The President of the United Arab Emirates, Khalifa Bin Zayed Al Nahyan issued the Federal Decree-Law No. 33 of 2021 on the regulation of the new labor law in the UAE for 2022 in the private sector that came into force on February 2.
In this article, we will explain why the decree-law seeks to improve the elasticity, resilience and sustainability of the labor market at the national level. As well as guarantee the protection of workers’ rights. Each of these components is good to take into account to prepare your company that is located in the UAE.
What is the reason for the new labor law in the UAE for 2022?
What are the benefits of this law?
Does this law have prohibitions?
What are the novelties presented by this law?
How are employees affected?
What is this new UAE law for foreigners?
What obligations do employers have?
Was another alternative law created?
How can we help you get more information about new labor laws in the Middle East?
1. What is the reason for the new labor law in the UAE for 2022?
The UAE’s Minister of Human Resources and Emiratization told in a news conference that the new decree-law is the biggest update to laws regulating labor relations. He added that it is part of the UAE Government’s efforts to create a flexible and competitive business environment at a time when the nation is about to embark on its journey into the next 50 years.
The new law in the UAE comes in response to the changing workplace amid technological advances and the Covid-19 outbreak. It will apply to different categories of work, including full-time, part-time, temporary and flexible work. The regulations of the law, on which the Ministry is working, establish the responsibilities of both parties in each category.
The minister added that the preparation of the new law had the consultation of all stakeholders. Also, in the federal and local government sectors and the private sector. The worker will also have the right to receive his salary on the due date in accordance with the regulations approved by the government.
2. What are the benefits of this law?
The minister explained thatthe new law seeks to ensure efficiency in the labor market and also to attract and retain the best talent and skills for employment. In addition, with providing a stimulating and conducive work environment for employees.
The law supports efforts to improve the competitiveness of Emirati cadres in the labor market, as well as to empower women. In addition, the new labor law has developed an advanced mechanism that will ultimately improve the ease of doing business. Also, competitiveness and productivity in the labor market.
The decree-law guarantees the rights of both the employer and the worker in a balanced manner and ensures the protection of both parties so that they can claim these rights when necessary. This new law in the UAE guarantees the welfare of private-sector workers and emphasizes the international labor obligation.
The executive regulation has the objective of controlling the implementation of the provisions of the decree-law. The minister said that the decree gives flexibility to the Cabinet by granting it a set of powers aligned with current and future developments.
3. Does this law have prohibitions?
The decree-law establishes that the employer may not use any means that forces workers or threatens them with any sanction. As well as forces them to work for the employer or forces them to provide a service against them.
The law prohibits sexual harassment, intimidation or any form of verbal, physical or psychological violence against workers by the employer. This is also for their superiors at work or their colleagues.
Prohibits all forms of discrimination based on race, color, sex, religion, national or social origin, or disability that reduce equal opportunity, impair equal access or continuation of employment and enjoyment of rights.
The amendments emphasized that without violating the prescribed rights of working women stipulated in this decree, all provisions governing the employment of workers without discrimination will apply to women, with an emphasis on giving women the same pay as men if perform the same work or work of equal value.
4. What are the novelties presented by this law?
Among the key amendments provided by the new labor law in the UAE for 2022 is the introduction of new types of work to allow employers to meet their work requirements. And the benefit from their energies and productivity at the lowest operating cost through part-time work, temporary or flexible work.
Part-time work allows you to work for an employer for a specific number of hours or days. Temporary work is work whose implementation requires a specific period of time or has a focus on work with a specific completion. Flexible work is one whose working day varies according to the volume of work and the economic and operational variables of the employer.
The executive regulation of the law determines the conditions and control of work patterns and the obligations derived from each worker and employer. This is according to the type of employment. Including what is related to the bonus for termination of service and as required by the interest of the company and the two parties to the employment contract.
The law gives companies the flexibility to pay wages in UAE dirhams or any other currency agreed between the two parties to the employment contract. The decree-law also allows the employer to prohibit the worker from competing with the employer or from participating in any competing project in the same business.
