7 Reforms In UAE Labour Law For A Better Work Culture

The new Federal Law No. 33 in the UAE that took effect on February 3, 2022, was an effort to reform the work culture in the private sectors of the emirates. The employees can get assistance from labour lawyers in Dubai to fully understand their employment rights, as they can challenge their employers in court in case of breaching the law. 

Dubai is known as a business hub giving job opportunities to nationals and expats and a favorable environment for entrepreneurs to start a business. According to a study, the emirate ranked second in the world’s best place for establishing business and getting employment opportunities. The profitable business environment, j possibilities, and suitable salary figures are the major reasons for expats routing to Dubai. So, to make the emirate a better place to work for both employees and employers, the government has amended the employment law.

Dubai’s luxury lifestyle and job opportunities are the major reasons for people moving to the emirate. However, getting employment is paramount to enjoy the luxuries, and for a better working experience, you must know the latest laws. The reason is that violation can bring you in difficult conditions because of strict laws in the UAE.

Let’s delve deep into the latest reforms in UAE labour law to bear in mind.

1.   Eradication Of Unlimited Contract

According to article 8 of the New Law, employers cannot hire employees on unlimited contracts. So, employers are required to hire employees on fixed-term contracts with a limited time period of three years. The contract can be renewed on the same conditions with the consent of both parties for a similar duration or less.

For renewing the contract, the government gave the time of 12 months which is until February 2, 2023. Employers need to replace the old employment contract with the new one compiled by the new laws.

2.   Equal Rights For All

The latest law has declared equal rights for everyone, which is also a step forward for the protection against discrimination. It prohibits discrimination on race, sex, color, religion, ethnicity, or disability. As you know, 80% of the population of Dubai is expats. These rights are for the victim of discrimination and help them enjoy equal rights.

Apart from that, bullying, verbal and psychological harassment and violence are strictly prohibited according to the latest law.

It also declares that women enjoy the same rights as men in terms of the behavior of others towards them and salary. If women play the duties equal to men, they must get a competitive wage as well.

3.   Paid Leaves

The latest law provides paid leaves in different circumstances. Compassionate leaves of five days will be granted in case of the death of a spouse. Likewise, three days of paid leave for the death of a parent, child, siblings, or close family members.

Aside from that, women can now get 60 days’ maternity leave.  They will now be granted 45 paid leaves, and half paid leave for 15 days. The leaves are entitled in the case of stillborn babies as well.  The additional five days’ parental leave will be granted for six months following the birth.

Employees with more than two years’ service can get ten days of paid study leave.

4.   Termination And Notice Period

Employers have to give a notice period of 14 days in order to terminate the employee during the probationary period. Furthermore, the employee will give a written notice period of 30 days in case of moving to another employer during the probation period, and the new employer will compensate the recruitment cost to the old employer.

Also, the employee will give a notice period of 14 days in case of terminating the job for leaving the UAE. However, if the employee comes back within three months and is granted a work permit, the new employer will clear the recruitment cost to the previous employer.

For ease of employment, the law states that employers will grant one day of unpaid leave every week during the notice period to look for new employment opportunities.

5.   Working Models

The law has defined new working models giving full-time, part-time, flexible, or temporary work aiming to enhance productivity.

6.   Deceased Employee’s Claims

The law states that the spouse or children of a deceased employee will get the ongoing wages within ten days from the death date.

7.   Fines And Judicial Fees

Employment law Dubai states that breaching the law imposes a fine of AED 1,000,000 for each employee. Employees can file a petition against employers for violation of law with the exemption of judicial fees.

Summing Up

Employees of all private sectors in the UAE onshore or free zone are subject to these laws. The law aims to offer better work culture and equal employment rights to both nationals and expats and nip the discrimination and forced labour practice in the bud.

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