Prakash asks: How to avoid the legal pitfalls that most people fall into when hiring?

Dear Mr. Jafar, I have 12 staff as part of a recruitment company I started three years ago, and already I have problems in labour court with the two of them. What are the legal pitfalls that most people fall into when hiring? How can I avoid them? Prakash
By Abdul Rawuf
Tue 08 Jul 2014 09:52 AM

Dear Prakash,


Fortunately for entrepreneurs, the labuor law in the UAE is relatively straight forward and easy to understand. It is available online at for anyone to read. It is important to review these laws entirely before starting to hire staff. Some vital decisions you would need to make before hiring relate to the type of contracts to provide (limited vs. unlimited), and duration of the probation period.


You also need to be aware of the consequences of hiring into certain positions. There are certain scenarios which require an employee to complete two years for one employer, before they move companies. If they leave within this period, they will not be issued a work visa for the new company. It will save you time, money and resources if you’re aware of these stipulations before you start interviewing candidates.


Another area to be aware of is hiring from competitors. It is actually possible for a competitor to block the visa issuance of an employee transferring to you if they can present a strong enough case around the transfer of knowledge and business. This may not be fair practice, but it happens.


Again, though the UAE labour law is less complicated than most other countries in our region, it is very important to have a good understanding of it before you start hiring.




For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Last Updated: Thu 26 Jan 2017 01:27 PM GST

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.