FAQ

VAT stands for Value Added Tax. It is an indirect tax applicable to taxable goods and services in the UAE.

Detailed information on VAT are available on the website of the UAE’s Federal Tax Authority (FTA) at www.tax.gov.ae and relevant FAQs are available here.

A company can make the payment through the following channels:

• Online by topping up the portal accounts
• RAKEZ Business Service Centres (cashier counters)
• Bank Transfer

A Subsidiary is a company that is owned by another company where 51% or more of its shareholding is held by the other company.

The conditions in which RAKEZ can grant its approval to employee and non-sponsored employee are if the non-sponsored employee:

• Is a GCC National
• Resides in the UAE on the visa sponsored by a relative
• Is to be employed on a part-time or temporary basis
• Works for a subsidiary or an associated company of a RAKEZ company

Yes, a company may employ a non-sponsored employee, temporarily or permanently.

A non-sponsored employee is an employee of a company who is not sponsored under a RAKEZ company but he is approved by RAKEZ to be employed by that company.

Yes, you can obtain an investor visa in case of single shareholder companies. However, for companies that have more than one shareholder, a partner visa can be obtained.

The maximum number of shareholders in a free zone company and a non-free zone limited liability company is 50.

No, it is not. Shareholders have the option to either apply for RAKEZ visa or be on a non-RAKEZ visa.

Yes, a RAKEZ company can obtain credit by creating a security interest.

No, it cannot conduct business activities outside RAKEZ free zone area. It has to be inside the RAKEZ free zone area only.

No, it cannot. A free zone entity may trade its products outside the free zone area and within the UAE only through an agent, representative, distributor or its parent company holding a relevant licence to conduct such an activity in the UAE.

All free zone entities are governed by RAKEZ Companies Regulations of 2017 and Operating Rules of 2018 as well as the applicable federal and local laws and decrees. As for the non-free zone entities, they are governed by the UAE Federal Law No. 2 of 2015 concerning Commercial Companies as well as all applicable federal and local laws and decrees.

To view RAKEZ’s Free Zone Companies Regulations & Operating Rules, as well as the UAE Federal Law No. 2 of 2015, please click here.

The requirements for sub-leasing buildings/structures in RAKEZ are:

• The building/structure must be fully completed.
• The sub-lessor should holds valid lease and does not have outstanding amounts owed to RAKEZ.
• The sub-lessee must possess a licence for his activities.
• The sub-lessor is jointly and severally responsible and liable for the activities of the sub-lessee.
• A sub-lessee is prohibited to assign his rights under a sub-lease agreement.
• A sub-lease agreement is not to be contradicting with the lease agreement and is deemed terminated upon the termination of the lease agreement.

The requirements for sub-leasing vacant plots in RAKEZ are:

• The sub-lessor should hold a valid lease and does not have outstanding amounts owed to RAKEZ.
• The sub-lessee is a subsidiary of the sub-lessee or the sub-lessor and sub-lessee are associated companies OR there is a contract between the sub-lessor and the sub-lessee to either supply raw material, produce or distribute or consume finished product.
• The sub-lessor and sub-lessee have sufficient spa
• The sub-lessor and sub-lessee have sufficient space for the licensed activities, without jeopardizing their respective operations.
• The sub-lessor is jointly and severally responsible and liable for the activities of the sub-lessee.
• A sub-lessee is prohibited to assign his rights under a sub-lease agreement.
• A sub-lease agreement is not to be contradicting with the lease agreement and is deemed terminated upon the termination of the lease agreement.

The types of sub-lease allowed by RAKEZ are:
1. Sub-lease of a vacant plot
2. Sub-lease of completed buildings/structures

Yes, it is, but subject to obtaining a prior written approval from RAKEZ.

Sub-leasing is an arrangement where a company (lessee) allows another company (sub-lessee) to use part of the leased premises.

