Changes In The UAE Labor Law | The New Labour Law In The UAE 2022 As Stated By The Ministry Of Human Resources & Emiratisation

Federal Decree-Law No. 33 of 2021 governing the regulation of labor relations that took effect on Wednesday, February 2, 2022, on all establishments, employers, and workers in the private sector across the country has replaced Federal Law No. 8 of 1980. This new Law aims to improve employment practices in the UAE so that it meets worldwide standards for employees.
According to Dr. Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, the new law helps establish the UAE labor market’s position as one of the vital global labor markets in the region. The new law would provide versatility, and attract more skilled individuals while ensuring the rights of both employers and employees are well understood and protected.

The following are some of the most significant changes that the new Law will bring about.

Flexible Working Arrangements

Introduced with the new Law are alternative flexible employment arrangements.

• Temporary work is suitable when the length of the employment duration is limited by time or a project goal. This appears to be a comparable situation to what fixed-term contracts give under current law.
• Flexible work is stated as work hours and/or days that vary based on the workload and other operational factors.
• Part-time employment is clearly established as when an individual works for one or more employers for a specific number of hours or days, and part-time employees will be entitled to pro-rated vacation leave.
• A rather new work arrangement is Remote work, where all or part of the work is done outside the workplace rather than being physically present, whether part-time or full-time
• And finally, Job-sharing work, where tasks are divided among several workers to complete previously agreed responsibilities. Equal distribution of salary is payable to each of them. Part-time workers are treated according to part-time job standards.

Furthermore, while there are no explicit requirements for remote / home-based working arrangements, it permits an employee to work remotely (from inside or outside the country) with the employer’s consent.  This is a positive step that responds to the working environment in the wake of the COVID-19 pandemic.

Changes In Employment Contracts

Unlimited employment contracts must now be transformed into fixed-term employment contracts within one year of the Decree’s effective date, with a three-year maximum time. By mutual agreement, the contract may be extended or renewed for additional shorter or longer periods after the initial term has expired. When determining the employee’s continuous service period, the new period or periods are regarded as extensions of the previous period and would be added to the employee’s continuous service duration – for end of service gratuity purposes or otherwise.

The New Law automatically applies to employees who are currently on unlimited contracts. Employers must transition existing unlimited-term contracts to fixed-term contracts within one year of the Effective Date, which is February 2023.

Under an unlimited contract, either party may end the contract for valid reason and should provide notice.

If the employee has been with the company for:

• Less than 5 years – 30 days notice
• More than 5 years – 60 days notice
• More than 10 years – 90 days notice

The New Law mandates that the employment contract include the employer’s name and address, as well as the employee’s name, nationality, date of birth, and any other information essential to establish the employee’s identification and credentials. The contract should also include the employee’s job title, start date, location, hours of work, days off, and, if appropriate, the probationary period. The contract should also include the duration, agreed compensation, including allowances, and other compensation in case of injury, duration of yearly leave to which the employee is entitled, period of warning, contract termination process, and any other data defined by the MOHRE as necessary to manage the parties’ relations.

Work Permits

The Ministry of Human Resources and Emiratisation approved 12 categories of work permits as of February 2022, allowing companies registered with the ministry to employ workers who fulfilled the requirements of the permits. Among these permits is a permit to bring in a worker from outside the country, a permit to relocate a non-national worker to and from a business that is duly registered with the ministry, and a permit for individuals staying with family,

A temporary work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project within a fixed period, and a project work permit, which is granted to a registered business intending to recruit a worker from abroad to complete a temporary work or a specific project with a fixed period, are also included.

The part-time work permit authorizes registered businesses to hire a worker on a part-time basis, with reduced working hours or days than full-time employees. The individual can work for other employers as well once a part-time work permit has been issued. The work permit for minors also enables an individual who has reached the ages of 15 – 18 to work in a registered business under the guidance of the regulations and its executive directives.

A student work permit covering training and employment has also been confirmed. This type of permit allows registered businesses to train or employ a student in the country who has reached the age of 15, subject to certain requirements that ensure appropriate training and working conditions. A work permit for citizens/children from Gulf Cooperation Council countries allows Emirati and GCC individuals to work in registered businesses in the country.

For golden residency visa holders, a work permit will be issued upon the request of a registered business. Companies can also get a national work permit for trainees if they intend to train a citizen according to a known technical or scientific qualification.

