Residents of the UAE should get ready for some significant legal reforms that will take effect in 2023 and have a positive impact on both their personal and professional lives. Here are the five laws that will take effect the following year and their significance.
1. Unemployment insurance scheme
Employees who pay a premium of Dh60 (Dh5 per month) or Dh120 (Dh10 per month), depending on the category they belong under, would get 60% of their base wage under this mandatory plan.
When does it come into effect?
January 1, 2023, however according to the information revealed, in to be eligible for benefits under the insurance plan, you must have worked a minimum of 12 months continuously in your prior position starting on the day you signed up for it.
The insurance programme is divided into two groups: the first group is for employees whose basic salaries are Dh16,000 or less, and the second group is for those whose basic salaries are Dh16,000 or more. You can earn 60% of your basic income for up to three months after losing your job by signing up for the insurance programme.
2. Civil Personal Status law for non-Muslims – Federal Decree-Law No. 41 of 2022
When does it come into effect?
February 1, 2023
The new personal status law for non-Muslims addresses a number of civil life issues, including as marriage, divorce, estate planning, wills, and child custody. The provisions of the law are applicable to non-Muslim residents of the United Arab Emirates and regulate the requirements for marriage, the contracting and documentation of the marriage before the appropriate courts, the divorce procedures, which can be started jointly or unilaterally, the procedures for resolving financial claims after divorce, and the arrangement of joint custody for children. The law also organises the processes for testaments (wills), inheritance, and paternity evidence.
3. Emiratisation targets for the private sector as part of Nafis programme
When does it come into effect?
January 1, 2023
Before January 2023, private UAE businesses with at least 50 employees must achieve a 2% Emiratization target. The resolution was adopted by the UAE Cabinet in May of this year with the intention of generating more than 12,000 new job opportunities for UAE citizens per year across all economic sectors.
Beginning in January 2023, non-compliant businesses will be required to pay a fee of Dh6,000 per month for each individual who has not been employed.
Contact the Nafis customer service department at 800 NAFIS or 800 62347 if you are unsure of the recruitment goals that apply to your business.
4. Corporate tax – Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses
When does it come into effect?
Beginning with their first financial year that begins on or after June 1, 2023, businesses will be subject to UAE Corporate Tax.
The UAE’s Ministry of Finance announced in January 2022 that a federal corporate tax on firm net earnings would be implemented and applied to all of the Emirates. Corporations and other firms will be required to pay a standard rate of 9% under the new tax system if their taxable profits reach Dh375,000.
5. Family business law – Federal Decree-Law No. 37 of 2022 on family businesses
When does it come into effect?
January 2023
The law is a component of the UAE’s extensive Thabat initiative, which seeks to transform 200 family-owned enterprises into significant corporations by 2030, with a market value of over Dh150 billion and yearly revenues of Dh18 billion.
The bill would offer the legal framework necessary to ensure the expansion and diversification of family businesses’ operations, according to the official website of the UAE government, u.ae. Additionally, it will make the transition between generations easier while ensuring, through methods and practises that have been well-researched, that these firms will survive the third and fourth generations. According to the goals and projects of the 50 and the factors influencing the UAE Centennial 2071, they will be able to expand and grow in a sustainable fashion, improve their competitiveness, and grow their businesses both inside and outside of the country’s markets.
Also Read: What is the annual leave policy under the new UAE law for domestic workers?
