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The United Arab Emirates or UAE is a dynamic region with ever-changing legal and regulatory structures. In this regard, developments that are advantageous to both employers and employees have been incorporated into the new UAE labor law 2024.
Meanwhile, several modifications have been made to the UAE Labor Law 2024 with the goal of protecting employee rights and guaranteeing compliance to modern employment practices. In general, understanding UAE labor laws fosters positive employer-employee relations, ensures legal compliance, and helps establish a balanced workplace.
In this guide, we will provide you with recent updates that have changed in the new labor law in UAE 2024.
Recent updates to labor laws in the UAE, highlights a growing focus on flexible work arrangements, employee rights, and stricter employer obligations :
The UAE labor law in 2024 enacted a variety of work trends, including full-time, part-time, temporary, and flexible work arrangements.
Although the UAE 2024 leave laws did not undergo specific changes, the labor laws still emphasized the importance of paid leave, including annual, maternity, and sick leave.
End-of-service benefits continue to be a fundamental component of the UAE labor law, especially for expatriate workers. Moreover, employers have a duty to make sure that other benefits, like end-of-service gratuities, are calculated and disbursed in compliance with the latest changes to the law.
Employment contract is a legally binded contract between employer and employee which outlines the essential parameters of the employment.
Additionally, includes date of joining, designation, salary, duration of employment, termination and notice period. In addition, depending on the working conditions and nature of the job, employment contracts may vary.
The UAE labor law in 2024 outline numerous types of employment contracts, each with specific legal obligations and requirements:
An employee with a full-time contract works a particular number of hours per week, usually between 40 to 48 hours. Furthermore, the UAE labor law ensures that employers offer a fixed-term contract that includes salary and benefits. Both parties shall observe the mutually agreed upon working hours, termination, a notice period of 30 to 90 days.
Employees on part-time contracts work less hours than full-time employees and usually have flexible scheduling. Moreover, employees who work part-time are entitled to benefits that are consistent with their hours worked. Therefore, part-time employees are protected by law with regard to wage payments, leave and end-of-service gratuities.
Additionally, these contracts, which are usually for seasonal or short-term projects, terminate after the project is finished or within a given time frame. However, a fixed-term contract, defines the work length and early termination policies must be drafted by the employer. Moreover, during the employment, employees are entitled to any agreed-upon benefits as well as a notice period.
Freelancer means they work freely, without being tied to a single contract. However, freelancers have clear contracts, deliverables and payment terms. Meanwhile they are not like the full- time employees, benefits are not provided. Moreover, contracts should comply with UAE labor law 2024 in order to ensure fair treatment and payment protection.
When an employee has worked for a year, they are eligible for 30 calendar days of paid annual leave. Hence, it fosters employee well-being and a balance between work and life.
Moreover, it increases output and satisfaction in the workplace. In addition, under specific circumstances, employees are allowed to carry over unused leave.
Employees are eligible for up to 90 days of paid sick leave annually, which can be taken in full or in portions. However, the following is the salary scale:
Additionally, reduces the spread of disease and promotes worker health. Furthermore, maintains the organization’s trust and morale.
Female employees are entitled to a maternity leave of 60 days, of which half are paid for the final 15 days and the first 45 are paid in full. Moreover, it helps mothers heal physically after giving birth.
Also, enables time spent connecting with the baby. Furthermore, the UAE labor law encourages workplace parity between genders.
Male employees have the right to five days of paid paternity leave in the month after giving birth. Moreover, it supports paternal participation in early childcare. Furthermore, enhances work-life balance and family support of employees.
This is often given for personal emergencies and is up to the employer’s decision. Additionally, employees are eligible to five days of paid bereavement leave for the death of a spouse. Moreover, three days for the death of a parent, child, sibling, grandchild, or grandparent.
Employees can request special leave to perform Hajj, however the leave taken must be unpaid and no more than 30 days. Meanwhile, the leave can also be awarded only once throughout your employment with the organization.
In addition, the UAE labor law 2024 doesn’t provide conditions that allow employees to Umrah leave. However, it is the employer’s duty to consent and deduct from the employee’s annual leave. Alternatively, employers could grant it as unpaid leave.
