All about UAE Labour Law 2022: Amendments and Impact

The second UAE President and Ruler of Abu Dhabi, H.H. Late Sheikh Khalifa bin Zayed Al Nahyan, issued the Federal Decree-Law no. 33 of 2021 to regulate the labour laws in the private sector.

This legislation took effect on 2nd February 2022. The post-COVID-19 workplace regulations include the following:

Flexible work hours

Different work models

Updated regulations for part-time/temporary work safeguarding employee rights

Termination rules during probation

Condensed work weeks

Equal pay for men and women

Article 74 of the Decree prohibits employers from all forms of coercion in the workplace. An employer may not penalise the worker or force them to provide a service against their will.

Also, employers cannot force employees to work overtime exceeding two hours per day. If the job requires additional hours, the employer must compensate with 25% of the employee’s regular hourly pay. If the extra hours fall between 10:00 pm and 04:00 am, the hourly wage rises to 50%.

Furthermore, employers are no longer allowed to withhold any documents of the employees, such as passports. They cannot charge employees any recruitment fees either.

Under this law, all forms of workplace harassment against an employee are strictly prohibited. That includes sexual harassment, bullying and any form of verbal, physical or psychological violence against a worker by the employer, their superiors or colleagues.

The legislation outlaws discrimination based on gender, religion, national origin, status, handicap, colour or race that may limit equal opportunities or obstruct the delivery of equal rights.

The law also prohibits the termination of female employees based on their pregnancy or maternity leave.

The amendments in the UAE Labour law accentuate the equal pay provision for men and women as defined under the law previously. These changes stress that all conditions governing the employment of workers shall apply to working women in the UAE without any discrimination or violation of the prescribed rights of working women.
UAE labour law also grants women the same wage as men if they do the same work or work of equal value, as the Council of Members established.

The labour law 2022 divides the employment market into six different work models that include:

Full-time Employment

Part-time Employment

Temporary Employment

Flexible Employment

Remote Employment

Job-sharing Employment

Here’s an overview of the different working models under the 2022 law.

Full-time work: Employment with a single employer for daily working shifts.

Part-time work:  Under one or more employment contracts for specific working hours/days. 

Temporary work:  Employment ends upon completing specified contractual hours or project(s).

Flexible work:  Employment allows working days and hours to change based on operational workload and requirements.

Remote work:  Employees can fully or partially work from outside the office, city and country.

Job-sharing work:  Employment duties and tasks are divided among more than one employee to cater to mutually agreed business needs and projects.

It’s also essential to note that the maximum work hours are 48 hours per week and 8 hours per day (9 hours including lunch break). Under Article 17 (1) of the Federal Decree-Law No (33) of 2021 on the Regulation of Labour Relations (the “New Employment Law.”) during the Holy Month of Ramadan, work duration has to be reduced by 2 hours.

The work rule also comes under Article 7, clause 1 of the Federal Decree-Law No (47) of 2021.

However, Article 7(2) of the New Employment Law also suggests that the Cabinet may increase or decrease the daily work hours for particular economic sectors/categories or workers with the minister’s proposal and in coordination with the concerned company.

Commute time is not considered part of the working hours except for specific categories specified by the ‘Executive Regulations of the Labour Law’.

The updated law stipulates that a fixed-term contract (limited) should be at most three years. If both parties agree, the contract can be renewed or extended for a similar or shorter amount of time.

The provisions of the decree law apply to employment contracts of indefinite duration as concluded under Federal Law No (8) of 1980.

According to the amendments, unlimited employment contracts will be converted into fixed-term ones. Within one year of the agreement’s effective date, these contracts must comply with the restrictions, controls and processes outlined in the Decree by law. They may be extended for longer durations by the Council of Ministers if necessary (in the public interest).

The labour law 2022 implements the following rulings on probation:

• The worker’s probationary period in the UAE must not exceed six months.
• The employer must give a two-week notice to the employee on account of termination during probation.
• Employees who wish to quit during probation must serve a 30-day notice period.
• A 14-day notice period must be served if the employee leaves the country during probation.
• Suppose an employee resigns and leaves the country but returns within 180 days to work for another company. In that case, the new employer has to compensate the old employer for the visa costs and other expenses.

