Legal Glossary

Emirates ID

The UAE Identity Card, issued by the Emirates Identity Authority. The identification number shown on the card is unique to the holder and remains with them permanently. The card is used as evidence of identity when dealing with governmental and some non-governmental entities.

Employee

A person hired to perform work under the direction of an Employer in return for a wage or salary. The status of “Employee” comes with various legal requirements for their Employer (e.g. liability for the actions of the Employee and, in the UAE, visa and immigration requirements) which are not applicable if the person is a Consultant.

Employee Share Option Plan

A plan providing benefits to employees (and/or Directors and Consultants) in the form of an Option to purchase Shares in the employer company.

Employer

An individual, company or other entity by which an Employee is employed.

Employment Agreement

A contract of service between and Employer and an Employee. An Employment Agreement sets out the compensation the Employee will receive (wages, salary, or equity), other benefits including bonuses, holiday entitlements, health insurance coverage, end-of-service gratuity and other terms of the relationship. In the UAE, Employers must use a standard form of Employment Agreement issued by the Ministry of Human Resources and Emiratisation or the relevant Free Zone authority but Employers typically supplement this standard form with their own, more comprehensive form of Employment Agreement.