Yes, it will affect the visa quota as flexi desks are limited to one visa only and hence, any additional visas should be cancelled.

No, it cannot. The company must have RAKEZ licence to rent an office in RAKEZ zones. This may include a branch of DED/other free zone companies in RAKEZ.

No. A coworking facility is shared with other clients. In the event that a client requests a private office, he/she will have the options of a standard or executive office.

Yes. You can get assistance from Mazeed Services for any creative design works with applicable charges.

From coworking spaces to full-scale industrial facilities, we offer the ideal facility at your stage of development:

• Coworking Space
• Serviced Offices
• Standard Offices
• Executive Offices
• Shell & Core
• Warehouses for Development
• Staff & Labour Accommodation

More details on the facilities are available here.

As per the Immigration Authority’s mandate, any company having an immigration file is required to register in the EChannel Immigration System’s platform to further process visa related services.

While submitting the license renewal request, you may pay for the immigration file renewal, penalties incurred due to late renewal of the immigration file and for the E-Channel Immigration System registration.

For companies applying for closure, the Immigration Authority is currently granting a special approval to exempt them from registration in the system. Any changes in the requirements from the Immigration Authority will be communicated as and when received.

Registering in the system is not linked to obtaining visas. It is however, mandated for all companies with immigration file to register in the system.

For all your company visas, the service can be availed only through the Sponsor. RAKEZ being the Sponsor will be applying for the company’s visa, hence the applications may be submitted to RAKEZ.

The MOI will provide the credentials only to the Sponsor i.e. RAKEZ. However to facilitate you with the similar service, RAKEZ will soon be introducing the Customer Portal wherein the applications can be submitted, payment can be made, status of the application can be tracked, available products can be viewed, and clients can download the same from the Portal.

You may register your company in the system by approaching any of our offices, completing the payment, and then we will complete the registration process of your company in the system.

Yes, the registration fee is only AED 2,200. Also an amount of AED 5,050 refundable deposit must be paid. This is to be paid only once.

Companies that have already registered in the system may have to annually renew the registration, and the charges applicable would be AED 1,200.

No. The registration of your company in the system will be done by RAKEZ.

All companies with immigration files are mandated by the Ministry of Interior (MOI) to register in the E-Channel Immigration System effective 1 March 2018.

• Speedy process and accuracy in the visa and residency services.
• Reduce the need for the clients to visit RAKEZ or the Immigration Authority, as this is required just for visa services that require original documents.
• Hard copies are not to be submitted, documents can be scanned and uploaded.
• Confirmation on the applications received by SMS and email.
• Eliminates the need to approach the Immigration Authority or PRO to follow-up on the status of the application, as the progress of the request can be viewed on the Portal.
• Entry Permit issued is E-visa, hence the additional action of sending the original by courier or delivering at the arrival airport is not required.
• Save money that was earlier spent for delivering the original entry permit at the airport or sent to the client by courier.

Launched as part of the UAE 2021 vision under the slogan ‘Smart Services with Future Vision’. The E-Channel Immigration System is a new and unified immigration system that has already been implemented across the UAE.

This allows businesses and individuals to apply for visas, residence and entry permits through a single online portal, instead of visiting a typing centre or the immigration office. The system also removes the need for print documents and aims to ensure that all applications are processed more efficiently with improved integration across the emirates.

In line with this latest update from the General Directorate of Residency and Foreign Affairs, all RAKEZ companies are mandated to register in the E-Channel platform with immediate effect through RAKEZ to allow them to continue with current and future visa or immigration file applications.

To register the companies in the E-Channel Immigration system, clients can simply approach any of RAKEZ offices or contact us to proceed with the payment and other necessary procedures. Once registered, the company will receive SMS confirming its registration in the system.

It is illegal to work on a visa other than a valid employment visa in the UAE.