• Notice periods, in any case, must be at most three months.
• Employers can now serve a termination notice during the employee’s leave period. However, the notice period will only begin once the employee returns to work after the leaves.

• The employer can now terminate employment contracts without prior notice for the ten reasons listed under article 120 of the original labour law. This includes misuse of power or if the individual gains personal benefits from their job position.
• However, even under these circumstances, the employer is bound to pay, where due, the end-of-service benefits to the employee.
• Employees can terminate their employment contract without notice under specific conditions, including a significant change in job responsibilities, without written consent from the employee.

According to the UAE Labour Law 2022, an employer can add a non-compete clause to the employment contract. Notably, the provision only applies if the work entrusted to the worker allows them to gain sensitive information about the employer’s clients or trade secrets.

Unless a condition as such is specified in terms of time, place and type of work to the extent necessary to protect legitimate business interests, the period of non-competition shall be at most two years from the date of contract expiry.

The MOHRE issues 12 types of work permits, depending on the nature of work and work model an employee is recruited. These work permits include the following:

Worker welfare sits at the core of the amendments to the UAE Labour Law 2022. It also ensures health and safety measures for all workers in the private sector. Here are some of the provisions related to employee welfare.

According to the 2022 labour laws and regulations, all employees are entitled to the following leaves.

• Five days because of the death of a spouse.
• Three days because of the death of a close family (mother, father, siblings, child, grandparents).
• Sick leaves and other folders at an office 
• Employees will get extra leave allocations under the updated UAE Labour Law

Up to 5 days of paternity leave to be taken intermittently or concurrently over six months after childbirth.

• 45-day fully paid maternity leave.
• Extended 15-day half-paid leave.
• Additional 45-day unpaid leave allowed in case of illness (mother and child) – supporting documents are required. 
• Mothers with babies born with disabilities can take a further fully paid 30-day leave. This can be extended to 30 additional days without pay. A medical certificate from a relevant authority has to be provided, proving the disability or illness.

A 10-day study leaves for employees studying in state-approved educational facilities, given their service tenure for the current employer is more than two years.

• UAE nationals working for private companies are entitled to full-time leave for national service. Proof of service is required.
• No changes were made to the UAE’s sick leaves law in the employment laws 2022.

The law deems it illegal and prohibits employers from withholding employees’ official documents, such as passports or forcing workers to leave the country at the end of an employment contract.

The law allows workers to have the right to obtain their wages on the due date under regulations approved by the Ministry and according to the procedures and conditions issued by the Executive Regulations of the Federal Decree-Law no. 33 of 2021.

In addition, the employees can now stay in the country for 180 days after terminating employment without incurring overstay fines on their visas. This period was previously limited to 30 days.

According to the UAE Labour Law 2022, the workers’ right to receive the end of service benefits, including gratuity, has been further secured with the following changes:

• Employees cannot be terminated without end-of-service benefits (EOSB) payment.
• Where EOSB are due, the employer cannot reduce or deduct the gratuity amount based on the employee’s contract type and resignation date.
• All end-of-service benefits of an employee must be paid within 14 days of employment. 
• In case of the end of employment, on the death of an employee, the entitlements must be paid to the deceased’s family after the deduction of body repatriation costs applicable. 
• If an employee lives in employer-paid accommodation, the employee is allowed 30 days from the end of the contract to vacate it.
   

The calculation of gratuity in the UAE remains unchanged (to be calculated by legislation that regulates pensions and social security). However, end-of-service benefits in the UAE can now be paid in any currency chosen by the employee as long as it is mutually agreed upon in the employment contract.

Based on the 2022 law, any labour cases or petitions filed against the employer by the employee and their legal heirs are exempt from judicial fees in all stages of litigation and execution and requests as long as the claim value does not exceed AED 100,000.

That concludes our guide to the UAE Labour Law 2022. Please visit the official MOHRE website to learn more about these changes. If you’re interested in working in Dubai, look for opportunities on the best job sites in the UAE or contact any recruitment agencies in Dubai.