UAE Labour Law: Meaning, Changes & Process

The UAE Labour Law governs the rights and responsibilities between employers and employees. Each country has its own labor law system to regulate the workforce. The law ensures a fair and ethical working environment for both employers and employees. In the United Arab Emirates, the Ministry of Human Resources and Emiratisation is responsible for regularly updating the Labour Law to align with the workforce’s needs.

What Is UAE Labour Law?

The UAE Labour Law is a set of rules that govern the relationship between employers and employees. It’s designed to ensure fairness and good working conditions for everyone. In the United Arab Emirates, the Ministry of Human Resources and Emiratisation is responsible for keeping the Labour Law up-to-date and in line with the needs of the workforce.

The UAE’s Labour law, collectively known as Federal Law No. 8 of 1980, was implemented to regulate conflicts between employers and employees. It supports both parties in maintaining work ethics and generating a good economy with fair expenses for the employer. This law applies to all sorts of businesses. It is overseen by the Ministry of Human Resources and Emiratisation of UAE, which is crucial in ensuring its effective implementation.

Latest Changes in the UAE Labour Law in 2024

The new UAE Labour Law 2024 benefits all workers. It includes important changes that focus on leave policies and protections from gender discrimination and harassment. Another update is the introduction of paid sick leave, which allows employees to take time off when they are unwell without losing their income. These changes aim to protect the rights and interests of employees in the United Arab Emirates.

The New Amendment To the Employment Contract

The UAE Labor Law has been updated to change the contract policy. The Ministry of Human Resources and Emiratisation of UAE has made the unlimited contract invalid for contracts made after January 1, 2024. To provide clarity, all contracts made after this date must include a specific contract duration, employee position, basic wage, and other benefits.

Protection and Support System

The UAE Labour Law 2024 amendment benefits the UAE’s foreign employees. The law provides more benefits to foreign employees when they have queries, ensuring they are not disadvantaged due to their nationality. Thus, the employer should ensure non-discrimination based on gender, race, religion, and other dissimilarities in the workplace.

Employees of other countries should be given equal opportunities, benefits, and good treatment in the workplace. They should be protected from sexual harassment, and the employer should address their queries and requirements adequately.

Updation in Terms of Notice Period

The notice period must be notified in the employment contract, and both parties (employer and employee) should be aware of it. The contract document must be signed after agreeing to all terms and conditions. If the employee wants to leave the job during the probation period, they are supposed to inform the employer and serve 14 days of service; before that, the job-relieving intimation should be given to the employer. This provides a smooth transition and allows the employer to make necessary arrangements.

Regulations in Working Hours

Working hours are regulated at 48 per week, and the maximum per day is 8 hours. The employee can take 1 hour for rest, which is excluded from the working hours. Employees should only work continuously for 5 hours with a break. This provision ensures that employees have a reasonable work-life balance and are not overworked. During Holi and Ramadan, working hours in the UAE are reduced to 6 hours per day, recognizing the religious practices of most of the population. Employees need to understand these regulations to ensure their rights are protected.

Amendment in Employee Rights

Employees receive timely wages and other allowances and can access transfers from the employer with valid reasons across sectors and industries. The employer should not withhold the employee’s passport or other documents for employment security. All United Arab Emirates employees can have a signed contract document that depicts the salary, other benefits, terms, and conditions.

Maternal and Paternal Leave

Maternity Leave is applicable for 2 months, with full pay for the first 45 days and half pay for the last 15 days. This provision allows new mothers to take a break from work to recover from childbirth and have time with the baby without worrying about their income. Paternity Leave is given to the newborn child’s father for about 5 days, valid for the first six months from the child’s birth. This provision recognizes the importance of fathers in the early stages of a child’s life and allows them to be present during this crucial period. These provisions are designed to help employees balance their work and family responsibilities.

Emergency Leaves

If the employee’s spouse or first-degree siblings have died, they can take five days of paid leave; if the employee has parents, children, grandparents, or a grandchild, they can take three days of paid leave. These provisions recognize the importance of family and allow employees to take time off work to deal with personal emergencies without worrying about their income.

Study Leaves

Employees can access 10 days of study leave if they complete two years of service in the same company or organization. This provision encourages employees to continue their education and improve their skills without having to leave their jobs. The new labour law doesn’t mention whether these study leaves are paid or unpaid, so employees must clarify this with their employers.

Amendment in the End-of-Service Gratitude

The new amendment of labour law 2024 of the UAE changes the calculation of end-of-service gratitude. Previously, it was calculated using a tenure-based system, meaning that employees who served longer were entitled to a higher end-of-service gratitude. According to the new amendment, it will be calculated using the number of working days, which may result in a different amount of end-of-service gratitude for employees. It should be given to the employee even if they voluntarily resign, ensuring that employees are recognized for their service to the company.

Insurance for the Unemployment Period

The employee can take out insurance during their unemployment period. The insurance premiums are provided based on their monthly income, offering employees a safety net during unemployment. It supports their basic needs during unemployment, providing financial security and peace of mind.