The below mentioned countries are entitled for visa on arrival at UAE airport/border:

France, Italy, Germany, the Netherlands (Holland), Belgium, Luxembourg, Switzerland, Austria, Sweden, Norway, Denmark, Portugal, Ireland, Greece, Cyprus, Finland, Malta, Spain, Monaco, Vatican, Iceland, Andorra, San Marino, Liechtenstein, United Kingdom, United States, Canada, Australia, New Zealand, Japan, Brunei, Singapore, Malaysia and Hong Kong, Poland, Slovenia, Slovakia, the Czech Republic, Lithuania, Hungary, Latvia, Estonia, Malta, Cyprus, Croatia, Romania and Bulgaria.

It is a mandatory requirement to have a residency visa to avail below services:

1. Legalise your stay in UAE
2. Open a bank account
3. To have telecom connections
4. To obtain UAE driver’s licence

Individuals falling in the category of Investor/Partner/Manager of all nationalities must obtain pre-approval to form the company or obtain a visa. The requirements, charges and pre-approval application can be accessed by visiting our website

https://eservices.rakez.com/.

An associated company is a company that is associated with another company where 51% or more of both companies’ shareholding is held by the same shareholders.

The application for registration of a company to carry out any activity classified as a DNFBP must be accompanied by a complete DNFBPs form signed by all shareholders who will jointly be and severally liable for the compliance with the laws and regulations of the UAE’s Central Bank and all relevant Federal Laws and Regulations for Combatting Money Laundering (AML) and Financing of Terrorism (CFT).

The activities that are classified as Designated Non-Financial Businesses and Professions (DNFBPs) are:

• Legal Consultancy
• Real Estate Agent
• Real Estate Developer
• Auditing of Accounts
• Precious Metals and Stones Trading
• Investment Consultancy
• Company Service Providers

No, coworking space and business centre licensees are not required to submit the Operation Fitness Certificate (OFC).

Yes, the Operation Fitness Certificate (OFC) is mandatory before occupying the pre-built warehouses and the customized facility built on a plot of land.

Good standing is a document that confirms the status of the parent company to be either active or in current good standing.
The company may submit any of the following documents:

• Certificate of good standing from the bank
• Online registry extract showing the web address
• Notarised recent Certificate of Incumbency from the regulating authority of the parent company
• Notarised and legalized letter from any law firm
• Notarised letter from any chartered auditing firm

A business plan is a strategic document that outlines the future vision and objectives of the business and it typically includes:
• Description of the business activities.
• The scope of the activities.
• The market segment
• Supply chain (if applicable)
• Management structure (recruitment plan/workforce).
• Brief financial forecast/budget.

No, RAKEZ does not require any specific format for the business plan.

No, not all activities require a business plan.

Yes, they do. While most of the activities do not require a particular facility type, certain activities require a specific facility type such as a physical office space or retail space etc.

Yes, it is mandatory to lease a facility to open a company.

No, it cannot. A free zone entity cannot conduct retail trading of any of its products within the free zone area. A free zone entity may display products in the free zone area for potential customers for marketing purposes only.

Yes, there is a number of activities that are regulated by third-party authorities where a No Objection Certificate (NOC) is required to be obtained from them in order to add such activities on a RAKEZ licence.  For example, in order to open a clinic, an approval from the UAE Ministry of Health & Prevention is required.

No, it cannot. A branch must carry out all or some of the activities that its parent company is currently holding.

Yes, a company can add an activity after the licence has been issued. In case a company wishes to add an activity from the same licence type (adding a commercial activity on its existing commercial licence), then the company has to apply for ‘Change of Activity’.

To add an activity from a different licence type (e.g. adding a service activity while holding a commercial licence), this will be considered as an additional licence, hence, an application for a new Service Licence must be submitted.

The general rule is that any activity from a different licence type will require a separate licence.

Two (2) activities from same group are allowed under a Free Zone Industrial Licence.

Two (2) activities from any group are allowed under a Free Zone Services Licence.

