Last year, the UAE government issued a decree-law to safeguard the rights of employees in the private sector in the aftermath of a pandemic. If you work in the UAE, you should be aware of the employment rules and regulations that provide numerous advantages to employees, such as paternity leave and legal cost exemption. Let’s learn more about the changes made to the UAE Labour Law 2022.
UAE LABOUR LAW 2022: A SUMMARY
H.H. Late Sheikh Khalifa bin Zayed Al Nahyan (may he eternally rest in peace), the second UAE President and Ruler of Abu Dhabi, issued Federal Decree-Law No. 33 of 2021 to control labour rules in the private sector.
This Act went into effect on February 2, 2022. The following are the post-COVID-19 workplace regulations:
- Hours of employment that are flexible
- Various work models
- Part-time/temporary job regulations have been updated to protect employees’ rights.
- revised leave policy
- Probationary rules for termination
- Workweeks that are compressed
- Men and women should be paid equally.
According to the Ministry of Human Resources and Emiratisation (MOHRE), adopting the UAE Labour Laws 2022 is setting the way for the country’s ever-changing workforce’s future growth and success. These rules, in addition to encouraging fresh talent, emphasize gender equality at work.
THE PROVISIONS OF THE UAE LABOUR LAW 2022
IN THE WORKPLACE, COERCION
Employers are prohibited from using coercion in the workplace under Article 74 of the decree. An employer may not threaten or compel a worker to perform a service against their will.
Employers may also not require workers to perform more than two hours of overtime every day. If the task necessitates more hours, the company must compensate the employee with 25% of his or her usual hourly wage. If the extra hours are worked between 10:00 p.m. and 4:00 a.m., the hourly wage is increased by 50%.
Furthermore, businesses are no longer permitted to withhold any employee documentation, such as passports. They also cannot charge workers any recruitment costs.
HARASSMENT AT WORK
All types of workplace harassment against an employee are severely forbidden under this rule. This includes sexual harassment, bullying, and any other type of verbal, physical, or psychological aggression directed against a worker by their employer, superiors, or coworkers.
DISCRIMINATION AND JUDGEMENT
Discrimination based on gender, religion, national origin, socioeconomic class, disability, color, or race is prohibited, as is discrimination based on sexual orientation.
The law also prevents employers from firing female employees because they are pregnant or on maternity leave.
PAY EQUITY FOR MEN AND WOMEN
The revisions to the UAE Labour Law emphasize the previously specified equal pay provision for men and women. These amendments emphasize that all regulations regulating worker employment must apply to working women in the UAE without discrimination or violation of their specified rights.
Women are entitled to the same remuneration as males under UAE labour law if they perform the same or equivalent job, as determined by the Council of Members.
BUSINESS EASE AND LABOUR MARKET FLEXIBILITY
The labour legislation of 2022 separates the labour market into six distinct work models, which include:
- Working Full-Time
- Working Part-Time
- Temporary Positions
- Flexible Working Conditions
- Work from Home
- Job-sharing Opportunities
The requirements of the Decree require that conditions relating to yearly leaves and severance compensation be chosen based on the employment model in order to protect the interests of both the employer and the employee.
PART-TIME, TEMPORARY, AND FLEXIBLE WORK MODELS DEFINED
The following is an overview of the various working models under the 2022 law.
- Full-time employment: Employment with a single employer throughout the duration of all daily working shifts.
- Working under one or more employment contracts for set working hours/days is referred to as part-time job. More information may be found in our guide on working part-time in the UAE.
- Temporary employment terminates after the allotted contractual hours or project is completed (s).
- Working days and hours might be changed depending on the operational burden and requirements.
- Employees can work entirely or partially from locations other than the workplace, city, and/or nation.
- Job-sharing work: Duties and responsibilities are distributed among many employees to meet mutually agreed-upon company demands and/or projects.
