A Labor defines the human factor in creating the goods and services of an economy & A Labor law is legislation that describes rights and responsibilities in the profession, especially the worker’s rights and the employer’s responsibility. And these employees are confined to discrimination because of their race, age, country of origin, or religion.
As a part of UAE’s 50th anniversary, the UAE announced some changes to its legal landscape in many years; The United Arab Emirates issued a new labor law that came to effect on Feb. 2, 2022, which replaced the old Labor Law of UAE (Federal Law No. 8 of 1980).
The new UAE labor law applies to all employees and companies in the private sector in the UAE and its free zone. The companies operating in the UAE private sector will be familiar with many of the terms and conditions of the New Labour Law. But there are a few changes that will affect the employer’s interaction with their employees and the business operations in the UAE.
Key Changes in UAE Labour Law
- Dissolution OF Boundless contracts
The new UAE labor law abolishes unlimited contracts and replaces them with work contracts of a fixed term for three years & this may renew with the consent of both parties for a similar period or less on the same conditions
- Equal Pay for Equal Work
The new UAE labor law prohibits discrimination based on sex, race, religion. The new Law verifies that all conditions regulating the employment of employees without any bias shall apply to working women, with a focus on granting women the same earnings as men if they perform an equal of the same work or other work.
- Deadline for the Drafting of New Employment Contracts
Employers in the private sector shall require substituting with a contract that complies with the New UAE labor law to their current employment contracts. The employers have a maximum period of one year which is first February 2023, from the date of the new law implementation.
- New Categories of Leave Granted to Workers
Under the new UAE labor law, employees shall have the right to request additional leaves. These leaves include
- Grief leave: Leave of three days following the death of close family members
- Parental leave: Leave of five days. This leave can be taken consecutively or intermittently within six months from the birth of a child.
- Study leave: An employer who has to take exams can take a study leave of 10 days provided that they complete two years of work with that employer.
- Maternity leave: Mothers will receive extended maternity leave, with 45 days of full pay and the next 15 days with half payment.
- New Models of Work Announced
The new UAE labor law delivers new models of part-time work, temporary work, and flexible work to enhance the flexibility and productivity of the business market.
- 14-day Notice of Termination Period
An employer terminates an employee at any time during their probationary period. In the new UAE labor law, the employees should still serve 14 days’ notice on their employer if they wish to do the same.
- Condensed Working Week
The New UAE labor law promotes a condensed working hours model where employees work a shorter week. The usual working hours for the private sector are 48 hours per week or 8 hours per day. The new labor law provides an option for employers to allow their employees to work for 40 hours in a week on a shortened model, which is a 4-day week consisting of 10 hours per day.
Judicial Fees Exemption
- Under the New UAE labor law, workers or their heirs may seek litigation or enforcement orders & file pleas against employers without incurring judicial fees at any stage of the process, provided their claim should not exceed Dh100,000 in value.
- The employer will also bear the fees and expenses of recruitment and employment and may not recover the cost directly or indirectly from the employee.
This article does not intend to provide a complete summary of all of the changes introduced by the New Law and the Executive Regulations. We recommend consulting with professionals or lawyers to learn more about the new UAE labor law & its impact on current employment.
