The UAE government has introduced amendments to its employment regulations through a newly issued Federal Decree-Law, marking a significant shift in the legal framework governing employment relationships across the country. This development is part of the UAE’s ongoing efforts to enhance labor market flexibility and align its labor laws with international standards.
The amendments focus on several key areas, including employment contracts, workplace policies, and workers’ rights. The revised law aims to provide greater clarity and protection for both employers and employees, addressing issues such as contract termination, end-of-service benefits, and occupational safety.
One of the major changes introduced by the new decree is the adjustment of rules surrounding fixed-term employment contracts. The law now mandates that all employment contracts in the UAE be of a fixed-term nature, with a maximum duration of three years. These contracts can be renewed for similar periods by mutual agreement between the employer and the employee. This move is expected to create more stability in employment relationships while also allowing flexibility for both parties.
The decree also introduces new provisions to protect workers’ rights in case of arbitrary dismissal. Employers are now required to provide justifiable reasons for termination, and employees who believe they have been unfairly dismissed can file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE). The Ministry will then investigate the case and take appropriate action, which could include reinstatement or compensation for the employee.
Additionally, the law includes stricter regulations on working hours and overtime. It reaffirms the standard maximum working hours of eight hours per day and 48 hours per week. Overtime is allowed, but employers must compensate employees at a higher rate, ensuring that workers are fairly remunerated for extra hours worked. These provisions are aimed at improving work-life balance and ensuring that employees are not overburdened.
End-of-service benefits have also been redefined under the new law. Employees are now entitled to gratuity payments based on their length of service, calculated on the basis of their basic salary. The decree outlines specific criteria for calculating these benefits, ensuring transparency and fairness in the process. This change is expected to benefit long-term employees, providing them with greater financial security upon leaving their jobs.
The decree also emphasizes the importance of occupational health and safety, requiring employers to implement comprehensive safety measures to protect employees from workplace hazards. The law mandates regular health and safety training for employees and stipulates that employers must provide appropriate safety equipment. These provisions are intended to reduce workplace accidents and injuries, contributing to a safer working environment across the UAE.
Moreover, the law includes new provisions related to maternity and paternity leave, granting more favorable terms for parents. Female employees are now entitled to a longer period of paid maternity leave, while male employees can avail themselves of paternity leave under certain conditions. These measures are designed to support working families and promote gender equality in the workplace.
The introduction of these amendments underscores the UAE’s commitment to creating a more dynamic and equitable labor market. By modernizing its employment laws, the UAE aims to attract and retain talent, enhance worker satisfaction, and ensure that its labor market remains competitive on a global scale.
As the UAE continues to implement these changes, businesses and employees alike will need to adapt to the new legal landscape. The MoHRE has pledged to provide guidance and support to help both employers and employees understand and comply with the new regulations. The Ministry will also monitor the implementation of these changes to ensure that they achieve the desired outcomes and contribute to the overall development of the UAE’s labor market.