5. How are employees affected?
It is also specified that a fixed-term contract is one that does not exceed three years. And allows, with the prior agreement of both parties, to extend or renew this contract for a similar or shorter duration one or more times. The provisions of the decree-law will apply to employment contracts of indefinite duration concluded.
All of the sector employees can have a remuneration on a weekly rest day. With the chance of increasing the weekly rest day by choice of the manager. This is in addition to providing vacation time for workers. Including compassionate leave that varies from three to five days, depending on the degree of the employee’s relationship with the deceased.
In addition, five-day paternity leave will be granted to workers in the private sector. Any other consent will be decided by the government. The law also assigns the employer the responsibility to pay the hiring fees and costs and not charge them directly or indirectly to the worker.
Trial periods cannot exceed six months. The employer must give an announcement of two weeks to terminate them during this period. Workers who want to change jobs through the probation period must give a month’s notice.
6. What is this new UAE law for foreigners?
The law stipulates the prohibition of withholding official documents. Such as passports, belonging to workers and forcing them to leave the country at the end of an employment contract. This is in order to permit the employee to change to another establishment in the work market.
The decree-law allows the worker, in case of expiration of the employment contract, to transfer to another employer. The trial period for the worker cannot exceed six months, in accordance with the executive regulations of the law.
In addition, the amendments include a provision under which a worker has permission for termination of service bonus. In accordance with legislation regulating pensions and social security in the country.
According to the law, a foreign worker who works full time and completes one year or more of continuous service in an establishment receives the payment of termination of service benefits calculated according to the base salary, with a salary of 21 days for each of the first five years of service and 30 days for each subsequent year.
7. What obligations do employers have?
The new labor law in the UAE for 2022 regulates the obligations of the employer. The most prominent of which is the establishment of labor regulations. The obligation is to provide adequate accommodation, protection and prevention, as well as to train workers and help them develop their skills.
Meanwhile, the law regulates the obligations of workers based on the terms of the employment contract and in accordance with their duties, in particular the performance of work during the specified times. Respect work ethics and good conduct, keep work secrets, and develop job skills.
The decree-law regulates the controls and conditions for the termination of employment contracts in such a way as to guarantee the rights of both parties. The amendments also strengthen controls for the employment of minors.
The changes will also extend to public schools. On Friday the personnel work for four hours. The other Arab Gulf countries will have Friday as a day off.
8. Was another alternative law created?
The government of the UAE stated that the weekend will go from Friday and Saturday to Saturday and Sunday. In addition, workers have a four-and-a-half-day working week, in order to better reconcile family life with work, improve productivity and consolidate its position in the global economic market.
In addition, the country will have Friday afternoon off, the day of the great weekly prayer in Muslim countries. The UAE is the first nation in the entire world to present a working week of four days.
This is part of the Arab country’s prospects of keeping pace with the UAE’s vision of improving its position in global competitiveness in the economic and business sectors, as well as consolidating its position on the world economic map, as a business center in which it is more active, efficient and effective in the region, and to improve the quality of life.
The changes, which started on January 1, have the goal of making the country more attractive for foreign investment since it links its working days with those of many world markets. This new working week aims to boost productivity and improve the balance between work and personal life.
9. How can we help you get more information about new labor laws in the Middle East?
With the post-pandemic phase apparently beginning, it is normal for laws to change in certain countries. We have all the information for your company to move forward in the face of new regulations that could arise.
At PEO Middle East, we have services that could be of help to you to grow your company or business. From relocation services, human resources management and how global immigration serves to improve your company.
This nation is an exceptional choice for enterprises that are growing globally. However, like any other country, there are exact requirements that you must follow regarding residence visas and work permits.
Are you planning to develop your company’s processes in the United Arab Emirates? We can definitely help you. Contact us today to learn more about this at +971 433 1 688 or write us at [email protected].
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