laws and regulations  

Laws and regulations

The UAE is a federation of seven emirates comprising Dubai, Abu Dhabi, Ajman, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain and was formed in 1971. The UAE federal constitution provides for an allocation of powers between the federal government and the government of each emirate. Dubai, for example, is subject to the federal law of the UAE but retains the right to administer its own internal affairs and enjoys certain other exclusive rights.  

The federal government is entrusted with the task of enacting laws concerning and regulating the principal and central aspects of the federation such as foreign affairs, defence, security, the federal judicial system, federal finance and loans, postal and communication services, federal public works, civil aviation, education, public health, currency, electricity services, nationality and related matters, management of federal possessions, census and federal information.  The constitution also allows the federal government to enact laws to regulate labour and social services, real estate, agriculture, substantive civil and criminal legislation, company laws, laws of procedure, protection of intellectual property, aviation, delineation of waters and shipping. 

Taxation
There is no federal legislation imposing taxes in the UAE. However, in the late 1960s the individual emirates did enact income tax decrees providing for income tax on corporate entities. The practical application of these largely identical decrees is limited almost exclusively to oil producing companies, certain related service industries and banks.  Exemptions to this tax are available upon application, and even the vast majority of companies to which exemption has not been formally granted are for the most part not assessed to tax.  

Employment
The UAE federal law regarding the regulation of labour relations (Labour Law) applies to all staff and employees working in the UAE, other than those working in certain UAE free zones who have their own labour regulations, whether UAE nationals or non-national expatriates.  The Labour Law sets out the basic conditions of employment, regulates working hours, and provides for annual leave, sick leave, maternity leave and overtime pay. The Labour Law is regularly supplemented and revised by ministerial resolutions issued by the Ministry of Labour and approved by the Council of Ministers. A recent ministerial decree issued in respect of the protection of wages establishes a new regime designed to ensure transparency in the payment process and to ensure that employees are paid on time, overseen by a dedicated office within the Ministry of Labour.