In the wake of the pandemic’s impact, the UAE government has taken decisive steps to fortify labor rights within the private sector through the implementation of a new Labor law. If you’re part of the workforce in the UAE, staying abreast of these legislative changes is crucial, given the array of benefits they offer, including paternity leave and exemption from legal fees. Let’s delve into the revisions and amendments introduced in the UAE Labor Law 2021.
Understanding the New UAE Labor Law 2021
His Highness Sheikh Khalifa bin Zayed Al Nahyan, the UAE President, issued Federal Decree-Law no. 33 of 2021, aimed at regulating the labor market within the private sector.
This legislation, effective from February 2, 2022, encompasses post-COVID-19 workplace regulations, which include:
- Flexibility in work hours.
- Diverse work models.
- Enhanced regulations for part-time/temporary work.
- Safeguarding employee rights.
- Introduction of new leave policies.
- Termination guidelines during probation.
- Consolidated workweeks.
- Gender pay equality.
According to the Ministry of Human Resources and Emiratisation (MOHRE), the UAE Labor Laws 2021 are designed to pave the way for the future growth and prosperity of the continuously evolving workforce in the country. Apart from attracting new talent, these laws also emphasize women’s empowerment.
Provisions Under the New UAE Labor Law 2021
Prohibition of Coercion (Article 74)
The new decree prohibits employers from engaging in any form of coercion in the workplace. Employers are barred from threatening employees with penalties or compelling them to render services against their will.
Harassment and Abuse
Under the revised Labor law, all forms of harassment against employees are strictly forbidden. This includes bullying and any type of verbal, physical, or psychological abuse by employers, supervisors, or colleagues.
Non-Discrimination
The legislation prohibits all forms of discrimination based on gender, religion, nationality, socioeconomic status, disability, color, or race, which may impede equal opportunities or hinder the realization of equal rights.
Equal Pay for Equal Work
The amendments in the new UAE Labor laws underscore equal pay for both genders. The revisions emphasize that all provisions governing the employment of workers shall apply to working women in the UAE without any discrimination or infringement of their prescribed rights.
Business Ease and Labor Market Flexibility
Part-time employment, temporary work, and flexible work arrangements are among the new categories of employment introduced by the new Labor law. Employers stand to benefit from reduced operational costs and increased productivity as a result of this initiative.
Defining Part-Time, Temporary, and Flexible Work
Under the new Labor law, part-time employment allows employees to work for a specific number of hours or days, while flexible work entails that working hours or days may vary depending on various economic and operational factors of the employer.
Depending on the nature of the business, the new Labor law articulates the regulation of work patterns and obligations.
Payment of Wages in Any Currency
Companies now have the option to pay employees’ salaries not only in dirhams but also in other currencies under the new Labor law. However, the currency must be stipulated in the employee’s contract.
Non-Disclosure and Non-Competitive Clauses
According to the new UAE Labor Law 2021, employers have the right to prohibit their employees from competing or engaging in any competing venture in the same industry. Notably, this applies if the employment relationship allows the employee to gain information about the company’s clients or access its trade secrets.
Unless specified as to time, place, and type of work to the extent necessary to protect legitimate economic interests, the period of non-competition shall not exceed two years from the date of contract expiry.
Definition of Fixed-Term Contracts and Unlimited Contracts
The new decree stipulates that a fixed-term contract should not exceed three years. Upon mutual agreement, the contract can be renewed or extended for a similar or shorter period.
The provisions of the Labor law apply to indefinite-term employment contracts concluded under Federal Law No (8) of 1980.
Unlimited employment contracts are to be converted into fixed-term employment contracts according to the amendments. Within one year from the effective date of the existing agreement, these contracts must comply with the restrictions, regulations, and procedures outlined in this decree by law. They may be extended for longer durations by the Council of Ministers if necessary in the public interest.
Worker Welfare Under the New Labor Law in the UAE 2021
Worker welfare lies at the heart of the new amendments to the UAE Labor Law. The new decree includes provisions related to worker welfare, ensuring health and safety measures for all workers in the private sector. Here are some of the provisions related to worker welfare.
The UAE government has declared another Labour law to secure the privileges of workers in private areas inside a post-pandemic setting. Assuming you’re working in the UAE, you ought to know about the new business laws and guidelines that offer a large group of advantages to laborers, including paternity leave and exclusion of lawful expenses. We should discover more about what revisions were made in the new UAE Labor Law 2021.
