The UAE’s new Labour Law has been formally Announced

HLB HAMT News Team

image

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

    Schedule a Consultation




    The UAE has introduced a new labour law for employees, which came into effect on February 2, 2022. The New labour Law, like the current labour law, will govern employee-employer relationships within all private sector enterprises and employees in the UAE, with the exception of the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), which have their own employment rules.

    What influence do labour regulations have on today’s workplace?

    The law aims to improve the UAE labour market’s growth and stability, as well as protect employees’ rights. Substantial initiatives were undertaken to guarantee that all private-sector employees work in a pleasant, fair, and welcoming workplace.

    The new labour law was enacted in order to react to the substantial change in the way UAE employees currently work as a result of technology improvements and the emergence of the COVID-19 pandemic. With the introduction of new provisions, the UAE’s new labour law aims to establish a more dynamic and efficient working environment, while also providing employees with additional safeguards against bullying and harassment in the workspace.

    Several amendments to the old legislation, such as the introduction of three-year work contracts or new work models, have been made under the new labour law. It also includes many facets of employer-employee interaction in the UAE private-sector workplace.

    The important components of the new labour law, as well as the key focal points for businesses, are listed here.

    • Three-Year Contract – This is a limited/fixed-term contract that cannot last more than three years and can be renewed for the same period or less with consent from both parties. Unlimited contracts under existing labour law continue, but they must be changed to limited contracts within one year of the new legislation’s implementation, i.e., on or before February 2, 2023.
    • Protection against discrimination and harassment – Sexual harassment, bullying, or any other type of behavioural, emotional, physical, or mental aggression against an employee by an employer, coworkers, or superiors is illegal. The new rule prohibits discrimination based on sex, race, colour, religion, national or social origin, or handicap.
    • Equal pay for men and women – In the workplace, men and women should be paid equally. It underlines that women should be paid equally to men while executing the same activity or other duties of similar value.
    • Period of probation – In comparison to prior labour laws, the new legislation states that if a person is recruited on a probationary basis not surpassing six months, the employer may cancel the worker’s employment during the probationary period by giving him a 14-day written notice prior to the date set for his termination.
    • Termination by employee & employer during probationary period – During the probationary phase, the employee may cancel the contract by giving at least one month’s written notice. During the probationary period, an employer may terminate an employee’s contract by giving the employee 14 days’ written notice.
    • Flexible Working Models – Full-time, part-time, temporary, and flexible employment options are available to employees.
    • End of Service Gratuity – The law explains in detail how an employee’s gratuity will be computed depending on the length of their employment. According to the new regulation, an expat who has worked full-time for an enterprise for one year or more would be awarded end-of-service rewards assessed based on the basic pay. Each of the first five years of service will be paid a salary of 21 days, and each year beyond that will be given a salary of 30 days.
    • Notice period – The new law requires a notice period of 30 to 90 days be issued. If both parties agree, this notification time might be waived as well.
    • Parental Leave – In the six months following the birth of their child, employees will be entitled to five days of paid leave.
    • Compassionate leave – Depending on the deceased’s degree of kinship, the employer may provide compassionate leave of between 3 to 5 days.
    • Study leave – Every year, employees are entitled to ten-day study leave, provided they are enrolled in a university of repute, and such leave shall be provided only after providing a certificate from the university.
    • Non-compete – According to the new UAE labour law, if an employer wants to preserve its business interests, it must enter into a non-compete agreement with its workers.

    According to the UAE Ministry of Human Resources and Emiratization (“MOHRE”), the new UAE labour law is a solution to the constantly shifting labour setting in a COVID-19 society, which is characterized by technological breakthroughs. The Ministry of Labour and Employment is now drafting executive rules to supervise the execution of the revised labour law.

    With the change in labour law, the need to re-draft existing HR policies and manuals arises. Companies are required to update employment policies, amend contracts, and possibly, use redraft their entire HR Policies and Processes to keep up with compliance requirements, and maybe other organizational changes that may have occurred in the past. Our team of experts at HLB HAMT can offer a diverse range of HR management solutions to help you stay up to date and compliant with the changes in labour law.

     

    Would you like to rate us on Google?         

     

    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
    Next Reviews
    js_loader

    Get in touch

    Whatever your question our team will point you in the right direction

    Start the conversation
    Get in touch
    x
    x

    Share to:

    Copy link:

    Copied to clipboard Copy