The UAE Labor Law continuously ensures the safety of employees and private sector employers’ obligations are fairly regulated. It included workers in several industries, from offices and construction sites to the hospitality sector. 3 *However, it varies for the free zones in UAE such as Jebel Ali Free Zone Authority (JAFZA). Both the zones are adherent to the country’s labor standards, however have their own regulations which are designed as per its respective business environment. Get Professional Help If you need more detailed guidance on Dubai labor law, then you can always contact legal experts. For consultation visit Khairallah Law Firm.

Read More About: The New UAE labor law

Fixed-Term Contracts: Exclusively Addressed in Dubai Labour Law

The latest UAE labor law, eliminates the concept of unlimited-term contracts and mandates the issuance of only fixed-term contracts, which can last up to 3 years. Employers must transition all existing employees currently on unlimited-term contracts to fixed-term contracts by February 2, 2023.

Notice During Probationary Period

While probation periods are still capped at a maximum of six months, the UAE labour law now mandates that either party seeking to terminate employment during probation must give at least 14 days’ notice. If an employee is joining another UAE-based employer, they must provide at least 30 days’ notice. Moreover, employers have the authority to reclaim their recruitment costs from the new employer.

Flexible Part-Time Work Arrangements

The Dubai labour law has now implemented many new alternative and non-standard employment forms or flexible working arrangements and atypical employment comprise several possibilities: part-time work, which are benefits that are proportional; temporary work for project-based tasks; flexible work in which working hours and days are determined by employer; lastly, job-sharing is also an alternative on this list, per MOHRE on job-sharing details have not been produced.

Hours and Days of Work

curtailment of the mandatory rest day: that law no longer has the day as Friday, and at least one day a week an employer and employee must have a rest day; the same working hours apply eight hours per day or 48 per week , with two hours overtime. However, an employer and employee may reach agreement in the Executive Regulations on the duration of working hours per week but, under no circumstances, less than 56 hours.

Annual Leave

Now, under the Dubai labour law, employees must use annual leave in the year it accrues and cannot carry over unused days into the next holiday year unless the employer specifically approves (or in very limited circumstances where the employer has prevented the employee from using leave in the year it accrued). Unused days are forfeited without compensation. Payout of unused leave days only happens in exceptional circumstances or for annual leave days accrued in the year employment ends, with the payout based solely on basic salary.

Equal Pay and Discrimination in Accordance with Dubai Labour Law

In addition, the uae labor law now categorically protect employees from discrimination in the workplace. This involves distinctions regarding race, color, sex, religion, national or social origin, origin, disability, and any other factors that are likely to compromise the chances or prejudice of any person employed. Maternity and/or pregnancy are not explicitly protected in this bill. However, according to the UAE labor law, an employer must not dismiss an employee because of her sex or pregnancy or potential pregnancy or any other gender characteristic, or because the employee is or has taken maternity leave”. Finally, there is a Law which concerns equal pay for men and women doing the same job.

Terminating Employment Agreements

While the above indicates certain liberalization in the Dubai labor law, the law still allows “fixed”-term contracts termination with notice during the term for a “legitimate reason.” However, it is essential that that contract should expressly provide for a written notice period in this case. Not only that, but now the supplier may terminate with notice not bound to an employee’s performance or conduct. Even more critical is that while the old law completely covered arbitrary dismissal compensation, permits or limits arbitrary dismissal compensation, in the old law’s terms, only in two specific terminations. Furthermore, this development is expected to be further interpreted by UAE Labor Courts, which labor law firms will keep track of closely.

Conclusion 

The Dubai labour law amendments mark a notable change in employment regulations, allowing termination of fixed-term contracts and recognizing redundancy as valid grounds. With limited compensation availability in arbitrary dismissal cases, these changes set a new precedent. As labor law firms, such as Khairallah Law Firm, monitor developments, the interpretation by the UAE Labour Courts will shape future employment practices in Dubai.

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