MOST WORK HOURS
It is also important to note that the maximum work hours under Article 17 (1) of the Federal Decree-Law No (33) of 2021 on the Regulation of Labour Relations (the “New Employment Law”) are 48 hours per week and 8 hours per day (9 hours including lunch break). Work hours must be shortened by two hours during the Holy Month of Ramadan.
Article 7, clause 1 of Federal Decree-Law No (47) of 2021 also applies to the work norm.
However, according to Article 7(2) of the New Employment Law, the Cabinet may increase or decrease daily work hours for specific economic sectors/categories or workers on the minister’s recommendation and in consultation with the affected enterprise.
Except for specific categories listed by the ‘Executive Regulations of the Labour Law,’ commute time is not considered part of the working hours.
EMPLOYMENT AGREEMENTS
The new law states that a fixed-term (limited) contract cannot last more than three years. The contract can be renewed or extended for a comparable or lesser period of time if both parties agree.
The requirements of the decree-law apply to indefinite-term employment contracts entered under Federal Law No. (8) of 1980.
The revisions call for limitless employment contracts to be changed into fixed-term employment contracts. These contracts must conform with the limits, controls, and processes stated in the decree within one year of the agreement’s effective date. If required, the Council of Ministers may extend them for longer periods of time (in the public interest).
PROBATION
The following probationary rules are implemented under the Labour Law 2022:
- In the UAE, the probationary period of a worker cannot exceed six months.
- In the event of termination under probation, the employer must provide the employee with two weeks’ notice.
- Employees who intend to leave their jobs while on probation must serve a 30-day notice period.
- If an employee wishes to leave the nation while on probation, he or she must serve a 14-day notice period.
- Assume an individual resigns and leaves the nation, but returns to work for another firm within 180 days. In that situation, the new company must reimburse the previous employer for visa charges and other expenses.
PERIOD OF NOTICE
- In any event, notice periods must not exceed three months.
- Employers can now issue a termination notice on an employee while they are on leave. However, the notice period will not begin until the person returns to work following his or her leave.
TERMINATION OF A CONTRACT
- Employers can now terminate employment contracts without notice for any of the 10 grounds outlined in article 120 of the original labour code. This involves abuse of authority or gaining personal benefits from one’s employment position.
- Even under these instances, the employer is obligated to pay the employee’s end-of-service benefits.
- Employees can be terminated without notice if certain circumstances are met, such as a major change in job duties, and without the employee’s written approval.
CLAUSES OF NON-DISCLOSURE AND NON-COMPETITION
The UAE Labour Law 2022 gives an employer the authority to include a non-compete clause in an employment contract. Notably, the rule only applies if the worker is entrusted with sensitive information concerning the employer’s clients or trade secrets.
The period of non-competition should not exceed two years from the date of contract expiry, unless such a limitation is stated in terms of time, location, and type of work to the degree necessary to defend legitimate business interests.
PERMITS FOR WORK
The MOHRE offers 12 different types of work permits based on the nature of the task and the work model for which an employee is hired. The following are included under these work permits:
- A common permit for bringing in foreign employees for employment.
- Transferring a non-national (expat) worker between Ministry-registered enterprises.
- A work permit for those residing in the nation at the house of their family.
- The temporary work permit is for persons who are working on a temporary basis.
- A project work permit is issued to Ministry-registered enterprises that desire to hire overseas workers for a specific, fixed-term project.
- Part-time work permits are available for persons who follow the part-time job paradigm. Employees with the permit can work for more than one employer.
- The juvenile work permit will allow minors aged 15 to 18 to work in a Ministry-registered institution while adhering to all applicable laws and regulations.
- The student training and employment permit will allow Ministry-registered enterprises to train and/or employ a UAE national student aged 15 and up, subject to legal restrictions and controls.
- A work permit permits GCC citizens/children to work in Ministry-registered enterprises.
- A work permit for holders of golden residency will be issued at the request of a Ministry-registered entity.
- National trainees can work for Ministry-registered institutes that wish to teach people based on scientific credentials.
