The Ministry of Human Resources and Emiratisation announced the New United Arab Emirates (UAE) Labor Law (Federal Decree-Law No.33 of 2021) (“New Law”), which came into effect on 2nd February 2022. The New Law addresses changes in the work environment, recognizes the need for flexible working structures and aligns the relationship between the UAE laborers with international best practices. The New Law has replaced Federal Law no. 8 of 1980 and contains the most significant amendments that needed to be implemented to the UAE labor legislation.
We have summarized the fundamental changes of the New Law below with the action points for working employees.
Unlimited Contracts Elimination
Under the New Law Article 8, unlimited contracts are replaced with contracts of a fixed term of three years.
Flexible Working Hours
The New Law has introduced flexible working arrangements for part-time and remote working jobs. The Implementing Regulations have clarified that working hours will be reduced by two hours in the Holy month of Ramadan.
The New Law has set a minimum wage for the private sector employees, determined by the UAE Cabinet.
Harassment Provisions and Anti-Discrimination
Under the New Law, employers are prohibited discrimination based on race, gender, nationality, color, social origins, and religion or disability.
The New Law states equal pay for working women doing the same job as men. The Cabinet will determine the value of the work later.
Full-time employers can take 30 days of paid annual leave if the service length is more than one year or two days per month if the service length is between six months and one year.
Undoubtedly, the New Law has considered the best standards of requirement in the working environment and employment practices. It ensures the interest of employees and employers in a balanced manner.
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