New Labour Law, UAE
New Labour Law 2022 under Federal Law No.33 of 2021
New Labour Law 2022 under Federal Law No.33 of 2021 will apply to all employers both onshore and Free Zones to comply. The Law will not apply to the Abu Dhabi Global Market (the ADGM) and Dubai International Financial Center. The law rightly can be called evolution in the Legislative History of the UAE by Introducing several significant improvements by granting one year Grace Period to the Employers to make arrangements for full compliance with the law.
Over view of Changings under the New Labor Law:–
The new labor law presents numerous labor examples like completely, partially, timely and flexible hours. It eliminates the unbounded sort of agreements and contracts just limited contracts. It gives new sorts of holidays and deals with difficulties related to victimization, harassment, oppression, violence, and abuse against workers. This law forbids enforced work and discrimination on account of color, race, creed, gender, religion, social and personal issues, or infirmity.
The key changes can be discussed as mentioned below:-
- Working Arrangement:-The working arrangements have been recognized under the new labor law UAE i.e. temporary working, Flexible working,, and part-time working
- Fixed Term Contracts:-The unlimited term contracts are no more existed, all contracts are limited to a specific period for example for 3 years generally in Abu Dhabi it is restricted to 2 years. The contracts are for a fixed period yet can be terminated for a legitimate cause.
- Notice period:– under the new Labor Law UAE, the notice period is restricted to three months. In summary dismissal, the notice period is yet fixed for 30 days.
- The notice period for the old contracts:-The old unlimited contract can be terminated with mutual understanding of the employees and employers for which notice period has been given as 30 days for service under 5 years,60 days notice period for services more than 5 years but less than 10 years and 90 days for 10 years and more service. The new contracts under new labor laws can be signed for fixed-term mutually.
- Notice from Employee:- During the probation period an employee is required to give 14 days’ notice if he is leaving the UAE.30 days’ notice is compulsory if he is going to join another employer in UAE.
- Compensation/expenses claim by the employer:-The old employer can claim his cost if the employee leaves the job during the probation period and returns in three months to join another employer.
- Gratuity:- The Gratuity must be paid by the employer within 14 days of the termination of the employee’s job.
- Unlawful Dismissal:- The termination of the employee will be declared unlawful on the complaint against the employer, in the case of upholding three months’ remuneration will be awarded. Old compensatory claims have no longer existed funder “Arbitral Dismissal”.
- Protection against discrimination, harassment, and bullying:-Under the new labor laws, the protection against discrimination on the basis of color, creed, race, religion, gender, nationality, or origin along with harassment in the workplace and bullying is granted. During pregnancy and maternity leave termination is prohibited.
- Equal pay for women and men:-Under the Federal Law Decree No.6 of 2020 (By-Law), it is ensured that the woman will have the same pay as a man takes for the same work.
- Maternity leave:- 60 days of maternity leave has been granted for which 15 days are with half pay.
- Protection for both Employer and Employee:-The provisions of the new labor law, in UAE, both employers and employees are protected by determining their rights and obligations.
- Compliance date:- The compliance date for all these laws is fixed for February 2, 2023.
Important attributes of the labor law in the UAE
In 2021 Legal Statement No. 33 stated the regulations of labor rights in the UAE. This law commands and holds the connection between managers and labor in the private sector. The endowment of the legal statement relates to the productions, managers, and laborers in the private sector. On February 2, 2022, this law befitted practically. It replaced the old law of 1980. This law targets to shield both groups in the occupational association and allows them to get their privileges in equilibrium. It protects against difficulties associated with employed hours, holidays, breaks, vacations, and private outings, working children, workers’ duty history, protection values, income, expiry of the agreement, termination of package privilege tips, labor injuries, and much more.
