Understanding UAE’s New Labor Law

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The United Arab Emirates has newly introduced the Federal Decree-Law No. 33/2021 on Regulation of Labor Relations (the “new labor law”), which repeals the long-held Federal Law number 8 of 1980. The new labor law has been implemented with the twin objectives of ensuring the efficiency of the UAE’s employment sector by retaining its allure in attracting and maintaining the best, competent and future skills driven workforce. Thus, providing an attractive business environment for employers in the country. The new labor law mainly focuses on regulating the rights and obligations of both the employer and employees in a balanced manner and thus, introduces many vital regulations and changes.

Labor disputes are best avoided, as it is better to keep the focus on the smooth progression of the business rather than to tie a company down with numerous labor litigations, which are both costly and time-consuming. It is best that a company establishes defined labor principles and ensures its compliance with the labor law UAE. For the said service, an employer can always take the services of lawyers in Dubai. Many of the firms, including Al Rowaad Advocates & Legal Consultants, offer their expert services in a very approachable manner, and you can easily obtain their services for online lawyer in Dubai & Abu Dhabi, UAE.

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Quiet often a labor dispute might also have other elements relating to criminal law or anti-competition law or civil law. For instance, a labor matter can have circumstances wherein an employee commits an act of breach of trust against the employer or instances wherein an employee has committed theft, bribery or other criminal acts. In such matters, it is best to approach a specialized law firm that has solid and comprehensive expertise in handling complicated legal matters that involve a multitude of legal issues.

The new labor law has incorporated definitive rules that seek to introduce both flexibilities as well sustainability in the UAE’s employment sector. The new changes being extremely comprehensive in their application, have addressed both the new developments as well as exceptional circumstances that might arise in employment. Pursuant to article 68 of the new labor law, all employers are now required to convert the existing indefinite/ unlimited employment contracts to fixed -term employment contracts in accordance with the new law, within a period of one year from the date of effect of the new law (i.e. January 2022). The new labor law applies to all establishments, employers and workers in the private sector in the UAE. However, it excludes in its application employees of federal and local government entities, members of the armed forces, police and security, as well as domestic workers.

With the new labor law, the UAE has introduced an era of radical reforms and progressive changes, all of which seek to strike a balance between employer and employee rights. New concepts such as ‘minimum wage’, ‘temporary work’, flexible work’ and ‘part-time work permits’ have now been introduced. The country endeavors to be a market leader in innovative technologies and aims to count itself amongst the world’s most attractive business sectors in the world. All in all, the UAE is set to usher in an era of increased labor rights and privileges that confirm to international standards, aiming to attract the world’s best talents to the country.

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