-of-service benefits to the employee who is dead, the end-of-service benefits would be given to the family of the dead.
  • According to the provisions of the new labor law, all the entitlements should be given to the family of the dead within 10 days after death or 10 days after the news of death is given to the employer.
  • The new labor law allows the employee to choose, during the contract, a family member who can receive the entitlements in case the employee dies. The employer will be responsible for handing over the entitlements to the chosen person. Companies that provide HR solutions in Dubai, UAE, or third-party employers also follow the same rule as mentioned in the legislation.
  • In case the employee belongs to a foreign country, the employer is responsible for repatriating the employee to his country after death. The employer will bear all the expenses of transporting the dead body of the employee to his native country only if his family asks for it.
  • According to the provisions of federal law, the ministry or relevant authorities can keep the entitlements if they cannot be handed over to the family of the dead employee until a decision is made.

What Will the Employer Do If the Employee Remains Absent for Days Without Informing?

According to the provisions of the new labor law, if any employee remains absent from work without informing the employer, the employer should wait for 7 days and then inform the ministry about the continuous absence of the employee. The employer should consult the ministry if he is not able to contact the employee in any way possible.

Further action would be taken by the Ministry. This can sometimes happen if the employee is dead or there can be other emergencies that can result in this.

What Are Third-party Employers?

There are companies in the UAE that work as third-party employers and provide HR solutions in Dubai, UAE. It is one of the best outsourcing options for employers who struggle to comply with the new labor law or other employment regulations. Since outsourcing HR solutions in the UAE is encouraged by the labor legislation, many companies hire third-party employers. This makes the outsourced employer responsible for all employment responsibilities such as end-of-service benefits, healthcare, etc.

Choose the Best Services

If you find this material useful, do contact our professionals for more assistance. If you wish to work in any part of the UAE, you must first study the UAE’s labor legislation and employment regulation policies to comprehend how you would prosper by working therein. You may require detailed instructions on how corporations in the UAE are expected to uphold your employee rights. Visit our website to read more about labor law and regulations in the UAE, or contact our specialists if you have any queries.

Moreover, if you are interested in HR solutions in Abu Dhabi or HR outsourcing in UAE, choose our diversified services for the best outsourcing experience.