Working in the UAE: How is overtime pay calculated?

Dubai: If you have been asked by your employer to stay back at work, you may be entitled to receive overtime pay, as per the UAE’s Labour Law – Federal Decree-Law No. 33 of 2021 and its implementing regulations.The UAE Labour Law and its regulations not only set out the maximum working hours that employees are subject to, but also provides details of how overtime pay should be calculated, and which employees are not included in the regulations for maximum working hours.Here is all you need to know.What are the normal working hours?Article 17 of the UAE Labour Law sets out the maximum normal workings hours for workers in the UAE private sector to be eight hours per day, or 48 hours per week.However, the Article also states that the UAE Cabinet may, based on the proposal of the Minister of Human Resources and Emiratisation and in coordination with the concerned authorities, increase or reduce the daily working hours for some economic sectors or some categories of workers.While normally your daily commute is not counted as part of the working hours, there are exceptions to this rule, which are listed out in Cabinet Resolution No. 1 of 2022.Your commute to and from work will be counted as part of your working hours in the following cases:1. If you are delayed on your way to work due to bad weather and in response to the warnings issued by the National Centre of Meteorology regarding weather changes and fluctuations.2. You are delayed in transit, when using employer-provided transportation in the event of a traffic accident or an emergency breakdown.3. If the employer and the employee have expressly agreed to the commute being counted as part of the working hours in the labour contract.Is there a limit on overtime hours?Any work done beyond the normal maximum working hours are considered as overtime. Article 19 of the UAE Labour Law focuses on overtime work, which an employer may need a worker to put in at times.As per Article 19 of the UAE Labour Law, an employer may ask the worker to work overtime, provided the number of extra hours does not exceed two hours in one day.Exceptional casesHowever, you may be asked to work for longer, if the work is necessary to prevent a serious loss or a serious accident at your organisations, or to deal with the effects of such a serious situation. This exception is put in place in Article 15 (3) of Cabinet Resolution No. 1 of 2022.The Article goes on to state that in any case, the total working hours shall not exceed 144 hours every three weeks.How is overtime pay calculated?The first thing to remember is that the remuneration for any overtime work is calculated on the basis of your basic wage, and not your complete salary. The basic wage is clearly noted in your offer letter as well as the labour contract you sign.The overtime pay is calculated on a pro-rata basis, and you are entitled to receive your basic wage, as well as an additional 25%, for any overtime work.If your overtime is done between 10pm to 4am, you are entitled to a 50% additional payment of your basic wage, apart from being paid your regular dues.However, this rule does not apply on employees who work on shifts.Working on the weekends or days offIf the circumstances require you to work on your off day, you are entitled to a substitute rest day or to being paid your regular pay for the duration of overtime work, as well as a 50% additional amount of your basic wage.Does the overtime payment rule apply to you?As per Article 15 (4) of the Cabinet Resolution No. 1 of 2022, the following categories are exempted from the provisions relating to the maximum working hours:1. The chairpersons and members of the boards of directors.2. The persons occupying supervisory positions if such positions grant them the authority of the employer.3. The crews of naval vessels and the seafarers who enjoy special service conditions due to the nature of their work.4. Those engaged in work which is required, due to its technical nature, to be carried on continuously by a succession shift, subject to the condition that the average working hours do not exceed 56 hours per week.5. Preparatory or supplementary work that must necessarily be carried out outside the general time limits set for work in the establishment.