top of page
Talent Shark Logo
  • LinkedIn
  • Instagram
  • Facebook
Writer's pictureAamer Jarg

2023 UAE Labor Law Changes: What You Need to Know

Updated: Oct 8, 2023

The Ministry of Human Resources & Emiratization has recently unveiled significant amendments to labor laws in the United Arab Emirates, primarily impacting employees in the private sector. While some of these changes were introduced earlier, the deadline for compliance now approaches in the current year.



1. Contracts of Employment

Under the updated employment law, private enterprises (excluding those in DIFC and ADGM) are required to implement fixed-term contracts for their workforce. However, the length of the term can be determined through discussions between employers and employees. Those presently under unlimited-period employment contracts must undergo conversion. The Ministry of Human Resources and Emiratization (MoHRE) has extended the deadline for this conversion until December 31, 2023, as per Ministerial Resolution No. 27 of 2023.


2. Notice Period During Probation

Employees seeking to switch jobs during their probation period must now provide 14 days' notice to their current employers. If the new employer is based in the UAE, the notice period is extended to 30 days. These notice periods also apply in cases of termination. However, following the probation period, the minimum notice period is set at 30 days, and the new employer is expected to compensate the current employer.


3. Work Days & Number of Hours

The new law mandates that all employers must grant at least one rest day in a six-day workweek, as opposed to the previous practice of having a rest day only on Fridays. This means that the total working hours for an employee should not exceed 48 hours per week. During the month of Ramadan, working hours are further reduced by two hours each day.


4. Overtime at Work

Employers based in the UAE can require their employees to work up to two hours of overtime per day to manage emergency tasks or excessive workloads. However, exceptions can be made in cases of serious accidents or situations likely to result in significant loss, where the employer may request more than two hours of overtime per day.


5. Discrimination – Strictly Prohibited

The new UAE law is designed to ensure equal opportunities and protect all employees from discrimination based on race, religion, gender, nationality, or handicap. Every individual is entitled to receive equal pay for equal work, fostering a more equitable job market and increasing employee confidence in job applications.


6. The New Leave Rules

Female employees are now entitled to 60 days of maternity leave in a calendar year. This leave includes full salary coverage for 45 days, with the remaining 15 days at half salary. Additionally, five days of parental leave can be taken within six months of childbirth. Employees with at least two years of service are eligible for 10 days of study leave, provided the institution is recognized.


7. Termination of Employment

The updated law grants employers the option to terminate employment for legitimate reasons, provided they provide the necessary notice to the affected employee. However, this does not exempt employers from honoring fixed-term contracts, and terminations can be implemented during inevitable circumstances such as insolvency.


In Summary

The UAE is actively bolstering its economy and safeguarding workers' rights through a series of reforms, including these changes to labor laws. The overarching goal is to attract and retain skilled talent. Employers who fail to adhere to these new laws may face substantial fines. Conversely, compliance can lead to increased employee satisfaction, productivity, and overall business growth.

106 views0 comments

Recent Posts

See All

Comments


bottom of page