Five (5) activities from same group OR two (2) activities from different groups are allowed under a Free Zone Commercial Licence.

No, they cannot. They have to be on two different licences. All commercial activities will be grouped under one commercial licence and all service activities will be grouped under one service licence.

At RAKEZ, there are hundreds of business activities ranging from over 50 sectors such as manufacturing, energy, technology, healthcare, aviation, shipping, education, media, professional services as well as personal and community services. To know more about the activities, please click here.

Generally, RAKEZ licences are valid for one (1) year from the issue date.

However, Free Zone Commercial, Service, General Trading, Individual/Professional and E-commerce licences can be issued and renewed for three years at discounted rates subject to the applicable terms and conditions.

Moreover, after the first year of being licensed in RAKEZ, a business may opt, but is not be required, to obtain a three-year business licence as mentioned above.

Yes, he can apply for two separate free zone licences under one company name where a company conducts several activities that are similar in nature to what RAKEZ allows in terms of similar activities to be conducted under one licence. However, if the activities are unrelated, separate licences are required.

The non-free zone licences issued by RAKEZ are:
• Industrial: Manufacturing, importing, packaging and exporting products
• Commercial: Trading in services and goods
• Professional: For individuals who provide professional services

Yes, you can. RAKEZ welcomes talented and committed professionals to its free zone and offers them a wide range of related professions related to media and education, which freelancers can carry out.
The Permit issued by RAKEZ identifies the Freelancer as a sole practitioner and enables him/her to conduct business in his/her birth name as opposed to a brand name.

A Freelancer is a professional who operates as an independent contractor and in the form of a sole practitioner to conduct the permitted profession.

• Industrial: Manufacturing, importing, packaging and exporting products
• Commercial: Trading in services and goods
• Educational: Opening an education-related institution or a consultancy company
• E-commerce: Trading in goods and services via electronic means
• Individual/Professional: One owner with one activity in a specific specialty or expertise
• General Trading: Trading in multiple goods
• Media: Operating media-related business activities
• Service: Conducting services or consultancies across any industry

Yes, it is required for a company manager to be resident in the UAE.

An owner who is a GCC National, or a partner in a commercial company holding any other nationality, shall not be required to be a resident in the UAE. However, an owner of a professional individual establishment is required to carry out the activity in person, and this can only be achieved by residing in the UAE.

No, the company’s manager must only be a natural person.

Yes, he can, but a No Objection Certificate (NOC) from his current sponsor must be obtained in advance.

No, a company cannot have more than one manager.

Yes, the same person can be a shareholder, director, the company’s secretary and manager.

Company officers include manager, director(s), secretary(ies) and legal representative(s).

Yes, a client can amend the template provided that the amendments are in compliance with the applicable RAKEZ Companies Regulations and Laws. All amendments will be subject to review and approval.

No, a branch does not require a capital.

The minimum share capital of an FZ-LLC is AED 10,000 (each share is valued AED 1,000). However, for certain activities there is a specific share capital. Refer to the below list for the Minimum Share Capital requirement:

• Industrial (AED 150,000.00)
• Aviation (AED 500,000.00)
• Logistics & Transportation (AED 100,000.00)
• Insurance Consultancy (AED 100,000.00)
• Insurance Broker (AED 500,000.00)
• Insurance Agent (1,000,000.00)
• Investment Consultancy (AED 100,000.00)
• Real Estate Consultancy (AED 500,000.00)
• Real Estate Broker (AED 500,000.00)
• Real Estate Agent (500,000.00)
• Real Estate Development (AED 1,000,000.00)
• TV/Radio Broadcasting (AED 1,000,000.00)
• Publishing (AED 50,000.00)
• Production (Film/TV/Radio) (AED 50,000.00)
• Higher Education Provider (AED 50,000.00)
• Non-academic Service Provider (AED 50,000.00)
• Educations Support Services (AED 50,000.00)
• School (AED 50,000.00)
• Early Learning Centre (AED 50,000.00)

A share capital refers to the portion of a company's equity that is obtained or will be obtained by a shareholder for cash or an equivalent item of capital value. It is also known as subscribed capital or subscribed share capital. One can calculate the share capital as number of total shares divided by value of each share (also known as par value).

