Introduction
The UAE Labour Law 2024, governed by Federal Law No. 33 of 2021, outlines the rights and obligations of both employers and employees in the UAE’s private sector. This law covers a wide range of topics, including employment contracts, working hours, overtime, leave entitlements, anti-discrimination policies, and much more.
As an essential guide for employers and employees, understanding these updates is crucial for compliance and protecting workplace rights in both onshore and free zone areas.
1. Employment Contracts: From Unlimited to Fixed-Term Agreements
Under the UAE Labour Law 2024, unlimited-term employment contracts have ended. All employment contracts must now be for a fixed term, not exceeding three years, but they can be renewed for a similar period. Employers must update any existing unlimited contracts to fixed-term contracts by the law’s deadline. This change aims to provide more transparency and structure in employment relationships, giving both parties clear expectations regarding contract duration and renewal terms.
2. Work Models: Flexibility for a Dynamic Workforce
The new labor law introduces various work models, including full-time, part-time, temporary, and flexible working arrangements. These models cater to the evolving needs of the UAE workforce, providing more flexibility for employees and allowing employers to better manage their staffing requirements. Employees now have the option to work under conditions that best suit their professional and personal needs, promoting a healthier work-life balance.
3. Working Hours and Overtime Regulations
The standard working hours in the UAE remain at eight hours per day or 48 hours per week. However, flexible, temporary, and part-time work models allow for varied working hours based on the employment contract. Employers must provide at least one break for every five consecutive hours of work.
Overtime is regulated, and employees are entitled to additional pay—25% extra for daytime overtime and 50% extra for nighttime or public holiday work. This ensures that employees are fairly compensated for their time and effort.
4. Protection Against Harassment and Discrimination
The UAE Labour Law 2024 enforces strict policies against workplace discrimination and harassment. Discrimination based on race, gender, religion, nationality, or disability is prohibited. Employers must ensure a safe and respectful working environment, free from harassment, bullying, and violence. Women are particularly protected, especially during pregnancy and maternity leave, ensuring they receive equal pay and benefits for similar work performed by their male counterparts.
5. Leave Entitlements: Expanding Employee Benefits
The new law expands leave entitlements, including maternity leave, bereavement leave, and study leave:
Maternity Leave: Female employees are entitled to 60 days of maternity leave—45 days at full pay and 15 days at half pay.
Bereavement Leave: Employees are entitled to 5 days of leave in the event of a family death.
Parental Leave: Parents can now avail of 5 days of leave within six months of a child’s birth.
Study Leave: Employees enrolled in a certified institution are eligible for 10 days of study leave after completing two years of service.
These provisions promote a more supportive work environment, encouraging employee well-being and loyalty.
6. New Visa Categories and Work Permits
The UAE has introduced 12 new types of work permits to better accommodate the diverse employment landscape. These include work permits for freelancers, part-time employees, students, and those on parental sponsorship, among others. This diversification allows businesses to employ a wider range of talents and provides more flexible options for individuals seeking employment in the UAE.
7. Protection Against Unfair Dismissal
Employees in the UAE are protected against unjust termination. If an employee is terminated unlawfully, they are entitled to compensation equivalent to three months’ salary. This clause prevents arbitrary dismissal and encourages employers to follow due process, ensuring fairness in employment termination procedures.
8. Health and Safety Regulations
Companies with over 50 employees are now required to establish internal policies on working hours, promotions, rewards, and health and safety regulations. This aligns with the UAE's vision of fostering a safer and more regulated working environment, ensuring the well-being of employees.
9. Mandatory Notice Periods
The law mandates specific notice periods for ending employment contracts: 30 days for employees with less than five years of service, 60 days for those with 5-10 years, and 90 days for those employed for over ten years. This structured approach protects both employers and employees by ensuring sufficient time for transition and handover.
10. Non-Compete Clauses: Protecting Business Interests
The new law also addresses non-compete clauses. Employers can enforce such clauses, preventing employees from joining competing firms for up to two years, provided the employee has access to sensitive information during their tenure. However, these clauses must be reasonable and not overly restrictive to be enforceable.
Conclusion
The UAE Labour Law 2024 brings significant changes that impact both employers and employees. Understanding these changes is vital to ensure compliance and foster a positive, productive, and fair workplace. For employers, updating internal policies and contracts to reflect these new regulations is crucial. Being aware of their rights under this law will help employees navigate their professional journey more effectively.
For more compliance information and how Sundus can assist companies in navigating UAE labor law requirements, contact us today. Our expert team provides tailored solutions to ensure your organisation is fully compliant and prepared for future growth.
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