Persons who seek to operate based on their own residency, most usually in the case of foreign individuals, will be granted a self-employment permit. This permit does not need sponsorship from a specific company or employer in the UAE, nor does it require the individual to have an employment contract under which he or she will receive an income directly from providing services for a certain period of time. This permit allows the individual to execute tasks or services to an individual or a company, in which case the individual is not employed by that person or business. Consult employment lawyers in UAE to find out more details.

Employee’s Entitled Leave

Under the new legislation, bereavement leave is specified as five (5) days in the case of the husband or wife’s death, and three (3) days in the case of the mother, father, child, brother, sister, grandchildren, grandpa, or grandmother’s death.
Employees (parents) who have a child to care for are entitled to five (5) working days of parental leave.

According to the legislation, an employee who is associated with or regularly studies at a state-approved educational institution is entitled to study leave for a period of ten (10) working days each year to take tests, provided that the person has worked for the company for at least two years.

In addition, the national employee will be allowed full-time leave to undertake national duty with pay in conformity with the country’s regulations. Proof of service from the appropriate authorities is necessary in order to be eligible for the leave mentioned in this Article.

The Ministry of Human Resources and Emiratization established conditions, controls, and procedures for the issuance, renewal, and cancellation of work permits, as well as the transfer of workers from one establishment to another, so that employers can meet their labor needs and reap the benefits of their capacity and productivity at the lowest possible cost, particularly in the case of new work models.  Feel free to consult employment lawyers for more information about this if you feel there is a violation against this policy.

End Of Service Gratuity

Because no agreements have been formed for workers who have turned in their resignation notice, resigning employees who have served for at least one year are entitled to a full end-of-service gratuity calculation payout.

Also, there are no particular laws covering alternative pension plans, and it’s uncertain if MOHRE will recognize them, especially if a contract already exists.

After the contract expires, all end-of-service benefits must be paid within 14 days. Businesses who fail to comply might face fines ranging from AED 5,000 to AED 1,000,000, with the amount increasing depending on the number of employees affected. However, if this time limit has elapsed, employee(s) are not entitled for compensation.

Onshore and inside the free zones, all UAE businesses (excluding DIFC and ADGM) are to revise their employee contracts. After a review to ensure conformity with the New Law, new employment contracts and other rules would be necessary.

If you require assistance in implementing these guidelines in accordance with the new Law, please do not hesitate to contact us. Our labor and employment lawyers in Dubai are glad to help you.

Contact Us to learn more

 

 

 

 

 

 

 

Employees Compensation for Occupational Injury | Dubai Labor Lawyers UAE

Federal Law No. 8 of 1980, UAE Labor law outlines employee’s right of compensation if they suffer injury at work. Under this law, more so with the assistance of a capable labor lawyer, employers are liable for workplace injuries sustained by employees.

Workplace injuries are defined broadly to include any accident sustained by the employee during their work or as a result of performing their work.

In addition to employees’ rights under the Federal Law No. 8 of 1980, employees can also bring claim against the employer under Federal Law No. 5 of 1987 (UAE Civil Code). However, under the Civil Code, the employee must prove the fault or negligence on the part of the employer in order to claim successfully.

UAE law guarantees safety of employee during work and therefore impose upon employers to ensure safety working environment to its employees. Employers are mandated by law to provide and have suitable health and safety guidelines in place, including policies and proper incident report protocol in order to promptly address and comply with the mandate of the Labor Law.

Below is the summary of the procedure and corresponding guarantees provided under the Labor law:

1. In the event of injury sustained during employment, report must be immediately made by employees to the police and Labor Department or local office who has jurisdiction in the area where the injury took place. Investigation will be carried out thereafter.
2. Copy of Investigation report will be sent by the police to the Labor Department and another to the employer.
3. In cases of labor accidents, the employer shall be liable to pay for the treatment of the employee which includes hospitalization, medical test and medicines prescribed including rehabilitation.
4. If the injury resulted and prevented the employee from performing his work, the employer shall pay him an allowance equivalent to full wage during the entire period of treatment or for a period of six month, whichever is shorter. If the medication requires more that six months or until the employee fully recovers, the allowance shall be reduced by half until the employee fully recovers, declared disabled or dies, whichever occurs first.

+ Article (147)

5. Any dispute arises in regard to employee’s fitness for work or degree of disability shall be governed and shall be referred to the Ministry of Health through competent Labor Department. Medical Board will be formed to determine the matter related to the injury or treatment. Assistance of the expert may be sought, and the decision of the Committee shall be final and will submitted to the Labor Department for execution.
6. In the event the occupational injury resulted to death of the employee, the person who at the time of death of the employee used to be entirely or mainly supported by the income of the descend shall be entitled to compensation equal to basic wage of the employee for 24 months, provided that the amount of compensation is not less than AED 18,000 or more than AED 35,000. Calculated as per the guidelines set forth under the Labor Law.
7. Should the injury results to partial disability or permanent disability of the employee, compensation shall be calculated set forth under the Labor Law.