Yes, the liability of an owner of a free zone establishment is limited.

A Limited Liability Company is treated as an entity separated from its shareholders. Therefore, the liabilities of a company do not extend to its shareholders. Each shareholder is only liable to the extent of his shares in the company’s capital.

The main difference is that a Non-Free Zone Individual Establishment must be owned by one natural person but the Single Person LLC can be owned by one natural person or one corporate person.

Moreover, the most important difference between the two is that the liability of the Single Person LLC is limited to the single person’s share, whereas in the Non-Free Zone Individual Establishment the liability is unlimited.

The Non-Free Zone Single Person LLC is a company that can be owned by one natural person or one corporate person.

No, it is not. The legal liability of a non-free zone individual establishment is not different from its owner and its financial liability is linked with such owner, being the person responsible for all of its financial obligations towards third parties.

No, it cannot. A non-free zone individual establishment must be owned by one natural person.

Yes, a non-UAE National can set up a non-free zone individual establishment to carry out professional activities, provided that a UAE National must be appointed as a local service agent.

Yes, a free zone company can open branches in the mainland but a local service agent must be appointed and A UAE National must hold no less 51% of the free zone company’s capital.

The main difference is that a representative office is not permitted to operate any commercial business or to conduct any commercial activities by itself. Representative offices tend to act as administrative and marketing centres for the foreign parent company’s head office for promoting the company's products, services or business, or for facilitating trading contracts between the company and its clients.

A branch does not have its own Memorandum of Association. A branch is a legal part and an extension of its parent company and does not have a legal identity distinct from its parent company.

No, it cannot. The name of a branch must be the same as its parent company’s and must carry out all or some of its activities.

The local sponsor whose shareholding is not less than 51% of the company's capital in a non-free limited liability company (LLC) is financially liable to the extent of his share in the company’s capital.

The local service agent has no liability for the legal and financial obligations.

Non-free zone individual establishments that are owned by non-UAE nationals to carry out professional activities (Professional Licences) and non-free zone foreign branches require a local service agent.

A Local Service Agent (LSA) is a natural person holding the UAE nationality or a corporate person established in the UAE and is wholly owned by UAE natural persons. An LSA has no responsibility for the legal and financial obligations of the company and has no voice in the company’s business activities. An LSA’s duties refer solely to helping in obtaining entry and residence visas and the annually incurring renewal of licences. A Service Agent Agreement between the company and the LSA is made to govern the legal relations between both parties. An LSA receives an annual fee and the service agent agreement may be terminated at any point of time in accordance with the contract conditions. An LSA has no right of penalties, fines and compensation payments at any time.

Yes, GCC Nationals are treated as UAE Nationals concerning the exercise of economic and professional activities provided that non-GCC Nationals are not partners in the company. Otherwise, there must be a UAE national as a partner whose shareholding shall not be less than 51% of the company's capital.

No, a UAE National sponsor is required for obtaining a non-free zone licence to carry out commercial and industrial activities. The local sponsor’s shareholding shall not be less than 51% of the company's capital.

Yes, it is possible for a non-UAE National to obtain a non-free zone Professional Licence without a local sponsor, but provided that a UAE national must be appointed as a local service agent.

The authorised signatory on behalf of the parent company needs to sign the resolution for a branch or subsidiary. The power to sign on behalf of the parent company needs to be mentioned in the parent company’s legal documents or through an attested power of attorney document by the UAE Embassy or Consulate in the parent company’s country of origin.

The maximum number of shareholders in a free zone company and a non-free zone limited liability company is 50.

