UAE: Are New Employees Entitled to Request Bonuses in Their Job Contracts?

Question: I worked with a firm for nearly five years, receiving verbal recognition for my performance, but I did not receive financial rewards or promotions. As I transition to a new company, can I request that my contract includes clauses for salary increments every two years and a performance bonus? Does UAE labor law support such demands?

Answer: In response to your inquiry, it is presumed that your new employer is a mainland Dubai company with over 50 employees. According to UAE labor law, specifically Article 8 of Federal Decree Law No. 33 of 2021 and Article 10(1) of Cabinet Resolution No. 1 of 2022, any monetary or non-monetary benefits provided to an employee can be included in their employment contract. The contract should detail essential information, including salary, benefits, allowances, and annual leave entitlements.

Moreover, employers with more than 50 employees are required to establish an internal employee handbook or HR policy that outlines benefits, promotions, and other employment regulations, as stated in Article 13(3) of the Employment Law and Article 14(4) of Cabinet Resolution No. 1 of 2022.

While you can suggest including clauses for salary increments and bonuses in your contract, such terms must be mutually agreed upon by both parties. If your new employer is willing, these provisions can be incorporated into the employment contract.

News Source: Khaleej Times