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Would-be entrepreneurs in the UAE could benefit from changes to the country’s labor system that would allow employees to take on part-time jobs in addition to their full-time jobs, a legal expert says.
Last year, the UAE Ministry of Human Resources and Emiratization implemented a landmark initiative that allows employees to work for multiple employers without obtaining approval from their primary employer.
State news agency WAM said in a statement that companies can hire part-time workers from within the country and abroad, as long as they obtain permission from the ministry.
“Entrepreneurs often face cash liquidity barriers, [but] With part-time work opportunities, entrepreneurs can start a business and become a full-time employee of that business while working part-time as a means of earning extra income. “The founder and partner of local law firm Bin Nakhira & Partners said in an interview.
“On the other hand, since any new entity requires a registered manager or director, existing employees with an entrepreneurial spirit have the opportunity to start a business and drive the business forward by becoming a registered manager or director until the business is able to generate sufficient revenue. The income is sufficient to sustain their primary occupation.”
Furthermore, he added, the system allows more founders to participate in the creation process as they can retain full-time or part-time employment in addition to the new business. “This increases the pool of people with skills, expertise or passion that can be partnered with as co-founders of new ventures.”
The WAM statement added that even if the employer alleges a conflict of interest related to the disclosure of trade secrets, the non-competitor clause will not apply to such employees unless a court orders in this regard.
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Abuwasser, however, advised private sector employees to be transparent in their transactions to avoid misunderstandings.
“Even if employees are not required to notify their primary employer before taking part-time work, it is better to avoid the risks and be transparent about it,” he advises. “For private sector employees, I can easily say that most disputes are What started as a seed of misunderstanding eventually turned into an argument.”
In practice, some employment agreements “may differ in terms of time and location commitments,” the expert added.
“In other words, the employment agreement may give the employer the right to change the workplace or timings, which (if changed) may conflict with the employee’s part-time work commitments,” he explains.
“It is therefore advisable to discuss these details before an employee commits to part-time work, as part-time work comes with its own obligations and is a sensible approach.”
Abuwasel also recommends that employees have a clear understanding of their primary employer’s bylaws, policies or any other internal rules that may be inadvertently violated in the course of part-time employment.
At the same time, the lawyer added, public sector workers need to “be weary of using any information or power conferred by public sector employment to seek the benefits of part-time employment”.
“Sometimes public sector employees may hold positions that implicitly support them working part-time, which may have controversial consequences,” he explained.
Nasser bin Thani Al Hamli, UAE Minister of Human Resources and Emiratisation, told WAM that the new system will promote flexibility in the labor market and meet the needs of employers based on the status of employees in the labor market. Part-time contracts will reduce labor costs, especially for employees already in the country, he added.
The Dubai Entrepreneurship Center recently launched the Dubai Co-Founders program, which will help match Emirati entrepreneurs with suitable co-founders to support their growth plans. This first-of-its-kind pilot matching program, open to all UAE entrepreneurs, provides new startups with access to talent and a unique opportunity for aspiring co-founders to become business owners. To apply, click here.
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