What does Cabinet Resolution No. 1 of 2022 mean with exempting supervisory roles from the provisions of the Labour Law?

Dear questioner

The phrase signifies that the employee in a supervisory role must possess a substantial level of authority and decision-making power that mirrors the employer's, like having significant decision-making authority, policy formulation and implementation, hiring and firing authority, and strategic planning.

If you need further clarification, kindly share your WhatsApp number.

Dear Inquirer

We are pleased to serve you and address your inquiries.

Powers are determined by the Labor Law and the provisions of the employment contract.

When those powers are transferred to another, they are determined by the delegation as long as it is consistent with the employment contract.

Contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants

According to UAE law, employees in supervisory roles are exempt from the maximum working hours provisions if they have powers similar to those of the employer, such as making key decisions or signing contracts.

Employees with a Power of Attorney to sign contracts or temporarily replacing the CEO may qualify for this exemption.

You can contact us via WhatsApp for further details and legal support.

We are honored to provide you with specialized legal support for your case.

If you have any further inquiries regarding your matter, we would be happy to assist you.

The concept of "if they have powers equal to those of the employer", according to Article 15 of Cabinet Resolution No. 1 of 2022, indicates that an employee must have decision-making powers that are similar or equivalent to those of the employer in certain essential management and directional matters within the company or organization.

These powers may include, for example:

Making decisions that affect the company's business strategies.

The ability to make major financial or strategic operational decisions.

Managing day-to-day operations independently.

Assuming key management responsibilities that are not under direct supervision.

Regarding the question of whether department heads who report to managers, as well as those with contract-signing authority or those temporarily replacing the CEO, are entitled to:

Department heads: If a department head reports to managers and works primarily under their supervision and is unable to make independent decisions that affect company policies or major operations, they may not be eligible for exemption from the specified working hours or overtime, based on the specific scope of their authority.

Those with official authorization to sign contracts: These individuals may be considered to have powers equivalent to those of the employer if they have the ability to make significant strategic or financial decisions. Therefore, they may be exempt from certain provisions related to working hours, as stipulated in the Cabinet Resolution.

Those temporarily replacing the CEO: If the employee replacing the CEO has powers equivalent to those of the CEO in making strategic decisions and managing the company during their absence, they may be eligible for this exemption from working hours in accordance with Article 15.

In these cases, these individuals may be entitled to an exemption from the labor laws regarding maximum working hours if they have powers equivalent to or equal to those of the employer.

However, the assessment should be based on the scope of their actual powers, not solely on their titles or positions.