Uncover the Top 10 Must-Know Insights on the Revamped UAE Labour Law 2023

31 January 2023

Uncover the Top 10 Must-Know Insights on the Revamped UAE Labour Law 2023

The UAE Ministry of Human Resources and Emiratisation has recently announced several changes to the UAE Labor Law that will impact the work arrangements and employee benefits in the country. Here’s a detailed elaboration of the changes:

  1. Contract Terms: Only fixed-term contracts with a maximum duration of 3 years can be issued. Existing unlimited term contracts need to be transitioned by 2nd February 2023.
  2. Probation and Termination: Employers are required to provide a 14-day notice period for probation and 30 days for termination. Meanwhile, employees must provide 30 days’ notice if they plan to join another UAE-based employer.
  3. Work Arrangements: Part-time, temporary, flexible and job-sharing work arrangements have been introduced, providing employees with more job flexibility options.
  4. Working Hours: Employers are required to provide at least one rest day per week, with a maximum working time of 8 hours per day and 48 hours per week. However, there are exemptions for working up to 56 hours per week.
  5. Annual Leave: Employees must utilize their annual leave in the same year, with unused days forfeited. Pay-out for unused leave is only allowed in exceptional cases.
  6. Maternity and Compassionate Leave: Female employees are entitled to 60 days of maternity leave, with 45 days at full pay and 15 days at half pay. Meanwhile, 5 days of compassionate leave are provided for the death of a spouse and 3 days for the death of a close relative. Parents are also entitled to 5 days of parental leave each. Additionally, employees are eligible for 10 days of study leave per year for exams.
  7. Anti-Discrimination and Equal Pay: The Labor Law provides protection against discrimination and requires equal pay for the same work. Termination due to pregnancy or maternity leave is also prohibited.
  8. Termination of Fixed-Term Contracts: Fixed-term contracts can be terminated for legitimate reasons with notice. Redundancy is considered a valid reason for termination, and the compensation for arbitrary dismissal has been reduced.
  9. Gratuity: Employees will not see a reduction or forfeiture of gratuity for resigning before 5 years of service.
  10. Notice Period for Termination: The notice period for termination has been increased to 30 days for employees with less than 5 years of service, and 60 days for employees with more than 5 years of service.

With these changes, the UAE continues to be an attractive destination for both employers and employees, offering a flexible and well-regulated labor market. And if you’re looking for the best recruitment agency in the GCC, look no further than Guildhall – the highest-rated in the region.

Guildhall, the best-rated recruitment agency in the GCC, offers top-notch staffing services to clients in the region. With its commitment to providing only the highest quality of service, Guildhall has established itself as a leader in the recruitment industry.

31 January 2023

Uncover the Top 10 Must-Know Insights on the Revamped UAE Labour Law 2023

Best recruitment agency in Dubai

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