The New UAE Labour Law: Rights of Employees and Employers

Introduction

Federal Decree-Law No. (33) of 2021 concerning the Regulation of Labour Relations came into force in February 2022, replacing Federal Law No. (8) of 1980. This law represents a qualitative leap in the regulation of the UAE labour market and aligns with international standards for workers' rights.

Key Changes in the New Law

1. Flexible Work Models

The new law has introduced several work models, including:

• Full-time work
• Part-time work
• Temporary work
• Flexible work
• Remote work

2. Fixed-Term Employment Contracts

All employment contracts are now for a fixed term, with a maximum of three years, renewable. The new law has abolished indefinite contracts.

3. Probation Period

• Does not exceed 6 months
• Either party has the right to terminate the contract during this period with at least 14 days' prior notice
• If the employee wishes to move to another employer during the probation period, the current employer must be notified 30 days in advance

Employee Rights

Wages

• Wages must be paid on the agreed-upon date and in the approved currency
• The Wage Protection System (WPS) ensures that salaries are paid on time
• No more than 50% of the wage may be deducted to pay off debts

Leave

• Annual leave: 30 days after one full year of service
• Sick leave: 90 days (15 days with full pay, 30 days with half pay, 45 days without pay)
• Maternity leave: 60 days (45 days with full pay and 15 days with half pay)
• Paternity leave: 5 working days within 6 months of the birth
• Mourning leave: 5 days for the death of a spouse, 3 days for first-degree relatives

End-of-Service Gratuity

• The employee is entitled to an end-of-service gratuity calculated on the basis of the basic salary
• 21 days for each of the first five years
• 30 days for each subsequent year
• The gratuity shall not exceed two years' salary

Employer Rights

• Setting a probation period for the employee
• Terminating the contract for legitimate reasons (with prior notice)
• Dismissing the employee without notice in specific cases (Article 44)
• Establishing internal regulations
• Protecting trade secrets and intellectual property

Resolution of Labour Disputes

1. Filing a complaint with the Ministry of Human Resources and Emiratisation
2. Attempting an amicable settlement within 14 days
3. Referring the dispute to the Labour Court if no settlement is reached
4. Labour lawsuits are exempt from court fees

Conclusion

The new UAE Labour Law provides a balanced framework that protects the rights of both the employee and the employer. Understanding these rights and obligations helps to build a healthy and sustainable working relationship.

This article is for general legal awareness purposes only and is not considered legal advice. For specialized advice, please contact Ali Alkhajeh Advocates & Legal Consultants.