The upper limit of 65 years on the retirement age

The upper limit of 65 years on the retirement age may be further increased in consideration of the individual’s nature of work.

Question

I have been residing in Dubai since 1986 and I will be 60 soon. I am currently employed with an international company, which has asked me to retire, claiming that according to the UAE law, the retirement age is 60 years. I recently received information that the retirement age has been increased to the age of 65 years. Could you please clarify the age of retirement as per the UAE law? Can I get an extension for a year or more?

It is understood that you are currently employed by a company in the United Arab Emirates, although you have not mentioned whether your employer is an entity registered in a one of the free-zones in the UAE or in the mainland under the federal laws of UAE.

It is understood that, since January 2011, the Ministry of Labour of the UAE is accepting requests for work-permits of individuals over the age of 60 years up to the age of 65 years; thereby enhancing the retirement age from 60 to 65 years. So, as per the prevailing provisions, for all employees working in private sector entities registered under the federal laws of the UAE, the retirement age is 65 years.

However, the upper limit of 65 years on the retirement age may be further increased in consideration of the individual’s nature of work, his credentials, expertise which is important for the entity he is working for.

Further to this, employment visa may be issued to an employee annually after the employee attains the age of 65 years.

In case of free-zones, all of the free-zone authorities follow their own set of labour rules and regulations, which regulate employee relations within their jurisdiction; and which are independent of the provisions laid down under Federal Law No. 8 of 1980 relating to labour relations.

The free-zones may follow but are not bound to follow the changes in the federal labour laws or regulations, which among other things include retirement age of an employee.

Pursuant to your aforesaid questions we are of the view that you may be entitled to work till the age of 65 years if you are employed by an entity registered in the mainland and not an entity registered in a free zone in the United Arab Emirates.

If, however, your employer is a free zone entity, you may contact the labour relations department of the free-zone concerned for the necessary information.

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