Facts You Need To Know About The New UAE Labor Law

In the UAE, there are two broad categories of labor law. The first one, the collective labor law, relates to the triple connection between employer, union, and employee. The second one is an individual labour law concerning the rights of the employees working.

The Brand New Labour Law

As per the new labour law, the employees will enjoy a consecutive three-day holiday in a week opposing the existing schedule where there are five working days in a week. However, there will be twelve working hours per day. The new labour law of the United Arab Emirates abrogates the previous entirely. The new law is less all-embracing and exhaustive. A lot of aspects and sections of the new law require detailed briefing and clarification.

The United Arab Emirates is accelerating towards a new approach where the priority is the employee’s happiness, and abundance is the ladder in creating a healthy workplace. According to the new law approved and announced by the government of the United Arab Emirates, there will be four and a half working days except Sharjah, which will only hold four working days in a week. Most likely, the private sector will follow the changed spreadsheet, and it is expected that the private sector will align their working days according to the days assigned by the government.

There was an obvious need arising in the past two years, especially after the boom of the pandemic and all the protective and preventive measures sequencing to working remotely to complete lockdowns ending with a stab of unpaid leaves and salary reductions and many more surprise bullets. So everything was targeting,  persisting and was calling for upgraded and advanced labour laws and legislation capable of dealing with all the trashing and life-shaking situations along with all sorts of technological advancements to improve conditions of working in the United Arab Emirates and retain and aid the region to continue attracting world-class talent.

The new law comes with a lengthy charged sheet which consists of certain changes explained below;

1. Form of Contracts

There is a deadline, February 1, 2023, given to the employers to endorse and adopt forms of employment contracts which are now fixed for three years and cannot exceed this time limit. The new template form will be regulated by the Ministry of Human Resources and Emiratisation. The new fixed-term contract can be renewed countless times, and the renewal will not impede the continuation of an employee’s employment.

2. New Working Patterns

The new labour law understands flexible working or casually known as temporary and part-time. The regulatory recognition of flexible working is now an accepted concept in the UAE. For the first time in the history of the United Arab Emirates, an employer can be hired and employed by two employers at the same time. The new law protects the labour by agreeing to their preferred working hours, making it easier for the employee to balance and maintain two jobs.

The Labor Law in Media city Free Zone is implemented according to UAE’s Labour Law No. 8 of 1980 in the section of the Organization of Labour Relations between the employees and employer. The Labor Law in Ajman City Free Zone also set down certain requirements for the Company setup Ajman media city, all sponsored individuals and licensed companies fall into a full agreement under the applicable laws and any amendments to the Law.

3. Equal Payments and Zero Discrimination

The best part about the new law is that it has immensely well-established the right for female workers to be paid equal salaries as the opposite gender, in the same position or not. There will be no tolerance regarding discrimination over religion, race, color, nationality, or disability. This does not hinder any policies designed to promote Emirati participation at any workplace.

4. Probation

It is obligatory and a very important part of the rule that the employer and employee are bound to provide a 14 days written letter if the employment contract is required to be terminated between the probationary phase. In the previous law, it was only allowed to act on a day’s notice. If any employee wishes to shift to another job right after seizing a contract during the probation period, the employee is bound to hand over a 30 days notice.

5. Non-Compete Restrictions

The new labour law offers welcome rules on the basis of non-competitive commitment applied on the conclusion of employment. Such uncompetitive obligations are applicable only if they are;

• Particular and specific in type, time, and place of work to an understood extent in order to protect the law interests of the employer

• Must not surpass termination for two years

6. Minimum Wage

The new labour law introduces and permits a new national minimum wage. This will probably be announced at the United Arab Emirates Cabinet. Currently, there is no such existence of national minimum wage

7. Disciplinary Concurrences

The new labour law showcases a certain configuration for an employer to judge performance-related matters, which embarks with an official letter of condemnation and can step towards dismissal. Employers will be able to make deductions and give suspension for over 14 days.

8. Expiration or Termination of Employment

The new law incorporates a notice period for the expiration or termination of an employment contract that happens to be 90 days and no less than 30 days. The period of 90 days appears to be a challenge for the senior employers and executives in specific industries where expiration and termination phases can be prolonged to 12 months. In a certain way, t new labour law pictures a concept of “unlawful termination.” A termination letter comprised of complaint submitted to the officials is unlawful; instead demands all sorts of compensation

9. Paternity and Maternity Leave

Pregnant women will now be privileged to 45 paid days with an addition of 15 days at 50% pay. Extra and additional leave will be completely allowed for mothers who wish to attend their babies for a longer period with paid 30 days and 30 days unpaid. The newest thing in the United Arab Emirates would be parental permission in the first six months after the child is born. This applies to both parents.

10. Enclosure of Service Gratuity

This principle shall not change; instead, it is to be paid even after the employment contract has been terminated without given notice. There will be zero adjustments made over the calculations at the enclosure in case of resignation. The new labour law has the power of fines that can be enforced on the employer for violation of employment ordinances.

Next Step

Any change to the law, employment, and contracts demands consultation with employees. Therefore, employers should begin and initiate the procedures now and take immediate steps to alter their HR policies to accommodate the New Labor Law of the United Arab emirates. The implementations in the ajman media city free zone cost to enhance and promote the elasticity, sustainability, and resilience of the labor industry across the country and ensure the protection of the rights of the employees and employers both against physiological, physical abuse, or sexual harassment. In addition, the new labour law of the UAE contributes and delivers possibilities for equal and stable opportunities and fulfillments of rights against color, race, religion, gender, or disability.