The UAE has issued a new labor law that is expected to, among other things, regulate job contracts and give workers more rights, local reports have said.
The new law will come into effect from February 2 next year, according to a federal decree issued by UAE President Sheikh Khalifa Bin Zayed Al Nahyan.
It reportedly places worker welfare and wellbeing at its core, and accordingly, embodies a host of measures to ensure a safe, healthy, and business-conducive environment for all employees in the private sector.
The UAE’s Minister of Human Resources and Emiratization, Abdulrahman Al Awar, told reporters recently that the new decree law was the biggest update to the laws regulating labor relations in the country.
“The law comes in response to the rapidly-changing workplace amid technological advancements and the outbreak of Covid-19. It will apply to different work categories including full-time, part-time, temporary and flexy work among other categories. The executive regulations of the law, which the ministry is currently working on, lays out the responsibilities of both parties in each category,” he said.
Al Awar elaborated that the new law seeks to ensure efficiency in the labor market, and also attract and retain the best talent and skills for employment.
He added that the new law has an advanced mechanism that would enhance ease of doing business, competitiveness, and productivity of the labor market.
The minister also said executive regulations are currently being prepared to regulate implementation of the provisions of the decree-law, noting that it gives flexibility to the Cabinet by granting it a set of competencies aligned with current and future developments.
He added that his ministry would work on proposing policies, strategies, and legislations to encourage and motivate enterprises to invest in training and empower workers; boost their skills, efficiency and productivity; adopt modern technologies; and attract the best talent according to the requirements of the labor market in the country; as well as train students of public and higher-education institutions endorsed by the state.
No discrimination or intimidation
The decree-law, in its Article 74, apparently stipulates that an employer may not use any means to force a worker or threaten them with any penalty to make them work or provide a service against their will.
The law reportedly also forbids sexual harassment, bullying, or any form of verbal, physical, or psychological violence against a worker by the employer, superiors, or colleagues.
It is said to prohibits all forms of discriminations based on race, color, sex, religion, national or social origin, or disability.
Change in contracts and work
Among the amendments provided by the decree law is the introduction of new types of work to allow employers to meet their labor requirements and benefit from their energies and productivity at the lowest operational cost through part-time work, temporary work, and flexy work, as well as allow employers to hire those whose work contracts have expired, but who are still in the country, through easy and flexible procedures.
The executive regulations of the law determine the conditions and control of work patterns and the obligations arising from each worker and employer, depending upon the type of employment, including what is related to end-of-service gratuity and as required by the interest of the two parties to the work contract.
The law grants companies the flexibility to pay wages in UAE dirhams or in any other currency, based on the agreement between the two parties in the work contract.
The decree-law also permits the employer to prohibit the worker from competing with the employer or participating in any competing project in the same business, should the work entrusted to the worker permit them to know the employer’s clients or access his or her trade secrets. This, of course, is subject to its own set of conditions
The decree-law specifies a fixed-term contract as one that doesn’t exceed three years, and it is permissible, upon agreement by the two parties, to extend or renew this contract for a similar or lesser duration once or more.
The provisions of the decree-law are also expected to apply to employment contracts of indefinite durations.
The law also stipulates that unlimited employment contracts are to be converted into fixed-term employment contracts within one year of their effective date, in accordance with the conditions, controls, and procedures envisaged in this decree by law.
Reform for workers
All private sector workers are entitled to a paid, weekly rest day, with the possibility of increasing the weekly rest day at the discretion of the employer, in addition to vacations.
This includes compassionate leave ranging from three to five days, according to the degree of the employee’s relationship with the deceased.
In addition, paternity leave of five days shall be granted to private-sector workers. Any other leave shall be decided by Cabinet.
The law also assigns the employer the responsibility to pay for the fees and costs of recruitment and not to collect them from the worker either directly or indirectly.
The decree-law apparently also stipulates the prohibition of withholding of official documents, such as passports, belonging to the workers and forcing them to leave the country at the end of an employment contract.
This, local reports said, has been done to allow workers to move to other establishments in the labor market.
The workers will also apparently have the right to obtain their wages on the due date in accordance with the regulations approved by the ministry and according to the conditions and procedures as specified by the Executive Regulations of this decree-law.
The decree-law permits the worker, in the event of expiration of the work contract, to move to another employer. A probationary period for the worker may not exceed six months, in accordance with the law’s executive regulations.
The amendments include a provision, according to which a worker is entitled to an end-of-service gratuity, in accordance with the legislation regulating pensions and social security in the country.
As per the law, a foreign worker who has worked full-time and who has completed one year or more of continuous service with an establishment, shall be paid end-of-service benefits calculated according to the basic wage, with a wage of 21 days for each of the first five years of service and 30 days for each subsequent year.
The decree-law waives judicial fees in all stages of litigation in all stages of litigation, execution and requests made by workers or their heirs, the value of which does not exceed AED100,000.
Obligations of both parties
The law also regulates the obligations of the employer, the most prominent of which is the establishment of labor regulations, the obligation to provide adequate accommodation, protection and prevention, as well as train workers and help them develop their skills.
The law regulates the workers’ obligations as well, based on the terms of the employment contract and in accordance with duties, notably performing work during the specified times; abiding by work ethics and good conduct; keeping work secrets; developing job skills; committing not to work for another competing employer; vacating the labor accommodation within one month of expiry of employment contract and other obligations.
The decree-law also regulates the controls and conditions for terminating work contracts in a way that guarantees the rights of both parties. The amendments also strengthen the controls for the employment of juveniles, as well as with regards to the entitlements of the deceased worker, the requirements for occupational safety and other controls that guarantee the rights of both parties in a balanced manner.