If you’re a professional working in the UAE or planning to work in the UAE, you must know that the “trending” topic on all social media platforms during the last few days was “the UAE’s new labor law.” So, if you want to understand more about it, Dr. Job is here for it.
The new UAE labor legislation administers the private sector, gives employees more security, gives further workplace flexibility, and makes it simpler to go from one position to another. It has been described as a “historic” amendment and will be effective starting February 2, 2022.
In light of this new UAE labor law, both parties will be protected. Employers will save more costs as they will not need to hire overseas employees as the professionals already in the UAE become freer to shift between employers.
Employers will not have the right to force employees to leave the UAE after their work relationship ends or they get terminated, as per the law, because employees have the full right to work for another company.
Moreover, Indefinite-term employment contracts will no longer be permitted under the new guidelines.
Fixed-term contracts with a maximum duration of three years will be adopted instead. With mutual consent, these can be renewed repeatedly.
“New UAE Labor Law Will Integrates, Streamlines, and takes the Job Market In The Country to the next International Level,” Market Experts Said.
Probation Periods In The UAE
The UAE has made new laws concerning probation periods for employees.
According to the new UAE labor law, companies will be obligated to send at least 14 days’ written notice if they are to terminate the service of any employee, and the probationary period does not exceed six months.
Previously, the Company could fire an employee on probation for any reason and without explanation. Now, unfair dismissal without notice with grounds is not legally permissible.
Workers who choose to quit within their probationary period now face new legal consequences.
The regulation currently determines the duration of the notice period for the staff’s departure and their plans for the future.
If an employee wishes to change jobs and work for a new employer in the UAE, they must offer one month’s notice in writing. In addition, the new Company must reimburse the old employer for all acquisition charges or costs charged in hiring the employee.
On the other hand, the employee has to submit a written notice 14-days before leaving the country, in case he plans for it.
However, suppose he returns again to the UAE within three months from the date of departure and gets a new job. In that case, the new employer must reimburse the previous Company the appointment fee unless there is a separate agreement between the two parties.
If either the employer or the employee fails to follow these rules, compensation equal to the employee’s wage must be paid.
If an expat employee leaves the country without complying with the laws, any work permit for him will be rejected within a year starting from his departure date.
An expert in the labor market commented on this, saying: “These laws have significant implications because of their great impact on employers and employees, as no person will be allowed to use any company as a “gateway” to enter the country and then move freely to other companies. This also provides Exorbitant recruitment costs incurred by companies to recruit talent from abroad.”
Among the most significant amendments to the UAE Labor Law in force from 02/02/2022 are the following:
- The employer may not use any means to force or force the worker or threaten him with any penalty to work for him or force him to do work or provide a service against his will. The employee may prove the working relationship by all means of proof.
- Prohibition of sexual harassment, bullying, or the practice of any verbal, physical, or psychological violence against the worker by the employer, his superiors at work, his colleagues, or those who are working with him.
- It is also prohibited to discriminate based on race, color, sex, religion, national origin, social origin, or because of disability among persons that would impair equal opportunities or prejudice equality in obtaining or continuing a job and enjoying its rights, as well as prohibiting discrimination in work with tasks The same position. At the same time, the rules and procedures that would enhance the participation of the citizens of the country in the labor market are not considered discrimination.
- A woman is given a wage equal to a man if she performs the same work or another work of equal value.
- The employer may stipulate in the work contract that the worker shall not, after the end of the contract, compete with him or participate in any competing project in the same sector if the work entrusted to the worker allows him to know the employer’s clients or access his business secrets, provided that the condition is specified by Where the time, place and type of work are to the extent necessary to protect the legitimate business interests. The period of non-competition shall not exceed two years from the date of contract expiry.
- The decree-law specified one type of contract in terms of duration, which is a fixed-term contract not exceeding three years, and it is permissible, by agreement of the two parties, to extend or renew this contract for similar or lesser periods once or more.
- The worker is granted a paid rest day with the possibility of increasing the weekly rest days according to the establishment’s discretion, in addition to introducing some leaves for the worker, including mourning leave ranging from 3 to 5 days according to the degree of the deceased’s relatives, in addition to the five-day parental leave and any other leaves decided by the Council of Ministers.
- The employer shall bear the fees and costs of recruitment and employment and shall not collect them from the worker, either directly or indirectly.
- It is prohibited to withhold official documents related to the worker and not to be forced by the employer to leave the country after the end of the work relationship, which allows the worker to move to another facility and benefit from it in the labor market, in addition to the worker’s right to obtain his wages on the dates due according to the approved regulations