The industry, the nature of the work, and the employee’s nationality all determine wages in the UAE. Additionally, the Wage Protection System (WPS) distributes employee salaries to accounts in banks or financial institutions authorized by the Central Bank of the UAE. MOHRE doesn’t process any transactions. Moreover, salary payments made in the following ways ;
As of right now, there is no minimum wage required under UAE labor law 2024. However, the law stipulates that an employee’s pay must be sufficient to meet their essential needs.
UAE employees generally work 8 hours a day or 48 hours a week. However, during Ramadan, Muslim employees only clock in 6 hours a day at work. The UAE labor law allows greater freedom in terms of remote, flexible, and part-time work.
Employees who work beyond the required hours receive overtime compensation, which is calculated as follows:
UAE labor law grants employees one paid rest day each week, typically on Friday, though it can be any day specified in the employment contract. Moreover, firms in various industries (for example, retail and hospitality) can apply roster shifts, but employees must still receive the legally required rest.
During public holidays, both the public and private sectors must offer their employees the day off. Moreover, the public holidays are:
So, here’s a detailed explanation of the termination in the country according to the UAE labor law 2024:
After issuing the notice period, either the employer or the employee may end their employment contract. 30 days is the standard notice period. But, based on the terms of the contract, this might be anytime from 30 to 90 days.
Moreover, employers and employees can mutually agree to lower the notice period. However, if either party breaks to respect the agreed notice period, the breaching party must compensate the other.
When an employee engages in significant misconduct, for example, the company may fire them without giving them prior warning.
If the employee doesn’t perform well during their employment.
If the employee shares the company’s confidential information. Consequently, the other would be committing a crime or violence at the workplace. Moreover, documents are not valid.
Continuously breaking organization’s rules and regulations despite warnings.
Because of restructuring or budgetary limitations.
According to UAE labor law, ‘arbitrary dismissal’ refers to the illegal or unfair termination of an employee without an explanation. Moreover, arbitrary dismissal in the UAE occurs when an employer fires an employee :
Employees who are fired without reason may be entitled to compensation. Generally, compensation is calculated as a maximum of 3 months’ wages. In order to avoid legal liabilities, the employer must give reasonable explanations for the termination and the employee must show dismissal was arbitrary. Additionally, employees who have been unfairly dismissed may submit a complaint with the labor court or the Ministry of Human Resources and Emiratisation (MOHRE).
In the beginning, a gratuity is an end-of-service benefit that a working employee in the UAE gets upon completion of a minimum one-year term of employment. In addition, the employee receives a one-time monetary bonus as an acknowledgment for their efforts to the company. Alternatively, employers could grant it as unpaid leave.
Employees who have worked continuously for at least a year are qualified for a gratuity.
The gratuity calculator is based on the employee’s basic salary, which excludes allowances and bonuses, and the length of service. Moreover, an employee in the UAE can use a specific tool called a UAE Gratuity Calculator to figure out their end-of-service benefits, or gratuity. However, if an employee has completed the minimum required period of service, gratuity becomes a statutory payment mandated by law that must be provided to the departing employee.
It is mandatory for the employers and employees in the UAE that they should know about the UAE Gratuity Calculator. In order to maintain trust between employers and employees, it ensures fairness and transparency. In addition, employees can use this calculator to determine what they can expect after leaving their job.
According to the UAE Labor Law as well as MOHRE regulations, organizations must conform to mandatory health and safety requirements. However, these guidelines aim to protect employees from dangers at work and to advance overall health. Below is an explanation of the major requirements:
In addition, organizations must give a safe and hazard-free workplace for the employees. Therefore, ensuring that equipment, machinery, and tools are regularly maintained and comply with safety standards is essential.
Organizations must conduct regular risk assessments to execute potential workplace hazards. Consequently, this ensures that the work environment complies with fire safety regulations, electrical safety, and ergonomics.
It is mandatory for employers to have well-defined and efficient emergency plans in case of fire or other emergencies. Moreover, ensure that fire escapes and firefighting equipment are readily accessible and that employees are trained in these safety protocols.
Every employee must receive the required health and safety training from the organization. Additionally, they should be aware of workplace hazards and solutions to handle any emergency.
Meanwhile, medical care for employees is the responsibility of any organization, especially in high-risk industries like manufacturing and construction.
