UAE Labor Law – The Federal Decree Legislation No. 33 of 2021 went into effect on February 2, 2022, and is a new decree-law that governs labor relations and employment practices in the UAE’s private sector. The New Labor Law represents a milestone development for the private sector, as it is the most significant reform to the current UAE Federal Law No. 8 of 1980 since its issue, and it completely replaces the Previous Labor Law. The New Labor Law has frequent references to “executive rules,” which have now been made public as UAE Cabinet Resolution No.1 of 2022. (the “Executive Regulations”).

The Executive Regulations enhance and clarify important aspects of the New UAE Labor Law, and in light of this, our advocates in dubai services have updated our comparison of the Previous Labor Law and the New UAE Labor Law to incorporate references to the significant changes within the Executive Regulations.

The Federal Decree-Law no. 33 of 2021 concerning the regulation of labor relations (the “New Labor Law”) will become effective on February 2, 2022.

The Decree-Law aims to:

1. The law ensures the efficiency of the labor market in the UAE, which contributes to the attraction and retention of the best future talents and skills. It provides an attractive business environment for employers and helps both parties to participate in pursuing the UAE’s national development goals.

2. Regulate the labor relations and determine the respective rights and obligations of the parties to this legal relationship in a balanced way.

3. Enhance flexibility and sustainability of the UAE’s labor market by ensuring the protection of the parties to, development of, and exceptional circumstances encountered by, the work relationship that would have an impact thereon.

4. Support and rehabilitate capacities and skills of Workers in the Private Sector. In such a way, as to promote manpower’s efficiency and productivity in the UAE’s labor market.

5. Provide protection for both parties to the work relationship, and enable them to obtain their rights within this Decree-Law.

KEY AMENDMENTS:

Three years contract: This is a limited / fixed-term contract, which may not exceed three years, and is renewable for the same period or less upon agreement of both parties. Unlimited contracts must be converted from unlimited to limited contracts within one year of enforcement of the New Labor Law. 

Work categories: New Labor Law introduces full-time, part-time, temporary and flexible work.

Probationary Period: The Employer may employ the Worker on probation for a period not exceeding (6) six months from the service commencement date. The Employer may terminate the Worker during such period by giving the Worker (14) fourteen days’ prior written notice. A foreign Worker wishing to terminate the Employment Contract during the Probationary Period in order to leave the UAE shall notify his Employer in writing at least (14) fourteen days prior to date determined for termination of the Contract. If the Worker wants to return to the UAE and obtains a new Work Permit within (3) three months from the date of his departure, the new Employer shall pay the compensation stipulated in paragraph (3) above, unless agreed otherwise by the Worker and the original Employer.

Non-compete: It will be mandatory for the employer, pursuant to the New UAE Labor Law, to enter into a non-compete agreement with its employees if it intends to protect its business interests. 

Equal pay: It introduces an emphasis on granting women the same wages as men when performing the same task or other duties of equal value.

Minimum wage: The Cabinet may, upon proposal of the Minster and after coordination with the concerned entities, issue a decision determining the minimum Wage for Workers, or any category hereof.

Maternity and other Leaves: Period of maternity leave is increased. Paternal leave and bereavement leave is allowed. Employees are entitled to a 10-day study leave per year provided they are enrolled in an accredited institution in the UAE and have completed a minimum of 2 years with their employers. 

Judicial fee exemptions of up to AED 100,000 relief applicable to workers that includes all stages of litigation and execution and requests submitted by employees. 

Protection against bullying and sexual harassment: Employer may not use any means of force against employees or use a penalty threat to provide a service against their will. It also prohibits sexual harassment, bullying, or any verbal, physical or psychological violence against workers by their superiors or colleagues, any type of discrimination on the basis of race, Colour, sex, religion, nationality or disability with a special aim to empower women in the workplace. 

Payment of final settlement: Must be paid by the employer within 14 days of the termination of the employee’s employment. 

Notice period: Have now been capped at 3 months whilst the minimum notice period remains at 30 days. Employee’s right to search for other employment. The employee will be entitled to 1 day off per week to look for new employment during their notice period where the employer issues such notice. 

Resignation without notice: An employee will be able to resign without giving notice if: (i) an employer breaches their obligations and fails to remedy such breach within 14 days of the employee notifying MOHRE of such breach; and (ii) in case of harassment or violence, the employee notifies the MOHRE within 5 working days. 

Fines: Employers may face fines of up to AED 1,000,000 for breaches of the New uae Labor Law. Such fines may be multiplied in cases where more than 1 employee is affected by such breach.

FAQ about UAE labor law | Best labor lawyers dubai

1- Who does the UAE labor law apply to?

labor lawyers in dubai explain that some free zones in the UAE, such as the Jebel Ali Free Zone, include labor-related laws that must be followed.  Article 3 of the Law states that the Law applies to all staff and workers working in the UAE, whether they are UAE residents or ex-pats.

2- What are the different forms of work as per UAE labor law?

1. Full-time: working for a single employer for the whole workday.
2. Remote work: The program allows full-time and part-time workers to work entirely or partially outside of the office if the nature of their work permits.
3. Shared job model: An agreement with the company that divides job tasks and salaries among many employees. Part-time work rules control the contracts of employees under this arrangement.
4. part-time: Working for one or more employers part-time for a set number of hours or days.
5. Temporary work: A contract for a set amount of time or for a single project that terminates when the job is finished.
6. Flexible work: Allowing employees the flexibility to work at various times following the circumstances and demands of the job, based on a contract that specifies the hours, days, and tasks necessary.

3- What is the UAE labor law?

Forced labor and discrimination on the basis of gender, race, color, sex, religion, national or social origin, or handicap are prohibited under the law. It also specifies employers’ responsibilities to their employees. The scope of the law The rule applies to all personnel working in the UAE, whether they are UAE residents or foreign nationals.

4- Is there still labour ban in UAE 2022?

1 of 2022, an employment ban may not be applicable to the employees who hold a family-sponsored UAE residence visa; whosoever applies for new work permit in the same entity; employees who hold professional qualifications, skills or knowledge that the country is in need of; golden residency visa holders

Our law firm in dubai can provide complete legal consultants in dubai partners in amending employment contracts in accordance with the new UAE Labor Law.

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