In summary, determination of the issues relating to the occupational injury shall be determined in accordance with the level or type of injury and the proportion of disability sustained by the employee.  Contact our labor lawyers in Dubai for legal assistance.

 

UAE LABOUR AND EMPLOYMENT LAW | LABOUR AND EMPLOYMENT LAW IN UAE

Federal Law No. 8 of 1980 governs labour rights of employees in UAE public and private sector. Except for certain categories of employees, this law applies to all employees working in the UAE, whether UAE nationals or expatriates.

In turn Ministry of Labour is the overseeing authority responsible in maintaining the proper implementation of labour rights and responsible implementation of the labour laws and regulations.

UAE Labour Law provides the framework relating to the following core employment facets: employment contract bound and conditions relating to working hours, termination of employment, end of service gratuity payments and notice period, vacation and public holidays, sick leave, maternity leave and annual leave.

UAE employment contracts are categorized into two classification: limited and unlimited contracts. Major distinction between these two types of employment contract are as follows:

• Limited contract is a fixed term and it will automatically terminate at the end of the term unless terminated earlier by either party or renewed by both parties. On the other hand, unlimited contract is an open-ended and maybe terminated in accordance with the conditions set forth in the UAE Labour Laws.
• Limited term contracts have no notice provision and will expire at the end of the term. On the other hand, under the UAE Labour Law, there are two main ways for an employer to legally terminate an unlimited term contract – minimum notice period of 30 calendar days unless otherwise agreed on longer notice period; without notice period if the reason of employment termination is grounded for one of the 11 exhaustive gross misconduct reasons set out in Article 88 and 120 of UAE Labour Law.
• In the event, the employee desires to terminate the limited term contract before the expiry of the term, he will be liable to pay the employer “early termination compensation” or half of three months’ salary or half of the remuneration for the residual period if the contract is less than 3 months prior to its expiration. On the other hand, in an unlimited contract, an employee may resign by providing 30 days’ notice period. However, the employee may resign without notice if the grounds are based on the conditions set forth under Article 121 of the Labour Law.
• End of service gratuity for both Limited and Unlimited contract are calculated as follows:

Employee who has completed one year or more of continuous service: ·         21 days’ basic salary for each year of the first five years of service ·         30 calendar days’ basic pay for each additional year Provided that the entire remuneration does not exceed two years’ pay. However, in cases where the employee is terminated summarily for gross misconduct pursuant to the provisions of the UAE Labour Law, the employee is not entitled to end of service gratuity. End of service gratuity computation will differ in the event the employee resigned: (i) Under limiter term contract, the employee is not entitled if he resigns less than 5 years or service. If he has more that 5 years of service, gratuity is calculated as per above guidelines. (ii) Under unlimited contract, he will be entitled base on the following calculations: ·       One to three years of service: 1/3 reduction ·       Three to Five years of service: 2/3 reduction ·       More than Five years of service: no reduction

 

If you want to know your rights and learn more about how employment and incentive practices are implemented in UAE Labour Law, you can contact our team of expert labour lawyers in UAE and we will guide you through and pertinent legal advice will be provided.

Injured At Your Workplace? What are your rights as employee if your company is in Dubai United Arab Emirates.

The Judicial Law of the United Arab Emirate for the Employer and Employee Relationship decreed the rights and obligation through the Federal Law No. 8 of 1980 wherein it governs the Labour rights of the employees in the Private Sector in case they are injured at work. It is stipulated in Article 144 of Federal Law No. 8 of 1980 which regulates the liability of the Employer during the course of the Employment, the Employee sustains an accident; contracts an occupational disease or is disabled, the Employer shall pay for the cost of the injured Employees treatment in a local government or public medical center until he recovers.

What does such Treatment Include?

Treatment shall include costs of residence in a hospital or sanatorium, surgical operations, expenditure on X-rays and medical analysis, the purchase of medicines and rehabilitation equipment, and the supply of artificial limbs and other prosthetic appliances for any person who is declared disabled. In addition, the Employer shall pay the cost of any transport entailed by treatment provided for the Employee.

Is An Employee entitled to Full Salary, during this period?

