Recent Developments in the UAE Labour Laws

There are many new changes brought to the labor laws in the UAE. The employers are furious due to the new specifications added. Most of the new requirements are related to human resources and compliance with stricter employment laws than before. In 2022, significant initiatives were introduced for employment in the UAE along with the changes to the immigration laws regarding employment. Moreover, significant legislative developments took place in 2022 which was carried forward in 2023. 

The development of 2022 and 2023 directly impacted the companies and businesses operating in the UAE. This article is a simplified guide in introducing its readers to the changes and recent developments in the labor laws of the UAE. We will discuss in detail the alteration and how it impacts the companies in the UAE. Labour and Employment Lawyers in DUBAI are the first priority for seekers. 

Extension in the Deadline for Employment Contracts 

The Government of the United Arab Emirates has extended the deadline for businesses and companies to alter workers’ infinite contracts. The changes to the workers’ unlimited-term contracts are bought to convert them into fixed-term contracts. The law should be implemented from February 1, 2023, to December 31, 2023, allowing 11 months’ time for the companies. This extension was made to facilitate the businesses and companies for a smooth transition. 

It was initiated following the Federal Decree-Law of 2021. The Federal Decree-law governs the kind of labor relations in the private sector of the UAE. The changes brought in 2023 will allow businesses, companies, and their employees to mutually agree on the duration of the contract. It is specifically for a limited period with the motive to avoid any deadlock and disagreement with the workforce. The time is allotted so that it is not directly imposed rather it is discussed with the workers for the maximum contract length. Let us also mention here that Employment Contracts and Business Contracts are the specialties of DUBAI EMPLOYMENT LAWYERS. These Advocates and Legal Consultants, play a vital role in dealing the Employment Matters.  

Emiratization Future Goals 

The UAE government has been keen on working towards Emiratization. The Emirati Human Resources Competitiveness Council which is also called “NAFIS,” is working on the goal. Thus, to increase Emiratization in the private sector NAFIS is formulated. Over the next five years’ time, the NAFIS council aims to place Emirates workers over the jobs. They are given a target of 75,000 Emiratis to place in private-sector jobs. Furthermore, the companies and businesses that fail to meet Emiratization targets will face penalties. They will face penalties of approximately AED 6000 monthly for every unemployed Emirati worker.

Bank Guarantees and Employee Insurance Scheme

Under the new laws, employers operating in the UAE have 2 options available. Now they have to provide either bank guarantees or employee protection insurance to their employees. The first option is Bank guarantees. They can offer a bank guarantee of Dirhams 3,000 or more per employee. On the other hand, an insurance policy scheme is the other option available. It will provide complete coverage for the end-of-service gratuity. Besides, it will also provide cover for the repatriation costs and other entitlements for the workers.

Applicability towards the Amendments

All the legislative amendments primarily focus on the businesses and companies registered with the Ministry of Human Resource and Emiratization MoHRE. It is directly applicable to all the employers of MOHRE-registered businesses. However, this law may not immediately impact the companies and businesses operating in the free zones of the UAE. Nonetheless, to determine the extent of applicability to any business, you can contact the attorneys in the UAE. However, businesses should seek legal advice to determine the extent of applicability to their company.

Labour and Employment Lawyers in UAE

Labour and Employment Lawyers, can work on the extent of compliance, adaptability, and applicability of the new labor laws for employers. Nonetheless, professional employment attorneys can assist companies in various industries in the private sector. They will navigate through the employment and labor issues thus to ensure compliance with the UAE labor laws. They will also work to preserve the rights of the labor and employees. They have complete information concerning the new UAE labor laws. They can play a pivotal role in ensuring compliance and protection of the employee’s and employers rights and obligations respectively. Seek the expert legal guidance to navigate through the complexities of the labor laws. As an outcome, ensure adherence to the UAE labor laws. Feel free to contact the labor and employment lawyers. Ask The Law Al Shaiba Advocates, is one of the best Law Firms and team of Advocates and Legal Consultants in United Arab Emirates.