Flexible Work Timing

The flexible work timing rule benefits employees as they can opt for their own schedules and use other schedules’ productivity. In the United Arab Emirates, one can choose part-time, full-time, temporary, and contract-based work hours. This system helps students choose part-time jobs and continue their studies.

Weekly Leave for a New Job

Employees in their notice period in the United Arab Emirates can take one unpaid leave during their notice period to search for a new job.

Avail Support from MOHRE

An employee can resign with prior intimation to the employer and must serve a notice period. Suppose an employee provided the intimation and also served the notice period, but they are subjected to relief without proper closure and settlements from the employer. In that case, the employee can seek support from the MOHRE. The employee has to contact the MOHRE 14 days before their relieving day. In case of any harassment or violence happening to the employee, they have to report it to the MOHRE within 5 days of the incident.

Retention of Records to the Employer

Before leaving the job, the employee must submit all the company records and work-related documents. After termination, the employee must maintain the details and work-related records within themselves for two years. All these norms are mentioned in the employment contract agreement.

Notice Period for Unlimited Contract Employees in the United Arab Emirates

The new UAE Labour Law 2024 is effective January 1, 2024. Employees who work under unlimited contracts and have served for less than 5 years must serve a notice period of 30 days, employees with service for more than 5 years must serve a notice period of 60 days, and employees with service for more than 10 years must serve a notice period of 90 days. This variation in the handling notice period applies only to employees who have signed the unlimited contract.

What is Stated in the New UAE Labour Law 2024 about Suspension?

Employees may be suspended if they are believed to have broken company rules. Suspensions can last up to 30 days. If evidence supports the suspension, further action will be taken according to company rules. During the suspension, the employee will receive half of their salary. If it is later found that the employee did not break any rules, they will receive the remaining half of their salary for the suspension period.

New Labour Law of 2024 Affects Employers

Every revised UAE Labour Law has played a crucial role in company norms and policies. The employer must know that the law is being updated in the UAE. The HR personnel continuously follow the new amendments and implement the rules in their policies and norms. The workplace has to be revised based on the amendments made by the Ministry of Human Resources and Emiratisation of UAE. The employer should ensure that their HR professionals are equipped with the latest UAE Labour Law regulations to run their business in the UAE. Employees should be adequately instructed about the latest amendments in the Labour Law 2024 in the UAE. The employer has to update their business workflow and make amendments that have changed over time.

What About Sick Leave During the Probation Period in UAE?

The UAE Labour Law protects and regulates the private sector’s working environment, ensuring every employee’s facilities and rights. During the Probation Period in the UAE, an employee can take sick leave, but it is considered unpaid leave. After the probation period, an employee is eligible for paid sick leave according to the terms and conditions under the UAE Labour Law.

The Significance of Basic Salary in UAE

The new amendment has implemented a basic wage system excluded from bonuses, additional allowances, and other benefits. The basic salary has to be mentioned in the employment contract and paid timely based on a monthly, weekly, biweekly, or hourly basis. This basic wage is the foundation of the employee’s compensation, with additional benefits and allowances being provided. If an employee is supposed to be working overtime or during holidays, the compensation pay should be included in their salary payment, confirming that they are fairly compensated for their extra work.

Women Employee Pay

As providing equal opportunities to women has been implemented in all aspects, equal pay for women has to be taken care of by men of equal positions. The 2020 Labour law in UAE introduced the regulations that women employees must be paid equal wages to men of equal qualifications. All private sectors should ensure equal pay to women in their workplace. A woman employee could raise their queries if they are not paid equally as men.

Role of MOHRE in UAE Labour Law

The UAE Ministry of Human Resources and Emiratisation creates and oversees labor laws in the UAE. It updates policies and makes changes based on workplace disputes. The ministry manages the relationship between employers and employees, oversees leave policies, reviews employment contracts, and suggests federal laws in the United Arab Emirates.

Conclusion

If you work in the UAE, it’s important to stay updated on changes to the Labour law. The 2024 amendments provide benefits for private-sector employees. As an employer, having a strong HR team to keep up with updated federal laws is essential. For employees, being aware of the amendments is crucial to protect your rights. If you’re not receiving the benefits outlined in the new Labour Law 2024, contact your employer or HR professionals.

Frequently Asked Questions

What Is the Primary Wage Percentage According to UAE Labour Law?

The basic salary is not defined in the UAE, but the latest UAE Labour Law Amendments 2024 states that an employee in the United Arab Emirates receives 60% of the total wage.

Is the Labour Law of the UAE Applicable to Employees from Other Countries?

The primary purpose of UAE Labour law is to retain and benefit native and foreign employees working in the private sector. Therefore, Labour law applies to all employees from other countries working in the United Arab Emirates.

What Is Discussed in Decree Law No. 33 of 2024?

Decree-Law No. 33 regulates the relationship between employers and employees. This law aims to support the nation’s businesses with fair workplace guidelines to develop the UAE economy. It ensures proper work-life balance and a sustainable working environment for employers and employees and protects foreign workers of private sectors from crises like gender and race discrimination.

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