The new labor law in UAE has been introduced and imposed from 2nd February 2022. This law has replaced the previous labor law referred to as Federal Law (8) of 1980; the former after the necessary amendments is Federal Decree-Law No. 33 of 2021. This amendment addresses the employer-employee relationship and further strengthens the rights of the working class of the UAE.
The New Law is a major upgrade from the original law of 1980 and is comprehensive, precise, and of an international standard. Some major radical changes will directly impact the ex-pat workforce currently working in the UAE and the people planning to move to the emirates to seek better opportunities and a better future. Below are some salient features introduced in the new law:
New Employment Contracts
All the companies operating under the private sector are bound to submit the revised employment contracts between their employee and themselves within one Georgian calendar year, making February 1st, 2023, the deadline, with the Ministry of Human Resources Emiratization (MOHRE). The new employment contracts must align with the new law Federal Decree-Law No.33 of 2021 and its guidelines.
Unlimited Contracts Abrogated
The new law has made it mandatory for the contracts between employers and employees to be of limited duration with the maximum duration of 3 years as a standard. The new employment contracts will be renewable for more than once and can be of equal or shorter duration as deemed necessary by the parties involved.
New Leaves Introduced
Federal law No.8, replaced by Federal Decree-Law No.33 of 2021, has defined a new and comprehensive leave mechanism that must be implemented in its true spirit. Several leaves are introduced in the new law with mourning, study, and more.
Below are the new leaves introduced.
- Employees can obtain a five-day leave in case of the demise of the employee’s husband or wife, referred to as Mourning Leaves.
- Starting from the date of death, employees can obtain leave of 3 days in case of the death of their mother, father, grandmother, grandfather, son, or daughter.
- Fathers of newly born children can avail of a 5-days parental leave. This leave can be availed for five consecutive days or in parts within 6 six months of the child’s birth.
- A 10-day study leave will be granted to employees appearing in an exam; this leave can be availed only if the employee has served the employer for more than two years.
- A 45-days duration of fully paid maternity leave will be granted to the working women in the UAE. Additional 15 days can also be added to this leave with half of the salary.
Guidelines on availing of sick and un-paid leaves have also been provided in the new law.
Prohibitions
The new labor law in UAE has addressed discrimination, harassment, forced labor, and bullying in detail. The new amendments strengthen the core belief of equal opportunities, job access, etc.
Bullying, harassment, coercion, and threats have been strictly prohibited as per the Federal Decree-Law No.33 of 2021.
Gender Discrimination
Federal Decree-Law No.33 of 2021 has prohibited discrimination, be it race, gender, color, religion, national or social origin. The new law particularly addresses and ensures equal opportunities for women and ensures that the same amount of wage is offered to the women for a specific job as it is offered to men.
New Work Model
The new labor in UAE is of great significance since it will ensure improved ease of business a more flexible labor market, including full-time, part-time, temporary, and flexible work options. These options will enable employers and employees to make full use of their abilities yielding better returns for both.
Shorter work week
Employees can have a chance to work for 40-hours a week instead of 48-hours a week with a max of 8-hours a day on a newly introduced condensed working hour model.
Notice period in probation
The employer is required to issue a prior notice of 14 days to the employee on probation if services are not required. This amendment will further protect the rights of the employees working on probation.
Non-Competition Clause
The New Law has addressed a vital issue for employers by adding the non-Competition clause. Employers were exposed to the threat of their employees joining their competitors in the market, putting their business interests at stake.
The new amendments protect the rights of employers by providing them with an option to restrict their employees by refraining them from joining their competitor organizations for a period of 2-years in case they resign from their jobs.
Conclusion
The labor law in UAE is being dubbed as a major overhaul. The new guidelines are anticipated to bring a healthy transformation in the business environment from both employee and employer perspectives. Market, in general, is hopeful that the new law will ensure a transparent and healthy overall working environment.
Bader Saleh Auditing of Accounts has full understanding of the new law and how it affects workplace environment. We offer best consultation to our clients in light of recent changes in governing laws. Feel free to reach out to us:
• Office # 0641, Tamani Arts Offices, Business Bay, P.O. Box 111390, Dubai, UAE
• +971 4 570 7357
• +971 58 108 5690
• info@bsauditing.com
