NEW UAE LABOUR LAW 2021

The UAE President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, issued the Federal Decree-Law no. 33 of 2021 to regulate the labour market in the private sector. The new Law offers a host of benefits to workers. Besides attracting new talent, the new laws put emphasis on women empowerment as well. Some provisions under the new Law are as follows:

AN OVERVIEW

This new legislation will take effect on 2nd February 2022. The workplace regulations include the following:

Condensed work weeks.
Flexible work hours.
New regulations for part-time/temporary work Safeguarding employee rights.
Introducing new leaves policy.
Termination rules during probation.
Equal pay for men and women.
Different work models.

PROVISIONS UNDER THE NEW UAE LABOUR LAW 2021

COERCION IN THE WORKPLACE

Article 74 of the new decree provides employers with rights which prohibits employers from all forms of coercion in the workplace. An employer may not threaten the employees or force them to provide a service against their will.

SEXUAL HARASSMENT

The new law prohibits all forms of sexual harassment. It includes bullying and any form of verbal, physical or psychological violence against a worker. The law extends to employer, their superiors or colleagues.

DISCRIMINATION AND PREJUDICE

The legislation outlaws any types of discrimination. The discrimination can be based on gender, religion, national origin, socioeconomic status or race.

EQUAL PAY FOR MEN AND WOMEN

The amendments in the new UAE Labour laws also stipulates equal pay for men and women. The law emphasis for granting women with equal wage as men for the same work.

EASE OF BUSINESS AND LABOUR MARKET FLEXIBILITY

The new Law creates provision for Part-time employment, temporary work and flexible work as new categories of employment.

DEFINING PART-TIME, TEMPORARY AND FLEXIBLE WORK

Part time workers are allowed to work for a specific number of hours or days. Flexible work means that the working hours or days may vary. Both categories are allowed under the new Law.

WAGE PAYMENT IN ANY CURRENCY

The new law allows payments other than in AED.

NON-DISCLOSURE AND NON-COMPETITIVE CLAUSE

An employer has the right to prohibit their worker from competing or participating in any competing project in the same sector for upto 2 years after the expiry of employment contract.

DEFINITION OF FIXED-TERM CONTRACTS AND UNLIMITED CONTRACTS

The new order stipulates that a fixed-term contract (limited) should not last longer than three years. The contract can be mutually extended.

Within one year, the unlimited employment contracts are to be converted into fixed-term employment contracts according to the new amendments.

WORKER WELFARE UNDER THE NEW LABOUR LAW IN THE UAE 2021

The new Law includes clauses to ensures health and safety measures for all workers in the private sector. These provisions include:

LEAVE AND REST DAYS DEFINED

According to the new labour laws and regulations, private sector employees are entitled to a paid weekly break. It also includes additional new leaves for off days for mourning, paternity leave and sick leaves.

The law also includes employer’s responsibility for bearing the cost and fees of recruitment.

EMPLOYEE’S EASE OF MOVEMENT

Its illegal for employers to withhold employees’ official documents such as passports.

The worker’s probationary period in the UAE has been limited to six months.

END OF SERVICE BENEFITS

Foreign workers who have worked full-time for over one year or more of continuous service are entitled to end-of-service benefits according to the basic wage, with a salary of 21 days for each of the first five years of service and a salary of 30 days for each subsequent year.

Please note that this memo is for information purposes only and should not be construed as an advice. It does not necessarily cover every aspect of the
topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.

If you would like to discuss Tax & VAT services, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.

“ALWAYS DOING THE RIGHT THING”