- Individuals having a self-employment permit can work freely without the need for a sponsor.
LABOUR LAW WORKER WELFARE IN THE UAE 2022
The modifications to the UAE Labour Law 2022 are centered on worker welfare. The decree provides provisions for worker welfare. It also assures health and safety safeguards for all private sector personnel. Here are a few provisions concerning employee wellbeing.
DEFINITION OF LEAVE AND REST DAYS
All employees are entitled to the following leaves under labour rules and regulations in 2022.
LEAVE FOR BEREAVEMENT
- Five days due of a spouse’s death.
- Three days due to the loss of a close family member (mother, father, siblings, child, grandparents).
PATERNITY DISAPPEARS
- Paternity leave of up to 5 days may be taken sporadically or simultaneously throughout a six-month period following delivery.
LEAVES OF MATERNITY
- Maternity leave is fully compensated for 45 days.
- Half-pay leave for an additional 15 days.
- In the event of sickness (mother and child), a further 45-day unpaid leave is permitted; supporting documentation is necessary.
- Mothers who have disabled newborns can take an additional 30-day paid vacation. This can be prolonged for up to 30 days without compensation. A medical certificate from a relevant authority verifying the disability or disease must be submitted.
LEAVES OF EXAMINATION
- Employees studying at state-approved educational establishments who have been with their present employment for more than two years are eligible for a 10-day study leave.
NATIONAL SERVICE LEAVES
- UAE nationals working for private enterprises are eligible for full-time national service leave. It is necessary to provide proof of service.
EASY MOVEMENT OF EMPLOYEES
It is prohibited, according to the law, for employers to withhold employees’ official papers, such as passports, or to force workers to leave the nation at the conclusion of a working contract.
The legislation also grants workers the right to receive their salaries on the due date, subject to Ministry approval and the processes and circumstances outlined in the Executive Regulations of Federal Decree-Law No. 33 of 2021.
Furthermore, employees can now stay in the country for 180 days after their job ends without facing visa overstay penalties. Previously, this duration was restricted to 30 days.
BENEFITS AT THE END OF SERVICE
The right of workers to obtain end-of-service benefits, including gratuity, has been strengthened by the following provisions in the UAE Labour Law 2022:
- Employees cannot be fired without receiving end-of-service benefits (EOSB).
- When EOSB are due, the employer cannot decrease or subtract the gratuity amount depending on the contract type and/or resignation date of the employee.
- All employee end-of-service benefits must be paid within 14 days after termination.
- In the event of an employee’s death, the entitlements must be given to the deceased’s family after corpse repatriation fees have been deducted (where applicable).
- If an employee resides in employer-provided housing, the employee has 30 days from the conclusion of the contract to depart.
In the UAE, gratuity is still computed the same way (to be calculated by legislation that regulates pensions and social security). End-of-service benefits in the UAE, on the other hand, can now be paid in any currency selected by the employee as long as it is mutually agreed upon in the employment contract.
LITIGATION FEES ARE EXEMPT
According to the legislation of 2022, any labour lawsuits or petitions filed against the employer by the employee and/or their legal heirs are exempt from judicial costs at all stages of litigation, execution, and requests, as long as the claim value does not exceed AED 100,000.
COMMONLY ASKED QUESTIONS
WHEN WILL THE NEW LABOUR LAWS OF 2022 BE IN EFFECT?
WHAT IS THE LEGAL WORKING AGE IN DUBAI?
The minimum legal age for working in Dubai for full-time job is 18 years old, according to labour legislation. Students between the ages of 15 and 18 in Dubai may get a temporary work permit called as a Juvenile Work Permit, which is only valid for one year.
That brings us to the end of our tour on the UAE Labour Law 2022. To understand more about these changes, please visit the official MOHRE website. You may also read our thorough guide to UAE employment laws for more information.
If you want to work in Dubai, check for chances on the leading job sites in the UAE or contact any Dubai recruiting agencies.
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