New UAE labour law: Here’s everything we know so far

Revolutionary work fashions, gratuity schemes, elevated leaves to come back into impact on February 2

On February 2, the brand new labour legislation will come into impact with main reforms that safeguard the rights of workers within the personal sector.

The groundbreaking legislation goals to create a versatile work atmosphere that responds to the ever-changing post-Covid-19 labour market and enhances the UAE’s latest sweeping reforms to draw and retain abilities from everywhere in the world to be a part of the nation’s subsequent 50-year growth journey.

From new work fashions, modern gratuity schemes to elevated leaves, the legislation’s provisions steadiness the totally different wants of each workers and employers, drive innovation, and harness a variety of abilities within the labour market.

Particulars of the legislation’s implementations will probably be outlined within the Govt Laws, which have been these days authorized by the cupboard.

Right here’s what we all know concerning the legislation to this point:

1. Staff can go for part-time work in addition to their primary job

The brand new Labour Regulation allows workers to take up part-time jobs, in addition to their full-time jobs, with out having to hunt their employer’s permission. All they want is a brief work allow and guaranteeing they don’t work over 144 hours each three weeks to keep away from burnout and guarantee wellbeing. Particulars of the mechanisms of this course of are but to be detailed.

2. There will probably be modern gratuity schemes

Corporations and entrepreneurs will have the ability to undertake totally different gratuity schemes to draw abilities and enhance their competitiveness within the labour market. Totally different gratuity schemes will probably be developed for the work fashions launched within the new legislation that workers can go for. A financial savings scheme, for instance, will allow workers to spend money on their gratuity from the date of becoming a member of till finish of their service. Particulars of the schemes are to be introduced later in 2022.

3. Staff can work in jobs aside from full time

Staff can work on a venture or hourly foundation below totally different work fashions, together with versatile, non permanent or part-time, whereas guaranteeing their rights in contractual agreements with employers. Extra job fashions, comparable to condensed workweeks or shared job mannequin, will probably be launched within the Govt Laws, which can define the circumstances and obligations of employers and workers, gratuity and leaves for every mannequin. Samples of contracts of every mannequin will even be offered.

4. Staff can shift jobs simply

The brand new legislation prohibits employers from withholding workers’ official paperwork and forcing them to go away the nation after the tip of the work relationship. As an alternative, workers will probably be allowed to remain within the nation and transfer to a different job. Employers shall additionally bear all recruitment prices, with out deducting something straight or not directly from the worker.

5. There’ll solely be restricted contracts

Limitless contracts will not be permitted within the UAE’s labour market, and can finally get replaced, by most February 2, 2023, with restricted contracts of not more than three years. The contracts are to be renewed a number of occasions below the settlement of each events. This unifies entitlements throughout all sectors, and removes the discount of the end-of-service gratuity for workers selecting to terminate a vast contract.

6. There will probably be a minimal wage

In a first-of-its-kind transfer, the brand new legislation will introduce a minimal wage for personal sector workers to be detailed within the Govt Laws. Beforehand, the UAE labour legislation had no minimal wage set past broadly stating that salaries should cowl the essential wants of workers. The minimal wage will shield the rights of low-skilled staff by setting a minimal wage threshold for employers to stick to.

7. Dad and mom and postgraduate college students could have extra leaves

Moms within the personal sector will obtain longer maternity depart, with 45 days of full pay and the subsequent 15 days with half pay. Fathers are eligible for paternity depart of 5 days, to be taken intermittently or consecutively inside six months of the infant’s delivery. Half-time postgraduate college students are entitled to a 10-day depart per 12 months, offered that they full two years of labor with the employer. Such leaves shall not be deducted from an worker’s end-of-year gratuity.

8. Ladies will probably be equally paid

Employer are certain by a non-discrimination provision within the hiring course of on the idea of race, gender, color, faith, nationwide origin, social origin, or on the idea of incapacity. All provisions regulating the employment of staff shall apply with out discrimination to working girls, with an emphasis on granting girls the identical wage as males when performing the identical job, or a job with the identical worth to be decided by the cupboard.

9. Staff can not take up competing tasks for 2 years

Below the non-competition clause, employers can require workers to not take part in a competing venture in the identical sector for a most of two years from the contract termination if the work permits them to have entry to the employer’s purchasers or skilled secrets and techniques. The clause should stipulate the time, place and sorts of work it applies to.

10. Youngsters aged 15 can work half time

The legislation permits youngsters aged 15 to work partially time jobs, not exceeding six hours each day, after acquiring a written consent from their guardians and a medical health report. The Govt Laws will decide the kind of jobs that youngsters are banned from working in, whereas detailing the obligations of employers.

11. Staff are exempted from judicial charges

Staff eager to file a dispute case in courtroom with a worth not exceeding Dh100,000 will probably be exempt from courtroom charges from initiation to execution. A team of workers can even collectively file a dispute by the Ministry of Human Sources & Emiratisation.

12. Employers have to be compensated if workers depart throughout probation

Employers will probably be required to offer a minimal of 14 days written discover earlier than terminating an worker throughout probation, which might not be longer than six months. Staff who want to change jobs throughout probation shall submit a one-month discover, whereas the brand new employer should pay all of the recruitment prices to the earlier employer. Staff who want to depart the nation shall submit a 14-day discover, but when they return to the nation for a brand new job inside three months from the date of departure, the brand new employer should compensate the earlier employer, except there’s an settlement between the employee and the employer stating in any other case.