[UAE] Key points of new decree-law governing work relations

In the UAE, President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued federal decree-law no.33 for 2021, regulating work relations in the private sector, Gulf Today reports.

The new decree-law will take effect on February 2nd 2022, it consists of 74 articles. It is reportedly intended to create balance and integration between public and private sectors with respect to leaves, holidays and working hours.

The rights of all UAE employees are also specified in the decree-law with respect to wages and end-of-service gratuity; when employees can get their wages in dirham or another currency as stipulated in the labour contract.

Gulf Today summarises the most important points included in the new decree-law:

* The decree-law stipulates that the employer may not use or threaten to use any means that will force the employee to work for him or provide a service against his will.

* An expatriate employee on a full-time work system who has completed a year or more of service will be entitled to end-of-service gratuity at the end of his service to be calculated according to the basic pay as follows: 21 days for each of the first five years of service and 30 days for each year in excess. 

The current law used to calculate the end-of-service gratuity at 7 days for employees who did not complete 3 years, 15 days for those who completed 3 years and 21 days for those who completed 5 years.

* The decree exempted labour cases from judicial fees at all stages of litigation and execution. This also applies to the claims under Dhs100,000 filed by employees or their heirs.

* According to the new decree-law, ordinary working hours will not exceed 8 hours per day or 48 hours per week and employees will have at least one day off per week. The law also specifies the hours in which work is banned and the overtime that may be worked as well as the related wages.

Firms have the right to decide upon flexible hours based on the performance and needs of the market.

* Sexual harassment, bullying, or any verbal, physical or psychological violence is prohibited against the employee and so is discrimination on the basis of race, colour, sex, religion, ethnic origin or social origin.

* Without prejudice to the rights granted to working women as stipulated in this decree-law, all provisions regulating the employment of workers without discrimination will apply to working women, who will have the same pay as men if they perform the same job or another work of equal value.

* New types of work have been created to allow employers to meet their labour needs and benefit from the employees’ energies and productivity at the lowest operational costs. These are part-time work, temporary work and flexible work. In addition, several options are provided to employers to employ employees whose labour contracts have expired and are still in the UAE through easy and flexible procedures.

* At the expiry of the labour contract, the employee may not be involved in any project that competes with his employer’s activity over or less than two years from the expiry date of the contract.

* It is prohibited to withhold the employee’s official documents or force him to leave the country as soon as the working relationship ends. This means that the employee can move to another facility and avail themself of the opportunities available in the labour market. In addition, employees must get their pay at maturity dates in accordance with the ministry-approved procedures specified in the executive regulations of this decree-law.

* The decree-law allows employees to work for other employers in the event of the termination of the labour contract. It also sets a probation period of no more than six months in accordance with the conditions and procedures specified by the executive regulations.

* The employer’s obligations include but are not limited to establishing labour regulations, providing housing and means of protection and prevention, training employees and developing their skills.

* Employees’ obligations include performing work as per the work schedules, committing to good behaviour and morals, maintaining confidentiality, striving to develop occupational skills, abstaining from working for other employers and vacating labour housing within a month of the end of their employment contract, among others.

* Employees are given one paid day off per week and may be granted more at the discretion of their respective facilities.

* A number of leaves have been created including a mourning leave; which ranges between three and five days according to the degree of the deceased’s relatives; a five-day parental leave and any other leaves as resolved by the cabinet.

* Employers will bear the recruitment and employment fees, these should not be levied from employees, whether directly or indirectly.

* The decree-law specifies one type of contract in terms of duration, i.e. contract of a definite period of no more than three years. With the consent of the two parties, however, this contract may be extended or renewed for similar or lesser periods once or more. The provisions of the decree-law apply to employment contracts of indefinite period concluded in accordance with federal law no.8 for 1980.

Source: Gulf Today

In the UAE, President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued federal decree-law no.33 for 2021, regulating work relations in the private sector, Gulf Today reports.

The new decree-law will take effect on February 2nd 2022, it consists of 74 articles. It is reportedly intended to create balance and integration between public and private sectors with respect to leaves, holidays and working hours.

The rights of all UAE employees are also specified in the decree-law with respect to wages and end-of-service gratuity; when employees can get their wages in dirham or another currency as stipulated in the labour contract.

Gulf Today summarises the most important points included in the new decree-law:

* The decree-law stipulates that the employer may not use or threaten to use any means that will force the employee to work for him or provide a service against his will.

* An expatriate employee on a full-time work system who has completed a year or more of service will be entitled to end-of-service gratuity at the end of his service to be calculated according to the basic pay as follows: 21 days for each of the first five years of service and 30 days for each year in excess. 

The current law used to calculate the end-of-service gratuity at 7 days for employees who did not complete 3 years, 15 days for those who completed 3 years and 21 days for those who completed 5 years.

* The decree exempted labour cases from judicial fees at all stages of litigation and execution. This also applies to the claims under Dhs100,000 filed by employees or their heirs.

* According to the new decree-law, ordinary working hours will not exceed 8 hours per day or 48 hours per week and employees will have at least one day off per week. The law also specifies the hours in which work is banned and the overtime that may be worked as well as the related wages.

Firms have the right to decide upon flexible hours based on the performance and needs of the market.

* Sexual harassment, bullying, or any verbal, physical or psychological violence is prohibited against the employee and so is discrimination on the basis of race, colour, sex, religion, ethnic origin or social origin.

* Without prejudice to the rights granted to working women as stipulated in this decree-law, all provisions regulating the employment of workers without discrimination will apply to working women, who will have the same pay as men if they perform the same job or another work of equal value.

* New types of work have been created to allow employers to meet their labour needs and benefit from the employees’ energies and productivity at the lowest operational costs. These are part-time work, temporary work and flexible work. In addition, several options are provided to employers to employ employees whose labour contracts have expired and are still in the UAE through easy and flexible procedures.

* At the expiry of the labour contract, the employee may not be involved in any project that competes with his employer’s activity over or less than two years from the expiry date of the contract.

* It is prohibited to withhold the employee’s official documents or force him to leave the country as soon as the working relationship ends. This means that the employee can move to another facility and avail themself of the opportunities available in the labour market. In addition, employees must get their pay at maturity dates in accordance with the ministry-approved procedures specified in the executive regulations of this decree-law.

* The decree-law allows employees to work for other employers in the event of the termination of the labour contract. It also sets a probation period of no more than six months in accordance with the conditions and procedures specified by the executive regulations.

* The employer’s obligations include but are not limited to establishing labour regulations, providing housing and means of protection and prevention, training employees and developing their skills.

* Employees’ obligations include performing work as per the work schedules, committing to good behaviour and morals, maintaining confidentiality, striving to develop occupational skills, abstaining from working for other employers and vacating labour housing within a month of the end of their employment contract, among others.

* Employees are given one paid day off per week and may be granted more at the discretion of their respective facilities.

* A number of leaves have been created including a mourning leave; which ranges between three and five days according to the degree of the deceased’s relatives; a five-day parental leave and any other leaves as resolved by the cabinet.

* Employers will bear the recruitment and employment fees, these should not be levied from employees, whether directly or indirectly.

* The decree-law specifies one type of contract in terms of duration, i.e. contract of a definite period of no more than three years. With the consent of the two parties, however, this contract may be extended or renewed for similar or lesser periods once or more. The provisions of the decree-law apply to employment contracts of indefinite period concluded in accordance with federal law no.8 for 1980.

Source: Gulf Today