The UAE government announced a decree-law last year to safeguard workers’ rights in the private sector in the event of a pandemic. If you work in the UAE, you should be aware of the employment rules and regulations, which provide workers with a number of perks, such as legal cost exemptions and paternity leave. Let’s learn more about the changes that the UAE Labour Law of 2021–2022 underwent.
Note: The following information is provided WITHOUT WARRANTY and is based on the terms of Federal Decree-Law No. 33 of 2021. However, some issues might still need more legal clarification.
UAE Labour Law 2022: an Overview
H.H. Late Sheikh Khalifa bin Zayed Al Nahyan, the second president of the United Arab Emirates and ruler of Abu Dhabi (may he rest in peace), issued Federal Decree-Law No. 33 of 2021 to govern labor rules in the private sector.
The law becomes operative on February 2, 2022. The following are some of the post-COVID-19 workplace regulations:
- Flexible work hours
- Different work models
- Updated regulations for part-time/temporary work safeguarding employee rights
- Updated leaves policy
- Termination rules during probation
- Condensed work weeks
- Equal pay for men and women
The implementation of the UAE Labour Laws 2022, according to the Ministry of Human Resource and Emiratization (MOHRE), will open the door for the future growth and prosperity of the nation’s dynamic labor force. These regulations emphasize gender equality in the workplace in addition to bringing in new talent.
Provisions Under the UAE Labour Law 2022
Coercion in the Workplace
The decree’s Article 74 bans employers from using any kind of coercion at work. An employee may not be coerced into performing labor against their will or threatened with a penalty by the employer.
Employees cannot be required to perform more than two hours of overtime every day by their employers. If the task necessitates more hours, the employer is required to provide compensation equal to 25% of the employee’s regular hourly wage.
Additionally, companies are no longer permitted to withhold any of the employees’ documentation, including passports. They are also not permitted to impose hiring fees on employees.
Workplace Harassment
All types of workplace harassment against employees are expressly forbidden by this regulation. This covers sexual harassment, bullying, and any other types of verbal, physical, or psychological abuse directed at a worker by an employer, a subordinate, or a fellow employee.
Discrimination and Prejudice
The law forbids discrimination on the grounds of gender, religion, national origin, socioeconomic status, disability, color, or race that can restrict equal opportunities or prevent the realization of equal rights.
The law also forbids firing female workers because they are pregnant or on maternity leave.
Equal Pay for Men and Women
Additionally, the changes to the UAE Labour Law emphasize the earlier definition of the equal pay provision for men and women. These modifications emphasize that working women in the UAE must be subject to all conditions governing employment without any exceptions or violations of their legal rights.
Women are likewise entitled to the same pay as males under UAE labor law if they perform identical or similarly valuable work, as determined by the Council of Members.
Ease of Business and Labour Market Flexibility
The labor law 2022 divides the employment market into six different work models that include:
- Full-time Employment
- Part-time Employment
- Temporary Employment
- Flexible Employment
- Remote Employment
- Job-sharing Employment
According to the Decree’s requirements, decisions about yearly leaves and severance compensation must be made in accordance with the employment model to safeguard both the employer’s and the employee’s rights.
Defining Part-time, Temporary, and Flexible Work Models
Here is a summary of the various working models outlined in the 2022 law.
- Full-time employment is when a person works all of their daily shifts for the same employer.
- Working under one or more employment contracts for a set number of hours or days is referred to as part-time work.
- Work is temporary and terminates after the agreed-upon number of hours or project is completed (s).
- Work that is flexible lets you alter your schedule as needed to accommodate operational demands and workload.
- Employees may do all or part of their business away from the office, their city, or their nation.
- Work when multiple employees share responsibilities and tasks are done to meet projects or business needs that have been mutually agreed upon.
Maximum Work Hours
It’s also crucial to remember that, in accordance with Article 17 (1) of the Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations (the “New Employment Law”), the maximum workweek and daytime hours are 48 hours and 8 hours, respectively. Work hours must be cut by two hours during the holy month of Ramadan.
The Federal Decree-Law No. (47) of 2021’s Article 7, Clause 1 also mentions the work regulation.
However, Article 7(2) of the New Employment Law also recommends that, on the minister’s recommendation and in consultation with the relevant enterprise, the Cabinet may increase or decrease the daily work hours for specific economic sectors/categories of people.
Employment Contracts
According to the updated law, a restricted fixed-term contract may not last longer than three years. The contract may be renewed or extended for a similar or shorter period of time if both parties agree.
The decree-terms law applies to employment agreements with an indefinite period made in accordance with Federal Law No. 8 of 1980.
Unlimited employment contracts must be changed into fixed-term employment contracts in accordance with the modifications. These contracts shall be subject to the limits, regulations, and procedures set forth in the decree within one year after the date of the Agreement. The Council of Ministers has the authority to prolong them if necessary for longer periods of time (in the public interest).
Probation
The following probationary rules are implemented by the labor law of 2022:
- The UAE employee’s probationary period cannot last longer than six months.
- If an employee is terminated while on probation, the company is required to provide them with two weeks’ notice.
- If an employee wants to leave while they are on probation, they must give 30 days’ notice.
- If an employee wishes to leave the nation while on probation, they must serve a 14-day notice period.