Regulations on Labor rights:-
A labor has the right to funded national vacations and breaks like unexpected holiday, sickening leave, and other vacations. For each two forty working days, a labor is eligible to twelve days of yearly leave. A mature labor might reward 1 received vacation in every twenty days while it is fifteen days for a new labor.The law is intended to improve service privileges and enhance the effectiveness of the UAE as a residence to work and effort, serving the area to fascinate and hold world class ability. Labor Regulations means all Principles valid to a group or to group’s corporate, the main resolution of which is to administrate labor dealings, unions, joint trading, service situations and discernment, harassment, salaries, duty hours or working protection and well-being.
Non-applicability of the New Labor law:-
The new Labor Law will not be applied to the following as mentioned below:-
- The Federal and Local Government entities
- Members of Armed Forces
- Police and Security Services
- Domestic Employees
New Visa Categories under New Labor Law:-
The Ministry of Human Resources and Emigration has issued an amended immigration structure under which different jobs categories in respect of employment arrangement and sponsorship are referred by the Executive Regulation of the law as mentioned below:-
- Work Permit
- Transfer Work Permit
- Work permit for children of Resident parents
- Specific or task work permit
- Juvenile work permit
- Partial work permit for a part-time job
- GCC citizen work permit
- Golden Residency
- Student’s training and employment permit
Groups of labor law in the UAE private sector
There are 2 wide-ranging groups of labor law;
- Primarily, co-operative labor law shares the three-way connection between labor, manager, and union.
- Subsequently, discrete labor law alarms labor’s privileges at work and over the agreement for work.
Labor law categories in UAE
The UAE had reported basic four categories in the private sector in the UAE for the law implementation. They include;
- Salaries affairs
- Industrial dealings
- Social Security affairs
- Occupational Safety, Health, and Working Situation matters
Importance of the law
This law is obligated to all the workers in the UAE either having UAE nationality or any foreigner. Though it does not apply on:
- Labors of the federal government and the local government bodies
- Laborers from the army, police departments, and security panels.
- Domestic employees
Responsibility for law supervision
The Ministry of human resources and immigration is responsible for supervising the manager and worker associations and sustaining labor rights in the private sector. In 2021 Legal statement no. 33 stated the rights and regulations of Labor law and regulations in the private sector. Labor laws of the UAE are critical. It helps to illuminate uncertainty.
Working hours in the private sector of the UAE
According to article no. 17 of 2021 the everyday duty hours can be increased or decreased for some commercial zones or groups of employees as stated by, Administrative regulations of labor law;
- The duration passed by the labor in the transporting from the workstation to his habitation is not involved in working hours
- Except for some classes of labor as indicated by the Administrative regulations of labor law
- No one will be allowed to take more work from the worker than the hours mentioned in the contract
- The working hours should be fixed and specific for both the UAE nationals and abroad labor
- The laborer can take more than one break if he works for five hours continuously. Breaks are not counted as working hours and are not less than one hour.
Extra duty rules
If the manager requires extra duty time from labor he should follow the given points;
- If the manager wants more work from labor he cannot be allowed to exceed two hours
- If the sort of work needs the labor to work more than the normal working hours he will pay the extra payment by his owner which is 25 % of his normal pay. It can be increased to fifty percent if the extra time will be tonight at 10 and the morning at This condition does not apply to laborers who work in shifts.
- If the situation needs the labor to work on his holiday so according to the labor contract he will get another break or a relaxed day or pay him according to normal working hours payment and fifty percent more to that salary.
The UAE labor law in the private sector made easiness for laborers in their difficulties and their rights are much considered after the recent law. Their salaries improved and their lifestyle got better. They also get security and protection in the health sector. As laborers are a very important part of business organizations so is necessary to properly give them rights and create a proper law for their dealings.
(The federal decree law no. 33 of 2021 Regarding the Regulation of Employment Relationship)
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Sohail M, and Griss H, “Strategies Labors in Companies of UAE” (2018) 19 UAE Journal of Business Laws and Management 191
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Miral K, and Henry F, “UAE Labor Rights and Laws’’ (2009) 95 UAE Journal of Law and Rights 17