Yes and It is imperative to be aware that Employees are entitled to receive a full salary. The salary can be throughout the treatment period or up to 6 months whichever is shorter and thereafter, half of his salary for another six months or until the Employee completely recovers shall be payable to the Employee. In accordance with Article 145 Federal Law No. 8 of 1980. The Law also states that an Employee is fully protected in the U.A.E. and has the right to get compensation, salary, expense payments, etc. in the case whereof he is discriminated, terminated on wrongful grounds, not paid or if he gets an injury.

Why Lawyers or Legal Consultants are recommended during such events?

A Legal Adviser can be a substantial support to an Employee, Employer, or even a service provider during events that of worst scenarios.  Our team will assist both the Employer and Employee in terms of advice, filing lawsuit and representative the employer or employee at all levels of the competent court of laws. It is crucial to seek legal advice prior to taking any legal action against any individual be it employer or employee.  We strongly recommend consulting Al Riyami & Muhyealdeen International Legal Consultants or any other Consultant of choice for taking any legal action, other than this legal knowledge.

Termination Due To Covid-19 Pandemic Effect

The spread of the Coronavirus has widely traversed the world wherein it has unveiled the vulnerability of the global economy. This effect has agitating for the businesses as they were vastly affected by the pandemic. During these unprecedented and ambiguous times, the U.A.E. government gets its under way in imposing measures to suppress the outbreak. Thus, the business sectors are determined to respond by preserving its workforce and organization by rightful termination due to COVID thereby they do not face insolvency.

In reference to the Judicial law of the United Arab Emirate herein stipulated as Section 2 of the U.A.E. Labor Law Federal Law No. (8) OF 1980 wherefore it confers sick leave entitlements and rights for employees, whereby when the same completed his or her probation period and has spent more than three months in continuous service for an employer he or she is entitled to a sick leave. Also, Article 83 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980 affirms that the duration of leave should not exceed 90 days of either consecutive or non-consecutive for every year of service. However in respect to Article 82 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980, as amended, the employee must notify the employer about his sickness within two days upon taking a sick leave. The employer has the right to put the employee under a medical examination in order to verify the illness, and the authenticity of the employee’s leave.

Rightful Employment Termination – Business Owners and Management in Dubai UAE Labour & Employment Law

The Dubai Health Authority has set its policy wherein employees in the private and public sectors are mandated to get a Sick Leave Certificate which will help to avert employers from workday losses. Thus, an employer may not dismiss or serve its employees termination whilst on sick leave. The same applies to the current pervasive situation we are faced with as the COVID 19 cases rapidly increase in numbers. If an employer breaches the contract with the employee without notifying them, the employee then has the right to file a complaint before the Ministry of Labor in the event whereof the employee and employer are unable to reach an amicable solution. An employee can claim compensation from the employer. If the employee uses all of his 90 days’ sick leave and was not able to report to work afterwards, the employer may terminate his services. In such a case, the employee shall be entitled to the end of service gratuity in accordance with the provisions of the U.A.E. Labor Law.

The U.A.E. Labor Law protects the rights of every employee, employer and the businesses in the United Arab Emirates. A person who lives and works in the U.A.E. has wide options to seek help if faced with employment-related matters as there is a comprehensive law, judiciary initiatives, public prosecutor, courts, lawyers, law firms, etc. We strongly recommend consulting experienced labor lawyers in Dubai such as Al Reyami Advocates & Muhyealdeen International Legal Consultants or any other legal consultant of choice for taking any legal action, other than this knowledge.

 

 

 

Labor Dispute in UAE | Employment Dispute between Employee and Employer in Dubai UAE

Any dispute that arises between the employer and the employee shall be dealt by,

A complaint is filed either by the employer or the employee in the labor department as per Article 6 of labor law which will then summon both parties and settle the dispute. In case the dispute does not get resolved it is then referred to the courts within two weeks of submission of complaint.

The labor court has two circuits which is

a- Minor Circuit
The cases which are worth less than one hundred thousand dirhams (AED100, 000) are dealt by one judge including counter cases regardless of their value

b- Major Circuit
The cases which value exceeds one hundred thousand dirhams (AED 100, 000) are dealt by three judges led by one judge including counter cases regardless of their value

There is a time limitation of one year to initiate an employment case. No complaint from both parties will be eligible for a claim if brought after a year or if they did not follow the procedures.

The court holds a meeting within three days of complaint in which they review and consider the claim from both parties. Furthermore, they might summon a representative of the labor department to investigate more and a notice is sent to both parties.

