From February month of 2022, the revised labor laws of UAE has come into effect. Many amendments have been done to the previous law. The new law redefines the relationship between employers and employees in the private sector and covers various aspects like gratuity calculations, employer and employee rights and contracts. Let’s have a closer look at what the new Labor Law
One of the major changes in the new law is the removal of unlimited contracts. As per the previous law, contracts were either signed for a limited or perpetuity. In the revamped law, however, Article 8 says, “contracts shall be concluded for a definite period of time, which does not exceed three years.”
Moreover, the contract deed will vary on the type of work.
A work contract can be terminated by serving a notice period of 30 to 90 days. Both employer and employee can choose to terminate the work contract by respecting the proper notice period. However, if both parties get agreed this period can be waived off.
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Grounds for termination:
Article 44 deals with the termination of an employment contract, without prior notice. This clause can be used only on the grounds of failure in the performance of one’s duties, getting involved in a verbal or physical assault in the premises.
New working models:
As per the new law, employees/workers working in the UAE will be able to choose work type from a full-time model, part-time work, temporary model, flexible work etc.
Changes regarding Probation period:
Article 9 of the new law enumerates the rights of employees and employers during the probation period. This article deals with various facets of the probation period. It has detailed provisions for the maximum duration of probation, which according to the new law is six months. It also talks about cases if an employee switches job during the probation period.
Provision for leaves:
To offer better work-life balance, the new law enlists various types of leaves. Such leaves include sick leaves, annual leaves, bereavement leave, study leave, paternity leave and even a paid sabbatical. Besides, there is a provision for unpaid leaves.
In a welcome move, the period of maternity leaves has been extended to 60 days from earlier 45 days. Moreover, additional 5 days of leave is also available to the mother and father for child care.
Under the new law, one can avail opt for flexible salary options. Now an employee can choose to get paid in various currencies. Also one will have the option to choose from weekly, daily or hourly payments.
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One of the primary focuses of this new law was to weed out any kind of discrimination at the workplace. Hence, Article 4 of the law deals with the right to non-discrimination and ensures equality in payment. Women will get equal remuneration for the same work as their male counterparts.
Article 25 of the law stipulates that an employer can deduct an amount from an employee’s salary if the employee had raised a loan from the employer. However, this deduction shall not exceed 50 percent of the wage.
The normal working hours are 8 hours a day which shall not exceed 48 hours per week, except few sectors. Beyond these hours, a worker will be paid according to overtime pay.
Employment of Adolescents:
For those who want to earn experience during their education, the new law entails that individuals above 15 can be employed in the UAE’s private sector. However, few work conditions need to be maintained by employers.
A section of the new law deals with the fines that employers need to pay in case of violation of the law. The revised fines range from Dh20,000 to Dh10 million.