No, you do not need a local partner to form a free zone company. One of the many advantages of setting up a free zone company in RAKEZ is that it offers 100% foreign ownership.

RAKEZ offers the below non-free zone company types are:
• An Individual Establishment
• A Single Person Limited Liability Company
• A Limited Liability Company (LLC)
• A Branch of a UAE-based company (including companies registered in other free zones)
• A Branch of a foreign company

RAKEZ offers the below free zone company types:
• A Free Zone Limited Liability Company (FZ-LLC)
• A Branch of a UAE-based company (including companies registered in other free zones)
• A Branch of foreign company

RAKEZ offers two types of entity formation:

(a) A Free Zone Entity: A Limited Liability Company (LLC) or a Branch incorporated in the RAKEZ free zone area. A Free Zone Entity has to obtain a licence from RAKEZ.

(b) A Non-Free Zone Entity: A Limited or Unlimited Liability Company, or a Branch incorporated in the RAKEZ non-free zone area. In addition to a licence from RAKEZ, a Non-Free Zone Entity has to obtain a licence from RAK Department of Economic Development (RAK DED).

Please visist http://www.rakcustoms.rak.ae/en/pages/commoncustomslaws.aspx.

It depends on the date of the incorporation of the company. According to the RAKEZ Standard Memorandum of Association (MoA), a company’s financial year constitutes a 12-month period from January to December.

No first financial year may exceed 18 months or be less than 6 months. For instance, if a company is incorporated in July 2019, then the first year’s financial statement can be prepared in December 2020. However, if the company is incorporated in June 2019, the first year financial statement will have the year-end as December 2019 and will consist of only 7 months.

No, all RAKEZ companies must submit audited financial statements prepared by RAKEZ approved auditors.

An approved auditor is a UAE auditing firm that is enrolled in the RAKEZ approved auditors’ list under RAKEZ’s implementing regulations to provide auditing services to RAKEZ companies and ensure that the audited financial statements of these companies represent a true and accurate financial position.

If a company fails to submits the audited financial statement on time, a fine of AED 2,500 will be imposed by on the company.

A company has to submit the audited financial statements to RAKEZ within six (6) months from the end of its financial year.

No, the audited financial statements are not required at the time of licence renewal.

Yes, all companies incorporated in RAKEZ jurisdiction are required to prepare and submit audited financial statements for every financial year.

Financial statements assist the company’s management to make decisions in respect of future financial planning. They also assist external partners such as banks or vendors to make decisions about a company’s borrowing capacity.

Financial statements are essential to prove that the company accounts are kept in a good order.

Financial statements are formal records of the financial activities of a company. They show the financial position (assets, liabilities and shareholders’ equity), financial performance (profit or loss) and the cash flow of a company.

The calculation of end of service shall be as follows:

No claim of any entitlement shall be heard if brought before the court after the lapse of one year from the date on which the entitlement became due. (Article 6, Federal Law No 8/1980)

Any deduction shall be in accordance with Article 60 of Federal Law No. 8/1980.

If an employee is required to work during holidays or leaves, he/she will be granted another rest day in addition to an increase of 50 per cent on his/her basic wage for that day. If he/she could not be granted another day off, he/she is entitled to receive an additional 150% on his/her basic wage for that day. (Article 81, Federal Law No. 8/1980).

An employee is entitled to avail annual leave if he/she has completed one year with the employer. The annual leave shall be calculated as follows:

1. Two (2) days for each month if the employee completed six (6) months.
2. Thirty (30) days for each year should the period of service of the worker exceed one year.

The above number of days is the minimum as per the labour law. The days may increase upon the discretion of the employer.

(Article 75, Federal Law No. 8/1980).

An employer may not lower an employee’s pay scale unless the employee’s written approval to this effect was obtained. If the two parties have agreed on lowering the employee’s pay, the employer must terminate the existing contract and settle the employee’s dues. A new labour contract should be concluded, subject to the consent of both parties.