Limited and Unlimited Contract in UAE Labor Law | Labor And Employment Law in Dubai

It is important as an employee that you should familiarize yourself with the labor laws of UAE so you know what you are committing yourself too.

There are two types of labor contracts which are as follows,

1- Limited Contract

This type of contract is for a limited time period which has a start date and an end date which is for two years and cannot exceed the term. It also must mention the notice period either it be a minimum of one month or maximum three months.

The contract will end once it completes two years term, or if both employer and employee mutually agree to end it, or if the employee commits any illegal act as per Article 120 of labor law.

In case if the employer singly wants to terminate the contract or renewed contract earlier with the reason not stated in Article 120 of labor law then the compensation to be given is of three months advance salary or the remaining period of the contract whichever is a lesser amount.

Same applies for the employees if they decide to resign with the reason not stated in Article 121 of labor law then they have to compensate with a half months salary for a period of three months or the remaining period of the contract whichever is a lesser amount.

2- Unlimited Contract

This type of contract has a start date but no end date known as an open contract. It can be terminated by any of the parties either be it the employer or the employee honoring the requirements of the notice may it be the notice period of minimum one month or maximum three months. However with the consent of both parties the contract may be terminated without notice requirements (notice period).

In case if the terminating party does not comply with the notice requirements for the early termination then they will have to face legal charges and compensate the other party.

How to Compute Gratuity Pay in Dubai

The most frequently asked questions raised about UAE labor law are, am I entitled to end of service pay or gratuity pay? According to UAE labor law, an employee becomes entitled to receiving end of service pay once they have completed 1 year of service.

The actual amount of end of service pay you may be entitled to varies greatly based on the length of service and whether you are employed in a free zone or by a mainland (non-free-zone) company. Although Free-zones are required to follow UAE labor law, some do have different (slightly more beneficial) calculations for this benefit.

Note: The employer may deduct from the gratuity any amount owed to them by an employee for advanced pay or loans. Expenses such as visa costs and recruitment costs should not be deducted.

End of Service Benefits in UAE

The actual calculation can become quite complicated depending on individual circumstances as will include unused leave or holiday and can also include regular commissions. It is also based on your actual current salary rather than the starting salary that may be listed on your original employment contract.

The calculation is also different depending on whether you resign from your position or are terminated by the company (remember that there is also the possibility of compensation if you are terminated for any reason other than work related performance).

As a rule of thumb, the calculations are based on the criteria listed below and there is a useful calculator provided on the Ministry of labor web-site. Some free-zones also provide their own calculator on their web-sites to guide you.

Generic Guidance for End of Service Calculations

Limited contract if terminated,
– Must serve at least one year for gratuity pay
– For service of more than 1 year but less than 5 year, the employee will get 21 days basic salary for each year
– For service of more than 5 year , the employee will get 30 days basic salary for each year

Unlimited contract if terminated,
– Must serve at least one year for gratuity pay
– For service of more than 1 year but less than 5 year, the employee will get 21 days basic salary for each year
– For service of more than 5 year , the employee will get 30 days basic salary for each additional year but must not exceed 2 years pay

Resigned under unlimited contract then,
– Must serve at least one year for gratuity pay
– For service of between 1 year to 3 year, the employee will get 1/3 of 21 days basic salary for each year
– For service of between 3 year to 5 year, the employee will get 2/3 of 21 days basic salary for each year
– For service of more than 5 year , the employee will get 21 days basic salary for each year

Employment Law in Dubai UAE | Claiming the Labor Rights in UAE

There are a surprisingly high number of labor disputes in progress at any given time in the UAE and knowing the procedure and process are key to bringing about the best solution. The initial steps must be carried out by the parties involved, either the employer or the employee and lawyers cannot be directly involved until the dispute is referred to court.

For the Dubai Labor Authorities to consider any legal matters against an employee or an employer, a labor relationship must exist (or have existed) with a labor card or, at the very least, a formal offer letter issued by the authorities.

There is a separate independent body established to hear and handle manpower affairs known as the Ministry of Labor & Social Affairs. Initially, however, a complaint should be submitted to either the Labor Department of the Ministry (for UAE mainland companies) or the labor dispute section of the Freezone authority for Freezone companies.

Government employees should submit the case to Rulers Office as the initial step to obtain an NOC in order to proceed.

The labor authority concerned will then arrange a meeting between the employer and the employee to attempt to settle the dispute. If this is not successful, the matter can then be referred to the court.

At this stage, if you have not already done so, you can and should seek the assistance of a competent and experienced advocates in Dubai who can handle the proceedings in the court on your behalf.