The Implications of New Labour Laws In The UAE For Employees

The UAE Labour Law aims at balancing the power between the worker and the employer. It prohibits the employer from terminating a worker without reason and establishes and maintains mechanisms that recognize employees as equal partners in determining their working conditions. Labour law prohibits forced labour and discrimination on gender, race, colour, sex, religion, national or social origin, or handicap. It also outlines the responsibilities of employers to their employees.

Moreover, the labour law applies to all those working in the UAE, inclusive of the natives and the immigrants. Certain changes in UAE Labour Law 2022 apply to the working environments, regardless of them being in public or private domains. With that, here is an insight into the new law. Read ahead to know more:

New Work Models And Contracts

Recently two work patterns were added to labour law that is remote working and work sharing. Whether or not the work is part-time or full-time, remote work constitutes all the work that is led externally to the workplace. It also includes the contact between the representative and the business via electronic communication rather than in person.

On the contrary, in work-sharing employers can divide a job among many employees and get it done promptly. The Implementing Regulations establish particular work licences for each individual’s arrangement. It provides them to the Ministry of Human Resources and Emiratisation for customized employment contracts that match the parties’ agreements, such as a remote or flexible job contract.

Fixed Term Contract Requirement

This is the most required change in labour law. According to which all personnel must be hired on fixed-term contracts with a maximum duration of three years. If agreed upon, contract terms might be shortened. Employers can enter into an unlimited number of fixed-term contracts in a row. Employers have until February 2023 to transition all of their employees on fixed-term contracts.

Probationary Period

Under the new labour law, the maximum probationary term stays at six months. During the probation period, the new law does, however, impose some notification obligations. Employers must now offer a minimum of fourteen days written notice of their intention to terminate an employee’s employment contract if the employee is on probation.

Working Hours Or Overtime

The Implementing Regulations have now specified that during the holy month of Ramadan, normal working hours shall be shortened by two hours. Commuting time is normally not included in working hours. However, there are exceptions to this concept, such as inclement weather and traffic incidents, and this is a new provision in the implementing regulations.

Work Regulations

Companies with more than fifty employees are currently expected to have a protests framework set up. This is a takeoff from the Old Law, which did not need the utilization of a compliant method.  Work guidelines for organizations with more than fifty workers should contain work directions, disciplines, advancements and grants, and processes for terminating representatives. These necessities should spread the word for workers, and they should be written in a language easy to comprehend.

Service Gratuity

Previously, a retiring employee’s end-of-service gratuity (EOSG) was lowered based on how long they had worked for the company. There was no EOSG on the off chance that the worker had not served for at least one year. Workers who have finished something like one year of the job will qualify for full EOSG when they resign under the new regulation.

Currency of Salary

Employers are free to pay employees’ salaries in whatever currency that the parties to the employment contract agree on. The next executive rules intend to give further information on how the new legislation operates. This is especially in line with the practices for firms that must pay employees under the current Wages Protection System.

Non-Compete Obligation

Non-compete provisions do not apply if the employer ends the employment relationship Neither does it apply if the employee quits work because the employer has breached its responsibilities. This is clearly stated in the Implementing Regulations. It further provides that a post-contractual non-compete limitation can last up to two years from the date of the contract’s expiration. The Implementing Regulations further specifies the terms under which a non-compete agreement must be carried out.

Moving Forward

Limiting negotiating partners’ ability to contract on their terms imposes minimum safety and pay criteria. The implementation of labour law aims to avoid a race to the bottom. These laws help the employees stand up for their rights. In case of any problem, they can hire a lawyer in Dubai and get the required assistance. Their expert advice can help the employee land the best career opportunities when moving into a new world.

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