NEW UAE Labor LAW 2021: AN OVERVIEW
The UAE President, His Highness Sheik Khalifa receptacle Zayed Al Nahyan, gave the Federal Decree-Law no. 33 of 2021 to control the work market in the private area.
This new enactment will produce results on second February 2022. The post-COVID-19 working environment guidelines incorporate the following:
- Adaptable work hours.
- Distinctive work models.
- New guidelines for low maintenance/impermanent work Safeguarding representative privileges.
- Presenting new leaves strategy.
- End rules during probation.
- Consolidated weeks of work.
- Equivalent compensation for people.
As per the Ministry of Human Resource and Emiratisation (MOHRE), the UAE Labor Laws 2021 will prepare for the future development and flourishing of the steadily advancing labor force in the country. Other than drawing in new ability, the new laws put accentuation on ladies strengthening also.
Arrangements UNDER THE NEW UAE Labor LAW 2021
Article 74 of the new declaration disallows businesses from all types of compulsion in the working environment. A business may not undermine the laborer with punishment or power them to offer support without wanting to.
Inappropriate behavior
Under the new Labour law, all types of inappropriate behavior against a laborer are completely disallowed. That incorporates tormenting and any type of verbal, physical, or mental viciousness against a laborer by the business, their bosses, or associates.
Segregation AND PREJUDICE
The enactment prohibits a wide range of separation dependent on sex, religion, public beginning, financial status, impairment, shading, or race that might restrict equivalent freedoms or hinder the liberation of equivalent privileges.
Equivalent PAY FOR MEN AND WOMEN
The alterations in the new UAE Labor laws additionally highlight equivalent compensation for people. The new changes pressure that all arrangements administering the work of laborers will apply to working ladies in the UAE, with no segregation or infringement of the endorsed privileges of working ladies.
It underlines giving ladies similar compensation as men assuming they are accomplishing a similar work or work of equivalent worth, as set up by the Council of Members.
Simplicity OF BUSINESS AND Labor MARKET FLEXIBILITY
Low-maintenance business, transitory work, and adaptable work are among the new classes of work presented by the new Labour law. Managers will benefit from lower functional costs and expanded efficiency because of this drive.
The law additionally permits managers to recruit laborers whose work contracts have lapsed yet dwell in the country.
Characterizing PART-TIME, TEMPORARY, AND FLEXIBLE WORK
Under the new Labour law, low maintenance work permits representatives to work for a particular number of hours or days, though, adaptable work implies that the functioning hours or days might change contingent upon different financial and functional factors of the business.
Contingent upon the idea of business, the new Labour law verbalizes the control of work examples and commitments.
WAGE PAYMENT IN ANY CURRENCY
Under the new Labour law, organizations have the choice to pay the compensation of the workers in dirhams as well as, then again, in different monetary forms. In any case, the money should be referenced in the worker’s agreement.
NON-DISCLOSURE AND NON-COMPETITIVE CLAUSE
As per the new UAE Labor Law 2021, a business has the privilege to disallow their laborer from contending or taking part in any contending project in a similar area. Eminently, it applies to assume the work shared with the specialist permits them to acquire data about the business’ customers or access the business’ proprietary innovations.
Except if a condition as such is indicated as far as time, spot, and sort of work to the degree important to secure authentic financial matters, the time of non-rivalry will not surpass a long time from the date of agreement expiry.
Meaning OF FIXED-TERM CONTRACTS AND UNLIMITED CONTRACTS
The new request specifies that a fixed-term contract (restricted) ought not to endure longer than three years. Assuming the two players concur, the agreement can be restored or stretched out for a comparative or more limited measure of time.
The arrangements of the Labour law apply to business agreements of endless length finished up under Federal Law No (8) of 1980.
Limitless work contracts are to be changed over into fixed-term business contracts as per the corrections. Within one year of the current understanding’s successful date, these agreements should consent to the limitations, controls, and cycles laid out in this declaration by law. They might be stretched out for longer lengths by the Council of Ministers if fundamental in the public interest.
Specialist WELFARE UNDER THE NEW Labor LAW IN THE UAE 2021
Specialist government assistance sits at the center of the new alterations to the UAE Labor Law. The new pronouncement incorporates statements related to laborer government assistance. It likewise guarantees wellbeing and security measures for all specialists in the private area. Here is a portion of the arrangements identified with worker government assistance.