13 March

Labor Law in UAE, New Regulations in 2024

Posted by webtech

in Legal Advice

Labor Law in UAE, new regulations in 2024 blog by S & S Lawyers that is the leading law firm in sharjah, UAE consisting of experienced lawyers and advocates in Sharjah that provides high quality legal services to groups and individuals to help them with legal matters, including arbitration, civil, criminal law and crimes, real estate, personal status, and as well free legal consultation.

If you haven’t had much experience when it comes to disputes, you might likely be confused by the differences between arbitration and litigation which are both methods in resolving issues. In most cases, lawyers fail to explain the differences between the methods of dispute resolution and the significance of choosing one over the other, unless you specifically ask them to do so.

In this blog, we will be talking about the differences of both dispute resolution methods.

The legal experts here at S & S lawyers understand the importance of informing our clients, a quick overview and a short guide on the differences between arbitration and litigation. However, this blog is not intended to replace seeking appropriate legal advice as there might be exceptions that exist depending on a particular situation and the uniqueness of the legal agreement.

1. Introduction of Unemployment Insurance Plan

To take effect on June 30, 2024, this new measure aimed at providing more economic security for employees in the private sector that is intended to provide financial support to employees during periods of unemployment.

The plan currently applies to most private sector employees and those employed within free zones are currently not covered but with the possibility of changing in the near future.

HR departments need to ensure that all eligible employees are enrolled in the unemployment insurance plan and that relevant insurance premiums are correctly handled in the employee compensation management system. They also need to communicate and explain this new policy to employees in order to make sure they understand their rights and obligations.

The main purpose of the introduction of the Unemployment Insurance Plan is to enhance the resilience of the labor market and protect the rights of employees, an important step taken by the government of the United Arab Emirates to provide an additional safety net for employees and impact the HR and financial management strategies of companies.

2. Fixed-term Contracts

Employers can now only offer fixed-term contracts and these contracts typically span three years and can be renewed when both parties consent to the same span or less. The new labor law abolishes the concept of unlimited contracts, which means there will be a clear end date to the employment relationship between employers and employees.

This change requires HR professionals to adjust in preparing and managing employee contracts, which is particularly in the renewal and termination of contracts. All the procedures being done by HR need to ensure that they comply with the requirements of the law and that all relevant information is communicated clearly and accurately to employees in order to avoid legal disputes.

These new provisions are created and released to increase transparency and predictability in employment relationships while ensuring that expatriate employee contracts align with the validity period of their residence visas.

3. New Working Arrangements

HR professionals are required to make corresponding adjustments in recruitment, contract management, and employee benefits strategies while ensuring all employment contracts and policies align with the new work modes and clearly communicate the characteristics and conditions of various work modes to employees.

The new UAE employment law allows employees to opt for new working models which are flexible work, part-time, and temporary work.

4. Annual Leave

Aside from yearly leaves, the UAE employment law made several adjustments to leaves that UAE employees are entitled to.

A three-day leave after the death of close family members, an intermittent or consecutive parental leave of five days for six months after the birth of a child and a 10-day study leave for an employee who has to take exams, provided they at least have two years of work with that employer are the additional leaves that employees must get according to the new UAE labor law.

5. Probation period notice

Employers can dismiss their employees at any time during probation but they’re still required to give a 14-day probationary notice while an employee has to provide a 14-day written probationary notice before terminating the contract.

Regular employees however are required to provide at least a 30-days notice to employers before terminating the contract, with a maximum period of 90-days regardless of the reason for termination. Employers are also required to provide a 30-day notice before termination and failing to comply with either party will require them to pay compensation equivalent to the notice period or its remaining portion.

This provision ensures that employees have sufficient time to find new employment when terminated while also protecting the rights of employers. Ensuring transparency and fairness in managing the termination process is essential for maintaining a positive work environment.

HR departments need to ensure that all employment contracts clearly specify the notice period for termination and are strictly adhering to these provisions when implementing terminations.

6. Labor Dispute Resolution

Based on what we’ve tackled before in our previous blog “2024’s UAE 3 New Rules To Know About” - The Ministry of Human Resources and Emiratisation (MOHRE) was granted to be a greater-decision making authority particularly in handling small-value labor disputes, disputes that involves a claim amount not exceeding 50,000 dirhams. With MOHRE having the force of execution, dissatisfied parties still retain the right to appeal to the relevant courts within 15 working days, ensuring a transparent and accountable process.

And in case a resolution cannot be reached within the designated time frame or if the dispute exceeds MOHRE’s jurisdiction, the department may refer the dispute to relevant courts and MOHRE can make recommendations to facilitate a comprehensive understanding of the case.

Conclusion

The government of the United Arab Emirates updated its labor laws to ensure that there is no discrimination within any workplace and that a flexible working environment is enabled. These updates mark a significant shift in the labor market and employment environment.

And disputes in the work environment cannot be helped sometimes, that’s why we recommend talking to legal professionals if any dispute arises regarding your employment, the same goes to employers that are dealing with issues regarding their employees' contracts and others. S & S Lawyers has a team of lawyers that specifically deal with labor issues that can come up with strategic resolutions to come up with the best possible outcome.

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