On November 16, 2021, the UAE government announced significant changes in employment laws. Federal Decree-Law No 33 of 2021 on the Regulation of Labour Relations (New Law), will come into effect from February 1, 2022, replacing the Federal Law No. (8) of 1980 (as amended).
The New UAE Labor Laws applies to all employers and employees of the private sector. This includes companies established in the UAE mainland and free zones, regulated by the Ministry of Human Resources and Emiratisation (MoHRE). However, some free zone companies that have exceptions are the ones based in Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), as they have their separate employment legislation.
Some of the significant UAE labor law changes include:
Fixed Employment Terms
Under the new labor law, unlimited contracts are abolished and will be replaced with fixed terms contracts for a maximum period of 3 years not more than that. However, the contract can be renewed for either the same or lesser duration.
Equality, Non-Discrimination and Harassments
New labor law clearly prohibits any kind of discrimination such as religion, caste, race, color, sex, national origin, ethnic origin, or any disability. Moreover, employees shall enjoy their rights of equal workplace opportunities and will also be protected by law in case of any form of sexual harassment or violence.
New work modules recognized
Other than the traditional work models, new work modules are recognized and separated them into 4 different categories:
- Full-time work
- Part-time work
- Temporary work
- Flexible work
Probation
The probation period has been specified under the new law which is for 6 months. However, during the probation period, the employer must provide 14 days’ notice to terminate an employee. On the contrary, if an employee wants to change jobs during the probation period he must provide a 14 days notice or one month’s notice if they wish to leave the country.
Maternity Leave
Under the new law, a woman with one year’s continuous services with her employer is entitled to 60 days paid maternity leave (Previously 45 days). Maternity leave benefits are enhanced and will be paid as follows:
- First 45 days full pay will be paid
- Remaining 15 days half pay will be paid
Additionally, an employee will be given extra 30 days leave if the employee’s delivered child requires a full time escort.
End of Service Gratuity
According to the new law, employees who have completed at least one year of continuous service with their employer are entitled to full end-of-service gratuity payment. Another significant change that, end of service gratuity is to be calculated based on working days
Compassionate leave
New labor has introduced compassionate leave for employees. This grants 5 paid leaves in case of any unfortunate event of a death in the family.
The new labor laws adapt modernized employment systems across the UAE. The authorities are required to ensure that all employers and employees are compliant with the latest regulations.
