UAE: Can employees get paid for overtime hours in Ramadan?

With the commencement of Ramadan, considerations regarding work hours and compensations take precedence for both employers and employees in the UAE. The Federal Decree Law No. 33 of 2021, coupled with the Cabinet Resolution No. 1 of 2022, sheds light on the adjustments and entitlements concerning working hours during this holy month.

Reduced Working Hours During Ramadan

All employees, regardless of their roles, are entitled to a reduction in daily work hours by two hours throughout Ramadan. This adjustment aims to accommodate the observances associated with the month.

Criteria for Overtime Pay

Should the need for additional work hours arise, employers can request employees to work beyond their reduced Ramadan hours. Overtime compensation is governed by specific regulations:

• Standard Overtime: Employees may work up to two additional hours per day. For any work extending beyond this limit, or in total more than 144 hours across three weeks, employers must adhere to the executive regulations.
• Overtime Compensation: Work beyond normal hours warrants a salary increase of at least 25% for the extra hours rendered.
• Night Shift Overtime: Tasks performed between 10 pm and 4 am qualify for a higher increase, with at least 50% added to the base salary for those hours.
• Rest Day Work: If employees are required on their designated rest days, they should either be granted an alternate day off or receive their base salary plus a 50% increase for the day worked.

Exclusions from Overtime Pay

It’s crucial to note that individuals in managerial or supervisory positions may not be eligible for overtime compensation. Their roles, often granting them employer-like powers, exclude them from the benefits of additional hour payments.

Concluding Thoughts

The regulations ensure fairness and respect towards employees’ rights during Ramadan while providing guidelines for appropriate compensation for overtime. Employers should remain vigilant in adhering to these laws ensuring a harmonious work environment during this spiritual season.