Additionally, organizations should ensure that employees are not overloaded with work. Moreover, during working hours, provide adequate rest breaks for them.
Furthermore, organizations giving employees housing must ensure that the living conditions are good and safe. In addition, sanitation and ventilation are all covered by these regulations for employees and labor camps.
Employees who handle chemicals, work on building sites, should be provided with the proper personal protection equipment (PPE). These PPE includes helmets, gloves, safety glasses, or protective clothing.
Moreover, employers must take proactive steps to prevent occupational injuries and illnesses. Furthermore, ensuring safe working conditions, particularly in physically demanding sectors like construction, oil and gas, or factories.
In accordance with MOHRE requirements, all accidents, illnesses, and injuries must be reported and documented. Therefore, employers must keep a record of all health and safety incidents.
According to the law, businesses must provide a specific level of healthcare coverage for their employees, and the cost of health insurance must be paid by the employer. Also, the money should not take out from an employee’s salary or cut their pay to cover the premiums.
The UAE has an extensive insurance system for workers that aims to protect workers’ rights and offer financial stability within the organization. Moreover, it contains mandatory health insurance that covers hospital stays and medical costs. Furthermore, offers occupational health and workplace injury insurance, which covers illnesses, injuries or even death. In addition, it supports jobless people by offering temporary monetary help and increases financial protection.
Furthermore, disputes in UAE labor law 2024 are handled by a structured legal process between an employer and employee. However, these disputes may occur because of wrongful termination, unpaid wages or maybe work related issues. Hence, below we have mentioned all the necessary key points that may occur.
The initial step in resolving a labor dispute is filing a complaint with the MOHRE. Meanwhile, employees or employers can file grievances either online or by visiting a MOHRE service center. Then, MOHRE reviews the complaint and calls the parties to have a conversation and resolve the dispute.
In order to help the employee and employer negotiate an agreeable settlement, the MOHRE acts as a mediator. MOHRE representatives seek to quickly settle disputes during mediation in order to prevent going to court.
The dispute may be taken before the Labor Court if mediation is ineffective or if one side rejects the settlement. In order to verify that mediation has been tried and the matter is still unresolved, MOHRE will provide a letter of no objection prior to a case going to court. Meanwhile, the case must then be investigated, the facts must be evaluated and a legally binding decision must be made by the labor court. Additionally, the process involves:
Once a labor court decision is issued, it becomes legally binding. However, if an employer is ordered to pay compensation and does not comply, the courts may take enforcement actions.
In addition, employees who’re unable to pay for legal representation can look for help through MOHRE’s legal aid system or pro-bono services. However, it is especially for low- income groups.
Meanwhile, the disputes resolving may vary slightly if they take place in one of the free zones in the UAE. The examples are the Dubai World Trade Center (DWTC) or the Dubai International Financial Centre (DIFC). Hence, these zones have specific courts to handle labor-related cases as well as their own labor laws.
If you want to work in the UAE, you can apply for one of 12 different types of work permits. The numerous types of labor permits consist of:
The government portal has more details regarding work permits. Meanwhile, work permits can be issued for amounts between AED 250 and AED 3,450. However, the fee varies based on the classification of the business, which takes into account compliance with the WPS. In addition to UAE Labor Law, and other relevant MOHRE directives and resolutions.
A recent initiative by the UAE government intends to increase the proportion of Emirati employees. However, the Emirati Talent Competitiveness Program, or NAFIS, is a training initiative run by the government. Additionally, the program aims for 10% of private sector positions in the UAE to be occupied by Emiratis by 2025. Therefore, the program will invest money in recruiting and teaching young, skilled Emiratis in order to accomplish this.
In summary, the UAE Labor Law 2024 brings about significant changes that show the country’s dedication to updating labor laws. Moreover, ensuring a positive working environment between organizations and employees.
Through educated compliance with these developments, organizations can create a work environment that is equitable, secure, and productive. At this point Zimyo plays a crucial role.
With this regard, its complete HR solutions, organizations can seamlessly manage employee contracts and other compliances linked with the UAE labor law 2024. With the help of this HR software, businesses in UAE can foster a work environment which can be beneficial for the economy of the UAE.