Author: PRO Partner Group
The UAE recently announced the new Federal Decree Law No. 33 of 2021, which regulates labour relations. The Decree Law, which becomes effective from February 2nd, 2022, aims to bring the UAE workplace in line with the best international practices in terms of safeguarding employee rights and attracting talent to a flexible and modern work environment.
The new law will be implemented across the market in the UAE and will affect companies of all sizes, from startups and local government entities, to multi-national companies that employ staff in the UAE and abide by UAE labour law, including those operating in many of the Freezone jurisdictions as well.
The new law will mean that all companies in the UAE, from SMEs to MNCs, will need to review their best practice for staff and HR procedures to ensure they address the new rules and guidelines.
The changes to the law aim to bring the UAE workplace in line with the best international practices in terms of safeguarding employee rights and should greatly contribute to attract talent to a flexible and modern work environment. The improved working environment and employee rights that the law brings in will make the UAE more attractive from a working and living aspect for all sectors of the market.
Federal Decree Law No. 33 of 2021 will become effective from February 2nd, 2022, so SMEs, startups and all companies in the UAE will need to start looking at updating their employment contracts and HR practices in line with these new rules, in time for the deadline.
The key updates to the old labour law are as follows:
Paternity, maternity and academic leave
Under the new law, working fathers are to receive a five-day paternity leave to be taken up to six months following the child’s birth concurrently or intermittently.
Mothers will have a fully paid 45-day maternity leave, which, under the new law, extends to additional 15 days at half pay.
Employees have a five-day mourning leave upon the death of a spouse, and three days upon the death of a parent, child, sibling, grandchild or grandparent.
After completing two years with an employer, workers are entitled to a 10-day study leave if they are enrolled in an accredited institution inside the UAE.
Part-time, temporary and flexible contracts
The law introduces part-time, temporary and flexible contracts, besides the regular full-time scheme. Employees can now work on a project or on an hourly basis for more than one employer.
Part-time work allows employees to work for one or more employers for a specified number of hours or days scheduled for work, while temporary work can be contracted for a specific period or on a project basis that ends with the job’s completion. Flexible work gives employees the freedom to work at different times depending on the conditions and requirements of the job.
Probation rules clarified
The probation period is still limited to six months, but under the new law, employers will need to submit a written 14-day notice before terminating the employee. Previously, termination during probation was effective on an immediate basis.
Employees wishing to change jobs during probation must submit a one-month notice. If they want to leave the country during probation, they must submit a 14-day notice. Leaving the country without notice during probation will impose a one-year ban on employees from obtaining a work permit.
Minimum wage level to be brought in
The new law will set a minimum wage for employees in the private sector. The UAE Cabinet will determine the minimum wage following a proposal by the Minister of Human Resources and Emiratisation in coordination with relevant authorities.
Right to remain in the country after leaving a job
The employer is prohibited from forcing employees to leave the country after the end of the work relationship or termination of a contract. Under the new law, workers are allowed to move to a new employer and stay to benefit in the labour market.
Anti-discrimination and harassment provisions
Under the new law, the employer is now bound by a policy of non-discrimination in hiring employees on the basis of gender, race, colour, nationality, religion, social origins or disability.
The law also protects employees against sexual harassment, bullying, verbal, physical or emotional abuse by employers, superiors and colleagues.
Equal pay provisions
The law expressively states equal pay for women doing the same job, or other work of equal value, as men. The value of work is to be determined later by the cabinet.
Legal fees exemptions
The new law exempts workers from judicial fees at all stages of litigation, enforcement and petitions filed by workers. It also provides that the employer shall bear the fees and expenses of recruitment and employment and shall not recover them directly or indirectly from the employee.
Nazar Musa, CEO at PRO Partner Group discusses the upcoming changes to UAE Labour Law and what impact this will have on companies doing business in UAE: "The changes to the law aim to bring the UAE workplace in line with the best international practices in terms of safeguarding employee rights and should greatly contribute to attract talent to a flexible and modern work environment. The improved working environment and employee rights that the law brings in will make the UAE more attractive from a working and living aspect for all sectors of the market."
PRO Partner Group is a prominent company support, HR and PRO Service provider in the UAE. For companies that need assistance with the impact of the new labour law changes and to assist with best practices for staff and HR procedures to ensure that companies address the new rules and guidelines, and for help with any other related company setup, restructuring, local partner or PRO support matter, you can get in touch via +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, or email them at info@propartnergroup.com.
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