Employees of semi-government companies could be governed either by Federal Law No. 8 of 1980 also known as the Labour Law, as amended, the respective human resources law of the local or the federal entity which owns the company or as per the laws mentioned in the company’s law of incorporation.
Employees of a semi-government company may be subject to the Federal Law No. 8 of 1980 also known as the Labour Law, as amended, or to the respective human resources law of the local or the federal entity which owns the company. There is no unified rule for all. The applicable law depends on the semi-government company’s human resource policy, and the way it was established.
Some semi-government companies are established by virtue of a decree or law and some are established by a Memorandum and Articles of Association. If the company’s law of incorporation states that the human resources law of the state or the emirate applies to employees, then the same law will apply.
If the company’s law of incorporation states that UAE Labour law applies to employees, then the UAE Labour law will apply.
If the company’s law of incorporation fails to mention applicable laws on employees, then the UAE Labour Law will apply and it will govern the employment relations in the respective semi-government company.
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