Yes it may, however, the employer should ensure that the conditions set forth are in accordance with the applicable laws and regulations are met. (Article 127, Federal Law No. 8/1980).

Working hours per day should be eight (8) hours and shall not exceed 48 hours per week. Working hours may be reduced by two hours during Ramadan.

Working hours may be increased to nine (9) hours per day in commercial establishments, hotels and cafes and positions which involve guard duties and any other operation where such increase is authorized by order of the competent authority. (Article 65, Federal Law No. 8/1980).

The employer should not deduct any recruitment and visa fees from the worker/employee. Such deduction would be in contradiction with article 18 & 60 of Federal Law No.8/ 1980 and Article 6a of Ministerial Decision no.52 of 1989.

The probation period will be included as part of the employee’s overall service. (Article 37, Federal Law No. 8/1980).

An employee shall be entitled to receive a wage during the notice period subject to the laws and regulations in force.

Limited Contracts

Termination by employer: If the employer terminated the employment contract for grounds other than the grounds stipulated in Article 120. In such case the employer is obliged to compensate the employee for the damages sustained. The compensation in such cases shall not exceed the aggregate wage due for three months or the remaining period of the employment contract, whichever is shorter, unless otherwise stipulated in the employment contract. (Article 115, Federal Law No. 8/1980).

Termination by employee: If the employment contract was terminated by the employee for reasons other the reasons stipulated in Article 121. In such case the employee shall compensate the employer for any damage sustained. The compensation in such cases shall not exceed half of the employee’s wage for three (3) months or the remaining period whichever is shorter, unless the contract of employment states otherwise. (Article 116, Federal Law No. 8/1980).

Unlimited Contracts

The employer and the employee may terminate the employment contract for valid grounds at any time subsequent to the conclusion of the contract, and after notifying the other party thereof in writing at least thirty days prior to the termination thereof (Article 117 (1), Federal Law No. 8/1980).

Termination of employment contracts for jobs paid on a daily basis shall be in accordance with Article 117 (2), Federal Law No. 8/1980.

Subject to the provision of the labour law, if an injury has prevented an employee from performing his/her duties, the employer will have to pay the employee a cash allowance equivalent to full pay throughout the duration of treatment or for a period of six months, whichever is shorter. If treatment lasts more than six months, the cash allowance will be reduced by half for the subsequent six months or until the employee recovers, is proved to be disabled or dies, whichever occurs first. (Article 145, Federal Law No. 8/1980)

The cash allowance referred to in the foregoing paragraph shall be calculated on the basis of the last salary due to monthly, weekly, daily and hourly-paid workers. (Article 146, Federal Law No. 8/1980)

An employee’s end-of-service gratuity shall be calculated on the basis of the last salary earned by the employee namely the basic salary after deducting all allowances and bonuses that used to be given to him/her.
(Article 134, Federal Law No 8/1980)

No claim of any entitlement shall be heard if brought before the court after the lapse of one year from the date on which the entitlement became due. (Article 6, Federal Law No 8/1980)

The calculation of end of service shall be as follows:

An employee shall be entitled to an end-of-service gratuity for the fraction of the year in proportion to the period of employment provided that the employee has completed one year of continuous service.
(Article 133, Federal Law No.8/1980)

In the event of the employee’s death, the employer must pay the end-of-service gratuity to those entitled thereof.
(Article 136, Federal Law No.8/1980)

The employer shall give the employee, upon the request thereof and at the end of his contract of employment, a certificate of end of service in which the date of commencement and termination of the employment, the total duration of employment, the type of work performed, the last paid wage and supplements, if any, shall be mentioned.
The employer shall return any certificates, documents or tools belonging to the employee.
(Article 125, Federal Law No.8/1980)

An employee may not work for a third party without following the relevant legal procedures and checking with the Labour Affairs Section at RAKEZ.

In such case, the employee should report the matter to the Labour Affairs Section of RAKEZ.