- Let’s say a worker quits, departs the country, and then comes back to the country to start a new job within 180 days. In that situation, the new employer is responsible for covering the cost of the visa as well as any additional charges.
Notice Period
In any event, notice periods cannot be longer than three months.
Now, employers are permitted to give a termination notice to an employee while they are on leave. However, the notice period won’t start until the worker comes back to work following leave.
Contract Termination
The original labor law’s article 120 no longer applies, and employers may now sever employment relationships for any of the 10 mentioned grounds without giving prior notice. Even in these situations, the employer is still required to give the employee his or her full end-of-service benefits.
Under some circumstances, such as a material change in job duties, an employee’s employment contract may be terminated without cause and without giving written consent.
Non-disclosure and Non-competitive Clause
The UAE Labour Law 2022 states that an employer is permitted to include a non-compete clause in an employment contract. It should be noted that the clause only applies if the employee is given employment that gives them access to trade secrets or confidential information about the employer’s clients.
The period of non-competition shall not exceed two years from the date on which the contract expires unless a condition as such is specified in terms of time, place, and type of work to the extent necessary to defend legitimate business interests.
Work Permits
Depending on the sort of activity and work model an applicant is hired for, the MoHRE issues 12 different types of work permits. Among these employment permits are:
- A standard permit for hiring foreign labor in the nation.
- The authorization to move a foreign worker (ex-pat) between businesses registered with the ministry.
- A work permit for visitors staying with family in the country.
- The authorization to work temporarily for people with temporary employment.
- A project work permit for businesses registered with the Ministry who want to hire foreign workers for a particular project with a set duration.
- For people using the part-time job model, the part-time work permit. The authorization enables workers to work for many employers.
- The juvenile work permit will enable minors between the ages of 15 and 18 to work in a registered ministry facility while adhering to all applicable rules and regulations.
- The Ministry-registered establishments will be able to train and/or hire a UAE student who is 15 years of age or older as long as they adhere to all applicable rules and regulations.
- Children and adults from the GCC are able to work in businesses that are registered with the Ministry if they have a work permit.
- A golden residency holder’s work visa will be granted at the request of a ministry-registered organization.
- Institutions registered with the Ministry and seeking to train people based on scientific credentials may employ national trainees.
- With a self-employment permit, people can work for themselves without a sponsor.
Worker Welfare Under the Labour Law in the UAE 2022
The essence of the UAE Labour Law 2022 changes is worker welfare. The decree contains provisions pertaining to employee welfare. Additionally, it guarantees health and safety regulations for all private sector employees. Here are a few clauses that deal with employee welfare.
Leave and Rest Days Defined
According to the 2022 labor laws and regulations, all employees are entitled to the following leaves.
Bereavement Leave
Five days as a result of a spouse’s passing.
Three days since a member of a close family passed away (mother, father, siblings, child, grandparents).
Paternity Leaves
- Up to 5 days of paternity leave to be taken intermittently or concurrently over six months after childbirth.
Maternity Leaves
45 days of paid leave for new mothers.
15-day extension of half-paid leave.
In case of illness (mother and child), an additional 45 days of unpaid leave are permitted; however, supporting documentation is needed.
Mothers who have infants with impairments may take an additional 30-day paid leave. Up to 30 additional days may be added without being paid.
Examination Leaves
Employees who are enrolled in state-approved institutions of higher learning are eligible for a 10-day study leave if they have worked for the current employer for more than two years.
National Duty Leaves
UAE citizens who work for private businesses are eligible for a full-time national service leave. There must be evidence of service.
In the employment laws of 2022, there were no modifications made to the UAE’s sick leave statute.
Employee’s Ease of Movement
The law deems it unlawful and forbids companies from requiring workers to leave the country at the conclusion of an employment contract or withhold official documents like passports from them.
Additionally, the law grants the employee the right to receive their pay on the due date in accordance with rules approved by the ministry and in accordance with the guidelines and requirements established by the Executive Regulations of Federal Decree-Law No. 33 of 2021.
Additionally, the workers are now permitted to remain in the nation for 180 days following the end of their employment without facing visa overstay penalties. 30 days used to be the maximum length of time for this.
End-of-service Benefits
The following revisions have been made to the UAE Labour Law 2022 to further protect employees’ rights to end-of-service perks, including gratuities:
- Without the payment of end-of-service benefits (EOSB), employees cannot be fired.
- Where EOSB are owed, the employee’s contract type and/or resignation date cannot be used by the employer to decrease or subtract the gratuity amount.
- An employee’s end-of-service benefits must all be paid within 14 days of their employment ending.
- When an employee’s job ends due to death, the entitlements must be paid to the deceased person’s family after body repatriation expenses have been deducted (where applicable).
- If an employee resides in housing provided by the company, they have 30 days after the contract’s termination to leave.
- In the UAE, gratuity is still calculated in the same manner (to be calculated by legislation that regulates pensions and social security). However, as long as it is mutually agreed upon in the employment contract, end-of-service rewards may now be paid in any currency chosen by the employee in the UAE.
Exemption of Litigation Fees
According to the 2022 law, all labor cases or petitions brought by an employee or their legal heirs against an employer are exempt from court costs during all phases of litigation, execution, and requests, so long as the claim amount is less than AED 100,000.