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Compensation Regulations In United Arab Emirates And Usa

1786 words - 8 pages


Compensation Regulations in United Arab Emirates and USA
In the Middle East which makes more headlines for wars and security issues the United Arab Emirates has managed to turn itself into a hub for business, career opportunities and life style. Dubai International Airport edged out London's Heathrow to become the busiest airport globally for international passengers in the first quarter of 2014. Dubai's main hub handled 18.4 million international passengers in the first quarter compared to 16 million passengers handled by Heathrow. Also, according to the MasterCard Global Destination Cities Index, Dubai jumped ahead of New York and Istanbul, to move from seventh place ...view middle of the document...

In comparison, the United States is a federal republic with 50 states and approximately 318 million people, 318 million people, and is the world's 3rd or 4th-largest country by total area and third-largest by population. It is one of the world's most ethnically diverse and multicultural nations, the product of large-scale immigration from many countries. ("United States - Wiki ," 2014) The question is how this compare does to the United States and how do the compensation regulations and practices differ from that of the United States?
With the United Arab Emirates being much smaller than the US and having 84% of its population expatriates its labor laws are one tailored to benefit nationals and much simpler than the US labor and compensation laws. For example, in UAE Labour Law Article 9 and 10 it states “Work is a right of the United Arab Emirates Nationals. Others may not by employed in the United Arab Emirates except as provided for in this Law and its executive orders….In the event of non-availability of national workers, preference shall be given to: 1.Arab workers who are nationals of an Arab Country. 2.Workers of other nationalities.” ("UAE Labour Law," 1980, p. 5-6) Therefore, UAE nationals get first option at employment. Once nationals have been employed nationals of Arab countries would get second option, then the organization would be able to hire the best candidate. This would go completely against multiple labor laws in the US, including Title IV. The complete UAE labour law is also a document of 61 manages which includes fair labor standards, women’s rights, child laws, retirement and benefits, days off, ect. It is a very straight forward yet simply document. This compared to the endless pages of acts and documents in the US. This does not mean there aren’t any down falls to this system. Through analysis there are gaps.
The simplicity of the federal document in the UAE creates a compensation system with a lot of negotiation and haggling. Once the salary is negotiated unlike the US each employee is to have a contract and unlike the US there are not specific salary levels or grades. There is no minimum wages in the UAE Federal Labour Law, nor has the government instituted a law similar to the US. Your basic salary is a negotiated rate stipulated in your labor contract. This amount is important because it is the basis of your end-of-service gratuity pay. (Severance pay) Salaries vary widely in the UAE, depending on qualifications and negotiation skills. UAE has no minimum wage rates or standardized salaries, and salaries are usually similar to, or greater than those paid in western nations. Salaries also vary widely depending on nationalities, often because they are based on qualification, and western qualifications are worth more than non-western qualifications. Market rates are mostly governed by what is sufficient to attract foreign nationals away from their home countries, and not governed by what is a fair wage, as...

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