UAE Labour Laws and the New Changes : A Discussion

There has been a huge change in UAE Labour Law in the year of 2022. Many changes were also enforced in 2023. However, there has been a huge change in 2022 regarding UAE Labour and Employment Law. Companies took many new plans to cope with the requirements of new Law in order to be saved from penalties in case if a company is found breaching the Labour and Employment Law. MOHRE throws the light in detail on these new rules and regulations. Labour and Employment Lawyers can also be hired to understand the new rules and regulations.

• One of the popular examples of the New UAE Labour and Employment Law is that all the unlimited contracts have been shifted to limited contracts. These are also called as Fixed Term Contracts. The deadline to shift to new contracts had been shifted or extended in order to provide more flexibility to employers. Especially for the companies who are recruiting the employees in hundreds and thousands, they need special time to change the employment contract. It all had to be performed under the Law Ministerial Resolution No 27 of 2023. The support was provided to the private sector, run by mostly expatriates, so they could manage the business documentation easily, without affecting the business operations. We also want to mention here that the ONE-YEAR, conversion option was also granted by MOHRE to those who had unlimited contracts previously. The three-year mandatory condition has also been removed. It is allowed on the mutual consensus of both parties’ employer and employee.
• Apart from this a new insurance plan is also introduced known as ILOE. It is a compulsory plan where it is made compulsory for all employees to get employee insurance. The new decree is ordered through Federal Law 13 2022 by MOHRE.
• Emiratization Law is also introduced where a set percentage of Emirati Employees have been made compulsory in the private sector for private businesses. The recruitment rate is introduced as 2% for the company having employees more than 50. It will also be increased 2% every year. Learn here the New Emiratization Rules in details.
• A fee of 6000 AED has been obliged to pay for the Non-Compliance Business.

There are several modifications introduced in the new UAE Labour Law, which cannot be described here. Top Law Companies for example Ask The Law, and Al Shaiba Advocates, do offer Labour and Employment legal advisory services, which is beneficial for the employers and employees. Therefore, employers and employees must consult the Employment Law Attorneys in UAE if they have to enter into an employment contract. Top advocates in Dubai and UAE can provide legal advice as well as document services, where employees can save their interest at the beginning as well as the employer. It allows both parties to be saved from any confusion or dispute in the future. But this is also necessary to hire a reputed Law Company and professional employment lawyers for real help.