• On Wednesday February 2, there was the biggest overhaul of the UAE labour law since 1980.
  • Rules covered annual leave, public holidays, gratuities and much more, and they came into effect from February 2
  • From new rules around employment types and flexible working, to laws setting out additional leave types and addressing discrimination, some major changes are imminent.
  • Ultimately, the new rules are aimed at ensuring more flexibility for employees.
  • The new UAE labour law applies to both public and private sector workers.

Will you get more annual leave? Can you work from home? Is part time work allowed?

Keep reading this article to find out.

The announcement of Executive Regulations from the UAE’s Ministry of Human Resources and Emiratisation (MOHRE) www.mohre.gov.ae/en/home.aspx will add more detail to the new labour laws, their roll out and how they impact us all. Further review and approvals of the new UAE labour law and its practical roll out is expected over the next few weeks, so do keep checking back for updates.

 

When were the New UAE labour laws announced?

  1. The laws were documented on September 20, 2021
  2. The laws were announced to the public on November 15, 2021.

When will the laws come into place?

  • The UAE labour laws come into effect from Wednesday February 2, 2022.

Why is the new UAE labour law coming into place?

  • The new laws are aimed at ensuring more flexibility in the employment market.

What are the most important changes to look out for?

  • There are many changes around employment types and flexible working, contract types, and additional leave types. You can also expect more details around banning discrimination, harassment and bullying in the workplace, and around recruitment.

What’s happening with a minimum wage for the UAE?

  • A minimum wage is to be determined by the cabinet following a proposal by the MOHRE. The minimum wage will be applicable to private sector employees.

How much annual leave will we get from Feb 2, 2022?

  • It appears that there’s no increase to the number of days of annual leave; it’s still 2 days per month for the first year and then 30 days per year from then onwards.
  • The change is that an employer can now legally request paid annual leave during your probation period and that for any annual leave he /she must be paid his / her full salary (previously by law he / she had to be paid only his / her basic and housing.)

Does this annual leave allowance include UAE public holidays?

  • The amendment involves that UAE public holidays are additional to annual leave, but if they happen to fall within your annual leave then they are considered part of the leave.

What about part-time workers: how are they affected when it comes to annual leave?

  • The UAE labour law amendments detail new rules with regards to different categories of work types being; full time, part time, timed work and flexible working.

What changes are there to maternity leave?

  • Pregnant women are now protected from termination due to pregnancy or absence as a result of pregnancy within the terms of Article 30 of the new law. Also, pregnant women are now entitled to 45 days at full pay and a further 15 days with half pay.
  • Also there is no reduction in pay for maternity leave if you’ve been in your job for less than a year. You will still get full salary and eligibility for maternity leave as long as your pregnancy lasted at least six months while in your job. The daily rest period after returning to work is still in place but only for six months.

What about paternity leave?

  • New fathers can take five working days with pay, which can be taken continuously or intermittently within the first six months after the birth of the child.

Can we now claim compassionate leave?

  • Yes. The new UAE labour law includes compassionate leave in the case of bereavement. This will be either 3 or 5 days depending on the degree of relative concerned.
  • There are no changes to sick leave so far, nor any changes by law governing Covid-related sick leave.

Do the new laws include flexible working?

  • Yes. However, the detail is not yet clear, so keep checking back as we wait for updates within the Executive Regulations from the MOHRE.

Can I work from home under the new laws?

  • There’s nothing in the new laws that says working from home is not allowed.

The new four-and-a-half day working week has got us all excited. Is the working week less hours by law, or still 48 hours per week?

  • No changes. The working week in the UAE remains at 48 hours.
  • But, the  48 hours is the max number of hours employees should work per week. Companies can reduce working hours and still be compliant with the law.
  • All hours worked over the maximum 48 per week should paid for as overtime.
  • In any three week period the maximum number of worked hours should not be more than 144.  Time to start keeping track.

Do any new laws impact resignations and final pay?

  • Resignation terms in the probation period have been improved but also strengthened. Within the new fixed term contracts both parties in the contract have to give a minimum of two weeks’ notice.
  • However for the employee it’s a little more complicated, if you are resigning to leave the UAE then two weeks’ notice is just fine, though if you get home and decide to come back within three months of leaving then your new employer will have to compensate your old employer for the fees paid to hire you.
  • The same goes if you want to stay in country; your new employer has to compensate the old, however, in this instance the employee has to give 30 days’ notice within their probation period.
  • If you decide to not give notice and abscond from the UAE, you will have a mandatory ban of one year for any new work permits.

What about our precious gratuities?

  • If you resign from your contract your gratuity will not be forfeit and it will not be reduced. This means that as long as you have completed one year’s service, you will be eligible for 21 days salary for every year worked up to five years and then 30 days for service over five years, which is a definite improvement on existing rules. Also, it appears that gratuity is not forfeit if you are terminated through ‘gross misconduct’, the old article 120 (new clause 44) – a huge change!

Where can I go for help about the new rules?

 

The above written article is based on information available currently, with amendments to the new law still to be clarified and published. Further review and approvals of the new labour law and its practical roll out is expected over the next few weeks.