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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.
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