NEWS
All You Should Know About the New UAE Employment Labour Law
The Ministry of Human Resources & Emiratisation (“MOHRE”) announced an overhaul to the labour laws in the UAE with the introduction of Federal Decree Law No. 33 of 2021 Regulating Labour Relations, as well as its Executive Regulations, under Cabinet Resolution No. 1 of 2022 (collectively “New Law”), which came into effect as of 2 February 2022 (“Effective Date”). UAE employment labor law introduced a revamped Emiratization policy, targeting the private sector’s employment practices. Under this policy, it is mandatory for private sector organizations registered with the Ministry of Human Resources and Emiratisation (MOHRE) to meet specific national employment ratios i.e. giving employment to UAE nationals. This ratio should start at 2% and increase annually until reaching 10%. Under the New Law the concept of unlimited term contracts has been removed and only fixed term contracts (of up to 3 years) can be issued. Employers have until 2 February 2023 to transition all existing employees that are currently on unlimited term contracts to the fixed term contracts. The new changes in the law introduce clear guidelines for termination by making it mandatory to adhere to the notice period specified in employment contracts. To ensure compliance with the law, the duration of the notice period is a minimum of 30 days and a maximum of 90 days. This means the employers need to provide at least 30 days prior notice to the employee before terminating them. The changes in the law have reduced the workweek to the UAE labor market, reducing typical working hours for private organizations from 48 hours a week to 40 hours. This adjustment, allowing for a 4-day workweek with 10 hours per day, reflects a commitment to improved work-life balance. The New Law enhances and also introduces a host of new leave entitlements: Maternity leave: increased to 60 calendar days (45 days at full pay and 15 days at half pay); will also be applicable where an employee miscarries after 6 months term. Compassionate leave: five calendar days in the event of the death of the employee’s spouse and three calendar days in the event of the death of the employee’s parent or grandparent, child or grandchild or sibling. Parental Leave: five calendar days (for both parents) which must be utilised within six months of the child’s birth. Study leave: 10 calendar days per year to sit exams as long as the employee has more than two years’ service and is studying with an approved UAE education institution. A significant change in the calculation of end-of-service gratuity shifts from a tenure-based system to one based on the number of working days. Furthermore, employees are now entitled to full gratuity even if they resign voluntarily. The new law introduces an unemployment insurance plan for private sector employees. The plan aims to provide financial support during periods of unemployment, with different insurance premiums based on monthly income. 
Emiratization Policy
Fixed-Term Contracts
Termination Process
Probation Period
Whilst probation periods remain at a maximum of six months, the New Law now introduces an obligation for either party seeking to terminate employment during probation to provide at least 14 days’ notice, and where an employee is joining another UAE-based employer; they must provide at least 30 days’ notice. In addition, employers can seek repayment of their recruitment costs of the employee from the new employer.
Working Days and Hours
Alteration in Annual Leave
Amendment in End-of-Service Gratuity
Unemployment Insurance Plan
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